Two specialist lending companies have partnered in a bid to use their combined forces to become a “leading non-bank lender” within Australia.
Under the new arrangement, Resicom will become a subsidiary of Oak Capital, forming a unified group with consolidated positions and staffing, but retaining their separate brands in market.
Established in 2013, Oak Capital services the private lending space nationwide, offering two mortgage fund options as well as lending mortgage products for business purposes secured by real estate. Originally founded by four partners, the group is now headed by co-founder and CEO Stephen Mitchell.
For its part, Resicom was established in 2006 as a boutique mortgage management firm specialising in the second tier lending market.
Together, the Melbourne-based companies have over 30 staff, originate more than $1.5b per annum, and boast combined Assets Under Management (AUM) of around $700m – with the goal of reaching $1bn AUM by 2022.
CEO Stephen Mitchell explained the context for the $1bn target.
“$1bn of AUM in our specific non-bank market of relatively short-term transactions would make us one of the largest lenders in this space, and will set us up to become Australia’s preeminent mid-tier non-bank,” he said.
“The combination of the two businesses eventually becoming one, is exciting and a unique structure not truly replicated in market.”
As Mitchell sees it, the way the two group’s strengths support and further one another will ensure the lender becomes the "go to provider" of specialist and bespoke finance to its broker, accountant and intermediary clients.
In the last three weeks, the group has hired six new key staff members, including appointing Nick Green as Oak Capital head of distribution.
Mitchell warmly welcomed Green to both Oak Capital and its subsidiary Resicom.
“As we scale up our business after the full acquisition, Nick’s knowledge, experience and network will enable him to make a major contribution,” he said.
“In particular, Nick will spearhead our combination of Funds Manager and Mortgage Manager, drawing on our ability to provide brokers and referring clients with a streamlined yet flexible product offering with competitive pricing structures.”