Riley Financial, which provides business advisory and financial services, has acquired the investment advisory business of 272 Capital.

Financial terms of the deal have not been shared.

Led by Wes Cummin, 272 Capital specialises in small cap equity securities.

The deal is in line with B. Riley’s focus on active small cap management and is expected to serve both firms’ investment offerings for institutional and individual high-net-worth (HNW) clients.

Riley Financial chairman and co-CEO Bryant Riley said: “This combination represents an important area for growth on our platform, and an equally exciting opportunity for the institutional and retail investors we serve. We have known and worked closely with Wes for over 20 years and could not be more pleased to welcome him back to the firm.”

Under the agreement, Cummin will join B. Riley as president of its asset management. He will oversee the investment strategy of BRC Partners Opportunity Fund, a private fund that leverages the insight, expertise, and resources of B. Riley’s affiliates.

Cummin will also be responsible for managing 272 Capital.

Cummins commented: “This combination reflects the core focus of both our firms: fundamental research and small cap value.

“Having followed the development and trajectory of the firm over the past several years, B. Riley has truly distinguished itself as the leading small cap platform in the US Growth in passive investing has created even more opportunity for the diligent active manager, and joining B. Riley allows 272 Capital to benefit from an expanded capital base and additional resources offered by a broader platform.”

Cummins previously worked at B. Riley for nine years and has held served key positions at the firm during his tenure.

He also served as president of the firm for several years.

Before establishing 272 Capital last year, Cummins served as a senior investment professional at Nokomis Capital for eight years.

Last year, B. Riley Financial invested in fintech company IQvestment which provides a B2B e-commerce platform.