Who Owns B. Riley Financial Company?

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Who Owns B. Riley Financial?

Understanding a company's ownership is key to grasping its strategy and accountability. Recent SEC probes into dealings with Franchise Group and a personal loan to its co-founder highlight the importance of examining B. Riley Financial's ownership structure.

Founded in 1997, B. Riley Financial has grown into a diversified financial services firm. As of 2023, it reported $1.64 billion in revenue and held $6.07 billion in assets, employing 2,383 people. Its market capitalization was around $190 million in August 2025.

Let's explore the ownership landscape of B. Riley Financial, from its initial stakes to the influence of major shareholders and how these dynamics have evolved, especially in light of recent events. A thorough B. Riley Financial PESTEL Analysis can offer further insights into the external factors affecting the company.

The origins of B. Riley Financial trace back to 1997 when Bryant Riley established B. Riley & Co. in Los Angeles, California. While Bryant Riley is widely recognized as the primary founder, Tom Kelleher is also acknowledged as a co-founder, having held significant leadership roles from the company's inception. The firm's initial focus was on delivering research and stock-picking services to institutional investors, with a particular emphasis on smaller companies.

Founding Vision

The firm's early vision, largely shaped by Bryant Riley, aimed to serve the often-overlooked small and middle-market companies.

Service Evolution

Initially, B. Riley & Co. was cautious about engaging in investment banking due to potential conflicts of interest.

Market Focus

This perspective later evolved, leading to an expansion of financial services offered to its client base.

Early Equity Details

Specifics regarding the initial equity split or precise shareholding percentages at the company's founding are not publicly disclosed.

External Investment

There is no public information available detailing early backers, angel investors, or friends and family who acquired stakes during the initial phase.

Ownership Structure

Public records do not extensively detail initial ownership disputes or buyouts that significantly influenced the early ownership structure beyond the founders' strategic decisions.

The foundational ownership of B. Riley Financial was established by its founders, Bryant Riley and Tom Kelleher, in 1997. While the precise initial equity distribution remains private, the company's early trajectory was guided by a commitment to serving the small and middle markets, a strategy that would later inform its expansion into broader financial services. Understanding this early phase is key to grasping the company's subsequent growth and its current Marketing Strategy of B. Riley Financial.

Key Aspects of Early Ownership

The initial ownership structure was primarily defined by the founders, with limited public information available on early investors or significant ownership shifts.

• Founded in 1997 by Bryant Riley and Tom Kelleher.
• Initial focus on research and stock-picking for institutional investors.
• Targeted small and middle-market companies.
• Early ownership details are not publicly disclosed.

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The ownership structure of B. Riley Financial, Inc. has evolved significantly, notably with the 2014 merger of B. Riley & Co. and Great American Group. This consolidation led to the formation of the current entity, which later uplisted to NASDAQ in July 2015. As of August 15, 2025, the company's market capitalization was approximately $207.99 million.

The current B. Riley Financial ownership landscape is a blend of insiders, institutional investors, and public shareholders. While insider ownership was reported at 31.46% in January 2025, other sources from August 2025 indicate it at 29.34%. Similarly, institutional ownership shows variation, with figures ranging from 7.35% to 12.79% in August 2025, compared to 25.67% in January 2025. Public companies and individual investors collectively hold a substantial 57.87%. Bryant R. Riley, a co-founder, remains a key figure, holding 25.38% of shares or 6,844,926 shares as of May 30, 2024, underscoring a strong founder influence. Major institutional shareholders as of June 30, 2025, include Vanguard Group Inc. with 841,651 shares, Charles Schwab Investment Management Inc. with 690,887 shares, Group One Trading, L.p., and BlackRock, Inc. with 363,129 shares. These ownership dynamics highlight a significant insider stake, suggesting alignment with the company's strategic direction, while institutional shifts can reflect evolving market perceptions.

Understanding B. Riley Financial Shareholders

B. Riley Financial's ownership is distributed among various groups, with insiders holding a notable portion. Understanding these B. Riley Financial shareholders is key to grasping the company's strategic alignment.

• Insider ownership is a significant factor in B. Riley Financial's structure.
• Institutional investors like Vanguard and BlackRock are among the major B. Riley Financial major investors.
• Bryant R. Riley is the largest individual insider shareholder.
• The company is publicly traded, meaning a substantial portion is held by public float ownership.
• For a deeper understanding of the company's direction, explore the Mission, Vision & Core Values of B. Riley Financial.

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The strategic direction and day-to-day operations of B. Riley Financial, Inc. are overseen by its executive leadership and Board of Directors. As of July 2025, key figures guiding the company include co-founders Bryant R. Riley, serving as Chairman and Co-Chief Executive Officer, and Thomas J. Kelleher, also a Co-Chief Executive Officer and Director. Scott Yessner joined the executive team as Chief Financial Officer in 2025, further shaping the company's financial strategy.

Voting power within B. Riley Financial is primarily vested in its common stockholders, with each share typically granting one vote on matters presented for shareholder approval, including director elections. The company's Certificate of Incorporation outlines provisions for both common and preferred stock. While preferred stock generally lacks voting rights, these can be activated under specific conditions, such as a default on dividend payments for six consecutive quarters. In such scenarios, preferred stockholders may gain the right to elect a portion of the board, with each preferred share carrying one vote, translating to 1/1000th of a vote per depositary share. As of mid-2025, there have been no significant public reports of proxy contests or activist investor campaigns that have substantially influenced the company's decision-making processes, though ongoing SEC investigations have brought the company's governance under increased scrutiny.

Understanding Shareholder Influence

B. Riley Financial's shareholder structure dictates how decisions are made. Understanding this structure is crucial for investors looking to grasp the company's ownership dynamics.

• Common stockholders hold one vote per share.
• Preferred stock voting rights are contingent on dividend payments.
• Board composition includes founders and independent directors.
• The company's structure allows for concentrated or dispersed ownership.
• For a deeper dive into who the company targets, explore the Target Market of B. Riley Financial.

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Over the past three to five years, B. Riley Financial's ownership landscape has seen shifts driven by strategic debt reduction and operational adjustments. The company has actively worked to bolster its financial standing amidst evolving market conditions.

B. Riley Financial has undertaken significant initiatives to strengthen its financial position, including a substantial reduction in total company debt, estimated at $600 million between September 30, 2024, and June 30, 2025. This deleveraging was supported by asset sales, such as GlassRatner and Atlantic Coast Recycling, which yielded around $187 million, and bond exchanges that reduced debt by approximately $126 million by July 2025. The company also executed a strategic carve-out of its B. Riley Securities division in March 2025 to better serve its clientele. Leadership saw a change with the appointment of Scott Yessner as Chief Financial Officer in 2025. Despite facing regulatory scrutiny from the SEC since July 2024 concerning its transactions with Franchise Group and a personal loan to co-founder Bryant Riley, which contributed to a preliminary net loss of $772.3 million for 2024 due to investment writedowns, the company anticipates a net income between $125 million and $145 million for the first half of 2025. Efforts are underway to file its delayed 2024 Form 10-K and subsequent reports, reflecting a focus on financial stabilization and transparency. Understanding the company's operations is key, and one can explore the Revenue Streams & Business Model of B. Riley Financial for further insight.

Debt Reduction Strategy

B. Riley Financial has actively reduced its debt by approximately $600 million from late 2024 to mid-2025 through asset sales and bond exchanges.

Operational and Leadership Adjustments

A carve-out of B. Riley Securities and a new CFO appointment in 2025 signal strategic realignments.

Regulatory Environment and Financial Outlook

The company is addressing SEC inquiries while projecting a positive net income for the first half of 2025.

Reporting Compliance

Efforts are underway to file delayed financial reports, including the 2024 Form 10-K.

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