SEI Investments (SEIC) 45th Annual William Blair Growth Stock Conference summary

Business Overview and Historical Context

• Provides outsourced technology and investment solutions to financial institutions, managing $1.6 trillion in client assets.

• Two core offerings: technology/operations and asset management, with four main divisions: IMS, Private Banking, Institutional Investors, and Investment Advisors.

• Significant historical growth, including a $1 million investment in LSV in 1994, now generating $2 million weekly and a 38-39% JV stake.

• Faced challenges in the 2000s due to the dot-com bubble, financial crisis, and slow adaptation to industry shifts.

• Value of $100 invested in 1981 grew significantly through 2000, with renewed share price momentum since 2022.

Leadership and Organizational Transformation

• New CEO Ryan Hicke succeeded founder Alfred P. West, Jr., who became Executive Chairman, and overhauled the leadership team with external talent and operational discipline.

• Key hires include Sanjay Sharma (Private Banking), Michael Lane (Asset Management, ex-BlackRock), and Sneha Shah (New Business Ventures, automation/AI focus).

• Leadership changes credited with driving improved sales events (+125%), margin expansion (+300 bps), EPS growth (+55%), and share price increase (+46%) from 2022 to Q1'25 TTM.

• Shifted from a vertical to a horizontal enterprise strategy, fostering cross-division collaboration and operational excellence.

• Opened a shared services center in India to enhance cost management and automation capabilities.

Strategic Focus and Growth Initiatives

• Expanding asset management, especially in alternatives (private credit), and moving upmarket to serve larger RIAs.

• Private Banking margins improved from zero to 18%, with a path to 25-30% as the business targets community and regional banks.

• Recent wins include Summit Wealth (breakout RIA) and a major European client (Trinity/Close Brothers) through integrated offerings.

• Emphasis on product and distribution development in asset management, with a focus on retail alts and sophisticated investor needs.

• Growth in international markets, with presence in the US, Canada, Ireland, UK, EMEA, and Asia.