Unidentified Analyst: Okay. That’s fair. And that’s helpful. On scotch and soda, I assume that’s going into the consumer segment. How should we think about that in terms of sizing? Is it, you know, roughly the same size as Hurley and Justice or will it be…
Bryant Riley: We bought a smaller percentage of that one for a number of reasons. So I think Scotch and Soda ultimately can generate for us maybe $3 million to $5 million in incremental EBITDA where Justice and Hurley combined are over in and around 30. So it’s a smaller asset, but you know, we think the IRRs are going to be well over 30%.
Unidentified Analyst: Got it. And that, that’s just margin for you, right? Like that just drops down?
Bryant Riley: Yeah, we don’t, that’s, that is dividend income. So that — that is free cash flow. Yes.
Unidentified Analyst: Yeah. Okay. Yeah, that makes sense. And then, you know, Tom called out a, a number of engagements in, in Europe this past quarter, seems like that’s gaining a little momentum. Anything there that you attribute that to?
Bryant Riley: I mean, I think it’s actually gaining a lot of momentum. I think the goal in businesses like, liquidations or businesses like capital markets is to be investing in it when it’s slow, be aggressively marketing when it’s slow. So when it turns you are creating opportunities. And that’s what’s happened there. We have been, we’ve got a great team there and they’ve been in position and been working hard for when there were opportunities and now there’s opportunities and I think their market share is probably, I don’t know, it’s high. And so it’s exciting and that’s the mantra. I mean, we don’t sell in those businesses. It’s not like we’re, you know, selling widgets and we’ve got a ton of backlog. You’ve got to be ready for it when it happens and you never know when it’s going to happen.
And I think they’ve done a great job of positioning themselves. It’s not a big group. We don’t burn, you know, a lot of capital on, on a 100 people. It’s a much smaller and targeted group that are super talented. And now that there’s been a little bit of distress in European retail, we are a beneficiary of that.
Unidentified Analyst: Makes sense. All right. Well, that’s all I got. Thanks, guys.
Bryant Riley: All right. Thank you.
Operator: Thank you, Sean. [Operator Instructions] Our next question comes from Steve from Schonfeld Strategic Advisors. Your line is open.
Unidentified Analyst: Hi, guys. Congrats on FRG, I’m sure you can turn it around. My first question is just on rolling the debt coming due soon, given the 6/30 cash level. I think in May 24, you have $199 million baby bond coming due. So do you plan to roll that by raising more bond?
Bryant Riley: No. We don’t plan on rolling. We have $1.9 billion investment a quarterly cash number is a period in time. We do not want to have a lot of cash. We want to be having $30 million of investments over in European liquidations. We want to be having a highly profitable loans. So since that period, for example, we have been repaid $70 million of our loans. So we will continue to utilize our balance sheet, but we will use the assets of our balance sheet to pay our debt.
Unidentified Analyst: Got it. Okay. And then maybe just stepping back, just a refresher on the Asset Management business. Just like AUM levels, is the client base retail institutional, what’s the base of the clients, the investment strategy and like personnel, I know you had Wes Cummings, he wears a number hats for you guys. So just like kind of the high level, walk us through the asset management business again?
Bryant Riley: Institutional $250 million long short hedge, five people.
Unidentified Analyst: Got it. Okay. Great. Thanks.
