By David French

NEW YORK (Reuters) - Embattled investment bank B. Riley Financial is in talks to sell its wealth management business to Stifel Financial 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.

(Reporting by David French in New York, editing by Deepa Babington)