Client Success Case Study
A Tale of Two Firms
Diverging Paths to Successful Acquisition Introduction In the RIA industry, there are many strategies for growth and no two firms will have the same path to success. In this case study, we will highlight two very different firms who both used acquisition financing to advance their growth strategies.
Firm A: The Succession Solution History Firm A’s journey began in 2016 via a merger of two books of business totaling $200MM AUM. In subsequent years, they acquired several smaller firms which increased their AUM to $800MM. In 2023, they partnered with Oak Street Funding to finance their largest acquisition to date with a $23MM loan.
Firm A STRATEGY Acquire firms without a clear exit strategy
This acquisition propelled their AUM to $1.5B. They continue to acquire additional firms and are actively adding new partners with partner buy-in loans from Oak Street Funding.
Strategy Firm A found its niche in acquiring firms without a succession
Capitalize acquisition strategy with debt financing
plan. Essentially, they became the succession plan for owners looking to exit their business. By offering a seamless exit strategy and attractive incentive programs for key employees, they are able to retain talent and client relationships. This firm spends ample time preparing, researching, and communicating to ensure high alignment post-acquisition. Their rigorous process to ensure cultural alignment minimizes risk and maximizes the potential of each acquisition.
Firm B: The Talent Hunters
STRATEGY Acquire firms to onboard younger advisors
Firm B
History Firm B began in 2000 when two competing advisors met while pursuing the same firm for acquisition. Instead of acquiring that firm, they decided to join forces and create a new firm. Within 20 years, the firm was managing an impressive $4.5B in AUM due Loans and lines of credit subject to approval. Potential borrowers are responsible for their own due diligence on acquisitions. CA residents: Loans made pursuant to a California Department of Financial Protection & Innovation, Finance Lenders License (#6039829). Copyright © 2024 Oak Street Funding