B. Riley Financial Partners with Oaktree for Growth

B. Riley Financial, Inc. (Nasdaq: RILY) has entered into a strategic partnership with Oaktree Capital Management, L.P., a leading global alternative investment management firm, to accelerate the growth of the Great American Group businesses. This collaboration brings together B. Riley's diversified financial services platform and Oaktree's extensive investment expertise and capital resources, creating a powerful synergy that will benefit clients and operations.

The partnership involves the establishment of a new holding company, Great American NewCo, which will house B. Riley's Appraisal and Valuation Services, Retail, Wholesale & Industrial Solutions, and Real Estate Advisory businesses. B. Riley will receive approximately $203 million in cash, Class B Preferred Units, and Class A Common Units, representing a 47% stake in Great American NewCo. Oaktree will acquire Class A Preferred Units and Class A Common Units, representing a 53% stake, in exchange for cash consideration of approximately $203 million.


The strategic alignment of B. Riley's financial services and Oaktree's alternative investments will enable synergies in their respective service offerings. B. Riley's clients will benefit from Oaktree's scale, expertise in alternative investments, and strength as a capital provider. Meanwhile, Oaktree will bring its resources and relationships to support Great American NewCo's growth as an independent platform.

The partnership is expected to have a significant impact on B. Riley's debt reduction and future growth prospects. By contributing the Great American Group businesses to Great American NewCo and receiving a substantial cash consideration, B. Riley will be able to reduce its debt while retaining significant equity upside in the business. This transaction is an important step in B. Riley's plan to reinvest in its core financial services businesses and increase its future growth prospects.


Oaktree's expertise in alternative investments and capital provision will enhance Great American NewCo's growth trajectory. With Oaktree's investment in the business, Great American NewCo will have access to additional capital and operating expertise to support its future growth. This partnership will enable Great American NewCo to better serve its clients and strengthen its market position.

In conclusion, the partnership between B. Riley Financial and Oaktree Capital Management is a strategic move that will drive growth and innovation in the Great American Group businesses. By leveraging their respective strengths and expertise, both parties will create synergies that benefit clients and operations, while also reducing B. Riley's debt and enhancing Great American NewCo's growth prospects.