Stifel to Buy Portion of B. Riley Wealth Management Biz for up to $35M

B. Riley Financial said it has entered into a definitive agreement to sell Stifel Financial part of its wealth management business that could include as many as 50 advisors managing $4.5B in client assets for a total consideration of up to $35M in cash.

As covered by Dakota in September, Stifel and B. Riley were reportedly in discussions over a sale of the wealth management unit of 400 independent and employee advisors for $100M or more. In the end, the companies opted for a transaction that will not include any of B. Riley’s 190 independent advisors and 90 tax professionals.

Final consideration will be based on the total number of advisors that join Stifel at closing. B. Riley said it expects 40 to 50 advisors to make the switch, along with their customer accounts, in early 2025. That would represent an inflow of approximately $3.5B to $4.5B in managed client assets to Stifel, which will pay estimated net consideration of $27M to $35M. 

Talks between the two started up after B. Riley suffered a second-quarter loss in the face of SEC scrutiny over the investment bank’s management-led 2023 buyout of 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,” B. Riley Chairman and co-CEO Bryant Riley said in a statement. “We decided to take a proactive approach for those who wanted a fresh start and found a well-respected partner in Stifel. 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.”

Riley’s board has approved the deal, which is subject to regulatory approvals and other customary closing conditions. The deal is expected to close in the second quarter of 2025.

Source: https://brileyfin.com/blog/b.riley-financial-provides-update-on-wealth-management-business

New call-to-action

Written By: Dakota

logo-1

The Database For Cold Outreach to Reach Institutional and RIA Investors