SEI Investments (SEIC) Oppenheimer 27th Annual Technology, Internet & Communications Conference-Virtual summary

Business overview and differentiation

• Provides technology, operations, and asset management services to financial institutions, with a diversified model across four main business units and new ventures.

• Emphasizes partnership over vendor relationships, offering outsourced services and world-class operations with low client turnover.

• Revenue is primarily recurring, with about 70% from assets under administration and 30% from assets under management.

• Diversified revenue streams make the business less sensitive to market fluctuations.

• Focus on enterprise sales and horizontal integration to drive synergies and growth.

Growth strategy and financial targets

• Initial goal to double revenue in 5-7 years is not on track organically, but focus remains on profitable growth rather than just top-line expansion.

• Four key revenue drivers: greenfield (new clients), white space (expansion within existing clients), pricing, and retention.

• Inorganic growth through M&A is a strategic priority, especially in response to industry consolidation and international opportunities.

• Recent record client onboarding in North America, with a 60/40 split between cross-sales and new clients.

• Significant runway for international expansion, particularly in Europe where market share is only 1%.

Market trends and client sentiment

• Clients are less impacted by market volatility, with long-term investment decisions and opportunities arising from market dislocations.

• Public and private market convergence is accelerating, with increasing demand for alternative assets and retailization of alternatives.

• RIA and broker-dealer consolidation is being addressed with a proactive inorganic strategy to retain assets and clients.