B. Riley Lures $2-Mln Pennsylvania Team from Stifel
Two advisors who were managing $270 million in client assets left Stifel Financial’s brokerage unit in Conshohocken, Pa., on Friday for B. Riley Financial Company’s small retail brokerage force.
Riley, a small-cap investment bank based in Los Angeles, has been building its wealth business, which now totals about 160 advisors, through direct hires and acquisitions. It bought regional Wunderlich Securities in 2017 for $72 million and in 2018 took a majority interest in National Holdings Corp., another small-cap investment bank with both employee and independent brokers distributing products.
Kaskey and Beard’s production is far above the average for B. Riley, which is just under $500,000 per advisor, according to Pirtle. The brokerage force oversees about $10 billion in 20 offices.
Riley offers recruiting deals that are competitive with the 100%-plus up-front offers at some regional wealth management firms for million-dollar producers, but well below the 200% up-front deals being offered by some wirehouses, Pirtle said. He also flaunted the 50% payout rates offered to brokers with $500,000 or higher of production, and the 3% cash bonuses given to million-dollar producers.
Kaskey began his brokerage career in 1987 at H&R Block Financial Advisors in Radnor, Pa., moved to Janney Montgomery Scott in 2008 and arrived at Stifel in August 2013, according to his BrokerCheck record. Beard similarly shifted from H&R Block, which he joined in 2000, to Janney and Stifel, according to his BrokerCheck history..
A Stifel spokesman confirmed the departures, but declined further comment.
St. Louis-based Stifel has itself been an aggressive acquirer of regional brokerage firms and of specialized investment banks since purchasing New Jersey’s Ryan Beck in 2007. (It also bought 56 UBS branches in 2009).
Stifel employed about 2,222 advisors as of the end of 2019. The firm’s more unusual production grid pays a flat monthly 50% payout to all advisors on marginal monthly revenue above $12,000. It pays 25% on the first $12,000. (The formula is similar to what Wells Fargo Advisors offers.)