B. Riley expects 40 to 50 advisors and associated customer accounts to transition in early 2025. Credit: Noom_Studio/Shutterstock.

Investment bank B. Riley Financial has signed an agreement to sell a segment of its wealth management business to US-based Stifel Financial.

The deal is estimated to yield net consideration of $27m to $35m in cash.

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Under the deal terms, B. Riley Financial expects transition of 40 to 50 advisors and their customer accounts in early 2025 to Stifel.

As of 30 September 2024, these accounts represent total assets under management (AUM) of approximately $3.5bn to $4.5bn.

The deal’s final consideration will depend on the actual number of advisors transitioning to Stifel at the time of closing.

B. Riley Financial chairman and co-CEO Bryant Riley said: “The past year has proved disruptive to our Wealth Management business, with competitors taking advantage of the noise surrounding our principal investments business.

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“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.”

The agreement, which is approved by B. Riley’s board of directors, excludes B. Riley’s about 190 independent advisors and 90 tax professionals.

Subject to the receipt of regulatory approvals and other customary closing conditions, the deal is scheduled to close early in the second quarter of 2025.

Riley added: “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.

“We are committed to investing in our core financial services businesses, which remain well capitalised and have the resources and market expertise to serve our clients and partners in the small- and mid-cap markets.”

Last month, B. Riley Financial agreed to offload Great American Group, which provides asset valuation services, to Oaktree Capital Management.