Stifel to Buy B. Riley Wealth Management Business

Investment bank B. Riley Financial said on Friday it had agreed to sell a portion its traditional wealth management business to Stifel in a deal expected to fetch between $27 million and $35 million in cash.

The deal could allay some investors concerns over B. Riley’s fortunes and allow it to tackle immediate challenges as it looks to contain the hit from its exposure to Vitamin Shoppe-owner Franchise Group.

“The past year has proved disruptive to our Wealth Management business, with competitors taking advantage of the noise surrounding our principal investments business,” said Co-CEO Bryant Riley in a statement.

The bank has been navigating heightened turmoil since August, when it warned that its exposure to Franchise could result in a writedown and losses for the second quarter ended June 30.

It also postponed filing its quarterly report with regulators, the third such instance this year, due to a hold-up in finalizing the valuations of certain loans and investments.

Shares in the bank have declined nearly 72% so far this year.

Under the terms of the deal with Stifel, B. Riley expects 40 to 50 advisors, along with the associated customer accounts, to transition in early 2025.

The accounts represent total assets under management (AUM) of around $3.5 billion to $4.5 billion as of Sept. 30, the bank said.

It expects the deal to close in the second quarter of next year.

This article was provided by Reuters.