The leader of a Dallas investment advisory firm has found a buyer for it from a previous employer.
Dallas’ 272 Capital, founded by Wes Cummins, who also heads up local cryptocurrency mining company Applied Blockchain, has been acquired by fellow Los Angeles-based investment advisory business B. Riley Financial.
“This combination reflects the core focus of both our firms: fundamental research and small-cap value,” Cummins, who serves as 272 Capital’s CEO, said in a statement. “Joining B. Riley allows 272 Capital to benefit from an expanded capital base and additional resources offered by a broader platform.”
The terms of the deal were not disclosed.
The long/short equity-focused firm was launched by Cummins last year. According to the company, 272 Capital manages more than $270 million in assets.
Cummins has a long history with B. Riley. He joined the small cap-focused firm in 2002 as an equity research analyst and later as B. Riley’s president until 2011. With the deal, Cummins will again join the firm as president of B. Riley Asset Management, overseeing its BRC Partners Opportunity Fund.
B. Riley manages over $32 billion in client assets, focusing on areas ranging from real estate and retail to venture capital and industrial solutions. According to its website, B. Riley has more than 200 offices across the U.S., including one in Plano.
”Expanding our asset management base remains one of our highest priorities. Wes and the talented team at 272 Capital have established a successful small-cap investment strategy that has yielded strong returns in its first year,” said B. Riley Financial Chairman and Co-CEO Bryant Riley in a statement. “This combination represents an important area for growth on our platform and an equally exciting opportunity for the institutional and retail investors we serve.”
272 Capital’s acquisition comes as Cummins’ other business has been making moves. In April, Applied Blockchain emerged from stealth mode with a $16.5 million private equity investment from blockchain companies SparkPool and General Mining Research. It followed that up with a $32.5 million private stock sale led by Beijing-based Bitmain to expand into the crypto hosting business with plans to build facilities in the Midwest with a collective capacity of 500 megawatts. When Applied exited stealth, Cummins said the company plans to list on the Nasdaq as soon as possible. It currently trades on the OTC Pink Open Market under the ticker symbol APLD.
