Sen. McLachlan Praises NewOak Capital’s Expansion Into Danbury

May 2, 2013

Article as it appeared in the Waterbury Republican-American

NewOak Capital, a New York City-based financial services firm that has advised clients on more than $3 trillion in assets, will expand into Connecticut with the help of a $3 million state loan and create up to 100 new jobs, Gov. Dannel P. Malloy said Wednesday.

The announcement was made Wednesday afternoon at the Matrix Corporate Center in Danbury, where NewOak will lease 10,000 square feet of space and establish NewOak Credit Services.

Under terms of the deal, the state Department of Economic and Community Development will support NewOak’s $13 million project with a 10-year, $3 million loan at 2 percent interest. The state plans to borrow the money for the loan to NewOak, which will require the State Bond Commission’s approval.

NewOak will use money from the loan to buy furniture and equipment, make leasehold improvements and provide working capital, state officials said.

In exchange for the state’s financial assistance, the company agrees to create 50 jobs in the first year and up to 100 jobs within three years.

“Growing jobs and attracting new business in Connecticut is a top priority for my administration,” Malloy said in a news release. “This investment in NewOak Capital will create good-paying jobs with good benefits — and help us expand an important industry in the state.”

DECD Commissioner Catherine Smith, who also attended the announcement, said NewOak fits the mold of companies the state is targeting for expansion.

“We put a great deal of emphasis on the financial services and insurance sector in our economic development strategy — and for good reason, as it is an important economic driver for our state,” Smith said.

James Frischling, president and co-founder at NewOak, said his company believes Connecticut is the right place to expand.

“Gov. Malloy and his administration’s commitment to attracting new businesses to the state, combined with a strong talent pool of mortgage and finance professionals, made Connecticut the ideal choice for NewOak to launch its Credit Services platform,” Frischling said. “We look forward to developing and training new professionals, including recruiting new graduates from the many fine schools and universities throughout the region.”

Founded in 2008, NewOak Capital is a specialized financial advisory firm that provides consulting, analysis, and technology services to global banks, insurance companies, asset owners, and regulators. It employs market practitioners, including former portfolio managers, traders, bankers, risk managers and technology experts.

Frischling said each of these jobs come with an average wage of more than $100,000.

The deal with NewOak is not part of Malloy’s First Five/Next Five economic development program, which is intended to attract large-scale projects. To be eligible for that program, a company must agree to create a minimum of 200 new jobs within two years, or must invest at least $25 million and create at least 200 jobs within five years.

Sen. Michael A. McLachlan, R-Danbury and deputy minority leader, praised the deal for bringing new jobs to Danbury. “This news comes on the heels of Boehringer Ingelheim’s announcement that the nearly 900 employees in its Danbury offices will be staying where they are until at least December 2022,” he said.