Oak Street Funding, a First Financial Bank (FFB) company that provides commercial financing for financial service businesses, including Registered Investment Advisors (RIAs), Insurance Businesses and Certified Public Accountants (CPAs), has continued to work aggressively to support these industries while other commercial lenders have stopped or retreated from providing capital during these unprecedented times brought about by the Coronavirus pandemic.
For Oak Street Funding, the investment advisor space has seen significant year-over-year business growth as well as substantial increases in deal size. Compared to the same period as last year, Oak Street Funding has experienced a 30% increase in the number of loans funded to Registered Investment Advisors, and projects a record-breaking second quarter followed by steady growth for the remainder of the year. “As we experienced during the Great Recession, there are always businesses, across the industries we serve, that want to prudently capitalize on growth opportunities during market disruptions while inexperienced lenders are forced to exit these industries. Given our experience navigating these market conditions and financial strength and stability, we are well positioned to continue to satisfy the financial needs of investment advisor firms and other businesses that are looking to take advantage of these unprecedented market conditions,” explained Rick Dennen, Founder and CEO of Oak Street Funding.
Based on an analysis of the RIA lending business at Oak Street Funding, a consistently positive customer experience and a significant shift in how loans are being used is evident. Regardless of fund purpose, every client experiences a personalized and customer-focused approach when working with Oak Street Funding, which is apparent in their considerably above average Net Promoter Score of over 90% and their strong repeat customer base of nearly 15%. Historically, it was common for RIA clients to use the loans for debt consolidation and working capital, but recent loans have predominantly been used for acquisition and succession – both partner buy-in and shareholder buy-out. Beyond customers’ loan needs shifting more towards growth opportunities, the size of the loans has also significantly grown.
“We are seeing larger multi-million dollar deals during this economic environment and are finding our customized financial solutions to be of value for advisor firms as they structure unique acquisition and succession arrangements,” stated Kirsten Petras, Executive Director of Sales for Oak Street Funding. “Our experienced and trusted team continues to remain focused on providing a relationship-based approach to the financial advisor industry with tailored solutions that help advisors through this business life cycle.”
As we move forward into the uncharted waters of reopening the economy after the pandemic, Oak Street Funding is well capitalized to continue funding more large deals. Their proven approach to lending and portfolio management, coupled with their deep client understanding will solidify extraordinary growth opportunities for not only investment advisor firms but also all specialty clients served. “With a portfolio exceeding $1 billion and our parent company, First Financial Bank, which provides great stability and capital, we remain well positioned to meet customers’ current and future lending needs,” explained Dennen.