Sei Investments SEIC

NASDAQ SEIC

$106.93 +0.16 (+0.15%)

At close: Sep 11, 2026 · 4:00 PM EDT

Key Stats

Market Cap12.83 Bn

P/E17.99

P/S5.24

Div. Yield0.99

Total Debt (Qtr)32.97 Mn

Revenue Growth (1y) (Qtr)14.66

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About

SEI Investments Company is a leading global provider of financial technology, operations, and asset management solutions that connect the financial services ecosystem across advice, asset management, and administration. The company unifies technology, trust‑based custody, and investment management to help clients deploy capital more effectively, whether that capital is money, time, or talent. Headquartered in Oaks, Pennsylvania, SEI employs over 5,000 people across service…

SEI generates revenue through technology and operations outsourcing, asset management fees, and professional services and other ancillary services. In 2025, approximately 57% of revenue came from technology and operations outsourcing, 38% from asset management fees, and the remainder from professional services and other sources. The company delivers these services to clients across four core business segments: Investment Managers, Private Banks, Investment Advisors, and Institutional Investors, with a smaller Investments in New Businesses segment supporting strategic growth initiatives. SEI manages, advises, or administers approximately $1.9 trillion in assets for its clients worldwide.

SEI Investments Company operates through the following segments: Investment Managers, Private Banks, Investment Advisors, Institutional Investors, and Investments in New Businesses.

Investment Managers: This segment provides a comprehensive outsourced investment management operating platform for alternative and traditional asset managers, fund companies, and sovereign wealth funds. Services include fund administration, depositary services, investment accounting, investor reporting, distribution support, and middle‑office functions. The segment also offers trustee, investment management, and administration services for Collective Investment Trusts (CITs), serving the U. S. retirement market. SEI Access™ platform streamlines alternative investment access and processing for advisors and institutions.
Private Banks: This segment delivers technology, operations, and asset management solutions to the wealth management businesses embedded within banks and trust companies, as well as independent wealth advisors. Clients benefit from investment processing, operational capabilities, and administrative support essential for managing change, complying with regulations, and deploying capital effectively. SEI Private Trust Company (SPTC) provides trust‑based custody where client assets are held in the client’s name without commingling, pledging, or margining, tightly integrated with the SEI Wealth Platform SM. The segment also offers asset management programs to banks, wealth managers, and other financial services firms.
Investment Advisors: This segment provides wealth management technology, operations, and asset management solutions for independent financial advisors across the RIA, bank, and independent broker‑dealer market segments. Advisors receive a flexible operating platform offering end‑to‑end business, technology, and operational solutions across front, middle, and back office functions. Customized investment management programs include goals‑based strategies, SEI‑curated models utilizing direct indexing, separately managed accounts, ETFs, and mutual funds. Enhanced tax‑management capabilities such as asset location, tax‑loss harvesting, and tax‑efficient multi‑account household portfolio management help advisors optimize after‑tax outcomes for clients.
Institutional Investors: This segment provides fully outsourced CIO (OCIO) and unbundled OCIO services primarily to retirement plan sponsors, healthcare systems, higher education, and not‑for‑profit organizations. OCIO supports institutional investors who delegate investment management decisions through a flexible implementation model, while unbundled OCIO leverages SEI Novus SM , a global portfolio intelligence tool, and comprehensive investment processing and shadow accounting. Both solutions draw on SEI’s investment management, advisory, administration, technology, and operational capabilities to help institutional investors make more confident decisions and improve efficiencies.
Investments in New Businesses: This segment represents other business ventures or research and development activities intended to expand solutions to new or existing markets, including ultra‑high‑net‑worth families in the United States. It includes costs associated with providing managed security services through SEI Sphere™ and the modularization of larger technology platforms. The segment also encompasses the strategic investment in Stratos Wealth Holdings (Stratos), a network of affiliated companies focused on supporting the success of financial advisors across business models and affiliation structures.

SEI holds a strong position in the financial technology and asset services industry, competing with firms such as SS&C Technologies, State Street, BNY Mellon, Northern Trust, Citco, Fidelity National Information Services (FIS), Fi‑Tek, SS&C Innovest, FNZ UK Ltd., Avaloq, Envestnet, Orion, Charles Schwab & Co., Inc., Fidelity Investments, Mercer, Aon Hewitt, Willis Towers Watson, BlackRock, and Goldman Sachs. The company’s competitive advantages stem from its integrated ecosystem combining technology, custody, operations, and investment management, leadership in alternatives and private market administration, trust‑based custody model, and significant investments in cybersecurity, cloud infrastructure, data analytics, and AI/automation tools.

SEI serves a diverse client base including leading banks, registered investment advisors (RIAs), institutional investors, alternative managers, wealth managers, banks, investment advisors, asset managers, family offices, institutional investors, and ultra‑high‑net‑worth investors. Specific client relationships include 8 of the top 20 U. S. banks and 43 of the top 100 investment managers worldwide, reflecting long‑term partnerships with many of the world’s largest financial institutions.

Investment Thesis

▲ Bull case

SEI’s AI enabled automation initiatives are translating into measurable margin expansion that is not merely a cyclical benefit but a structural shift in operating efficiency. Management repeatedly described AI as an accelerant that enhances productivity without forcing fee concessions, indicating that the company can pass on efficiency gains to clients while preserving pricing power. The AI enabled data cloud and cybersecurity offerings are seeing early client engagement across multiple segments, which creates longer term contracts and higher win rates. This deeper integration of technology into core services reduces unit costs and expands the addressable market for SEI’s platform. As a result, the market may be underestimating the sustainability of the current margin improvement and the potential for continued earnings growth driven by technology.
International Professional Services is emerging as a hidden growth driver with over one third of Q1 FY26 sales events originating outside the United States, notably in the United Kingdom. Management is applying a disciplined approach to international operations through the Global Capability Center and is expanding its Singapore presence to support this thrust. By tailoring solutions to local regulatory needs while leveraging SEI’s global compliance expertise, the company can secure multi year contracts that provide recurring revenue streams. This geographic diversification lessens reliance on domestic demand and opens new pipelines in markets where financial institutions are seeking professional services for digital transformation. The trend suggests a durable uplift to the Professional Services revenue base that is not yet fully reflected in consensus estimates.
The Stratos integration presents upside beyond the current amortization drag on Advisors segment margins, as excluding intangible amortization Advisors margins rose approximately fifty basis points year over year in Q1 FY26. This indicates that the underlying Advisory business is experiencing organic growth through deeper client engagement and expanded ecosystem offerings. Stratos’ roll up strategy still offers attractive multiple arbitrage opportunities for RIAs in the one hundred million to one billion dollar range, where acquisition multiples remain below those of larger scale players. As Stratos scales and the amortization burden declines, its EBITDA contribution will increase and enable cross sell of SEI’s broader wealth management and technology platforms. Consequently, the market may be overlooking the future profitability uplift from Stratos once the acquisition accounting effects diminish.
Institutional asset flows are set for a recovery after the large defined benefit client annuitization that produced sub one billion dollar outflows in Q1 FY26, a one time event that temporarily obscured the underlying trend. Management expects improved flow performance later in the year as the company deepens its OCIO penetration in endowment foundation and health care segments, which are poised to benefit from the anticipated wealth transfer exceeding one hundred trillion dollars. This structural demand tailwind could revive net inflows and increase fee based revenue from institutional clients. The pipeline for OCIO mandates remains robust, supported by demographic shifts and the growing need for outsourced investment management among not for profit organizations. As a result, the market may be undervaluing the potential for a rebound in institutional revenue that would complement growth in the Advisors and IMS businesses.
Capital allocation discipline signals management confidence in SEI’s intrinsic value, as evidenced by the two hundred eight million dollar share repurchase in Q1 FY26 while the balance sheet retained three hundred sixty three million dollars of cash. The combination of substantial buybacks and strong liquidity reflects the belief that shares are trading below their long term growth prospects, providing a valuation floor. The ongoing repurchase program returns capital to shareholders without compromising reinvestment in growth initiatives such as the launch of the high yield bond and alternative credit ETF and the appointment of a new Chief Investment Officer to drive the asset management strategy. These actions reinforce a shareholder friendly stance while funding innovation that could generate new revenue streams. Investors may be underestimating the positive impact of this balanced capital approach on future earnings per share.

SEI’s AI enabled automation initiatives are translating into measurable margin expansion that is not merely a cyclical benefit but a structural shift in operating efficiency. Management repeatedly described AI as an accelerant that enhances productivity without forcing fee concessions, indicating that the company can pass on efficiency gains to clients while preserving pricing power. The AI enabled data cloud and cybersecurity offerings are seeing early client engagement across multiple segments, which creates longer term contracts and higher win rates. This deeper integration of technology into core services reduces unit costs and expands the addressable market for SEI’s platform. As a result, the market may be underestimating the sustainability of the current margin improvement and the potential for continued earnings growth driven by technology.
International Professional Services is emerging as a hidden growth driver with over one third of Q1 FY26 sales events originating outside the United States, notably in the United Kingdom. Management is applying a disciplined approach to international operations through the Global Capability Center and is expanding its Singapore presence to support this thrust. By tailoring solutions to local regulatory needs while leveraging SEI’s global compliance expertise, the company can secure multi year contracts that provide recurring revenue streams. This geographic diversification lessens reliance on domestic demand and opens new pipelines in markets where financial institutions are seeking professional services for digital transformation. The trend suggests a durable uplift to the Professional Services revenue base that is not yet fully reflected in consensus estimates.
The Stratos integration presents upside beyond the current amortization drag on Advisors segment margins, as excluding intangible amortization Advisors margins rose approximately fifty basis points year over year in Q1 FY26. This indicates that the underlying Advisory business is experiencing organic growth through deeper client engagement and expanded ecosystem offerings. Stratos’ roll up strategy still offers attractive multiple arbitrage opportunities for RIAs in the one hundred million to one billion dollar range, where acquisition multiples remain below those of larger scale players. As Stratos scales and the amortization burden declines, its EBITDA contribution will increase and enable cross sell of SEI’s broader wealth management and technology platforms. Consequently, the market may be overlooking the future profitability uplift from Stratos once the acquisition accounting effects diminish.
Institutional asset flows are set for a recovery after the large defined benefit client annuitization that produced sub one billion dollar outflows in Q1 FY26, a one time event that temporarily obscured the underlying trend. Management expects improved flow performance later in the year as the company deepens its OCIO penetration in endowment foundation and health care segments, which are poised to benefit from the anticipated wealth transfer exceeding one hundred trillion dollars. This structural demand tailwind could revive net inflows and increase fee based revenue from institutional clients. The pipeline for OCIO mandates remains robust, supported by demographic shifts and the growing need for outsourced investment management among not for profit organizations. As a result, the market may be undervaluing the potential for a rebound in institutional revenue that would complement growth in the Advisors and IMS businesses.
Capital allocation discipline signals management confidence in SEI’s intrinsic value, as evidenced by the two hundred eight million dollar share repurchase in Q1 FY26 while the balance sheet retained three hundred sixty three million dollars of cash. The combination of substantial buybacks and strong liquidity reflects the belief that shares are trading below their long term growth prospects, providing a valuation floor. The ongoing repurchase program returns capital to shareholders without compromising reinvestment in growth initiatives such as the launch of the high yield bond and alternative credit ETF and the appointment of a new Chief Investment Officer to drive the asset management strategy. These actions reinforce a shareholder friendly stance while funding innovation that could generate new revenue streams. Investors may be underestimating the positive impact of this balanced capital approach on future earnings per share.

▼ Bear case

IMS revenue shows concentration risk despite claims of diversification, with less than fifty% of Q1 FY26 net sales events coming from the two largest alternative manager wins. This means the remaining half of IMS sales still depends on a limited number of large clients, making the segment vulnerable to delays or losses in those relationships. The enterprise sales cycle is long and tied to client fundraising timelines, which can produce lumpiness in quarterly revenue and cause volatility in growth rates. Any slowdown in the alternative investment fundraising environment would directly affect demand for SEI’s administration and outsourcing services. Consequently, the market may be overestimating the stability of IMS growth and underestimating the potential for revenue hiccups.
The Stratos acquisition continues to affect Advisors segment profitability through intangible amortization, which drags down reported GAAP and adjusted margins even though management notes underlying margin improvement excluding this item. Until the amortization schedule declines, the reported margins may remain below peer levels and limit the market’s willingness to assign a higher valuation multiple. Furthermore, the success of the roll up strategy depends on finding attractive acquisition targets at reasonable multiples, and a rising market for RIA IBD valuations could erode the arbitrage opportunity that has historically supported Stratos’ growth. If SEI overpays for future deals or fails to integrate them effectively, goodwill impairment risk increases, potentially leading to future earnings pressure.
International expansion carries execution risk as SEI attempts to replicate its Professional Services model in diverse regulatory environments such as the United Kingdom and Singapore. Replicating the U.S. approach may encounter compliance challenges, longer sales cycles, and a need for localized talent that could increase operating costs. Any misstep in navigating local regulations or in building the required infrastructure could erode margins and delay the anticipated contribution to overall revenue. Moreover, the company’s dependence on the Global Capability Center for international delivery introduces a single point of operational risk if the center faces capacity constraints or geopolitical disruptions. These factors suggest that the international upside may be more modest and slower to materialize than currently anticipated.
Macro headwinds affecting alternative investments could dampen demand for IMS and Professional Services, as a prolonged period of higher interest rates or market volatility may slow fundraising for private credit and private equity funds. A slowdown in private capital raising reduces the need for outsourced administration and cloud based data solutions, which are core components of SEI’s IMS offering. While SEI’s exposure to retail private credit is currently limited, the institutional private credit segment could still suffer if allocators pull back on alternatives in response to changing market conditions. This would directly impact revenue growth and could pressure margin expansion if fixed costs do not adjust quickly enough. Hence, the market may be overlooking the sensitivity of SEI’s business to broader alternative investment cycles.
AI driven disruption remains a latent threat despite management’s view of AI as an accelerant, as competitors could adopt comparable automation tools to compress fee rates across fund administration and wealth management. If SEI fails to maintain its technological edge or if clients develop in house capabilities to replicate services internally, the pricing power that underpins current margin expansion could erode. Such an environment would put pressure on both revenue and profitability, undermining the benefits derived from AI enabled productivity gains. Additionally, the rapid pace of AI innovation raises uncertainty about the long term relevance of SEI’s current technology investments, potentially leading to stranded capital if newer platforms emerge. Consequently, the market may be underestimating the risk that AI could eventually become a competitive leveling force rather than a differentiator.

IMS revenue shows concentration risk despite claims of diversification, with less than fifty% of Q1 FY26 net sales events coming from the two largest alternative manager wins. This means the remaining half of IMS sales still depends on a limited number of large clients, making the segment vulnerable to delays or losses in those relationships. The enterprise sales cycle is long and tied to client fundraising timelines, which can produce lumpiness in quarterly revenue and cause volatility in growth rates. Any slowdown in the alternative investment fundraising environment would directly affect demand for SEI’s administration and outsourcing services. Consequently, the market may be overestimating the stability of IMS growth and underestimating the potential for revenue hiccups.
The Stratos acquisition continues to affect Advisors segment profitability through intangible amortization, which drags down reported GAAP and adjusted margins even though management notes underlying margin improvement excluding this item. Until the amortization schedule declines, the reported margins may remain below peer levels and limit the market’s willingness to assign a higher valuation multiple. Furthermore, the success of the roll up strategy depends on finding attractive acquisition targets at reasonable multiples, and a rising market for RIA IBD valuations could erode the arbitrage opportunity that has historically supported Stratos’ growth. If SEI overpays for future deals or fails to integrate them effectively, goodwill impairment risk increases, potentially leading to future earnings pressure.
International expansion carries execution risk as SEI attempts to replicate its Professional Services model in diverse regulatory environments such as the United Kingdom and Singapore. Replicating the U.S. approach may encounter compliance challenges, longer sales cycles, and a need for localized talent that could increase operating costs. Any misstep in navigating local regulations or in building the required infrastructure could erode margins and delay the anticipated contribution to overall revenue. Moreover, the company’s dependence on the Global Capability Center for international delivery introduces a single point of operational risk if the center faces capacity constraints or geopolitical disruptions. These factors suggest that the international upside may be more modest and slower to materialize than currently anticipated.
Macro headwinds affecting alternative investments could dampen demand for IMS and Professional Services, as a prolonged period of higher interest rates or market volatility may slow fundraising for private credit and private equity funds. A slowdown in private capital raising reduces the need for outsourced administration and cloud based data solutions, which are core components of SEI’s IMS offering. While SEI’s exposure to retail private credit is currently limited, the institutional private credit segment could still suffer if allocators pull back on alternatives in response to changing market conditions. This would directly impact revenue growth and could pressure margin expansion if fixed costs do not adjust quickly enough. Hence, the market may be overlooking the sensitivity of SEI’s business to broader alternative investment cycles.
AI driven disruption remains a latent threat despite management’s view of AI as an accelerant, as competitors could adopt comparable automation tools to compress fee rates across fund administration and wealth management. If SEI fails to maintain its technological edge or if clients develop in house capabilities to replicate services internally, the pricing power that underpins current margin expansion could erode. Such an environment would put pressure on both revenue and profitability, undermining the benefits derived from AI enabled productivity gains. Additionally, the rapid pace of AI innovation raises uncertainty about the long term relevance of SEI’s current technology investments, potentially leading to stranded capital if newer platforms emerge. Consequently, the market may be underestimating the risk that AI could eventually become a competitive leveling force rather than a differentiator.

Related Party Transactions By Related Party Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Custody and Fund Services

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	BNY	Bank of New York Mellon Corp	primary	110.37 Bn	18.53	5.17	35.18 Bn
2	STT	State Street Corp	primary	53.13 Bn	16.58	3.53	-
3	NTRS	Northern Trust Corp	primary	34.62 Bn	15.83	6.58	8.63 Bn
4	SEIC	Sei Investments Co	primary	12.83 Bn	17.99	5.24	0.03 Bn
5	HQY	Healthequity, Inc.	primary	7.98 Bn	33.93	5.86	0.93 Bn
6	ATCH	AtlasClear Holdings, Inc.	primary	0.03 Bn	0.26	1.52	0.01 Bn
7	BRK-B	Berkshire Hathaway Inc	secondary	1,099.61 Bn	0.01	2.30	-
8	BSAC	Banco Santander Chile	secondary	441.72 Bn	-0.67	-	652.30 Bn

Sei Investments SEIC

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Investment Thesis

Related Party Transaction Breakdown of Revenue (2025)

Related Party Transactions By Related Party Breakdown of Revenue (2025)

Peer Comparison

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