January 19, 2015 – Oak Street Funding was proud to experience a record-breaking year in 2014. As we enter 2015, we are excited to announce we’re moving the bar once again to further assist those with a need for capital by raising our loan limit to $20,000,000.

In 2014, our borrowers used proceeds for various reasons, but can generally be summarized into the below categories.

Acquisitions:

• Third party buyers – peer to peer with no previous affiliation.
• Perpetuation, succession, shareholder retirements, management buyouts – (ownership changes with family or existing management).
• Private Equity buyouts.
• Risk bearing – carrier acquisition, captive formation, RRGs.

Working Capital:

• Program development and market expansion.
• Hiring of producer(s) and team leading to building a new division in an existing program administrator.
• Management recapitalization.

Based on industry demographics, Oak Street has been very focused on acquisitions and successions. In 2014 we saw purchase multiples increase as a result of continued acquisition demand. Many of our clients have returned to us for a second, third or fourth round of funding. For one client, we’ve funded 11 acquisitions over the last few years with even more on the horizon. As our portfolio grows, so does the diversity of our clientele. Below is a summary of the types of businesses for which we’ve provided acquisition assistance.

• Experienced First-Time Buyers – In all sectors (Retail, Wholesale, MGA, Program Administrator) – A number of our clients are first time buyers / first time borrowers. Generally these are experienced insurance professionals who desire the entrepreneurial experience and wealth potential of owning their own agency.
• Retail Agency Roll Up Operators – Serial Buyers. We support several independent entities who are buying multiple agencies per year.  After the initial diligence, loan approval, and funding at Oak Street, follow up deals are better positioned for a quick turnaround following due diligence on the target acquisition.  
• Regional and National Wholesale/MGA/Program Administrators – Serial Buyers. These buyers are acquisition savvy, present fair transaction terms, know their desired criteria, and can execute the deal. These clients vary from general wholesalers to very focus niche operators.  As a true capital partner, we work with our clients on ongoing acquisition models. 
• Aggregators and Aggregator Members – We see several styles of aggregators from highly controlled production to more general services. The retail aggregator business model has evolved. In addition to providing valuable services to independent agencies through backroom operations, training, and expansion opportunities; the primary value continues to be market access for agencies that do not have the appointments with certain selective carriers.  Oak Street supports several private equity aggregators in providing acquisition capital and working capital to both the individual member agencies and the aggregator itself. 

As we kick off 2015, the insurance industry remains our sole focus as it has been for the past 11 years. This focus, along with our seasoned staff, provides lending and insurance expertise that aligns with the unique needs of program business. Congratulations to our 2014 clients! We look forward to continued success in 2015!

Oak Street Funding
oakstreetfunding.com/TargetMarkets
844-216-3881