What is SEI Investments Net Worth in 2024: Key Revenue Drivers and Growth

At SEI Investments, understanding its financial health goes beyond just looking at SEI Investments net worth.

In 2024, the company’s core business segments, asset management strategies, and operational solutions played a pivotal role in its growth.

Here at Ando Money, we provide a detailed look at how these areas contributed to the company’s success.

Quick Facts

What is the Net Worth/Market Cap Of SEI Investments in 2024?

As of October 2024, SEI Investments holds a market capitalization of $9.24 billion. This makes it a significant player in the financial services sector, focusing on investment solutions.

To put this in perspective, SEI’s market cap compares well against other major companies in the sector.

Some related companies include:

• LSV Asset Management
• BlackRock
• Vanguard
• Charles Schwab
• Fidelity Investments
• State Street
• Goldman Sachs
• JP Morgan
• Northern Trust
• T. Rowe Price

For those curious to see how SEI Investments ranks alongside other leading names, check out this analysis of the biggest financial players in the industry, where you’ll find more details.

SEI Investments Financial Performance Overview

Core Business Segments

SEI Investments operates across several key business segments, each playing a crucial role in driving its overall financial performance.

The Investment Managers segment reported impressive growth, generating $179.87 million in revenue in Q2 2024, a 13% increase from 2023.

This was largely due to the Collective Trust Fund Programs, where assets under management saw significant gains.

Meanwhile, the Private Banks segment remained stable, bringing in $132.40 million in revenue. Even though this segment didn’t experience growth compared to last year, its steady contribution highlights SEI’s diverse revenue streams.

The Institutional Investors segment faced a slight decline, with revenues dipping to $71.51 million (a 5% drop from 2023).

However, operational efficiencies helped SEI maintain strong profit margins here.

Impact of Assets Under Management and Administration

SEI Investments’ assets under management (AUM) and assets under administration (AUA) are pivotal in driving revenues.

As of Q2 2024, the company managed $470.53 billion in assets, while client assets under administration reached an astounding $1.02 trillion.

The growth in AUM, particularly in equity and fixed-income programs, reflects SEI’s strong market presence and customer trust.

These assets generate management fees, contributing significantly to the company’s revenue stream. The rise in assets under administration further highlights the company’s expanding role as a trusted custodian for institutional investors and private banks.

Technology and Operational Solutions

SEI’s technology platforms, such as the SEI Wealth Platform and SEI Sphere, have emerged as essential revenue generators.

In 2024, software servicing fees alone contributed $109.59 million to SEI’s total revenue.

These platforms provide innovative solutions to financial institutions, allowing SEI to capture new clients and deepen relationships with existing ones.

SEI Wealth Platform, in particular, supports financial advisors by automating workflows and offering a suite of investment management tools, which in turn boosts SEI’s operational efficiencies and bottom line.

Investment in New Businesses and Emerging Opportunities

SEI continues to invest in new business ventures, with a focus on private assets and emerging technology.

In Q2 2024, investments in new businesses brought in $14.62 million in revenue, marking a 15% increase from the previous year.

These new business areas, such as SEI Family Office Services and SEI Private Wealth Management, target ultra-high-net-worth individuals and provide customized investment solutions, further diversifying SEI’s revenue streams.

Role of Global Client Base

SEI’s client base spans institutional investors, private banks, and high-net-worth individuals, all of whom play a critical role in the company’s financial expansion.

The global reach of SEI’s services ensures a stable flow of revenue, with client assets under advisement rising to $9.77 billion by Q2 2024.

This diverse client base, spread across different geographies, provides SEI with a cushion against regional market fluctuations, further solidifying its financial position.

Strategic Capital Allocation and Its Influence on Profit Margins

SEI’s strategic approach to capital allocation has played a significant role in improving profit margins. In Q2 2024, the company’s income from operations increased by 21% to $136.51 million.

This was achieved through targeted investments in key growth areas, including talent acquisition, professional services, and innovation in technology.

By focusing on areas with the highest potential for long-term growth, SEI has managed to increase operational leverage, which continues to positively impact its profit margins.

Expenses and Cost Management Strategies

Despite the growth in revenue, SEI has implemented robust cost management strategies to keep expenses under control.

Personnel costs, which are the largest expense category, saw a modest increase to $185.88 million due to inflation and business expansion.

However, SEI managed to offset these expenses through cost-saving initiatives in consulting, outsourcing, and vendor relationships.

As a result, total operating expenses only grew by 1%, ensuring that SEI maintained healthy profit margins.

Contribution of Share Repurchase Programs

SEI’s share repurchase program has also been a significant contributor to its financial health.

In Q2 2024, the company repurchased 1.6 million shares for $111.2 million, at an average price of $67.44 per share.

These buybacks have not only increased earnings per share but have also reinforced investor confidence.

FAQs About SEI Investments

How does SEI generate revenue from assets under management?

The company earns management fees based on the $470.53 billion in assets under management (AUM). These fees are a core part of the company’s revenue stream.

What are SEI’s primary business segments?

Its key business segments include Investment Managers, Institutional Investors, and Private Banks. These segments contribute to SEI’s diversified revenue.

How does SEI’s technology platform drive revenue?

The SEI Wealth Platform and other tech solutions generate revenue through software servicing fees, amounting to $109.59 million in Q2 2024.

What are SEI’s latest investments?

The company has invested in new business ventures, including SEI Family Office Services and SEI Private Wealth Management, which target ultra-high-net-worth individuals.

How does SEI manage costs?

SEI maintains cost efficiencies through initiatives in consulting, outsourcing, and vendor management, keeping expense growth at just 1%.

Conclusion

Explore more about SEI Investments and other financial giants by visiting Ando Money.

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