New Partnership: B. Riley Financial and Oaktree Capital Join Forces

The troubled financial company B. Riley Financial has announced a significant partnership with funds from Oaktree Capital Management. The goal of this collaboration is to realign Great American Holdings, which will henceforth be known as Great American NewCo. As part of the deal, B. Riley will receive approximately 203 million USD in cash and will also hold shares in the reorganized company. This news propelled B. Riley's shares to a surge in early New York trading. Bryant Riley, CEO of B. Riley, expressed optimism about the collaboration: "We believe that Oaktree's experience in alternative investments and their strength as a capital provider, combined with the leading position of the Great American Group in asset disposition, financial, and real estate advisory, will help us offer our clients better financial products and services." B. Riley has faced significant challenges in recent years, including failed investments and investigations by U.S. authorities into certain business practices. Delays in the release of financial reports exacerbated the situation, and the company violated financial regulations twice before renegotiating agreements with various lenders. Moelis & Co. served as the exclusive financial advisor to B. Riley, while Sullivan & Cromwell acted as legal advisor. Oaktree was legally advised by Wachtell, Lipton, Rosen & Katz.