NEW YORK, Sept 20 (Reuters) - Embattled investment bank

B. Riley Financial ( RILY ) is in talks to sell its wealth

management business to Stifel Financial ( SF ) for more than

$100 million, a source familiar with the matter said on Friday.

The talks come as B. Riley tries to raise funds after a

second-quarter loss warning and faces pressure over its role in

a management-led buyout of Franchise Group last year.

Talks are ongoing after Stifel approached B. Riley about

acquiring the wealth management unit, said the source, who

cautioned that a deal was not guaranteed and another suitor

could ultimately emerge for the business.

The source also spoke on condition of anonymity to discuss

confidential deliberations.

Stifel declined comment. B. Riley did not immediately

respond to a comment request.

Last week, B. Riley disclosed it was in exclusive

negotiations with a global asset manager to sell a 53% stake in

its Great American Group business. Bloomberg News reported that

Oaktree Capital is in talks to acquire the stake.

The unit, valued at around $380 million in the deal,

consists of B. Riley's appraisal and valuation services arm and

its retail, wholesale and industrial solutions unit.

B. Riley is also studying a potential take-private offer

from co-founder and co-CEO Bryant Riley. A special committee

comprising independent directors is evaluating that proposal.

The company's wealth management business offers financial

advice to individuals, businesses and organizations, including

tax services, retirement plans, and other financial planning,

according to its website.