B. Riley Financial Provides Update on Wealth Management Business
B. Riley Financial (NASDAQ: RILY) has announced an agreement to sell part of its traditional (W-2) Wealth Management business to Stifel Financial Corp. (NYSE: SF) for an estimated $27-35 million in cash. The deal involves the transition of 40-50 advisors managing approximately $3.5-4.5 billion in assets to Stifel in early 2025. The transaction excludes B. Riley's 190 independent advisors and 90 tax professionals. The company cites disruption to its Wealth Management business due to competitors capitalizing on concerns about its principal investments business as a key factor in this strategic decision.
B. Riley Financial (NASDAQ: RILY) ha annunciato un accordo per vendere parte della sua attivit脿 tradizionale di Wealth Management (W-2) a Stifel Financial Corp. (NYSE: SF) per un importo stimato tra 27 e 35 milioni di dollari in contante. L'accordo prevede il trasferimento di 40-50 consulenti che gestiscono circa 3,5-4,5 miliardi di dollari in attivi a Stifel all'inizio del 2025. La transazione esclude i 190 consulenti indipendenti e i 90 professionisti fiscali di B. Riley. La societ脿 cita la distruzione della sua attivit脿 di Wealth Management a causa della concorrenza che sfrutta le preoccupazioni legate alla sua attivit脿 principale di investimenti come fattore chiave in questa decisione strategica.
B. Riley Financial (NASDAQ: RILY) ha anunciado un acuerdo para vender parte de su negocio tradicional de Wealth Management (W-2) a Stifel Financial Corp. (NYSE: SF) por un monto estimado de entre 27 y 35 millones de d贸lares en efectivo. El acuerdo implica la transici贸n de 40-50 asesores que gestionan aproximadamente de 3,5 a 4,5 mil millones de d贸lares en activos a Stifel a principios de 2025. La transacci贸n excluye a los 190 asesores independientes y a los 90 profesionales fiscales de B. Riley. La compa帽铆a cita la interrupci贸n de su negocio de Wealth Management debido a la competencia que aprovecha las preocupaciones sobre su negocio de inversiones principales como un factor clave en esta decisi贸n estrat茅gica.
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B. Riley Financial (NASDAQ: RILY) a annonc茅 un accord pour vendre une partie de son affaire traditionnelle de Wealth Management (W-2) 脿 Stifel Financial Corp. (NYSE: SF) pour un montant estim茅 entre 27 et 35 millions de dollars en esp猫ces. L'accord implique la transition de 40 脿 50 conseillers g茅rant environ 3,5 脿 4,5 milliards de dollars d'actifs vers Stifel au d茅but de 2025. La transaction exclut les 190 conseillers ind茅pendants et les 90 professionnels fiscaux de B. Riley. La soci茅t茅 cite la perturbation de son activit茅 de Wealth Management due 脿 la concurrence qui tire profit des pr茅occupations concernant son entreprise principale d'investissements comme un facteur cl茅 de cette d茅cision strat茅gique.
B. Riley Financial (NASDAQ: RILY) hat eine Vereinbarung zur Ver盲u脽erung eines Teils seines traditionellen (W-2) Verm枚gensverwaltungsgesch盲fts an Stifel Financial Corp. (NYSE: SF) f眉r gesch盲tzte 27 bis 35 Millionen Dollar in bar bekannt gegeben. Der Deal umfasst den 脺bergang von 40-50 Beratern, die etwa 3,5-4,5 Milliarden Dollar an Verm枚genswerten verwalten, an Stifel Anfang 2025. Die Transaktion schlie脽t die 190 unabh盲ngigen Berater und 90 Steuerfachleute von B. Riley aus. Das Unternehmen f眉hrt die St枚rung seines Verm枚gensverwaltungsgesch盲fts aufgrund von Wettbewerbern, die die Bedenken bez眉glich seines Hauptgesch盲fts mit Investitionen ausnutzen, als entscheidenden Faktor f眉r diese strategische Entscheidung an.
- Expected cash proceeds of $27-35 million from the sale
- Retention of 190 independent advisors and 90 tax professionals
- Strategic refocus on core middle market financial services business
- Loss of $3.5-4.5 billion in assets under management
- Disruption in Wealth Management business acknowledged by management
- Loss of 40-50 traditional advisors to competitor
Insights
The sale of B. Riley's traditional wealth management segment to Stifel represents a strategic pivot amid business pressures. The
The transaction helps B. Riley strengthen its balance sheet while refocusing on its core middle-market financial services. However, the Chairman's comments about "noise surrounding principal investments" impacting the wealth management business signals underlying challenges. This defensive move could help stabilize operations but also reflects competitive pressures and potential reputational concerns affecting client relationships.
This transaction reflects broader industry consolidation trends in wealth management, where scale and technological capabilities are increasingly crucial. Stifel's acquisition aligns with its expansion strategy, while B. Riley's partial divestment suggests a strategic realignment. The deal structure, based on advisor transition success, indicates potential retention risks.
The focus on retaining independent advisors while divesting W-2 employees points to a shift in business model, potentially reducing fixed costs. However, the
Enters into Agreement with Stifel Financial Corp. to Sell a Portion of Wealth Management Business
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented:听"The past year has proved disruptive to our Wealth Management business, with competitors taking advantage of the noise surrounding our principal investments business. 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. We respect the contributions of the Advisors who are leaving and are pleased they have found a great home at Stifel."
Mr. Riley continued, "As we continue to refocus B. Riley on our core middle market financial services business, we believe there are substantial benefits and synergies to maintaining a Wealth Management business in our portfolio.听 We are committed to investing in our core financial services businesses, which remain well capitalized and have the resources and market expertise to serve our clients and partners in the small- and mid-cap markets."
Details of the Transaction
The transaction has been approved by the Board of Directors of the Company and is subject to the receipt of required regulatory approvals and other customary closing conditions. It is expected to close early in the second quarter of 2025.
About B. Riley Financial
B. Riley Financial is a diversified financial services company that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit .
Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements that are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today's date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company's periodic filings with the SEC, including, without limitation, the risks described in the Company's 2023 Annual Report on Form 10-K and in B. Riley Financial's Quarterly Reports on Form 10-Q for the period ended March 31, 2024 under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
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FAQ
How much is Stifel paying for B. Riley's (RILY) Wealth Management business segment?
What assets under management (AUM) will transfer from B. Riley (RILY) to Stifel?
When is B. Riley's (RILY) wealth management business sale expected to close?
How many advisors will B. Riley (RILY) retain after the Stifel transaction?
