The Oak Companies, Inc. on Wednesday announced the completion of its corporate reorganization, bringing the business previously operated by Red Oak Capital Holdings, LLC into a newly formed Delaware corporation designed to support the platform’s next stage of growth. Red Oak Capital Holdings, LLC has merged with and into Oak, with Oak succeeding to the business. In connection with the reorganization, Oak is conducting a Regulation A offering of up to $35 million of Series R Convertible Preferred Stock at $10.00 per share.
The reorganization is intended to create a more streamlined platform with a consistent governance structure, financial reporting framework and approach to capital formation. Oak will continue to originate, underwrite and service senior-secured commercial real estate loans while expanding the permanent and managed capital available to support its lending activities.
“We have built a disciplined commercial real estate lending platform around one clear standard: understand the asset, understand the sponsor and remain accountable from first review through final payoff,” said Gary R. Bechtel, CEO of The Oak Companies. “This reorganization puts a unified corporate structure behind that platform and gives us a stronger foundation for responsible growth, greater transaction capacity and broader participation from our capital partners.”
Oak operates as a vertically integrated commercial real estate finance platform. The company sponsors and manages commercial real estate credit funds, originates senior-secured first-lien loans generally ranging from $2 million to $20 million on income-producing properties, and services and asset-manages those loans throughout their lifecycle.
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