Mortgage financier Firstfolio will seek to double its equity and help fund a series of takeovers with a rights issue to raise $11.6 million.Most of the new capital will be used to repay loans from a company controlled by one of its directors, Tony Wales. (Wales is the former chief financial officer of Computershare). Wales has loans of more than $7 million to Firstfolio.Another $2 million or so will replace other debt provided in the form of convertible notes.So only $2 million of the new equity will count as new working capital.Firstfolio is one of the few firms in the mortgage space to buy up meaningful portfolios and rival businesses over the two years or so since the original credit crunch.Firstfolio announced last week that it is in negotiations to acquire three separate mortgage businesses - First Chartered Capital, Loan Services Australia, and Xplore Capital. If all the transactions proceed, Firstfolio will add $6 billion of mortgage assets to its loan portfolio, taking the total to $18 billion.The company said last week that it had secured a $25 million loan to fund these acquisitions.