Core Viewpoint - The article compares Janus Henderson Group plc (JHG) and SEI Investments (SEIC) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both JHG and SEIC currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - JHG has a forward P/E ratio of 11.50, while SEIC has a forward P/E of 19.08 [5] - JHG's PEG ratio is 1.36, compared to SEIC's PEG ratio of 1.59, suggesting JHG may offer better value relative to its expected earnings growth [5] - JHG has a P/B ratio of 1.27, while SEIC's P/B ratio is significantly higher at 4.95, indicating JHG is more attractively valued based on book value [6] - JHG earns a Value grade of B, while SEIC receives a Value grade of C, further supporting JHG as the superior value option [6][7]

Company Overview - Aquiline has successfully acquired SEI's Family Office Services business, which will now operate independently under the name Archway [1] - Archway provides a comprehensive suite of solutions to family offices, private banks, and wealth advisors, featuring robust general ledger accounting software, investment reporting, and fund administration services [4] Leadership Changes - Anthony Abenante has been appointed as the CEO of Archway, bringing extensive experience from his previous roles at Credit Suisse and Instinet [2] - Steve Meyer will serve as the Chairman of the Board, expressing enthusiasm for Archway's future and its role in the wealth management market [4] Strategic Focus - Aquiline plans to invest significantly in Archway to enhance product offerings, customer experience, and talent acquisition [1] - The company aims to accelerate product innovation, deepen client partnerships, and expand market reach, particularly in the family office and complex wealth sectors [5] Market Opportunity - The family office sector is identified as an underserved market with increasing complexity in investment portfolios and operational challenges [5] - Archway is positioned to leverage Aquiline's experience in wealth management software and services to grow its client base [5] Financial Background - As of March 31, 2025, Aquiline manages approximately $12 billion in assets and has deployed around $7.4 billion across private equity, venture, and credit strategies [6] - SEI, prior to the acquisition, managed approximately $1.6 trillion in assets, indicating a significant scale within the financial services industry [8]

Core Insights - The research by SEI highlights that private market asset managers face challenges due to data replication and fragmentation from multiple fund administrators, leading to operational inefficiencies and increased costs [1][2][4] Industry Overview - Global private markets assets under management have grown nearly 20% annually since 2018, prompting firms to work with multiple fund administrators due to regulatory pressures, cross-border operations, or M&A activity [2][4] - The complexity of the environment is increasing pressure on firms to meet investor demand while maintaining operational efficiency and improving profitability [4] Research Methodology - The research was conducted by Cutter Associates, surveying senior decision-makers at private markets firms with at least $2 billion in assets under management, covering various asset classes including private equity, private debt, real estate, infrastructure, and hedge funds [5] Key Findings - A significant portion of firms (55%) maintain an internal accounting book of record, and 43% have more than half of their non-investment staff involved in oversight or replication, indicating high replication costs [7] - One-third of firms express concerns about technology costs, and 47% report that replication delays their reporting by three or more days, affecting data visibility [7] - The majority of firms (57%) work with multiple administrators, but 58% prefer to consolidate to one provider, with 21% desiring just two [7] - A quarter of firms (24%) are actively reducing replication, and 55% would consider it in future strategic plans, with 62% stating that the ability to reduce replication influences their choice of fund administrator [7]

SEI Investments (SEIC) FY Conference Summary Company Overview - SEI Investments provides outsourced technology and investment solutions to banks, financial institutions, and asset managers [2] - The company manages and services $1.6 trillion of client assets [2] Core Offerings - SEI has two core offerings: 1. Technology and operations group 2. Asset management [6] - The company operates in four divisions, with 70% of revenue coming from the Investment Manager Services (IMS) space, primarily in alternative managers [8] Historical Context - Founded in 1968, SEI started in private banking and went public in 1981 [12][13] - Significant growth in the 1990s with expansion into Canada and Europe, and the establishment of three new offerings [15] - A notable investment in 1994 in LSV yielded substantial returns, generating about $2 million weekly [16] Challenges and Strategic Shifts - The early 2000s were marked by challenges due to the dot-com bubble and financial crisis, leading to stagnation [17][18] - SEI struggled to adapt to the shift from active to passive asset management [20] - A leadership transition occurred in 2022 with Ryan Hickey becoming CEO, marking a shift towards bold strategies [25][27] Recent Performance and Leadership Changes - Under Ryan's leadership, sales events increased by 25%, margins improved by 300 basis points, earnings per share rose by 55%, and share price increased by 46% [36] - A complete overhaul of the leadership team was initiated to address stagnation and competition [30][31] Strategic Focus Areas 1. **Expansion of Asset Management**: Targeting larger Registered Investment Advisors (RIAs) and enhancing product offerings [39][41] 2. **Operational Excellence**: Emphasizing cost management and automation, with a focus on AI and offshoring [46][48] 3. **Enterprise Mindset Shift**: Transitioning from a vertical to a horizontal strategy to enhance collaboration across divisions [49][50] 4. **Capital Allocation**: Maintaining a strong balance sheet with no debt, while considering strategic acquisitions for growth [52][54] Future Opportunities - SEI is well-positioned in the alternative investment space, particularly in private credit [44][56] - The company sees significant potential in asset management, especially with the recent leadership changes [57] Conclusion - SEI Investments is undergoing a transformative phase under new leadership, focusing on growth in asset management, operational efficiency, and strategic capital allocation to enhance shareholder value [55][58]

Core Insights - Advisors are actively seeking strategies to refine and future-proof their practices, with 40% considering significant business transitions within the next 18 months [1][4][5] - The financial advisory industry is undergoing profound transformation due to evolving client expectations, technological advancements, and demographic shifts [3][4] Business Transition and Planning - 40% of financial advisors are contemplating selling their practices, merging with other firms, or making key changes in strategic partnerships [1] - Succession and continuity planning are top concerns for advisors, emphasizing the need for structured exit strategies [1][4] Operational Focus - 92% of advisors prioritize expanding their businesses, with 80% identifying business planning as a top priority [8] - 51% of advisors cite operational efficiency as crucial for strengthening their firm's foundation for scalable growth [8] - 43% are investing in people and culture to enhance talent acquisition, retention, and long-term team development [8] SEI's Business Audit Tool - SEI's business audit tool provides personalized insights into business health and areas of opportunity for advisors [2] - The tool helps advisors assess key areas of their businesses and strategically prioritize next steps [3]

Company Participation - SEI will participate in the William Blair 45th Annual Growth Stock Conference in Chicago, IL on June 5, 2025, with a presentation by Sean Denham, Chief Financial and Chief Operating Officer, at 10:20 a.m. ET [1] - Denham and Michael Lane, Executive Vice President and Head of Asset Management, will host one-on-one or small group meetings throughout the day [2] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services within the financial services industry [3] - As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets [3]

Core Insights - SEI has announced the expansion of its strategic partnership with TrinityBridge, marking TrinityBridge as the first client in the UK/EMEA to adopt SEI Sphere for unified managed services [1][2] - SEI Sphere aims to modernize enterprise technology and data infrastructure, enhancing security and efficiency in a complex digital landscape [1][7] Company Developments - TrinityBridge is already utilizing SEI Wealth Platform and SEI Data Cloud, and the adoption of SEI Sphere will drive digital innovation and long-term growth [2][6] - The partnership allows TrinityBridge to enhance enterprise visibility and unlock operational value through a unified approach [2][4] Strategic Alignment - TrinityBridge's COO emphasized the need for best-of-breed technologies to provide a modern wealth management experience, highlighting SEI's understanding of their business and cultural alignment [3][5] - The collaboration aims to elevate customer service and protection while meeting evolving regulations and maintaining high data protection standards [4][5] Technology and Services - SEI Sphere provides a structured path to modernization with a suite of cloud, cybersecurity, and network services, addressing the challenges of increasing regulation [7][8] - The platform replaces fragmented IT systems with an integrated solution that enhances operational security, scalability, and collaboration [7][8] Financial Overview - As of March 31, 2025, SEI manages, advises, or administers approximately $1.6 trillion in assets, showcasing its significant presence in the financial services industry [6]

Evolution of Leadership Reinforces SEI's Strategic Commitment to Serving Clients and Driving Growth About SEI's Investment Managers business "The convergence of public and private markets continues to alter the industry landscape, and traditional managers are launching alternative products—increasing the scope of their business needs. Operational complexity drives demand for a digital-first experience, with data at the core. Investing in our technology platforms and capabilities and reinforcing our high-tou ...

Core Insights - SEI has been selected by Summit Wealth Group to support its transition to a registered investment advisor (RIA) model, enhancing flexibility and control over business growth [1][4] - Summit Wealth Group aims to improve client experience and drive organic growth by establishing an independent RIA, moving away from its previous model [2][3] Company Overview - Summit Wealth Group, founded in 1985 by CEO Randy Morris, operates 10 offices across five states and specializes in a planning-first approach to client relationships [2][8] - SEI is a leading global provider of financial technology, operations, and asset management services, managing approximately $1.6 trillion in assets as of March 31, 2025 [6] Strategic Partnership - The partnership with SEI is characterized by a collaborative approach, focusing on cultural alignment and support for Summit's growth vision [3][5] - Summit Wealth Group plans to migrate approximately $2.1 billion in assets to the SEI Wealth Platform, leveraging SEI's integrated custody and investment management services [4][7] Service Offerings - SEI's Wealth Platform provides an outsourcing solution for wealth managers, combining wealth processing services with business process expertise to support strategic objectives [7] - SEI emphasizes a relationship-driven and client-centered approach, aiming to empower investors and revolutionize business operations for RIAs [5][6]

Financial Performance - Revenues for the three months ended March 31, 2025, increased by 8% to $551.3 million compared to $511.6 million in the same period of 2024[128] - Net income for Q1 2025 was $151.5 million, reflecting a 15% increase from $131.4 million in Q1 2024[128] - Diluted earnings per share increased by 18% to $1.17 in Q1 2025, compared to $0.99 in Q1 2024[128] - Total revenues from Investments in New Businesses increased by $2.2 million, or 15%, to $16.5 million, with significant contributions from SEI Family Office Services and SEI Private Wealth Management[145] Assets and Management - Average assets under administration rose by $122.7 billion, or 13%, to $1.1 trillion in Q1 2025, up from $961.7 billion in Q1 2024[128] - Total assets under management as of March 31, 2025, reached $486.0 billion, a 10% increase from $443.6 billion in 2024[131] - Client assets under administration increased by 10% to $1.1 trillion as of March 31, 2025, compared to $983.3 billion in 2024[131] - Average assets under management for Investment Managers increased by 33% to $209.0 billion in Q1 2025, compared to $157.0 billion in Q1 2024[133] Segment Performance - Investment Managers segment revenues increased by $19.4 million, or 11%, to $192.0 million, with an operating profit of $74.8 million and an operating margin of 39%[137] - Private Banks segment revenues rose by $7.6 million, or 6%, to $137.7 million, with an operating profit of $23.0 million and an operating margin of 17%[139] - Investment Advisors segment revenues increased by $13.9 million, or 11%, to $136.6 million, with an operating profit of $64.1 million and an operating margin of 47%[140] - Institutional Investors segment revenues decreased by $3.3 million, or 5%, to $68.5 million, but operating profit increased by $1.0 million to $32.6 million, resulting in an operating margin of 48%[144] Cash Flow and Expenditures - Net cash provided by operating activities increased to $146.5 million in Q1 2025 from $112.3 million in Q1 2024, reflecting a $34.2 million increase[162] - Cash and cash equivalents at the end of the period were $710.9 million, down from $846.9 million at the end of Q1 2024[162] - Capital expenditures in Q1 2025 were $8.7 million, a decrease from $13.1 million in Q1 2024[172] - Cash dividends paid increased to $62.3 million in Q1 2025 from $60.4 million in Q1 2024[172] Regulatory Environment - The company is subject to increased regulatory scrutiny, which may have a material adverse impact on its operating results or financial position[160] - SEI Investments operates multiple regulated entities, including broker-dealers and investment advisors, across various jurisdictions[178] - The company is subject to ongoing regulatory inquiries and examinations, which may impact its reputation and operational performance[179] - Compliance with anti-money laundering and financial transparency laws is mandatory, potentially affecting sales and requiring modifications to services[180] - Economic sanctions and anti-corruption laws impose higher compliance costs and risks, with potential penalties for violations[181] - Privacy and data protection regulations, such as GDPR and CCPA, require significant ongoing compliance efforts and associated costs[182] - Increased regulatory activity may lead to higher expenses and reduced revenues as the company adapts to new laws and regulations[183] - Bank clients are supervised by various authorities, which may influence their purchasing decisions regarding the company's products and services[184] Market Sensitivity - The company’s revenues and earnings are sensitive to capital market fluctuations and changes in interest rates[186] - There have been no material changes to the market risk disclosures since the last Annual Report on Form 10-K for 2024[187]