B Riley Financial (RILY.O) has agreed to sell its appraisal and valuation services division, Great American Group, to private investment firm Oaktree Capital in a $386m transaction, as it looks to reduce its debt burden and boost its balance sheet, according to a report by Reuters.

The report cites a segment released by the investment bank on Monday as highlighting that sale could help ease investor concerns over B Riley’s financial health, particularly in light of its exposure to the Franchise Group, the parent company of Vitamin Shoppe. B Riley shares surged nearly 22% in pre-market trading following the announcement.

Under the agreement, B Riley will receive approximately $203m in cash and preferred units valued at around $183m in a newly established holding company for Great American. The bank will also retain a minority stake in common units of the holding company.

Great American offers services such as valuation appraisal, asset disposition, and real estate advisory. B Riley first went public a decade ago through a merger with Great American.

Oaktree Capital, which managed nearly $193 billion in assets as of 30 June, focuses on investments in credit, private equity, real assets and listed equities.