SEI Investments Completes First Phase of Stratos Strategic Partnership

Core Insights - SEI Investments Co. (SEIC) has completed the first phase of its strategic collaboration with Stratos Wealth Holdings, initially announced in July 2025, involving an investment of approximately $527 million for a 57.5% stake in Stratos [1][4] Group 1: Collaboration Details - The newly formed entity, SEI-Eclipse Holding Company, LLC, acquired the U.S.-based Stratos business for about $441 million, which represents approximately 81% of the total transaction value [3] - The finalized deal now totals around $544 million for a 57.5% stake in SEI-Eclipse Holding Company, with existing Stratos equity holders retaining a 42.5% interest, subject to put/call rights [4][8] - The second phase of the deal, which involves acquiring the Mexico-based NSC business, is expected to be completed in 2026, pending regulatory approvals [5][8] Group 2: Operational Impact - Founder and CEO Jeff Concepcion will continue to lead Stratos, which will maintain its established brand while operating as an affiliated business of SEI Investments [6] - Stratos' current business operations and client service model will remain unchanged, with SEI Investments enhancing its offerings through resources in technology, custody, operations, and asset management [6] Group 3: Market Context - Ryan Hicke, CEO of SEI Investments, highlighted three core growth opportunities in wealth management: advice, asset management, and administration, emphasizing that Stratos enhances their ecosystem with an advice platform that respects advisor independence [7] - SEI Investments' shares have declined by 7.1% over the past six months, compared to a 14.1% decline in the industry [7]