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2025 has been a year of dramatic change for advisory firm owners. At the Charles Schwab IMPACT Conference in Denver, Rick Dennen, Founder & CEO of Oak Street Funding, offered a forward-looking perspective on what’s next for registered investment advisors (RIAs), the evolution of private equity participation, and the unique opportunity created by the Federal Reserve’s latest interest rate cuts. This deep dive into the landscape provides actionable recommendations for advisors looking to strengthen acquisition and succession strategies—and showcases why Oak Street Funding stands out as an invaluable growth partner.
Fed Rate Cuts and the Surge in Consolidation
Dennen addressed the audience with striking clarity on the immediate impact of the Federal Reserve’s moves: “I think 2026 is going to be a record year in this industry because of these rate decreases, and I am anticipating additional decreases next year. When the rates went up 500 basis points, which was, I think, the largest increase in the shortest period of time, I think everybody kind of put a pause on things. But with the start of the rate reductions, you’re immediately starting to see increases in the amount of M&A activity—not just in the RIA industry, but in several different industries. I suspect, given the amount of capital in the markets today, that will continue at a record pace in 2026.”
This accelerated momentum in mergers and acquisitions signals heightened competition, inflated multiples, and more capital flowing into advisory deals. RIAs must actively prepare to seize opportunities and avoid falling behind.
Rising Purchase Multiples, Market Hype—And Real Opportunity
Multiples have been climbing to almost unbelievable highs, with many owners touting numbers well above market reality. Dennen cautions, “I think those multiples have to level out. They can’t just keep rising, you know, from eights to tens to twelves to fourteens to fifteens. There’s a lot of information out there—everyone wants to show that they’re rising and the market’s hot—but I don’t think that information has a lot of parity, and a lot of it can’t be validated. When you really get the true information, it’s OK—it’s at nine and a half, and you can talk about it however you want.”
Oak Street Funding excels at cutting through market hype to provide realistic, data-driven guidance on acquisition valuations. Their deal team specializes in helping firms navigate the true landscape, so owners aren’t misled by rumors and can negotiate from a position of strength.
How to Position Your Firm for Swift, Successful Moves
Drawing upon decades of transaction experience and his own journey selling his business three times, Rick emphasizes operational readiness: “You should always be operating your business with the most efficient process, systems, technology—always taking a long-term view on the best way to operate the business. That’s going to give you the most opportunities. In the last twelve months, if you have something you want to execute, there are certain things to accomplish like updated technology, but the most important thing of all those transactions was having exhibited growth and having a great management team that’s going to continue to carry out your strategy.”
Oak Street Funding’s lending solutions are specifically tailored to advisors’ unique needs, offering loans based on future revenue—not just personal assets—and flexible terms up to 10 years. Products include acquisition, succession, and working capital loans, empowering firm owners to invest confidently in process upgrades or team expansion when timing is critical.
Succession Planning: Beyond the Founder’s Legacy
Succession remains one of the industry’s greatest challenges. Dennen details both the pride and emotional complexity that come with the process: “Founders, leaders, owners want to see the continued success of the business for their employees, for their customers. And that success needs to be given to the new management team. It’s very emotional for founders to extract themselves and let someone else get those accolades. I’ve spoken on panels about succession, and I’m a big believer that at some point you’ve got to let go, you’ve got to want the other people to get all the success, if you really want that business to flourish in the future.”
Oak Street’s succession financing is hands-on, allowing owners to make a well-deserved financial exit while positioning future leaders for long-term success.
Private Equity: Trends, Challenges, and Alternatives
Rick’s insight into PE participation reflects a nuanced view: “Owners are getting out slower, which means private equity is coming in slower. When private equity comes in, the good thing is it allows time to build infrastructure—technology, people—to execute on a new strategy. The pitfall? PE wants control and quicker returns. Owners should take their time, maybe a five-year transition, and enjoy building up the next generation.”
For advisors wary of giving up equity, Oak Street Funding offers competitive alternatives—minority PE stakes, structured buy-ins, and transition financing—all designed to enable legacy transfer without sacrificing autonomy or core values.
Finding the Right Partner: Oak Street’s Value Proposition
Firm owners face a critical crossroads—choosing a partner who shares their long-term vision. Reflecting on Oak Street’s own strategic evolution, Dennen recommends: “It starts with finding the right business partner, one that has capabilities. We partnered with a PE sponsor that ultimately didn’t have the capabilities promised, so we had to go through another sale to find someone aligning with our strategy. Once we did, growth was astronomical. When we finally sold Angelo Gordon’s interest, we had 21 offers for the business. We spent time with each, really doing due diligence both ways, ensuring we were aligned on strategy, expansion, and acquisitions before closing.”
Oak Street Funding’s unique blend of industry expertise, personalized lending solutions, and commitment to client empowerment makes them a standout growth partner for RIAs, CPAs, and insurance agency owners nationwide.
Client Experiences & Industry Reputation
Financial advisors regularly commend Oak Street Funding for its organized, friendly service and efficient transactions. Advisors report swift closings, deep industry knowledge, and customized solutions that meet their real-world needs. Oak Street’s combination of technology-driven processes and human touch means even complex deals feel manageable.
If you’re a financial advisor or firm owner weighing growth or succession, Oak Street Funding offers the expertise and flexible financing you need to structure the right deal for your future. Learn more and schedule a conversation at www.oakstreetfunding.com.
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