West Los Angeles financial services firm B. Riley Financial Inc. announced last week that Tom Kelleher has been promoted from president to join Chief Executive Bryant Riley as a co-chief executive of the company, effective July 10.
The firm said Kenny Young would take over as B. Riley’s president, and also maintain his role as head of the company’s B. Riley Principal Investments unit, which acts in a quasi-private equity role.
“Tom has been by my side for over 20 years and has been the visionary in many respects for intra-company collaboration,” Bryant Riley said in a statement. “Kenny has done an incredible job with operating B. Riley Principal Investments, and with his past experience managing large corporations, he will be instrumental in scaling our businesses. I am proud of what we have collectively achieved and excited to see what the future holds.”
B. Riley has grown since it went public in 2014 through a reverse merger with liquidator Great American Group, based in Woodland Hills. The firm’s stock was initially traded over the counter, and listed on the Nasdaq in 2015.
The company’s current market cap is approximately $595 million, with its shares trading at $22.75 at market close July 12. Shares were up more than 120 percent since they were first listed on the Nasdaq.
Bryant Riley said the company’s growth necessitated a change in leadership structure.
“Personally witnessing the growth of B. Riley from a one-office, research-focused firm to a diversified company, with over 50 offices around the globe and almost 900 professionals, has been rewarding and has surpassed our expectations,” he said. “That said, I am also confident that we’re just getting started.”
Downtown-based private equity firm Oaktree Capital Management was fined $100,000 by the Securities and Exchange Commission last week for violating the regulator’s so-called pay-to-play rule.
The fine comes as part of a settlement negotiated by Oaktree and the SEC after regulators found three individuals at the firm made political campaign contributions to candidates in California and Rhode Island that exceeded limits imposed by the agency. SEC rules forbid donations of more than $350 to candidates who have the ability to influence the selection of investment managers.
The contributions at issue included a 2014 donation of $500 to a candidate running for California State Superintendent of Public Instruction, and a $1,400 donation to a candidate running for Mayor of Los Angeles in 2016. The SEC did not specify who the donors or the candidates were in the settlement agreement filed June 10.
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