B. Riley Securities Announces Its Carve Out From B. Riley Financial

Tuesday, March 11, 2025

Friends and Partners,

This is a transformative day for our team as earlier this morning, B. Riley Financial (BRF) announced a carve-out transaction that enables our firm, B. Riley Securities (BRS), to operate with independent governance, a separate shareholder base, and distinct financial transparency. After listening to your feedback over the past several quarters, we pursued this structural solve to both address your concerns and to ensure our platform remains your preferred partner in the middle market. We are thrilled to share what we've been working so hard to deliver, and fully expect you'll find the new BRS enormously accretive to our entire client-partner network.

We write to you today with a completely debt free, well-capitalized balance sheet that we intend to weaponize on our clients' behalf. With the added strategic benefit of BRF's 89% pro forma ownership of BRS, and its related capital access, be assured we have more significant resources still to be called upon for the benefit of our entire client set. We are continuing to hire in key areas like Research, Investment Banking, and Sales Trading.

In the eight years since integrating FBR into the B. Riley platform, BRS has proven to be THE go-to investment bank for middle-market expertise. During this period, we led more than 250 capital markets transactions, raised over $115B in debt and equity for our clients, and advised on M&A and Restructuring transactions exceeding $33B in aggregate value. We are making a difference and helping the middle market community thrive.

We look forward to continuing to work together during your organization's most pivotal milestones, and appreciate you taking a moment out of your day to learn about one of ours. We're excited to share more in the days and weeks ahead and are eager to host the corporate and investor community at our 25th Annual Conference this May in Marina Del Rey.


Warmly,

Andy Moore, Chairman and Co-Chief Executive Officer & Jimmy Baker, Co-Chief Executive Officer


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