SEI Investments (SEIC) 46th Annual William Blair Growth Stock Conference summary

Business overview and segment strategy

• Operates four main segments: Investment Manager Services (IMS), Private Banking, Institutional Investors, and Investment Advisors, each with distinct but increasingly synergistic roles.

• IMS is the largest and fastest-growing segment, specializing in fund administration for traditional and alternative managers, with strong margins and market tailwinds.

• Private Banking leverages the SEI Wealth Platform (SWP) to provide technology and outsourcing for banks, recently expanding into professional services and down-market opportunities.

• Institutional Investors focuses on outsourced CIO services for endowments, foundations, and benefit plans, while Investment Advisors offers a full-service platform, recently enhanced by the Stratos acquisition.

• Plans to consolidate Institutional Investors and Investment Advisors into a single segment by Q3 to drive further synergies.

Leadership, culture, and organizational transformation

• Leadership transition to a new CEO in 2022 marked a shift in tone and strategy, blending long-tenured executives with external hires from firms like BlackRock.

• Shifted from a vertical to a horizontal operating model, breaking down silos and fostering cross-segment collaboration.

• Executive team now operates more cohesively, driving improved performance and execution.

• New hires and internal promotions have brought fresh perspectives and accelerated operational improvements.

Financial performance and growth drivers

• Revenue increased 19% to $2.37B, with operating margin up 396bps to 27.9% and EPS rising 69% to $5.86 as of Q1 2026 TTM.

• Net sales events grew 147% since 2022, reflecting strong business momentum.

• IMS segment continues to deliver double-digit revenue growth, winning major mandates and maintaining high client retention rates (mid-90% vs. industry average of 70-80%).

• Private Banking margins have rebounded from negative to over 20%, driven by cost discipline, right-sizing, and expansion into new markets and services.

• Investment Advisors segment strengthened by the Stratos acquisition, with ongoing product innovation and ETF launches.