Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor
Buildings with the words M&A on top of them

Industry Spotlight > Mergers and Acquisitions

Oaktree Nears Deal to Buy Big Stakes in 2 B. Riley Units

By Gillian Tan

X
Your article was successfully shared with the contacts you provided.

Oaktree Capital is in exclusive talks to acquire a majority stake in two businesses owned by B. Riley Financial Inc., according to people with knowledge of the matter.

B. Riley shares rose as much as 65% Wednesday.

Oaktree is discussing buying a stake of 51% to 55% in B. Riley’s appraisal and valuation services arm and its retail, wholesale and industrial solutions unit, entities formerly known as Great American Group, said one of the people, who requested anonymity to discuss confidential information.

A deal values the units at around $380 million, the person said.

A deal could be announced as soon as next week, the person said, though a transaction hasn’t been finalized and it’s possible that terms change or talks collapse at the last minute.

Representatives for B. Riley and Oaktree to declined to comment.

Los Angeles-based B. Riley said in February it hired Moelis & Co. to assist on the review of strategic alternatives for the two businesses.

“Our review of strategic alternatives for Great American Group is advancing and we look forward to providing additional updates when appropriate,” B. Riley said in an Aug. 12 statement.

B. Riley acquired the business in 2014.

Last week, the company said it received a preliminary non-binding proposal to be taken private by its co-founder Bryant Riley.

Its shares are trading at their lowest level in 10 years, after the company suspended its dividend, disclosed it may post its biggest-ever quarterly loss and said the U.S. Securities and Exchange Commission is investigating the company.

Editor’s note: As of March 31, B. Riley’s wealth management operations, which include a broker-dealer and an RIA, had $25.8 billion in assets under management. The firm expanded its work in the advisory space by buying National Securities in 2021, when the acquired entity had roughly 700 financial advisors and $20 billion in assets. 

(Credit: Adobe Stock)

Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.