A New York City financial services company will be opening an office in Danbury where it will house its new credit and risk solutions consulting business.
Aided by a state incentive package, NewOak Capital L.L.C. estimates it will create at least 100 jobs in Connecticut within three years through its NewOak Credit Services L.L.C. subsidiary.
Chad Burhance, a NewOak partner and head of solutions, said the group wanted to remain close to its New York headquarters while keeping some distance between it and New York City and the cluster of financial firms in Stamford and Norwalk.
That way, he said, NewOak Credit Services L.L.C. can enjoy lower real estate costs and won”™t necessarily have to compete for the same talent.
“We wanted to move our facility just out of the competitive circle,” said Burhance, who will head up the new credit services unit.
Gov. Dannel P. Malloy announced the agreement May 1, stating the company would receive a $3 million low-interest loan to buy furniture, equipment, make leasehold improvements and provide working capital. The entire project is slated to cost $13 million.
NewOak Capital, founded in 2008, is a financial advisory firm that advises global banks, insurance companies, asset owners and regulators. Burhance said the company arose out of the financial crisis and the need for independent, third-party analysis of valuation and risk.
“People want another set of eyes on these issues and NewOak has been ready to capitalize on that from day one of the credit crisis,” Burhance said. “Going to Danbury is a big step in realizing that role.”
The company has leased 10,000 square feet in the Matrix Corporate Center and expects to create 50 new jobs within its first year. Within three years, the company expects to have at least 100 employees. It may open smaller satellite offices if the need arises, Burhance said.
Bruce R. Tuomala, Danbury director of economic development, said the company”™s arrival is the latest in a series of recent developments.
“NewOak has come at a time when a lot of people are looking into Danbury, investing in Danbury and we welcome them and that activity,” Tuomala said. “We”™re marketplace people. We understand business and want to do everything we can so businesses can stay and thrive here.”
Danbury is primarily known for its pharmaceutical, advanced manufacturing and retail industries. But in recent years the city has begun to compete in the financial sector too, Tuomala said.
The Danbury labor market area, which includes the city and surrounding suburbs, currently boasts the lowest unemployment rate of any region in the state at 6.6 percent.
After a tristate area search for an office location, NewOak decided on the Matrix for a number of reasons, Burhance said. First, the building itself comes with a number of amenities, including a disaster recovery and data backup center.
Additionally, the town offers a more affordable cost of living, not only for NewOak”™s employees but for the company itself. But overall, Burhance said the state”™s support was a major deciding factor.
The company also received incentive package offers from New York and other states, but Burhance said Connecticut”™s offer appealed directly to them as a midsize company. The other packages available were geared more toward large companies and preventing them from leaving, he said.
“This whole (project) wouldn”™t have been possible without their initiative and support,” he said. “I think that”™s a testament to Connecticut being able to see the bigger picture.”
[Editor’s note: An initial version of this article was posted May 2.]
When are they officially moving into the Matrix?