Financial Advisor Opportunities

Financial Advisor Opportunities2018

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For Financial Advisory use only. Not for client use.

B. Riley Wealth Management

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♦ B. Riley Wealth Management (BRWM) is a boutique wealth management firm with a national presence

♦ Premier offices in major markets and regional locations

♦ Approximately 175 advisors both as traditional employees and independent contractors

♦ A platform that distinguishes BRWM from regional firms, wirehouses and Independent Registered

Investment Advisors

♦ BRWM advisors benefit from access to capital markets services, sophisticated investment banking

resources and award-winning proprietary equity research1

♦ BRWM provides an environment which encourages an entrepreneurial spirit and a culture of

independent thinking

___________________________1) Services provided through B. Riley FBR, Inc., a full service investment bank and wholly-owned subsidiary of B. Riley Financial, Inc.

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What Separates B. Riley Wealth Management

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♦ Our advisors are our priority. From senior leaders to regional and local managers, the core philosophy

of BRWM is our commitment to growth and value for advisors and their clients.

♦ We strive to attract financial advisors who embody the entrepreneurial spirit that exists across B. Riley

Financial companies.

♦ We define our culture around access to talented professionals at all levels across B. Riley Financial.

♦ We have the capabilities to support a variety of comprehensive wealth management practices.

♦ BRWM advisors have access to unique networking opportunities through B. Riley Financial events,

including national conferences widely attended by thousands of institutional investors and corporate

management teams.

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A publicly traded, diversified provider of financial and business advisory services.

B. Riley Financial, Inc. (NASDAQ: RILY)

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♦ The B. Riley Financial platform is uniquely positioned to

offer its cross-platform expertise, resources and assets to

better serve and maximize value for clients.

● Public company with market cap of over $550 million1

● 800+ Professionals

● Combined 2017 company revenues of over $322 million2

● Headquartered in Los Angeles, with offices in major

U.S. markets including New York, San Francisco and

Washington D.C.

B. Riley Financial is comprised of collaborative financial

services and solutions which can be leveraged to benefit

the wealth management needs of individuals and families.

___________________________1) Calculated using stock price as of 12/4/17 and shares outstanding as of 9/30/172) Consolidated revenue for B. Riley Financial, Inc. for period ending 12/31/17, includes FBR & CO. and Wunderlich Securities, Inc.

revenues for third and fourth quarters.

BRWM Advisors Have Access to Unique Proprietary Capabilities

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Geographic Footprint

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With locations from coast to coast, B. Riley Financial companies serve clients throughout the U.S.

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Expansive Resources

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Our platform combines the technology of one of the world’s largest financial services companies with the resources of B. Riley Financial.

♦ Enjoy a full range of customizable investment products

and solutions.

♦ Draw insight and knowledge from the expansive equity

research expertise of B. Riley FBR, Inc.

♦ Institutional equity and fixed income trading desks located in

New York, Los Angeles, Washington D.C. and San Francisco.

♦ Commentary and analysis by top ranked analysts.

♦ Engage wirehouse-level practice management and client

access technology.

♦ Leverage the full range of lending and trust services of

Wells Fargo.

♦ Access a vast library of third-party research from Wells Fargo

Investment Institute, Credit Suisse, Dorsey Wright, Moody’s

and more.

In-House

First Clearing1

___________________________1) First Clearing is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.

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60+ Research Professionals

27 Publishing Analysts

500+ Names Under Coverage

Sector Coverage*:

Consumer

Industrials

Energy and Natural Resources

Financial Services

Healthcare

Real Estate

Technology, Media, Telecom

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Award Winning Insights: B. Riley FBR Research

BRWM advisors have unique access to extensive research coverage produced by B. Riley FBR analysts. B.

Riley FBR’s research coverage identifies the key issues across various sectors that can impact the market.

The research is differentiated through originality of perspective, depth of insight and an ability to uncover

industry trends.

♦ Composed from analysts’ top picks among each industry vertical, selections are based upon a unique

perspective on a catalyst or other factors, which could present substantial upside potential over a

6- to 9-month period. B. Riley FBR Alpha Generators are published weekly with intra-week changes

announced via research briefs.

♦ Providing a unique perspective and timely analysis of the ways in which regulatory and legislative trends

and events affect market sectors and individual companies.

___________________________Not for client distribution* Full list is available at ww.brileyfbr.com/research.

B. Riley FBR Alpha Generator

Washington Policy Analysis

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Capital Market Services Through B. Riley FBR

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♦ Leading Initial Equity Offering Franchise, Small Cap Focused Investment Bank

♦ Full Service Platform – Common and Preferred Equity, Convertible Securities, High Yield Debt, Restructuring, and Advisory

♦ Quality Research Platform1 – Extensive sector coverage and well regarded, highly experienced analysts

♦ #2 Lead Bookrunner of Initial Equity Offerings for Issuers with market Caps < $1.5 billion2

♦ World Class Distribution – Broad distribution beyond the top 100 institutional accounts

Investment Banking

Institutional Brokerage and Research

Capital Markets Mergers & Acquisitions Corporate Restructuring Financial Advisory

♦ 80+ investment banking professionals

♦ Public and Private

Structured Equity

♦ ATM Issuances

♦ Baby Bonds and Debentures

♦ Sell-Side Representation

♦ Buy-Side Representation

♦ Management Buyouts

♦ Strategic Advisory

♦ Capital Advisory

♦ Liability Management

♦ Fairness Opinion

♦ Business Valuations

♦ Strategic Planning

Sales and Trading Research1

♦ 80+ Sales and Trading Professional

♦ Market-maker in 500+ Equity Securities

♦ Cover 1,200 Institutional Investors

♦ 60+ Research Professionals

♦ 500+ Companies Under Research Coverage

♦ $1.2B Median Market Cap

___________________________1) Research is provided by B. Riley FBR, Inc’s Research Department, which is independent from the Investment Banking Department of B. Riley FBR, Inc.

and has the sole authority to determine which companies receive research coverage and the recommendation contained in the coverage.2) Source: Dealogic. Apportioned credit to all bookrunning managers: Rank Eligible transactions only, US and Bermuda Issuers – Market Caps < $1.5 Billion

-All Industries – 1/1/2012 – 12/31/ 2017 – Initial Common Stock Offerings. Include deals transacted at predecessor firms and may not be indicative of future capabilities

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Investment Products:

Equities

Options

IPOs

Bonds, UITs

REITs

Alternatives

Mutual Funds

Annuities

Insurance

Managed Accounts

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Services for Individuals and Corporate Clients

♦ Investment management

♦ Financial planning

♦ Retirement income

♦ Risk management and insurance

♦ Estate planning coordination

♦ Trust management

Comprehensive Wealth Management for Individuals and Families

♦ Qualified plan and 401(k) advisory services

♦ Investment management and consulting for non-profits

and foundations

♦ Corporate executive services

♦ Investment banking and directed share programs

♦ Business lending resources through third-party banking institutions

Investment Services for Corporations

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Envision® Investment Planning Process

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Combining goal-based advice with sophisticated statistical modeling, the unique Envision® process creates an effective, easy-to

understand method for your client to prioritize and achieve important life goals.

The process incorporates:

● Defining major life goals

● Ideal and Acceptable goals

● Prioritizing goals

● Stress testing goals

The Target Zone and the “Dot”

Envision® technology uses a powerful statistical modeling

technique to help confirm your clients are in the right “Target

Zone” to achieve their life goals, without unduly sacrificing

current lifestyle needs or being exposed to unnecessary risk.

When the personal benchmark moves out of the Target Zone

or their personal situation changes, BRWM financial advisors

can make adjustments to get the investment plan back on

target. This information can be displayed on their statements

and online, where it is updated monthly.

● Making a recommendation

● Implementation

● Monitoring progress with the “Dot”

● Updating goals and priorities

___________________________1) Envision® is a registered service mark of Wells Fargo & Company and used under license.

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The WISDM model portfolios give your clients more options, and you more time and productivity.

WISDM Model Portfolios

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Created and actively managed by the in-house Investment Solutions team exclusively for BRWM financial advisors, WISDM model

portfolios give you and your clients a discretionary option based on BRWM Asset Management models, with some distinct benefits:

Flexible

♦ Less time spent monitoring and choosing investments gives

you more time to uncover new assets and develop new

relationships.

Straightforward

♦ Simplicity in selecting appropriate investments for your clients

with six investment strategies to match long-term goals and risk

tolerance. Choose from 24 mutual fund or ETF asset allocation-

based model portfolios, with or without alternatives.

Reliable

♦ Fully documented, due diligence process and regular

performance reporting to help you meet the new fiduciary

responsibilities.

Accessible

♦ Low minimum investment offers clients the professional, active

portfolio management usually available only at much higher

investment levels - $15,000 mutual funds; $25,000 for ETF

models.

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WISDM Model Portfolios

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The Investment Solutions team constructs WISDM mutual fund and ETF models from a universe of more than 8,500 mutual funds and

1,800 ETFs, incorporating third-party analysis from fi360, Morningstar, Thomson and more.

Manager performance is regularly monitored and all models are reviewed quarterly with responsive action taken as needed. Choose

from a variety of investment strategies to match your client’s long-term financial goals and risk profiles.

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urn

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Risk ExpectationLower Higher

Income

Incomewith

Growth

Balanced

Growth &Income

Growth

AggressiveGrowth

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Alternative Investments

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Provide your high net worth clients with unique opportunities through offerings sourced through B. Riley FBR and

B. Riley Capital Management, LLC:

Alpha Research Portfolio

♦ Turnkey separately-managed account arrangement invested in an equally-weighted portfolio of the best stock ideas from the B. Riley FBR

research universe

B. Riley Proprietary Long-Only Strategies

♦ 40 act funds and separately managed accounts that allocate capital to the best ideas from the B. Riley FBR research group.

Great American Capital Partners1 (Qualified Institutional Buyers only)

♦ A specialty lending vehicle to provide non-traditional, opportunistic, asset based loans to underserved $1 trillion lower middle market.

BRC Partners Opportunity Fund, L.P.1 (Accredited Investors only)

♦ A special situations fund that focuses on long/short equity opportunities. The objective of the Fund is to deliver superior absolute returns,

while minimizing risk through reduced net equity market exposure.

Additional Offerings:

♦ CAIS Group: Alternatives-based funds and products including Millennium and Third Point

♦ Private Placements and 144A Offerings

♦ Additional strategies are selected through the firm’s unique relationships after a stringent due diligence process

___________________________Not for client distribution1) Retail distribution approval pending.

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Lending solutions to fulfill many funding needs:

Real Estate

Education

Debt Consolidation

Senior Living

Tax Payments

Unplanned Expenses

Business Financing

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Lending Solutions

Full scope of lending options

♦ Funded through trusted third-party banking sources

♦ Securities-based lending – available from $100,000 up to

$5,000,000

♦ Non-purpose loans

♦ Custom loans and lines of credit for individuals and businesses

♦ Relationship-based pricing and high-touch service

♦ Referral compensation to advisors – variable based on loan amount

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Online Account Services

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B. Riley Wealth Management offers 24/7 online access to all client

account information:

♦ Clients have access to up-to-date, detailed account information, the

latest news and research reports, commentaries on current market

and economic events, calculators and much more whenever

convenient to them.

● View real-time account information for individual accounts or for

your entire household.

● Download account information to Quicken® or Microsoft® Excel.

● Create a consolidated Portfolio Report for any combination of

accounts to review real-time balances, an asset allocation pie

chart and details of all holdings.

Market information at your fingertips:

♦ Obtain real-time quotes, news, charts, company profiles, ratings, research reports and industry comparisons.

♦ Set up Market Alerts to receive email alerts about individual securities, entire portfolios or specific industries.

♦ Launch Portfolio Tracker to get 15-minute delayed streaming quotes, news and charts on your desktop. Clients may receive updates

throughout the day on market indexes, securities and breaking news on their portfolio, even after logging off Access Online.

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Monthly Production Payout*

Over $28,750 50%

$25,000 to $28,749 45%

$20,000 to $24,999 40%

$15,000 to $19,999 35%

$10,000 to $14,999 25%

$0 to $9,999 20%

Compensation Grid

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Payout percentage

♦ Based on a rolling 3-month average of production; payout

breakpoints are retroactive to the first dollar of production.

Investment Banking Referral Fees

♦ Advisors will receive a finders fee of 10% on investment

banking revenue. If a transaction occurs within 24 months of

the initial engagement, then an additional fee of 5% will be

paid on that subsequent transaction.

Minimum Ticket Size:

♦ All equity tickets are subject to a minimum commission of $75

for payout.

♦ All bond tickets are subject to a minimum commission of

$125 for payout.

♦ All option tickets will be paid on full grid payout if the

commissions meet the minimum of the higher of $80 or

$5/contract. If the commission charged for an option ticket is

less than $20 plus $1.50 per contract, the difference will be

charged to the advisor.

♦ All employee and related accounts are subject to minimum

ticket charge of $25 plus $.01 per share on listed

transactions.

BRWM Payout Scale

For Fiscal Year 2019 (effective July 1, 2018)

* Highest Payoutamong regional and wirehouse firms for $600k to $400k producers according to OnWallStreet*

___________________________* Source: OnWallStreet magazine, April 24, 2018, “Where’s the Best Pay for Advisors”

For more information, please visit

www.brileywealth.com

Financial Advisor Opportunities

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