B. Riley Financial, Inc. (RILY) provides financial services to corporations, institutions, and high net worth individuals, including direct lending, investment banking, sales and trading, securities lending, and wealth management. The firm also trades in equity securities.
The firm’s 2023 balance sheet reported securities and investments at fair value of $1,092 million and loans receivable booked at fair value of $532 million. That is unusual for loan assets. Of these loans, $388 were to related parties. Here are details from the fair value footnote:
Note the amount of Level 3 fair values and the methodology employed to estimate them.
(Debra Coleman pointed to this case.)