B. Riley to Unload Part of Wealth Unit to Stifel

B. Riley Financial, Inc has agreed to sell a portion of its traditional (W-2) Wealth Management business to Stifel Financial Corp for an estimated $27 million to $35 million in cash.

The deal does not include B. Riley’s approximately 190 independent advisors and 90 tax professionals. Subject to the terms of the agreement, the final consideration will be based on the number of advisors that join Stifel at closing.

An expected 40 to 50 advisors, along with the associated customer accounts, which represent approximately $3.5 billion to $4.5 billion in assets under management, will transition to Stifel in early 2025.

“The past year has proved disruptive to our wealth management business, with competitors taking advantage of the noise surrounding our principal investments business,” said Bryant Riley, chairman and co-CEO of B. Riley Financial. “The individuals leaving will be able to transfer their accounts in a point-to-point transaction, with no impact on their day-to-day responsibilities upon closure.”

The investment bank has been managing increased instability since August, when it cautioned that its exposure to Vitamin Shoppe’s parent company, Franchise Group, would lead to a write-down and losses for the second quarter. The company has delayed submitting its quarterly report to regulators for the third time this year, owing to a delay in finalizing the appraisals of specific loans and investments.