RIA FIRM

We’ll Get You There

Case Study: Multi-Phase Partnership

Oak Street Funding® recently partnered with an RIA firm with approximately $1 billion in AUM. This firm developed a multi-phase growth strategy and sought a lending partner to assist with a tiered execution including acquisition, succession planning, and a line of credit.

Phase 1 of their growth plan included cleaning up their existing ownership structure and replacing an existing line of credit. With a $4mm loan, they leveraged a 10-year amortized debt to buyout a senior partner.

Additionally, they closed out and replaced a working line of credit they’d had for many years with their local bank, who had served them well to this point. However, they decided they needed a specialty lender who understood the nuances of their operations and cash flow, and one with whom they could build a long-term relationship, given the direction they envisioned their firm going and the complexity of their lending needs.

Phase 2 of their growth plan is currently in progress. This incremental acquisition strategy includes one acquisition by the end of 2019 with an estimated value of $6mm, and another anticipated acquisition in Q2 2020.

The future is bright for this firm, given their solid internal foundation to support external growth opportunities and the incremental impact on their overall AUM provided by these acquisitions. Oak Street Funding is prepared to support them as they enter an aggressive acquisition strategy with several viable opportunities. Given the strength of the company and the caliber of the targets, we anticipate this relationship to be in excess of $11mm by year end, with additional lending bandwidth to grow well into 2020 and beyond.

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Have questions? Talk with our experts for more information.