Indianapolis-based Oak Street Funding, one of the largest insurance lending firms for the insurance industry and insurance agencies, has been acquired by private equity firms managed by the firm Angelo, Gordon & Co. Terms of the deal were not disclosed.
Founded in 2003, Oak Street serves the financing needs of insurance professionals by providing capital to insurance agents in order to expand their business and increase sales. Oak Street introduced commission-based commercial financing through lending and book acquisition. Despite challenging economic times, Oak Street recorded its best year ever in 2009 and has continued to secure new sources of capital and lend money to a growing number of agents and brokers nationwide.
Rick Dennen, Oak Street president and CEO, says the additional capital provided through the acquisition will allow Oak Street to better serve customers and expand products and services into new areas.
“Angelo Gordon recognizes the potential for growth within this marketplace and the unique revenue stream of insurance agencies,” Dennen continued. “While there have been many successful insurance agencies that have emerged from the pack despite the challenging economy, some haven’t been able to secure capital to fund acquisitions or organic growth. Our new relationship with Angelo Gordon allows us to better serve these agencies’ needs with the capacity to fund larger deals.”
Oak Street Funding is a family of diversified financial services companies that offers commission-based commercial financing for insurance professionals and third-party loan servicing for financial institutions.
Source: Oak Street, www.oakstreetfunding.com
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