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]

Financial Data and Key Metrics Changes - SEI delivered earnings per share (EPS) of $1.17, an 18% increase year over year [11] - Share repurchases contributed three cents to EPS growth compared to Q1 2024 [21] - The operating profit margin increased to 28.5%, the highest level achieved in the last three years [25] Business Line Data and Key Metrics Changes - All business segments posted higher operating profits and expanded margins [12] - Investment managers' business growth was driven by strong sales momentum, particularly among alternative and global managers [23] - Private banking growth reflected continued momentum from 2024 and recent professional services wins [24] Market Data and Key Metrics Changes - SEI achieved record-breaking net sales events of $47 million in Q1, with $37 million being recurring [12] - AUM and AUA increased on both a sequential and year-over-year basis despite a 4.6% decline in the S&P 500 [31] - Positive net inflows were observed in institutional and adviser segments, offsetting some market losses [57] Company Strategy and Development Direction - The company is fundamentally reshaping its operating model and deepening client engagement [9] - SEI is actively pursuing both organic and inorganic opportunities to accelerate strategic progress [19] - The sale of the family office services business was announced, reflecting a strategic choice for greater growth opportunities outside SEI [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in SEI's strong foundation and ability to deliver sustained long-term growth despite market uncertainties [18] - The diversified business model and strong sales pipelines were highlighted as key strengths in navigating challenging environments [15] - Management is closely monitoring market conditions but remains focused on controllable factors such as talent and client focus [18] Other Important Information - SEI repurchased $193 million of stock in Q1, with total repurchases over the last two quarters exceeding $450 million [36] - The company ended Q1 with over $700 million in cash and no long-term debt, positioning it well for future investments [37] - An Investor Day is scheduled for September 18th in New York to discuss growth initiatives [38] Q&A Session Summary Question: Can you talk about the sales environment over the last few weeks? - Management noted strong Q1 sales and no slowdown in activity, with positive traction in both late-stage and early-stage pipelines [40][41][50] Question: Can you unpack the drivers of inflows and the US vs. non-US AUM? - AUM allocation is approximately 80% US and 20% non-US, with inflows driven by a variety of strategies and new distribution partners [52][57] Question: How do you maintain the 28% margin in the current market? - The margin is supported by net sales, cost control, and thoughtful management of investments [60][62] Question: What has driven the significant uptick in sales events? - Key drivers include a solid client base, a horizontal positioning of the company, and increased activity levels across teams [72][75][76] Question: How much of the revenue growth in private banking is from regional and community banks? - Approximately 60-70% of growth is coming from the community bank segment, which is presenting additional opportunities [88][90] Question: Would loosening banking regulations impact the private bank segment? - Management believes the shift to wealth management is a more significant trend, regardless of regulatory changes [96][98]

Core Insights - SEI Investments (SEIC) reported revenue of $551.34 million for the quarter ended March 2025, marking a year-over-year increase of 7.8% and an EPS of $1.17 compared to $0.99 a year ago, with a revenue surprise of +0.86% over the Zacks Consensus Estimate [1] - The consensus EPS estimate was $1.12, resulting in an EPS surprise of +4.46% [1] Financial Performance Metrics - SEI's assets under management (AUM) for Private Banks reached $29.26 billion, exceeding the average estimate of $28.26 billion [4] - AUM for Investment Advisors was $78.84 billion, slightly above the estimated $78.75 billion [4] - AUM for Institutional Investors stood at $78.07 billion, surpassing the average estimate of $75.06 billion [4] - AUM for Investments in New Business was $2.95 billion, close to the $2.99 billion estimate [4] - AUM for LSV - Equity and Fixed Income programs was $87.11 billion, exceeding the estimate of $85.52 billion [4] Revenue Breakdown - Revenue from Investment Advisors was $136.58 million, above the average estimate of $133.40 million, reflecting a year-over-year change of +11.3% [4] - Revenue from Investment Managers was $192.05 million, exceeding the estimate of $188.36 million, with a year-over-year change of +11.2% [4] - Revenue from Private Banks was $137.71 million, slightly below the average estimate of $140.19 million, showing a year-over-year change of +5.8% [4] - Revenue from Investments in New Business was $16.50 million, surpassing the estimate of $15.70 million, with a year-over-year increase of +15.4% [4] - Revenue from Institutional Investors was $68.51 million, slightly above the estimate of $67.54 million, reflecting a year-over-year change of -4.6% [4] - Revenue from Information processing and software servicing fees was $119.20 million, exceeding the estimate of $116.64 million, with a year-over-year change of +11.2% [4] - Revenue from asset management, administration, and distribution fees was $432.14 million, slightly above the average estimate of $429.49 million, reflecting a year-over-year change of +6.9% [4]

分组1 - SEI Investments reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and up from $0.99 per share a year ago, representing an earnings surprise of 4.46% [1] - The company posted revenues of $551.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.86%, and an increase from $511.58 million year-over-year [2] - SEI has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed the market, losing about 12.8% since the beginning of the year compared to the S&P 500's decline of 10.1% [3] - The current consensus EPS estimate for the coming quarter is $1.11 on revenues of $544.58 million, and for the current fiscal year, it is $4.57 on $2.2 billion in revenues [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the sector [8]

Financial Performance - SEI reported Q1 2025 revenues of $551.3 million, an 8% increase from Q1 2024's $511.6 million[3] - Operating income for Q1 2025 was $157.1 million, reflecting a 25% growth compared to $125.9 million in Q1 2024[3] - Diluted earnings per share (EPS) rose to $1.17, an 18% increase from $0.99 in the same quarter last year[3] - The operating margin improved to 28% in Q1 2025, up from 25% in Q1 2024, marking the highest level in three years[6] Segment Performance - Investment Managers segment revenues increased by 11% to $192.0 million, with operating profit growth of 19%[5] - Private Banks segment saw a 6% revenue increase to $137.7 million, with operating profit growth of 34%[5] Asset Management - Total assets as of March 31, 2025, were $2.57 billion, down from $2.68 billion at the end of 2024[14] - Total assets under management increased to $485.976 billion by March 31, 2025, up from $476.713 billion in December 2024, representing a growth of approximately 1.8%[18] - Client assets under administration reached $1.084278 trillion as of March 31, 2025, compared to $1.055943 trillion in December 2024, indicating an increase of about 2.7%[18] - The average total assets under management for the first quarter of 2025 were $487.254 billion, reflecting a slight increase from $486.481 billion in the fourth quarter of 2024[22] Sales Events - Net sales events reached $46.6 million in Q1 2025, contributing to a record total of $153.2 million over the trailing 12 months[6] - Net recurring sales events for the first quarter of 2025 totaled $36.840 million, a significant increase from $28.211 million in the fourth quarter of 2024[26] - Total Sales Events for Q1 2024 were $21,285 million, compared to $21,966 million in Q1 2023, indicating a slight decrease of about 3.1%[30] Share Repurchase and Divestment - SEI repurchased 2.5 million shares for $192.8 million at an average price of $77.10 per share during Q1 2025[6] - The company plans to divest $14.6 billion in assets related to the Family Office Services business during the second quarter of 2025[24] Investment Processing - Total revenue from Investment Processing-related Businesses for Q1 2024 was $24,480 million, showing a significant increase from $21,285 million in Q1 2023, representing a growth of approximately 10.6%[30] - Total Investment Processing-related Businesses revenue for Q1 2025 is projected to be $40,250 million, showing an expected increase from Q1 2024[30]