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What changed in SEI INVESTMENTS CO's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of SEI INVESTMENTS CO's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+367 added−469 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-20)

Top changes in SEI INVESTMENTS CO's 2025 10-K

367 paragraphs added · 469 removed · 169 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

33 edited+33 added−13 removed29 unchanged
Biggest changeOur competitors vary according to the asset class or solutions provided and the domiciles in which they operate. They include SS&C Technologies, State Street, BNY Mellon, Northern Trust, and Citco. Private Banks We provide technology, operations, and asset management solutions primarily to the wealth management businesses embedded within banks and trust companies, in addition to independent wealth advisors.
Biggest changeInvestment Managers had $1.5 trillion in assets under management or administration as of December 31, 2025, with $1.0 trillion in alternative assets and $0.5 trillion in public assets. Our competitors vary according to the asset class or solutions provided and the domiciles in which they operate. They include SS&C Technologies, State Street, BNY Mellon, Northern Trust, and Citco.
In the event of a failure to comply with laws, regulations, and requirements of these agencies and authorities, or to meet regulator expectations, the possible business process changes required or sanctions that may be imposed include the suspension of individual employees, limitations on our ability to engage in 6 business for specified periods of time or a direction that we comply with certain restrictions, the revocation of applicable registration as a broker-dealer, investment advisor or other regulated entity, and, as the case may be, censures and fines.
In the event of a failure to comply with laws, regulations, and requirements of these agencies and authorities, or to meet regulator expectations, the possible business process changes required or sanctions that may be imposed include the suspension of individual employees, limitations on our ability to engage in business for specified periods of time or a direction that we comply with certain restrictions, the revocation of applicable registration as a broker-dealer, investment advisor or other regulated entity, and, as the case may be, censures and fines.
We can incur higher costs and face greater compliance risks in structuring and operating our businesses to comply with these requirements. Furthermore, a violation of a sanction or embargo program or anti-corruption or anti-money laundering laws and regulations could subject us and our subsidiaries, and individual employees, to regulatory enforcement actions as well as significant civil and criminal penalties.
We can incur higher costs and face greater compliance risks in structuring and operating our businesses to comply with these requirements. Furthermore, a violation of a sanction or embargo program or anti-corruption or anti-money laundering laws and regulations could subject 8 us and our subsidiaries, and individual employees, to regulatory enforcement actions as well as significant civil and criminal penalties.
These subsidiaries include: • SEI Investments Distribution Co., or SIDCO, a broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority, Inc., or FINRA; • SEI Investments Management Corporation, or SIMC, an investment advisor registered with the SEC under the Investment Advisers Act of 1940 and with the Commodity Futures Trading Commission, or CFTC, under the Commodity Exchange Act; • SEI Private Trust Company, or SPTC, a limited purpose federal thrift chartered and regulated by the Office of the Comptroller of the Currency; • SEI Trust Company, or STC, a Pennsylvania trust company, regulated by the Pennsylvania Department of Banking and Securities; • SEI Institutional Transfer Agent, Inc., or SITA, a transfer agent registered with the SEC under the Securities Exchange Act of 1934. • SEI Investments (Europe) Limited, or SIEL, an investment manager and financial institution subject to regulation by the Financial Conduct Authority of the United Kingdom, or FCA; • SEI Investments Canada Company, or SEI Canada, an investment fund manager that has various other capacities that is regulated by the Ontario Securities Commission and various provincial authorities; • SEI Investments Global, Limited, or SIGL, a management company for Undertakings for Collective Investment in Transferable Securities, or UCITS, and for Alternative Investment Funds, or AIFs, that is regulated primarily by the Central Bank of Ireland, or CBI; • SEI Investments - Global Fund Services, Ltd., or GFSL, an authorized provider of administration services for Irish and non-Irish collective investment schemes that is regulated by the CBI; • SEI Investments - Depositary and Custodial Services (Ireland) Limited, or D&C, an authorized provider of depositary and custodial services that is regulated by the CBI; • SEI Investments - Luxembourg S.A., or SEI Lux, a professional of the specialized financial sector subject to regulation by the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg; • SEI Investments Global (Cayman), Ltd., a full mutual fund administrator that is regulated by the Cayman Island Monetary Authority; and • SEI Investments (South Africa) (PTY) Limited, a Private Company that is a licensed Financial Service Provider regulated by the Financial Sector Conduct Authority.
These subsidiaries include: • SEI Investments Distribution Co., or SIDCO, a broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority, Inc., or FINRA; • SEI Investments Management Corporation, or SIMC, an investment advisor registered with the SEC under the Investment Advisers Act of 1940 and with the Commodity Futures Trading Commission, or CFTC, under the Commodity Exchange Act; • SEI Private Trust Company, or SPTC, a limited purpose federal thrift chartered and regulated by the Office of the Comptroller of the Currency; • SEI Trust Company, or STC, a Pennsylvania trust company, regulated by the Pennsylvania Department of Banking and Securities; • SEI Institutional Transfer Agent, Inc., or SITA, a transfer agent registered with the SEC under the Securities Exchange Act of 1934. • SEI Investments (Europe) Limited, or SIEL, an investment manager and financial institution subject to regulation by the Financial Conduct Authority of the United Kingdom, or FCA; • SEI Investments Canada Company, or SEI Canada, an investment fund manager that has various other capacities that is regulated by the Ontario Securities Commission and various provincial authorities; • SEI Investments Global, Limited, or SIGL, a management company for Undertakings for Collective Investment in Transferable Securities, or UCITS, and for Alternative Investment Funds, or AIFs, that is regulated primarily by the Central Bank of Ireland, or CBI; • SEI Investments - Global Fund Services, Ltd., or GFSL, an authorized provider of administration services for Irish and non-Irish collective investment schemes that is regulated by the CBI; • SEI Investments - Depositary and Custodial Services (Ireland) Limited, or D&C, an authorized provider of depositary and custodial services that is regulated by the CBI; • SEI Investments - Luxembourg S.A., or SEI Lux, a professional of the specialized financial sector subject to regulation by the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg; • SEI Investments Global (Cayman), Ltd., a full mutual fund administrator that is regulated by the Cayman Island Monetary Authority; • SEI Investments (South Africa) (PTY) Limited, a Private Company that is a licensed Financial Service Provider regulated by the Financial Sector Conduct Authority; and 7 • SEI Investments - Guernsey Limited, a provider of custody, administration and reporting services that is regulated by the Guernsey Financial Services Commission.
Principal competitors include investment advisory platform providers, such as Envestnet and Orion, as well as diversified firms that focus on custody operations, such as Charles Schwab & Co., Inc., Fidelity Investments, and LPL Financial. Institutional Investors Our Institutional Investors business is one of the first and largest providers of outsourced investment management services.
Principal competitors include investment advisory platform providers, such as Envestnet and Orion, as well as diversified firms that focus on custody operations, such as Charles Schwab & Co., Inc., and Fidelity Investments. Institutional Investors Our Institutional Investors business is one of the first and largest providers of outsourced investment management services.
Investors outsource some or all investment management functions based on their preferred governance structure, business needs, and financial objectives. • Unbundled OCIO: Supports internal investment teams through SEI Novus SM , a global portfolio intelligence tool, and SEI’s comprehensive investment processing, shadow accounting, and data and workflow management, as well as access to alternative investment products.
Investors outsource some or all investment management functions based on their preferred governance structure, business needs, and financial objectives. • Unbundled OCIO: Supports internal investment teams through SEI Novus SM , a global portfolio intelligence tool, and SEI’s comprehensive investment processing, shadow accounting, and data and workflow management, as well as access to alternative investment product analytics.
We are headquartered in Oaks, Pennsylvania, and approximately 5,000 employees support clients from service centers located in the United States, United Kingdom, Ireland, Canada, continental Europe, India, and South Africa.
We are headquartered in Oaks, Pennsylvania, and over 5,000 employees support clients from service centers located in the United States, United Kingdom, Ireland, Canada, continental Europe, India, and South Africa.
The percentage of consolidated revenues generated by our business segments for the last three years was: 2024 2023 2022 Investment Managers 34 % 33 % 30 % Private Banks 26 % 26 % 29 % Investment Advisors 24 % 23 % 22 % Institutional Investors 13 % 15 % 16 % Investments in New Businesses 3 % 3 % 3 % 100 % 100 % 100 % Investment Managers We provide a comprehensive, outsourced investment management operating platform to alternative and traditional asset managers, fund companies, and sovereign wealth funds.
The percentage of consolidated revenues generated by our business segments for the last three years was: 2025 2024 2023 Investment Managers 35 % 34 % 33 % Private Banks 26 % 26 % 26 % Investment Advisors 25 % 24 % 23 % Institutional Investors 12 % 13 % 15 % Investments in New Businesses 2 % 3 % 3 % 100 % 100 % 100 % Investment Managers We provide a comprehensive, outsourced investment management operating platform to alternative and traditional asset managers, fund companies, and sovereign wealth funds.
In 2024, we earned approximately 55% of our revenue from technology and operations outsourcing and 40% from asset management fees, with the remainder attributable to professional services and other ancillary services. SEI provides these services across four core client-oriented business segments; Investment Managers, Private Banks, Investment Advisors, and Institutional Investors.
In 2025, we earned approximately 57% of our revenue from technology and operations outsourcing and 38% from asset management fees, with the remainder attributable to professional services and other ancillary services. We provide these services across four core client-oriented business segments; Investment Managers, Private Banks, Investment Advisors, and Institutional Investors.
Capabilities include: • Business process outsourcing and custody • Fund administration, depositary services, investment accounting, and investor servicing • Curated suite of internally managed and third-party investment products, including ETFs, SMAs, and UMAs • Investment expertise in direct indexing, factor-based, alternatives, and tax management • Discretionary investment management for institutions in need of expertise, infrastructure and enhanced governance • Data and information management, analytics, and reporting • Regulatory and compliance service • Network operations, cloud, and cybersecurity services Our proprietary technology platforms include the SEI Wealth Platform SM (SWP) and its predecessor, TRUST 3000 ® .
Capabilities include: • Business process outsourcing and custody; • Fund administration, depositary services, investment accounting, and investor servicing; • Curated suite of internally managed and third-party investment products, including ETFs, SMAs, and UMAs; • Investment expertise in direct indexing, factor-based, alternatives, and tax management; • Discretionary investment management for institutions in need of expertise, infrastructure and enhanced governance; • Data and information management, analytics, and reporting; • Regulatory and compliance service; and • Network operations, cloud, and cybersecurity services.
Our plan sponsor clients 7 and our subsidiaries providing services to those clients are subject to supervision by the Department of Labor and compliance with employee benefit regulations. Investment advisor and broker-dealer clients are regulated by the SEC, state securities authorities, or FINRA.
Our plan sponsor clients and our subsidiaries providing services to those clients are subject to supervision by the Department of Labor and compliance with employee benefit regulations. Investment advisor and broker-dealer clients are regulated by the SEC, state securities authorities, or FINRA. Existing or future regulations applicable to our clients may affect our clients’ purchase of our products and services.
Item 1. Business. Corporate overview SEI Investments Company (together, with its subsidiaries unless otherwise noted, “SEI” or the “Company”) is a leading global provider of financial technology, operations, and asset management services within the financial services industry.
Item 1. Business. Corporate overview SEI Investments Company (together, with its subsidiaries unless otherwise noted, “SEI” or the “Company”) is a leading global provider of financial technology, operations, and asset management solutions that connect the financial services ecosystem across advice, asset management, and administration.
Our technology and operations platform also includes technology and operationally-enabled investment service capabilities for a broad range of traditional and alternative investment managers, delivered as unbundled product components for front, middle, and back offices through our Investment Managers segment. Asset management We provide comprehensive solutions for managing personal and institutional wealth.
Our technology and operations platform also includes technology‑ and operationally‑enabled investment service capabilities for a broad range of traditional and alternative investment managers, delivered as unbundled product components for front, middle, and back offices through our Investment Managers segment.
Our outsourcing solutions across the front-to-back office with best-in-breed technology accommodate investment managers of all sizes and complexities and enables them to focus on core business activities—from the unique needs of emerging and start-up managers to the complex needs of global, multi-asset hybrid managers.
SEI’s global operational footprint services funds in all major jurisdictions amid a constantly evolving regulatory environment. Our outsourcing solutions across the front-to-back office with best-in-breed technology accommodate investment managers of all sizes and complexities and enables them to focus on core business activities—from the unique needs of emerging and start-up managers to the complex needs of global, multi-asset hybrid managers.
Existing or future regulations applicable to our clients may affect our clients’ purchase of our products and services. In addition, see the discussion of governmental regulations in Item 1A, Risk Factors for a description of the risks that the current regulatory regimes and proposed regulatory changes may present for our business. See also “Note 10.
In addition, see the discussion of governmental regulations in Item 1A, Risk Factors for a description of the risks that the current regulatory regimes and proposed regulatory changes may present for our business. See also “Note 10.
SEI’s clients include 8 of the top 20 U.S. banks and 43 of the top 100 investment managers worldwide, and we manage, advise or administer approximately $1.6 trillion in assets.
SEI serves leading institutions globally, including 8 of the top 20 U.S. banks and 43 of the top 100 investment managers worldwide, and we manage, advise or administer approximately $1.9 trillion in assets.
Clients include several financial institutions whose relationships span decades with SEI. Our solutions provide the investment processing, operations, and administrative capabilities that are vital to helping wealth management businesses achieve their business objectives, manage change and complex operations, replace legacy platforms, comply with regulations, and deploy capital more effectively. Contracts generally range from five to seven years.
Our solutions provide the investment processing, operations, and administrative capabilities that are vital to helping wealth management businesses achieve their business objectives, manage change and complex operations, replace legacy platforms, comply with regulations, and deploy capital more effectively.
In addition to the regulatory authorities listed above, our subsidiaries are subject to the jurisdiction of regulatory authorities in other foreign countries. In addition to our wholly-owned subsidiaries, we also own a minority interest of approximately 38.6% in LSV, which is also an investment advisor registered with the SEC.
In addition to our wholly-owned or majority-owned subsidiaries, we also own a minority interest of approximately 38.5% in LSV, which is also an investment advisor registered with the SEC.
Investments in New Businesses The Investments in New Businesses segment represents other business ventures or research and development activities intended to expand our solutions to new or existing markets, including ultra-high-net-worth families who reside in the United States.
Investments in New Businesses The Investments in New Businesses segment represents other business ventures or research and development activities intended to expand our solutions to new or existing markets, including ultra-high-net-worth families who reside in the United States. This segment also includes costs associated with providing managed security services through SEI Sphere™ and the modularization of larger technology platforms.
We tailor our solutions and services to help our clients more effectively deploy their capital—whether that’s money, time, or talent—so they can better serve their clients and achieve their growth objectives.
Our enterprise operating model unifies technology, trust‑based custody, and investment management to help clients more effectively deploy their capital, whether that’s money, time, or talent, so they can better serve their clients and achieve their growth objectives.
These programs include goals-based strategies, SEI-curated models that utilized multiple structures such as direct indexing, separately managed accounts, ETFs, and mutual funds, to help advisors align diversified portfolios with client needs. • Advisor services: We help advisors manage and grow their businesses by offering consultative practice management services, including access to our business transition services, case management expertise, third-party applications, thought leadership, and marketing and growth programs.
These programs include goals-based strategies, SEI-curated models that utilized multiple structures such as direct indexing, separately managed accounts, ETFs, and mutual funds, to help advisors align diversified portfolios with client needs.
Both fully outsourced and unbundled solutions leverage the breadth of our investment management, advisory, administration, technology, and operational capabilities to help institutional investors make more confident decisions, achieve greater control, reduce risk, and improve efficiencies.
Both fully outsourced and unbundled solutions leverage the breadth of our investment management, advisory, administration, technology, and operational capabilities to help institutional investors make more confident decisions, achieve greater control, reduce risk, and improve efficiencies. 6 Competitors for OCIO services at larger institutional investors may include global advisory firms offering fiduciary consulting and management services, such as Mercer, Aon Hewitt and Willis Towers Watson, as well as asset management firms like BlackRock and Goldman Sachs.
We use these technologies to deliver operations and administrative outsourcing services, including custodial and back-office accounting services. SWP offers a modern, fully-integrated, single infrastructure solution that integrates technology, operational outsourcing, and asset management. Capabilities span the front, middle, and back office and are designed to support a diverse mix of investors, accounts, and asset types.
Our proprietary technology platforms include the SEI Wealth Platform SM (SWP) and its predecessor, TRUST 3000 ® . We use these technologies to deliver operations and administrative outsourcing services, including custodial and back-office accounting services. SWP offers a modern, fully integrated, single‑infrastructure solution that unifies technology, operational outsourcing, and asset management.
As of December 31, 2024, we managed $390.2 billion in assets including: • $180.0 billion invested in fixed-income and equity funds and separately managed account programs; • $202.4 billion invested in collective trust fund programs; and • $7.8 billion invested in liquidity or money market funds.
As of December 31, 2025, we managed $455.4 billion in assets including: • $204.0 billion invested in fixed-income and equity funds and separately managed account programs; • $243.2 billion invested in collective trust fund programs; and • $8.2 billion invested in liquidity or money market funds. 4 An additional $99.2 billion in assets is managed by our unconsolidated affiliate LSV Asset Management (LSV), an RIA that specializes in value equity management for its clients.
Investment Advisors We provide wealth management technology, operations, and asset management solutions for independent financial advisors across the RIA and independent broker/dealer market segments. 4 This segment offers both fully integrated and unbundled solutions that enable advisors to devote more of their resources to growing their businesses and achieving better financial outcomes for their clients.
This segment offers both fully integrated and unbundled solutions that enable advisors to devote more of their resources to growing their businesses and achieving better financial outcomes for their clients. Our clients are responsible for the investor relationship, including financial plan creation, investment strategy implementation, tax management, and customer education and servicing.
SWP’s open architecture also allows for technology integrations with other SEI capabilities and client systems to enable a seamless wealth management experience. Investment processing platforms are offered in Software-as-a-Service (SaaS) or Platform-as-a-Service (PaaS) delivery. SaaS includes investment processing software and information processing services.
Capabilities span the front, middle, and back office and are designed to support a diverse mix of investors, accounts, and asset types. SWP’s open architecture and standardized integrations connect to other SEI capabilities (e.g., alternatives access, tax optimization) and client systems to enable a seamless wealth management experience. Investment processing platforms are offered in Software‑as‑a‑Service (SaaS) or Platform‑as‑a‑Service (PaaS) delivery.
We work with each other and welcome diverse perspectives to foster an inclusive environment and solve problems that matter. We think and act like owners, having the courage to push boundaries and do the right thing in the best interest of our company, clients, and community.
We think and act like owners, having the courage to push boundaries and do the right thing in the best interest of our company, clients, and community. Regulatory considerations We conduct our operations through several regulated wholly-owned subsidiaries.
Business Segment Information" included in our Notes to Consolidated Financial Statements.
Business segments overview Our business segments are generally organized around our target markets. Financial information about each business segment is contained in "Note 12. Business Segment Information" included in our Notes to Consolidated Financial Statements.
PaaS includes software and information processing services, as well as business processing outsourcing services, including back- and middle-office operations, accounting, and custodial services.
SaaS includes investment processing software and information‑processing services. PaaS includes software and information‑processing services, as well as business‑process outsourcing services, including back‑ and middle‑office operations, accounting, and custodial services. We continue to expand SWP’s SaaS‑capabilities to support clients that prefer technology‑only deployments, while maintaining full‑service PaaS options for outsourced operations.
For the Year Ended December 31, 2024 (all dollar amounts in thousands) Investment Managers Private Banks Investment Advisors Institutional Investors Investments in New Businesses Total Investment Technology & Operations $ 697,014 $ 381,033 $ 57,455 $ 9,815 $ 25,409 $ 1,170,726 Asset Management 363 137,512 431,630 263,679 20,234 853,418 Professional Services & Other 31,013 22,869 20,323 12,229 14,573 101,007 Total Revenues $ 728,390 $ 541,414 $ 509,408 $ 285,723 $ 60,216 $ 2,125,151 2 Technology and operations We provide the technology and operational infrastructure across the front, middle, and back office to help our clients scale, increase efficiency, and improve performance.
For the Year Ended December 31, 2025 (all dollar amounts in thousands) Investment Managers Private Banks Investment Advisors Institutional Investors Investments in New Businesses Total Investment Technology & Operations $ 773,262 $ 407,909 $ 98,143 $ 9,525 $ 15,380 $ 1,304,219 Asset Management 602 137,247 455,246 262,122 21,967 877,184 Professional Services & Other 41,141 27,783 24,008 10,851 12,195 115,978 Total Revenues $ 815,005 $ 572,939 $ 577,397 $ 282,498 $ 49,542 $ 2,297,381 Technology and operations We provide the technology and operational infrastructure across the front, middle, and back office to help our clients scale, increase efficiency, and improve performance.
Our competitors include in-house information technology organizations, as well as wealth management technology service providers such as Fidelity National Information Services, Inc. (FIS), Fi-Tek, SS&C Innovest, FNZ UK Ltd. and Avaloq.
As of December 31, 2025, SEI has approximately $8.1 trillion in assets on SEI’s wealth management platforms, with $1.9 trillion in assets on SWP and $1.2 trillion in assets custodied with SPTC. Our competitors include in-house information technology organizations, as well as wealth management technology service providers such as Fidelity National Information Services, Inc.
At December 31, 2024, we had 5,066 full-time and 32 part-time employees. Employee unions do not represent any of our employees. Corporate sustainability Our values are the foundation from which we drive our company’s and our clients’ long-term success and make an impact on our communities.
Corporate sustainability Our values are the foundation from which we drive our company’s and our clients’ long-term success and make an impact on our communities. We work with each other and welcome diverse perspectives to foster an inclusive environment and solve problems that matter.
We deliver our services standalone or combine multiple capabilities into comprehensive solutions designed to meet the needs of each market we serve globally. Our clients include wealth managers, banks, investment advisors, asset managers, family offices, institutional investors, and ultra-high-net-worth investors.
The firm’s focus on enterprise relationships and wallet share expansion is driving growth across segments. Our clients include wealth managers, banks, investment advisors, asset managers, family offices, institutional investors, and ultra-high-net-worth investors.
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Core capabilities With our core competency pillars of technology, operations, and asset management, the breadth of the markets we serve and capabilities across investment processing, investment operations, and investment management uniquely position us in the financial services industry.
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In December 2025, we completed the first stage of our strategic investment in Stratos Wealth Holdings (Stratos), a network of affiliated companies focused on supporting the success of financial advisors across business models and affiliation structures, reinforcing SEI's footprint in the advice segment and complementing our administration and asset management platforms.
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These solutions include investment strategies, customized investment management programs, and SEI-sponsored and third-party investment products to support an investor’s organizational or personal goals. Investment strategies are typically implemented with investment products that include ETFs, alternative investments, collective investment products, separately managed accounts, and mutual funds.
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Core capabilities and competitive differentiation SEI’s core capabilities unify technology, operations, and asset management to power clients’ transformation across advice, asset management, and administration. We deliver modular or end ‑ to ‑ end solutions through a single, modern infrastructure that integrates platform technology, custody, operations, and investment expertise.
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We serve as sponsor, administrator, transfer agent, investment advisor, distributor, and shareholder servicer for many of these products. Our active, factor-based, and passively managed solutions enable our clients to focus on their clients while implementing processes that help them gain efficiencies, manage risk, and grow their businesses.
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SEI’s competitive strengths are rooted in our integrated business model, technology leadership, and deep industry expertise. The following factors distinguish SEI in the marketplace and position the company to deliver sustained value for clients and shareholders: • Integrated ecosystem across advice, asset management, and administration.
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Solutions are offered both individually and as part of model portfolios, with the majority of our asset management business historically focused on model portfolios. SEI has earned a well-regarded reputation in the market for clients seeking whole portfolio and model portfolio solutions due to our size and long track record in offering these products.
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SEI differentiates by operating a unified platform that combines technology, custody, operations, and investment management, capabilities that will fortify and support scaled growth of the strategic investment in Stratos. • Leadership in alternatives and private markets. SEI is a recognized leader in private credit and alternative investment administration, serving many of the world’s largest alternative managers.
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These solutions and programs leverage more than four decades of experience with manager research, advice, asset allocation, and portfolio construction. Additionally, our robust technology offering creates a differentiated competitive advantage. We are able to monetize our technology either directly or as part of a comprehensive asset management offering in which technology is included within our asset management fees.
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The SEI Access™ platform 2 streamlines alternative investment access and processing for advisors and institutions, supporting the growing demand for private market solutions. • Scaled, front‑to‑back capabilities for complex managers and private markets.
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An additional $86.5 billion in assets is managed by our unconsolidated affiliate LSV Asset Management (LSV), a registered investment advisor (RIA) that specializes in value equity management for its clients. 3 Business segments overview Our business segments are generally organized around our target markets. Financial information about each business segment is contained in "Note 12.
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SEI provides global fund administration, depositary, and middle‑office services and has distinctive strength serving large, multi‑strategy and private credit managers, benefiting from the continued shift from insourcing to outsourcing and expansion in retail‑accessible alternative structures (interval funds and Business Development Companies) and Collective Investment Trusts (CITs). • Trust‑based custody integrated with modern wealth technology.
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We also offer trustee, investment management, and administration services for collective investment trusts, serving the U.S. retirement market. SEI’s global operational footprint services funds in all major jurisdictions amid a constantly evolving regulatory environment.
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Through SEI Private Trust Company (SPTC), client assets are held in the client’s name (no commingling, pledging, or margining), tightly integrated with the SEI Wealth Platform SM to deliver an end‑to‑end, single‑infrastructure experience and multi‑custody data fidelity. • Commitment to security, data, and AI. SEI invests heavily in cybersecurity, cloud infrastructure, and data analytics.
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As of December 31, 2024, we had significant relationships with 117 clients, including TRUST 3000 ® relationships with 37 bank and trust institutions in the United States, and SWP relationships with 80 signed banks, independent wealth advisers and other wealth managers located in the United Kingdom and the United States.
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The SEI Data Cloud, digital workflows, and embedded AI/automation tools drive operational efficiency, enhance reporting, and support scalable growth for clients. • Strong, long-term client relationships. SEI’s client base includes leading banks, registered investment advisors (RIAs), institutional investors, and alternative managers, many of whom have partnered with SEI for decades.
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This segment also provides asset management programs to banks, wealth managers and other financial services firms, including 29 clients who had at least $100.0 million each in customer assets invested in our programs as of December 31, 2024. Competitors for our asset management services may include in-house investment teams and global asset management firms, such as LPL Financial and BlackRock.
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We are also 3 investing in SEI enterprise professional services delivery capabilities, enabling us to lead complex client change initiatives, streamline platform implementations, and deliver consultative solutions that drive operational efficiency and business transformation.
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Our clients are responsible for the investor relationship, including financial plan creation, investment strategy implementation, and customer education and servicing.
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We are expanding wallet share with large, multi‑strategy managers by providing complex, cross‑jurisdiction solutions and retail‑accessible alternative investment operations and CIT administration for retirement plans. We are embedding artificial intelligence (AI), robotic process automation (RPA), digital workflows and the SEI Data Cloud into core platforms to reduce manual processes and enhance analytics and reporting.
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Competitors for OCIO services at larger institutional investors may include global advisory firms offering fiduciary management services, such as Aon Hewitt and Willis Towers Watson, as well as asset management firms like Mercer and Russell Investments. We also compete with numerous investment management firms, including regional or boutique firms with an industry specialization.
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AI adoption has accelerated productivity across teams. In May 2025, we launched a Global Capability Center (GCC) in Hyderabad, India to expand talent access and support follow‑the‑sun operations while maintaining excellent client service.
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This segment also includes costs associated with providing managed security services through SEI Sphere ® , the modularization of larger technology platforms, and a private client wealth management solution offering flexible family office-type services through a highly personalized solution that utilizes a goals-based approach. 5 Human capital Our talented workforce is the key to our ability to serve our clients globally.
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Asset management We deliver comprehensive solutions for managing personal and institutional wealth, including investment strategies, customized model and portfolio management programs, and SEI-sponsored and third-party investment products designed to support clients’ organizational and personal goals.
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More information about our commitment to corporate sustainability can be found in our Corporate Sustainability Report. Regulatory considerations We conduct our operations through several regulated wholly-owned subsidiaries.
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Strategic Focus and Differentiation Our asset management business is evolving to meet significant industry shifts, including the move from active to passive management, the rapid growth of alternatives, and the consolidation of the RIA sector. We have accelerated our pivot to address these trends, focusing on scalable, repeatable, and profitable solutions for clients.
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Our strategic investment in the Stratos business repositions SEI in the private wealth and advisor ecosystem by giving the company a scaled, high‑growth, fee‑based advisory platform with proven recruiting, acquisition, and advisor‑enablement capabilities that SEI previously lacked.
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It creates an immediate and credible presence in advice delivery, expanding SEI beyond its historical role as a technology, custody, and asset‑management partner and into a more strategic, more central position across the entire wealth value chain.
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Stratos’ nationwide advisor network also broadens SEI’s distribution reach, creating natural entry points for SEI's outsourced chief investment officer, Private Wealth, SEI Access, alternatives, and asset management solutions, while its M&A engine strengthens SEI’s ability to meet growing advisor succession‑planning needs as the industry’s demographics shift.
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The business is increasingly oriented toward serving larger, enterprise RIAs, banks, institutional clients, and independent broker-dealers, leveraging SEI’s technology, custody, and investment management capabilities as an integrated ecosystem. SEI’s trust-based custody model is particularly differentiated for upmarket RIAs and high-net-worth clients.
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Product and Platform Innovation Investment strategies are implemented through a broad suite of products, including ETFs, alternative investments, CITs, separately managed accounts, and mutual funds. We act as sponsor, administrator, transfer agent, investment advisor, distributor, and shareholder servicer for many of these products.
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We are actively converting mutual fund assets to ETF structures to meet client demand for more attractive, flexible vehicles. Recent launches and conversions, such as the SEI DBi Multi-Strategy Alternative ETF (QALT), demonstrate our commitment to product innovation.
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We are investing in technology platforms such as SEI Access, which is being developed into a marketplace for alternative investments, positioning us as a key provider for broker-dealers and advisors seeking access to alternatives.
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In addition, we are integrating our LifeYield acquisition to deliver industry‑leading tax management, tax‑transition, and tax‑alpha capabilities by incorporating LifeYield’s tax‑smart technology into the SEI Wealth Platform, enhancing multi‑account management, asset location, tax‑loss harvesting, and household‑level portfolio optimization. Model Portfolio Leadership and Customization We remain a leader in model portfolio solutions, with a long track record and significant market share.
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We are now integrating our institutional and advisor businesses to offer custom model portfolios, including alternatives, to larger RIAs and institutions. This “co-CIO” capability enables tailored solutions for clients with complex needs.
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We also offer trustee, investment management, and administration services for CITs, serving the U.S. retirement market. We are increasingly winning large, complex, multi‑strategy mandates and expanding wallet share with top managers, supported by our global footprint (including Luxembourg) and follow‑the‑sun delivery.
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SEI is a leader in private credit administration and services many of the largest alternative managers globally, and we are benefiting from the ongoing shift from insourcing to outsourcing among the largest firms. We are also investing in retail‑accessible alternatives and CITs for retirement plans to meet growing client demand.
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Private Banks We provide technology, operations, and asset management solutions primarily to the wealth management businesses embedded within banks and trust companies, in addition to independent wealth advisors. Clients include several financial institutions whose relationships span decades with SEI.
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We have meaningfully improved delivery and margins in recent years through stronger client engagement, standardized implementations, and the build‑out of SEI Professional Services to lead end‑to‑end change programs. Our strategy now emphasizes an enterprise approach; expanding wallet share with existing banks, moving down‑market with right‑sized offerings, and integrating asset management with technology and custody to deliver a unified ecosystem.
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We are also 5 monetizing multi-custody solutions, digital workflows, data and AI capabilities (including SEI Data Cloud) and leveraging our Global Capability Center to scale while maintaining outstanding client service. Contracts generally range from five to seven years.
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(FIS), Fi-Tek, SS&C Innovest, FNZ UK Ltd. and Avaloq. This segment also provides asset management programs to banks, wealth managers and other financial services firms. We are sharpening our upmarket focus and cross‑selling SEI’s investment capabilities alongside technology and trust‑based custody, with increasing attention to alternatives access.
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Competitors for our asset management services may include in-house investment teams and global asset management firms, such as LPL Financial and BlackRock. Investment Advisors We provide wealth management technology, operations, and asset management solutions for independent financial advisors across the RIA, bank, and independent broker-dealer market segments.
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In addition, we are expanding our tax‑management capabilities, including asset location, tax‑loss harvesting, tax‑efficient multi‑account household portfolio management, and tax‑transition services, enabling advisors to optimize after‑tax outcomes for their clients. • Advisor services: We help advisors manage and grow their businesses by offering consultative practice management services, including access to our business transition services, case management expertise, third-party applications, thought leadership, and marketing and growth programs.
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Human capital Our talented workforce is the key to our ability to serve our clients globally. At December 31, 2025, we had 4,997 full-time and 32 part-time employees. Employee unions do not represent any of our employees.
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In addition to the regulatory authorities listed above, our subsidiaries are subject to the jurisdiction of regulatory authorities in other foreign countries or jurisdictions.
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Further, in connection with completing the first stage of our strategic investment in Stratos, we own 57.5% of the holding company that holds the equity of Stratos Wealth Securities, LLC, a limited purpose broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of FINRA, and the following SEC registered investment advisors: • Stratos Wealth Advisors, LLC; • Stratos Wealth Partners, Ltd.; • Stratos Investment Management, LLC; • Renaissance Investment Group, LLC; and • Norland LLC.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe are exposed to intellectual property risks . Our continued success also depends in part on our ability to protect our proprietary technology and solutions and to defend against infringement claims of others. We primarily rely upon trade secret law, software security measures, copyrights and confidentiality restrictions in contracts with employees, vendors and customers.
Biggest changeAdditional security measures we may take to address customer concerns may cause higher operating expenses or hinder growth of our products and services. Intellectual Property Risk. We are exposed to intellectual property risks. Our continued success depends in part on our ability to protect our proprietary technology, trademarks, copyrights, and solutions, and to defend against infringement claims by others.
It is possible our security controls over personal data, our training of employees on data security, our vendor due diligence and oversight processes, and other practices we follow may not prevent the improper disclosure or misuse of personal data that we or our vendors store and/or manage.
It is possible our security controls over personal data, our training of employees on data security, our vendor due diligence and oversight processes, and other practices we follow may not prevent the improper disclosure or misuse of personal data that we or our vendors store and manage.
Inefficiencies or operational failures, including temporary or permanent loss of customer data, damaged software codes, delayed or inaccurate processing of transactions, insufficient Internet connectivity, or inadequate storage and compute capacity, could diminish the quality of our products, services, and user experience resulting in contractual liability, claims by customers and other third parties, regulatory actions, damage to our reputation, and loss of current and potential users, each of which may adversely impact our consolidated financial statements.
Inefficiencies or operational failures, including temporary or permanent loss of customer data, damaged software codes, delayed or inaccurate processing of transactions, insufficient Internet connectivity, or inadequate storage and compute capacity, could diminish the quality of our products, services, and user experience resulting in contractual liability, claims 16 by customers and other third parties, regulatory actions, damage to our reputation, and loss of current and potential users, each of which may adversely impact our consolidated financial statements.
The risk and uncertainties facing our business, including those described below, could materially adversely affect our business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
The risk and uncertainties facing our business, including those described below, could materially adversely affect our business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings. Strategic & Business Model Risks Market-Driven Risks .
A successful assertion by others of infringement claims or a failure to maintain the confidentiality and exclusivity of our intellectual property may have a material adverse effect on our business and financial results.
A successful assertion by others of infringement claims or a failure to maintain the confidentiality and exclusivity of our intellectual property may have a material adverse effect on our business and financial results. System Outages and Downtime. We are exposed to risks of outages, data losses, and disruptions of services.
Volatility in the capital markets or poor investment performance on the part of LSV, on a relative basis or an absolute basis, could result in a significant reduction in their assets under management and revenues and a reduction in performance fees.
Volatility in the capital markets or poor investment performance by LSV, whether on a relative or absolute basis, could result in a significant reduction in its assets under management and revenues, as well as a decline in performance fees.
Although we attempt to limit our potential liability through disclaimers and limitation of liability provisions in our license and client agreements, we cannot be certain that these measures will successfully limit our liability. Risks Related to Our Technology We are exposed to data and cyber security risks .
Although we attempt to limit our potential liability through disclaimers and limitation of liability provisions in our license and client agreements, we cannot be certain that these measures will successfully limit our liability. Financial & Market Risks Earnings and Volatility (including LSV impact).
We store, transfer and process large amounts of personally identifiable information of our customers to deliver our products and services.
Data Privacy and Protection. We are exposed to risks related to data privacy and protection. We store, transfer, and process large amounts of personally identifiable information of our clients (and their customers) to deliver our products and services.
Like other global financial service providers, we experience millions of cyber-attacks on our computer systems, software, networks and other technology assets on a daily basis.
Technology, Innovation & Cyber Risks Cybersecurity Threats. We are exposed to significant cybersecurity risks. Like other global financial service providers, we experience millions of cyber-attacks on our systems, networks, and technology assets daily.
We maintain a minority ownership interest in LSV which is a significant contributor to our earnings. We also receive partnership distribution payments from LSV on a quarterly basis which contribute to our operating cash flows. LSV is a registered investment advisor that provides investment advisory services to institutions, including pension plans and investment companies.
Our earnings and cash flows are subject to volatility driven by multiple factors, including the performance of LSV Asset Management (LSV), in which we maintain a minority ownership interest. LSV is a significant contributor to our earnings, and we also receive partnership distribution payments from LSV on a quarterly basis that contribute to our operating cash flows.
We may experience software defects, development delays or installation difficulties, which would harm our business and reputation and expose us to potential liability. A significant portion of our revenue is dependent upon our ability to develop, implement, maintain and enhance sophisticated software and computer systems. We may encounter delays when developing new applications and services.
A significant portion of our revenue is dependent upon our ability to develop, implement, maintain, and enhance sophisticated software and computer systems. We may encounter delays when developing new applications and services. Further, the software underlying our services may contain undetected errors, vulnerabilities, or defects when first introduced or when new versions are released.
Likewise, our clients may make a determination to delay or cancel the integration of our new applications and services.
We may also experience difficulties in installing, integrating, or supporting our technology on systems or with other programs used by our clients. Likewise, our clients may make a determination to delay or cancel the integration of our new applications and services.
Our industry is characterized by the existence of a large number of trade secrets, copyrights and the rapid issuance of patents, as well as frequent litigation based on allegations of infringement or other violations of intellectual property (IP) rights of others.
We primarily rely upon trade secret law, trademark and copyright protections, software security measures, and contractual confidentiality restrictions with employees, vendors, and customers. Our industry is characterized by the existence of numerous trade secrets, copyrights, trademarks, and the rapid issuance of patents, as well as frequent litigation based on allegations of infringement or other violations of intellectual property rights.
Many of the transactions involving our products and services rely on multiple participants in the global financial system to move funds and communicate information to the next participant in the transaction chain.
Our ability to deliver products and services depends on the uninterrupted functioning of our systems and those of other participants in the global financial system. These operations are highly interconnected, and many transactions involving our products rely on multiple parties to move funds and exchange information.
Certain of our subsidiaries are subject to regulatory requirements of the jurisdictions in which they operate or other restrictions that may limit the amounts those subsidiaries can pay in dividends or other payments to us.
Instead, we rely on dividends and other payments from our subsidiaries to meet our obligations, including paying dividends to shareholders, repurchasing our common stock, and funding corporate 17 expenses. Many of our subsidiaries are subject to regulatory requirements or other restrictions that may limit the amounts they can pay in dividends or other payments to us.
Legal, regulatory and compliance risk includes the risk of legal or regulatory sanctions, material financial loss including fines, penalties, judgments, damages and/or settlements, or loss to reputation we may suffer as a result of our failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities.
Failure to comply with applicable laws, regulations, rules, and codes of conduct could result in legal or regulatory sanctions, material financial loss (including fines, penalties, judgments, damages, or settlements), and reputational harm. Compliance obligations include privacy, anti-money laundering (“AML”), anti-corruption, and sanctions requirements, as well as operational resilience and consumer protection standards.
Poor investment returns in our investment management business, due to either general market conditions or underperformance (relative to our competitors or to benchmarks) by funds or accounts that we manage or investment products that we design or sell, affects our ability to retain existing assets and to attract new clients or additional assets from existing clients and could affect the management and incentive fees that we earn on assets under management.
Poor investment returns, whether due to market conditions, underperformance relative to benchmarks or competitors, or errors in investment models, could reduce our ability to retain assets and attract new clients. This may lead to lower management and incentive fees.
Risks Related to Our Business Model Our revenues and earnings are affected by changes in capital markets and significant changes in the value of financial instruments. A majority of our revenues are earned based on the value of assets invested in investment products that we manage or administer.
Our financial performance is heavily influenced by conditions in the capital markets and the value of assets we manage or administer. A significant portion of our revenues is earned as fees based on the market value of client assets.
The products and services used to process that data is increasingly complex, and maintaining, securing, and expanding this infrastructure is expensive. It requires that we maintain an Internet connectivity infrastructure and storage and compute capacity that is robust and reliable within competitive and regulatory constraints that continue to evolve.
We maintain and process data for our clients that is critical to their business operations. The products and services used to process data are increasingly complex, and maintaining, securing, and expanding this infrastructure is expensive.
A failure to continue to innovate, to introduce successful new products and services, or to manage effectively the risks associated with such products and services, may impact our market share and may cause our revenues and earnings derived from assets under management and administration to decline.
If we fail to continue innovating successfully, fail to introduce new products and services that gain market acceptance, or fail to manage the complexities and risks associated with these innovations, our competitive position could deteriorate. In such a scenario, we could lose market share, and our revenue and earnings (particularly those tied to assets under management or administration) may decline.
The costs necessary to rectify these problems may be substantial and may adversely impact our business.
The costs necessary to rectify these problems may be substantial and may adversely impact our business. Technology Disruption and Software Development Delays. We may experience software defects, development delays, or installation difficulties, which would harm our business and reputation and expose us to potential liability.
Growth of our business could increase costs and regulatory risks. Providing platforms for existing and new businesses, expanding our operational services, integrating acquired businesses, and partnering with other firms involves a number of risks and present financial, managerial, and operational challenges.
Rapid Growth and Capacity Constraints . Growth of our business may increase costs and regulatory risks. Expanding platforms, integrating acquisitions, and partnering with other firms present financial, managerial, and operational challenges. Significant expenses may arise from these initiatives, and profitability could suffer if revenues do not offset associated costs.
Our $325.0 million five-year senior unsecured revolving credit facility (Credit Facility) contains financial and non-financial covenants. The non-financial covenants include restrictions on our ability to execute transactions with affiliates other than wholly-owned subsidiaries or to incur liens or certain types of indebtedness as defined in the agreement.
We are subject to financial and non-financial covenants under our senior unsecured revolving credit facilities. These covenants include restrictions on transactions with affiliates, the incurrence of liens, and certain types of indebtedness. Historically, our prior $325.0 million facility included a financial covenant limiting our leverage ratio to a maximum of 2.25× EBITDA.
Cyber security and information risks for financial institutions have significantly increased in recent years in part because of the proliferation of new technologies, the use of the internet and mobile telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists and other external parties, including foreign state actors, in some circumstances as a means to promote political ends.
Cybersecurity threats have increased due to the proliferation of new technologies, the use of internet and mobile platforms for financial transactions, and the growing sophistication of organized crime, hackers, terrorists, and foreign state actors.
No assurance can be given that there will not be further changes in law, regulatory actions, or other circumstances that could restrict the ability of our subsidiaries to pay dividends or otherwise make payment to us.
Changes in applicable laws, regulatory actions, or other circumstances could further restrict their ability to make such payments. There can be no assurance that our subsidiaries will be able to make timely or sufficient payments to us, which could adversely affect our liquidity, financial condition, and ability to meet our corporate obligations. Liquidity Risk (Including Alternative Investments).
The breadth of our business solutions allows us to compete on a number of factors including: • the performance of our investment products; • the level of fees charged; • the quality of our investment processing services; • our reputation and position in the industry; • our ability to adapt to disruptive technology developments or unforeseen market entrants; and • our ability to address the complex and changing needs of our clients.
The breadth of this offering allows us to contend on a number of factors, including the performance of our investment products, the value of our fee structure, the quality and reliability of our operational services, our reputation and track record in the industry, and our ability to innovate and adapt to clients’ changing needs (including adopting new technologies when appropriate).
A failure by a third-party product or service provider may impair our ability to provide contractual services to our clients on a timely basis, to process transactions for our clients accurately, or to meet our regulatory obligations.
Accelerated integration timelines further elevate these risks. A failure by a third-party provider could impair our ability to deliver contractual services, process transactions accurately, or meet regulatory obligations. If a provider is unable or unwilling to perform adequately, we may incur significant costs to internalize services, implement alternatives, or compensate clients for resulting losses.
We are a holding company and, therefore, may not be able to receive dividends or other payments in needed amounts from our subsidiaries. We are organized as a holding company, a legal entity separate and distinct from our operating entities.
We are organized as a holding company and operate through a network of wholly- and partially-owned subsidiaries and affiliates. As a legal entity distinct from our operating entities, we do not engage in direct business operations.
In addition, alternatives 8 present significant operational challenges for asset managers, primarily due to the lack of widely adopted and trusted technological solutions in this space. Unlike traditional investments, which benefit from well-established operational infrastructures and automated processes, alternative investments often require more manual intervention and bespoke operational support.
Unlike traditional securities with well-established automated processes, alternative assets often lack widely adopted technological infrastructure for administration, leading to more manual processes and bespoke operational 10 support. This increases our operational complexity and the risk of errors or inefficiencies.
In addition, if a number of our clients terminate their contracts, liquidate funds or fail to renew management contracts on favorable terms, the fees we earn could be reduced, which may cause our assets under management, revenue and earnings to decline. We rely on the services of third-party sub-advisers.
If several of our clients terminate their contracts, liquidate funds, or fail to renew agreements on favorable terms, our assets under management, revenue, and earnings could decline. Client relationships are also affected by external factors such as market volatility, regulatory changes, and industry consolidation.
These include those adopted pursuant to the Gramm-Leach-Bliley Act and 15 the Fair and Accurate Credit Transactions Act of 2003 in the United States, the General Data Protection Regulation (GDPR) in the EU, Canada’s Personal Information Protection and Electronic Documents Act, the Cayman Islands' Data Protection Law, and various other laws.
Privacy and Data Protection. Our businesses are subject to privacy and data protection laws, including the Gramm-Leach-Bliley Act and the Fair and Accurate Credit Transactions Act in the U.S., the EU’s General Data Protection Regulation (GDPR), Canada’s PIPEDA, and similar laws in other jurisdictions.
As a global financial services firm that provides products and services to a diversified group of clients, including public and private entities, financial institutions and individuals, we face potential conflicts of interest in the normal course of business.
As a global financial services firm serving diverse clients, we face potential conflicts of interest in the normal course of business, including situations involving divergent interests among clients, between us and clients, or between employees and the firm. Our multi-channel business model and acquisitions may heighten these risks.
There is no assurance that any of our acquisitions or divestitures will be successfully integrated or disaggregated or that any of these transactions or our joint ventures, minority stakes or strategic alliances will yield the anticipated benefits, synergies or objectives.
Any conflicts or disagreements with joint venture or minority partners can further complicate decision making and undermine the intended benefits of the deal. There is also no guarantee that transactions will yield the synergies or strategic objectives anticipated.
In addition, some of our foreign subsidiaries are registered with, and subject to the oversight of, regulatory authorities primarily in the United Kingdom, Ireland, Canada, Luxembourg, South Africa, and the Cayman Islands. Many of our clients are subject to substantial regulation by federal and state banking, securities, insurance or employee benefit authorities.
We operate under the oversight of multiple U.S. regulators, including the SEC, FINRA, CFTC, NFA, DOL, OCC, and state banking authorities, and our parent company is regulated by the FFIEC and subject to SEC oversight. Our foreign subsidiaries are regulated in jurisdictions such as the United Kingdom, Ireland, Canada, Luxembourg, South Africa, and the Cayman Islands.
And, in certain investment programs, a portion of our clients’ cash is swept into insured deposit accounts at third party banks on which we earn fees, which fees may be significant. A material change in interest rates or a significant number of clients opting out of these programs could affect our profitability.
We also earn important fee income from programs that sweep client cash into interest-bearing deposit accounts at third-party banks. Changes in interest rates or significant client withdrawals from these sweep programs could decrease the fees we earn and negatively impact our profitability.
The success of our GCC strategy depends on our ability to attract and retain skilled talent in India. However, the competitive labor market for technology professionals in India may lead to increased attrition rates or higher compensation costs, potentially eroding the cost benefits of our outsourcing strategy.
This, in turn, might lead to reputational damage, client dissatisfaction, and financial losses. The success of our GCC strategy also hinges on human capital factors principally, our ability to attract and retain skilled employees in India. The technology and financial services labor market in India is competitive, and demand for experienced professionals may outpace supply.
We also manage U.S. mutual funds under management contracts that must be renewed and approved annually by the funds’ respective boards of trustees, a majority of whom are independent from SEI. Our fee arrangements under any advisory or management contracts may be reduced (including at the behest of a fund’s board of trustees).
We derive a substantial portion of our revenue from providing investment advisory and technology services under long-term agreements. These agreements often allow clients to terminate with limited notice or penalty. For example, U.S. mutual fund management contracts must be renewed annually by boards of trustees, a majority of whom are independent from SEI.
In addition, we are subject to anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act, in the jurisdictions in which we operate.
Failure to maintain comprehensive AML programs could result in significant fines and enforcement actions. We are also subject to sanctions programs administered by authorities such as OFAC and anti-corruption laws including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Violations of these laws could lead to severe civil and criminal penalties, regulatory enforcement, and reputational damage.
Currency fluctuations could negatively affect our future revenues and earnings as our business grows globally . We operate and invest globally to expand our business into foreign markets. Our foreign subsidiaries use the local currency as the functional currency. As these businesses evolve, our exposure to changes in currency exchange rates may increase.
Currency fluctuations could negatively affect our revenues and earnings as we expand globally and operate in multiple jurisdictions. Additionally, changes in tax laws or interpretations of existing tax regulations may adversely affect our effective tax rates and future results of operations.
Our ability to conduct business may be adversely affected by a disruption in the infrastructure that supports our business and the communities where we are located, which are concentrated in the Philadelphia metropolitan area, London and Dublin.
While we maintain business continuity, disaster recovery, and security response plans, these measures may not fully mitigate all risks. Our operations could be adversely affected by disruptions to infrastructure supporting our business and communities where we operate, primarily the Philadelphia metropolitan area, London, and Dublin.
Our investment advisory contracts may be terminated or may not be renewed on favorable terms . We derive a substantial portion of our revenue from providing investment advisory services.
Because certain clients represent a significant portion of our assets under management or administration, the loss of one or more large clients could disproportionately impact our financial results. Our investment advisory and outsourcing contracts may be terminated or may not be renewed on favorable terms.
These procedures may utilize unobservable inputs that are not gathered from any active markets and involve considerable judgment. If these valuations prove to be inaccurate, our revenues and earnings from assets under management could be adversely affected. Risks Related to Our Legal, Regulatory and Compliance Environment The financial services industry is subject to extensive regulations that impact our business.
Mistakes in trade execution or manual processing could result in financial losses, regulatory issues, and reputational harm. Valuations of certain assets depend on active markets and involve considerable judgment. If these valuations prove inaccurate, our revenues and earnings from assets under management could be adversely affected. Operational Resilience (Business Continuity and Disaster Recovery) .
These restrictions could inhibit our development or marketing of certain products or services, or increase the costs of offering them to customers. Compliance with existing and emerging regulations, as well as responding to regulatory examinations and supervisory activities, continues to have a significant impact on our operations globally.
Regulatory initiatives often differ across jurisdictions, creating complexity and potential competitive disadvantages for multi-jurisdictional operations. Compliance with existing and emerging regulations, responding to examinations, and adapting to supervisory activities can significantly impact our operations, increase costs, and affect our ability to provide certain products or services.
We seek to monitor and control our risk exposure through a risk and control framework encompassing a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems, internal controls, management review processes and other mechanisms.
We employ a comprehensive risk and control framework, including financial, credit, operational, compliance, and legal reporting systems, internal controls, and management review processes. However, these strategies and models cannot anticipate every economic or operational outcome. As our business evolves and markets change, our risk management processes may not fully adapt.
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A decrease in the value of these assets, whether due to general market movements or as a consequence of various products’ unique investment performance, would cause a decline in our assets under administration or management, and a corresponding decline in our revenue and earnings.
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Declines in asset values, whether due to overall market downturns or poor performance of specific investment products, directly reduce our assets under management or administration and thereby our revenue and earnings. Similarly, adverse economic conditions or negative investor, consumer, and business sentiment can dampen demand for our products and services, leading to lower business activity and fee revenues.
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Significant fluctuations in securities prices may also influence an investor’s decision to invest in and maintain an investment in a mutual fund or other investment products. Declining or adverse economic conditions and adverse changes in investor, consumer and business sentiment generally result in reduced business activity, which may decrease the demand for our products and services.
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Furthermore, periods of market volatility, geopolitical turmoil, illiquid markets, or other disruptions can make it difficult to value or liquidate certain investments. In extreme cases, we or our clients might be forced to sell assets at depressed prices or write down valuations, causing losses.
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Geopolitical events, market volatility, illiquid market conditions and other disruptions in the financial markets may make it extremely difficult to value or monetize certain financial instruments, particularly during periods of market displacement. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments.
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In summary, sustained market declines or extreme market dislocations could materially erode our revenue, earnings, and overall firm value. In addition, prolonged market volatility may impact our ability to attract new assets or retain existing clients, which could adversely affect our financial performance.
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Additionally, periods of extreme market dislocation may require us to monetize our assets or those of our clients at a significant loss. As a result, our revenues and earnings derived from assets under management or administration, or our profitability or value as a firm, could be adversely affected. We are exposed to product development risk.
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Finally, investor and client perception of the risks attendant to the business models of our various market 9 units and our ability to successfully manage these risks, including those related to the potential disruptions from automation, artificial intelligence and machine learning, may significantly affect our value. Client and Relationship Risks.
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We continually strive to increase revenues and meet our customers' needs by introducing new products and services as well as maintaining and improving our existing products and services.
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Our business depends on maintaining strong relationships with clients across all segments, including investment management, technology outsourcing, and fiduciary services. We are exposed to risks that could lead to client attrition, unfavorable contract renewals, or termination of agreements, each of which could materially reduce our revenues and earnings.
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As a result, we are subject to product development risk, which may result in loss if we are unable to develop and deliver products to our target markets that address our clients' needs, that are developed on a timely basis, or that reflect an attractive value proposition.
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We may lose clients for a variety of reasons beyond poor investment performance. While investment performance relative to benchmarks and competitors remains a critical factor for retaining assets under management, clients may also leave due to pricing pressure, service disruptions, technology platform issues, or competitive innovations such as AI-driven solutions and tokenized products.
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The implementation of many product innovation and development opportunities, particularly cloud-based solutions, requires us to obtain client consent and/or vendor consent, which may be withheld or be obtainable only if we incur a cost that is disproportionate to the revenue opportunity.
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Consolidation among financial institutions may reduce the number of potential clients or lead to rationalization of services we provide. Strategic shifts by clients, including decisions to internalize functions we currently perform, can also result in attrition.
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We are also subject to the risk that new products and solutions we develop may not function as expected or may be prone to error or disruption, which may result in material losses or harm to our reputation and ability to market such solutions.
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Our fee arrangements under any advisory or management contracts may be reduced, including at the behest of a fund’s board of trustees. Similarly, outsourcing contracts for technology platforms may be renegotiated or terminated early, particularly if clients seek cost reductions, regulatory changes alter service requirements, or competitors offer more advanced solutions.
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The majority of our technology product development risk pertains to the evolution of the SEI Wealth Platform SM , TRUST 3000 ® , our platform for the Investment Managers segment, and our other proprietary technology platforms.
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In addition, our ability to retain and grow client relationships depends on our capacity to innovate and deliver new products and services that meet evolving client needs, including ESG solutions, AI-driven strategies, and tokenized investment products. Failure to anticipate and respond to these changes could impair our competitive position and lead to client attrition or unfavorable contract renegotiations.
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The development and introduction of new products and services in the markets in which we operate requires continued innovative efforts on our part and may require significant time and resources as well as ongoing support and investment.
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Fee Compression and Competitive Pricing Pressure. We face persistent pricing pressure across our industry. Investor demand for low-cost solutions, the rise of passive strategies, and competition from fintech and technology-driven firms have driven fee reductions. If we are unable to demonstrate value or match competitive pricing, our margins and profitability may decline. Product Development and Innovation Risks.
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Expansion of Business-to-Consumer products and services presents unique risks as it increases direct interaction with individual consumers, exposing us to heightened cybersecurity threats and data privacy concerns. Growth in Business-to-Consumer models may increase operational risk due to higher transaction volumes, potentially increasing operational costs and fraud risks.
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We depend on continuous innovation and improvement of our products and services to drive growth and meet client needs, and failures in this area pose significant risk. If we are unable to develop and deliver new products or enhancements that address our clients’ needs, provide competitive value, and are ready in a timely manner, our business could suffer.
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Product development in the asset management arena has experienced significant growth in alternative investments, including private equity, hedge funds, real estate, and infrastructure.
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For example, much of our technology development effort is devoted to our core platforms, such as the SEI Wealth Platform ℠ and TRUST 3000 ® , and our other proprietary processing systems, and their ongoing evolution is critical to our value proposition. Delays, cost overruns, or performance problems in enhancing these mission-critical systems could impair our competitiveness or reputation.
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The growing focus on alternatives reflects increasing demand for diversification beyond traditional asset classes; however, new alternative products often require three or more years in the market to generate the track records necessary to attract significant asset inflows.
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We are also mindful that new products or solutions we introduce might not function as expected or could experience errors and disruptions, which can lead to client dissatisfaction, remediation costs, legal liability, or damage to our reputation.
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Failure to effectively manage the risks associated with these new products could lead to reputational damage, regulatory scrutiny, and potential financial losses. Product development in the asset management arena has had significant growth in newer areas where investment criteria and performance metrics have not yet been fully defined or developed, such as Tax Harvesting programs.
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Additionally, implementing certain product innovations (particularly those involving cloud-based solutions or other third-party technology changes) often requires obtaining consents or cooperation from clients and vendors. These external parties may withhold approval or demand onerous terms, which can slow down or even thwart our product development efforts, potentially making some initiatives impractical despite their strategic value.
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New products often must be in the marketplace for three or more years in order to generate track records required to attract significant asset inflows.
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Developing and launching new products and services in our industry typically demands significant time, resources, and ongoing support. There are substantial uncertainties in this process, including the need to establish new operational processes and controls, to anticipate shifting client preferences, to respond to new competitors or technologies, and to ensure compliance with evolving regulatory requirements.
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We may not achieve significant revenue from new products or services for years, if at all. New products and services may not be profitable, and even if they are profitable, operating margins for some new products and services may not be as high as the margins we have experienced historically.
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Many emerging investment offerings do not gain traction immediately, it can take several years for a new product to build the performance track record and client acceptance required to attract significant asset inflows. During this incubation period, we must invest in development, marketing, and support without assurance that the product will ultimately succeed.
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If we fail to develop new or enhanced products or services at an acceptable cost or on a timely basis, or if our development strategies are not accepted by our clients, we may recognize significant financial losses.
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For instance, client demand has increasingly expanded into alternative investments (such as private equity, hedge funds, real estate, and infrastructure) as they seek diversification beyond traditional asset classes. Offering and supporting these alternative investment products presents unique challenges.
Removed
Further, if we fail to deliver products and services which are of sound economic value to our clients and our target markets, or are unable to support the product in a cost-effective and compliant manner, we may face reputational damage and incur significant financial losses.
Added
Moreover, as noted, new alternative products usually require a multi-year track record before they can attract substantial assets under management, which delays revenue and may strain resources. We have also pursued innovation in other newer areas of asset management, for example, developing tax optimization and tax‐harvesting programs, which likewise need time to prove their effectiveness and appeal to investors.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAdditional information about cybersecurity risks we face is discussed in Item 1A of Part I, “Risk Factors,” under the heading “We are exposed to data and cyber security risks,” which should be read in conjunction with the information above.
Biggest changeAdditional information about cybersecurity risks we face is discussed in Item 1A of Part I, “Risk Factors,” under the heading "Technology, Innovation & Cyber Risks" which should be read in conjunction with the information above.
Key components of our Cybersecurity Program include, but are not limited to, the following: • Information Security Governance: We designed what we believe are appropriate measures, policies and procedures to ensure that information and information systems are properly protected given the nature of our businesses and the size and complexity of our organization, including our reliance on third parties; • Organization: The Information Security team, led by the Chief Information Security Officer (CISO), is responsible for implementing and managing the Cybersecurity Program with executive oversight from the Chief Executive Officer and Chief Financial Officer, as well as oversight from our Board of Directors.
Key components of our Cybersecurity Program include, but are not limited to, the following: • Information Security Governance: We designed what we believe are appropriate measures, policies and procedures to ensure that information and information systems are properly protected given the nature of our businesses and the size and complexity of our organization, including our reliance on third parties; • Organization: The Information Security team, led by the Chief Information Security Officer (CISO), is responsible for implementing and managing the Cybersecurity Program with executive oversight from the Chief Executive Officer and Chief Financial Officer/Chief Operating Officer, as well as oversight from our Board of Directors.
Our Cybersecurity Program is designed to provide a framework for assessing the potential threats to the security and integrity of our systems, networks, databases, applications, electronic information and intellectual property and developing appropriate defenses based on these assessments.
Our Cybersecurity Program is designed to provide a framework for assessing the potential threats to the security and integrity of our systems, networks, databases, applications, electronic information and intellectual property and developing 20 appropriate defenses based on these assessments.
In addition to the CISO’s cybersecurity experience, he has certifications in risk and information systems control along with information systems auditing; 22 • Cybersecurity Controls: We have implemented what we believe are appropriate preventative measures to protect SEI’s infrastructure, systems, and data.
In addition to the CISO’s cybersecurity experience, he has certifications in risk and information systems control along with information systems auditing; • Cybersecurity Controls: We have implemented what we believe are appropriate preventative measures to protect SEI’s infrastructure, systems, and data.
Our CISO has extensive cybersecurity knowledge and skills gained from over 26 years of work experience on the information security team at SEI.
Our CISO has extensive cybersecurity knowledge and skills gained from over 27 years of work experience on the information security team at SEI.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties. Our corporate headquarters is located in Oaks, Pennsylvania and consists of ten buildings situated on approximately 134 acres. We own and operate the land and buildings, which encompass approximately 628,000 square feet of office space and 34,000 square feet of data center space. We lease other offices which aggregate 182,000 square feet.
Biggest changeItem 2. Properties. Our corporate headquarters is located in Oaks, Pennsylvania and consists of ten buildings situated on approximately 134 acres. We own and operate the land and buildings, which encompass approximately 628,000 square feet of office space and 34,000 square feet of data center space. We lease other offices which aggregate 226,840 square feet. 21

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur Board of Directors intends to declare future dividends on a semiannual basis. 2024 High Low Dividends First Quarter $ 72.54 $ 61.58 $ — Second Quarter 71.81 63.66 0.46 Third Quarter 70.16 62.38 — Fourth Quarter 87.25 68.56 0.49 2023 High Low Dividends First Quarter $ 64.69 $ 53.93 $ — Second Quarter 59.87 56.10 0.43 Third Quarter 64.43 58.25 — Fourth Quarter 64.94 52.20 0.46 According to the records of our transfer agent, there were 194 holders of record of our common stock on December 31, 2024.
Biggest changeOur Board of Directors intends to declare future dividends on a semiannual basis. 2025 High Low Dividends First Quarter $ 86.95 $ 71.97 $ — Second Quarter 90.52 64.66 0.49 Third Quarter 93.96 84.23 — Fourth Quarter 86.98 77.51 0.52 2024 High Low Dividends First Quarter $ 72.54 $ 61.58 $ — Second Quarter 71.81 63.66 0.46 Third Quarter 70.16 62.38 — Fourth Quarter 87.25 68.56 0.49 According to the records of our transfer agent, there were 184 holders of record of our common stock on December 31, 2025.
Shareholders' Equity" included in our Notes to Consolidated Financial Statements and Item 12 of this Annual Report on Form 10-K. 24 Stock Performance Graph : The following graph shows a comparison from December 31, 2019 through December 31, 2024 of the cumulative total return for our common stock, the NASDAQ Market Index and an Industry Index, a blend of indices including 79% NASDAQ US Asset Managers and Custodians and 21% NASDAQ US Software.
Shareholders' Equity" included in our Notes to Consolidated Financial Statements and Item 12 of this Annual Report on Form 10-K. 23 Stock Performance Graph : The following graph shows a comparison from December 31, 2020 through December 31, 2025 of the cumulative total return for our common stock, the NASDAQ Market Index and an Industry Index, a blend of indices including 79% NASDAQ US Asset Managers and Custodians and 21% NASDAQ US Software.
ASSUMES $100 INVESTED ON DECEMBER 31, 2019 ASSUMES DIVIDENDS REINVESTED FISCAL YEAR ENDED DECEMBER 31, Issuer Purchases of Equity Securities: Our Board of Directors has authorized the repurchase of up to $6.228 billion worth of our common stock. Currently, there is no expiration date for our common stock repurchase program (See Note 7 to the Consolidated Financial Statements).
ASSUMES $100 INVESTED ON DECEMBER 31, 2020 ASSUMES DIVIDENDS REINVESTED FISCAL YEAR ENDED DECEMBER 31, Issuer Purchases of Equity Securities: Our Board of Directors has authorized the repurchase of up to $7.378 billion worth of our common stock. Currently, there is no expiration date for our common stock repurchase program (See Note 7 to the Consolidated Financial Statements).
On October 22, 2024, our Board of Directors approved an increase in the stock repurchase program by an additional $400.0 million.
On October 20, 2025, our Board of Directors approved an increase in the stock repurchase program by an additional $650.0 million.
Information regarding the repurchase of common stock during the three months ended December 31, 2024 is: Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program October 2024 175,000 $ 75.59 175,000 $ 415,871,000 November 2024 572,000 79.54 572,000 370,390,000 December 2024 2,364,000 84.24 2,364,000 169,600,000 Total 3,111,000 82.89 3,111,000 (1) Average price paid per share does not include excise tax on stock repurchases.
Information regarding the repurchase of common stock during the three months ended December 31, 2025 is: Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program October 2025 560,000 $ 82.97 560,000 $ 757,945,000 November 2025 305,000 81.03 305,000 733,222,000 December 2025 358,000 82.31 358,000 703,407,000 Total 1,223,000 82.29 1,223,000 (1) Average price paid per share does not include excise tax on stock repurchases.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeEnding Asset Balances (In millions) As of December 31, Percent Change Percent Change 2024 2023 2022 Investment Managers: Collective trust fund programs (A) $ 202,384 $ 156,376 29 % $ 141,285 11 % Liquidity funds 188 114 65 % 199 (43) % Total assets under management $ 202,572 $ 156,490 29 % $ 141,484 11 % Client assets under administration (E) 1,032,812 920,757 12 % 794,149 16 % Total assets $ 1,235,384 $ 1,077,247 15 % $ 935,633 15 % Private Banks: Equity and fixed-income programs $ 25,523 $ 24,496 4 % $ 22,377 9 % Collective trust fund programs 4 4 — % 7 (43) % Liquidity funds 2,688 3,916 (31) % 3,201 22 % Total assets under management $ 28,215 $ 28,416 (1) % $ 25,585 11 % Client assets under administration 8,340 7,267 15 % 4,151 75 % Total assets $ 36,555 $ 35,683 2 % $ 29,736 20 % Investment Advisors: Equity and fixed-income programs $ 76,283 $ 71,634 6 % $ 66,240 8 % Liquidity funds 3,105 4,812 (35) % 5,436 (11) % Total Platform assets under management $ 79,388 $ 76,446 4 % $ 71,676 7 % Platform-only assets 25,244 18,324 38 % 13,931 32 % Platform-only assets-deposit program 2,398 843 184 % — NM Total Platform assets $ 107,030 $ 95,613 12 % $ 85,607 12 % Institutional Investors: Equity and fixed-income programs $ 75,481 $ 77,208 (2) % $ 73,178 6 % Collective trust fund programs 1 1 — % 5 (80) % Liquidity funds 1,511 1,734 (13) % 1,557 11 % Total assets under management $ 76,993 $ 78,943 (2) % $ 74,740 6 % Client assets under advisement 5,955 6,120 (3) % 4,314 42 % Total assets $ 82,948 $ 85,063 (2) % $ 79,054 8 % Investments in New Businesses: Equity and fixed-income programs $ 2,747 $ 2,174 26 % $ 1,912 14 % Liquidity funds 297 209 42 % 215 (3) % Total assets under management $ 3,044 $ 2,383 28 % $ 2,127 12 % Client assets under advisement 2,185 1,150 90 % 1,077 7 % Client assets under administration (E) 14,791 14,807 — % 16,342 (9) % Total assets $ 20,020 $ 18,340 9 % $ 19,546 (6) % LSV: Equity and fixed-income programs (B) $ 86,501 $ 89,312 (3) % $ 83,753 7 % 31 Total: Equity and fixed-income programs (C) $ 266,535 $ 264,824 1 % $ 247,460 7 % Collective trust fund programs 202,389 156,381 29 % 141,297 11 % Liquidity funds 7,789 10,785 (28) % 10,608 2 % Total assets under management $ 476,713 $ 431,990 10 % $ 399,365 8 % Advised assets 8,140 7,270 12 % 5,391 35 % Client assets under administration (D) 1,055,943 942,831 12 % 814,642 16 % Platform-only assets 27,642 $ 19,167 44 % 13,931 38 % Total assets $ 1,568,438 $ 1,401,258 12 % $ 1,233,329 14 % (A) Collective trust fund program assets are included in assets under management since SEI is the trustee.
Biggest changeEnding Asset Balances (In millions) As of December 31, Percent Change Percent Change 2025 2024 2023 Investment Managers: Collective trust fund programs (A) $ 243,244 $ 202,384 20 % $ 156,376 29 % Liquidity funds 579 188 208 % 114 65 % Total assets under management $ 243,823 $ 202,572 20 % $ 156,490 29 % Client assets under administration (E) 1,239,606 1,032,812 20 % 920,757 12 % Total assets $ 1,483,429 $ 1,235,384 20 % $ 1,077,247 15 % Private Banks: Equity and fixed-income programs $ 29,832 $ 25,523 17 % $ 24,496 4 % Collective trust fund programs 3 4 (25) % 4 — % Liquidity funds 2,099 2,688 (22) % 3,916 (31) % Total assets under management $ 31,934 $ 28,215 13 % $ 28,416 (1) % Client assets under administration 9,115 8,340 9 % 7,267 15 % Total assets $ 41,049 $ 36,555 12 % $ 35,683 2 % Investment Advisors: Equity and fixed-income programs $ 86,879 $ 76,283 14 % $ 71,634 6 % Liquidity funds 3,561 3,105 15 % 4,812 (35) % Total Platform assets under management $ 90,440 $ 79,388 14 % $ 76,446 4 % Platform-only assets 33,582 25,244 33 % 18,324 38 % Platform-only assets-deposit program 2,461 2,398 3 % 843 NM Total Platform assets $ 126,483 $ 107,030 18 % $ 95,613 12 % Institutional Investors: Equity and fixed-income programs $ 84,254 $ 75,482 12 % $ 77,209 (2) % Liquidity funds 1,604 1,511 6 % 1,734 (13) % Total assets under management $ 85,858 $ 76,993 12 % $ 78,943 (2) % Client assets under advisement 3,598 5,955 (40) % 6,120 (3) % Total assets $ 89,456 $ 82,948 8 % $ 85,063 (2) % Investments in New Businesses: Equity and fixed-income programs $ 3,044 $ 2,747 11 % $ 2,174 26 % Liquidity funds 316 297 6 % 209 42 % Total assets under management $ 3,360 $ 3,044 10 % $ 2,383 28 % Client assets under advisement 2,389 2,185 9 % 1,150 90 % Client assets under administration (E) — 14,791 (100) % 14,807 — % Total assets $ 5,749 $ 20,020 (71) % $ 18,340 9 % LSV: Equity and fixed-income programs (B) $ 99,196 $ 86,501 15 % $ 89,312 (3) % Stratos (F) $ 38,377 $ — NM $ — NM 28 Total: Equity and fixed-income programs (C) $ 303,205 $ 266,536 14 % $ 264,825 1 % Collective trust fund programs 243,247 202,388 20 % 156,380 29 % Liquidity funds 8,159 7,789 5 % 10,785 (28) % Total assets under management $ 554,611 $ 476,713 16 % $ 431,990 10 % Advised assets 5,987 8,140 (26) % 7,270 12 % Client assets under administration (D) 1,248,721 1,055,943 18 % 942,831 12 % Platform-only assets 36,043 $ 27,642 30 % 19,167 44 % Stratos 38,377 $ — NM — NM Total assets $ 1,883,739 $ 1,568,438 20 % $ 1,401,258 12 % (A) Collective trust fund program assets are included in assets under management since SEI is the trustee.
SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range of periodic or thematic reviews, examinations or investigations by numerous regulatory authorities around the world, including the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland (CBI), the Commission de Surveillance du Secteur Financier (CSSF) of the Grand Duchy of Luxembourg, and others.
SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range of periodic or thematic reviews, examinations or investigations by numerous regulatory authorities around the world, including the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland (CBI), the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (CSSF), and others.
The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as various other assumptions. These assumptions include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends.
The 39 determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as various other assumptions. These assumptions include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends.
Actual operating results and the underlying amount and category of income in future years could render the current assumptions, judgments and estimates of recoverable net 44 deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause actual income tax obligations to differ from the estimates, thus materially impacting our financial position and results of operations.
Actual operating results and the underlying amount and category of income in future years could render the current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause actual income tax obligations to differ from the estimates, thus materially impacting our financial position and results of operations.
If we are not able to successfully integrate our past and future acquisitions, or we do not fully realize the anticipated benefits, synergies or objectives of these transactions, we may incur additional costs such as impairment charges to goodwill or intangible assets recognized from acquisitions that could adversely affect our results of operations or financial condition. 30 Ending Asset Balances This table presents ending asset balances of our clients, or of our clients’ customers, for which we provide management or administrative services through our subsidiaries and partnerships in which we have a significant interest.
If we are not able to successfully integrate our past and future acquisitions, or we do not fully realize the anticipated benefits, synergies or objectives of these transactions, we may incur additional costs such as impairment charges to goodwill or intangible assets recognized from acquisitions that could adversely affect our results of operations or financial condition. 27 Ending Asset Balances This table presents ending asset balances of our clients, or of our clients’ customers, for which we provide management or administrative services through our subsidiaries and partnerships in which we have a significant interest.
These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against us or our subsidiaries.
These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against us or 36 our subsidiaries.
Goodwill is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying value. We have four reporting units subject to goodwill impairment testing. As of December 31, 2024, no impairment of goodwill has been identified.
Goodwill is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying value. We have four reporting units subject to goodwill impairment testing. As of December 31, 2025, no impairment of goodwill has been identified.
Capital expenditures in 2024, 2023 and 2022 primarily include capital outlays for purchased software and equipment for data center operations. We continue to evaluate improvements to our information technology infrastructure which, if implemented, will result in additional expenditures for purchased software and equipment for data center operations. • Cash paid for acquisitions, net of cash acquired.
Capital expenditures in 2025, 2024 and 2023 primarily include capital outlays for purchased software and equipment for data center operations. We continue to evaluate improvements to our information technology infrastructure which, if implemented, will result in additional expenditures for purchased software and equipment for data center operations. • Cash paid for acquisitions, net of cash acquired.
Currently, our ability to borrow from the credit facility is not limited by any covenant of the agreement (See Note 6 to the Consolidated Financial Statements). The majority of excess cash reserves are primarily placed in accounts located in the United States that invest in SEI-sponsored money market mutual funds denominated in the U.S. dollar.
Currently, our ability to borrow from the credit facility is not limited by any covenant of the agreement (See Note 6 to the Consolidated Financial Statements). The majority of excess cash reserves are primarily placed in accounts located in the United States that invest in commercial paper and SEI-sponsored money market mutual funds denominated in the U.S. dollar.
We are obligated to make payments in connection with the credit facility, operating leases, maintenance contracts and other commitments (See Notes 6, 10 and 18 to the Consolidated Financial Statements). We believe our operating cash flow, available borrowing capacity, and existing cash and cash equivalents will provide adequate funds for these obligations and ongoing operations.
We are obligated to make payments in connection with the credit facility, operating leases, maintenance contracts and other commitments (See Notes 6, 10 and 17 to the Consolidated Financial Statements). We believe our operating cash 38 flow, available borrowing capacity, and existing cash and cash equivalents will provide adequate funds for these obligations and ongoing operations.
This was partially offset by negative cash flows from SEI fund programs and fee reductions in separately managed account programs. Revenue growth was also partially offset by client losses in the Institutional Investors segment.
This was partially offset by negative cash flows and lower fee structures from SEI fund programs and fee reductions in separately managed account programs. Revenue growth was also partially offset by client losses in the Institutional Investors segment.
Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. The average value of these assets for the year ended December 31, 2024 was $1.7 billion.
Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee. The average value of these assets for the year ended December 31, 2025 was $1.4 billion.
We capitalized $24.3 million, $34.0 million and $35.3 million of software development costs in 2024, 2023 and 2022, respectively. Our software development costs are related to significant enhancements for the expanded functionality of the SEI Wealth Platform and the development of a new platform for the Investment Managers segment (See Note 1 to the Consolidated Financial Statements). • Capital expenditures.
We capitalized $30.0 million, $24.3 million and $34.0 million of software development costs in 2025, 2024 and 2023, respectively. Our software development costs are related to significant enhancements for the expanded functionality of the SEI Wealth Platform and the development of a new platform for the Investment Managers segment (See Note 1 to the Consolidated Financial Statements). • Capital expenditures.
Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include $1.4 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of December 31, 2024).
Fees earned on this product are less than fees earned on customized asset management programs. (B) Equity and fixed-income programs include $1.5 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of December 31, 2025).
We currently anticipate that our available funds and cash flow from operations will be sufficient to meet our operational cash needs and fund our stock repurchase program for at least the next 12 months and for the foreseeable future.
We currently anticipate that our available funds and cash flow from operations will be sufficient to meet our operational cash needs, expected M&A activity, and fund our stock repurchase program for at least the next 12 months and for the foreseeable future.
We received $126.0 million, $101.2 million and $58.2 million in proceeds from the issuance of common stock during 2024, 2023 and 2022, respectively. The proceeds we receive from the issuance of common stock is directly attributable to the levels of stock option exercise activity. • Dividend payments.
We received $144.2 million, $126.0 million and $101.2 million in proceeds from the issuance of common stock during 2025, 2024 and 2023, respectively. The proceeds we receive from the issuance of common stock is directly attributable to the levels of stock option exercise activity. • Dividend payments.
(C) Equity and fixed-income programs include $6.3 billion of average assets invested in various asset allocation funds for the year ended December 31, 2024.
(C) Equity and fixed-income programs include $6.8 billion of average assets invested in various asset allocation funds for the year ended December 31, 2025.
Revenues during 2023 were primarily affected by: • Increased revenues from new products launched and additional services provided to our largest alternative fund clients; and • Positive cash flows into alternative and traditional funds from new and existing clients; partially offset by • Client losses and fund closures. Operating margins were 38% in 2024 and 35% in 2023.
Revenues during 2025 were primarily affected by: • Increased revenues from additional services provided to our largest alternative fund clients; and • Positive cash flows into alternative and traditional funds from new and existing clients; partially offset by • Client losses and fund closures. Operating margins were 39% in 2025 and 38% in 2024.
The dividend was paid on January 8, 2025 for a total of $63.9 million. 43 Cash Requirements Cash requirements and liquidity needs are primarily funded through cash flow from operations and our capacity for additional borrowing. At December 31, 2024, unused sources of liquidity consisted of cash and cash equivalents and the amount available under our credit facility.
The dividend was paid on January 12, 2026 for a total of $63.6 million. Cash Requirements Cash requirements and liquidity needs are primarily funded through cash flow from operations and our capacity for additional borrowing. At December 31, 2025, unused sources of liquidity consisted of cash and cash equivalents and the amount available under our credit facility.
Other Corporate overhead expenses Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were $147.6 million, $132.2 million and $168.2 million in 2024, 2023 and 2022, respectively.
Other Corporate overhead expenses Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were $180.9 million, $147.6 million and $132.2 million in 2025, 2024 and 2023, respectively.
Net gain (loss) from investments Net gains and losses from investments during 2024 and 2023 were primarily due to realized and unrealized gains and losses recorded in current earnings related to the investment funds sponsored by LSV, equity holdings and SEI-sponsored investment products (See Note 5 to the Consolidated Financial Statements).
Net gain from investments Net gain from investments during 2025 was primarily due to realized and unrealized gains and losses recorded in current earnings related to the investment funds sponsored by LSV, equity holdings and SEI-sponsored investment products (See Note 5 to the Consolidated Financial Statements).
As of January 31, 2025, we had outstanding letters of credit of $4.9 million which reduced the amount available under the credit facility. These letters of credit were primarily issued for the expansion of the corporate headquarters and are due to expire in 2025.
As of January 30, 2026, we had outstanding letters of credit of $4.6 million which reduced the amount available under the credit facility. These letters of credit were primarily issued for the expansion of the corporate headquarters and are due to expire in 2026.
Revenues during 2024 were primarily affected by: • Increased fee revenue of $50.0 million from the SEI Integrated Cash Program; and • Increased fees from separately managed account programs and Strategist programs due to growth from new and existing clients and market appreciation; partially offset by • Decreased investment management fees from SEI fund programs resulting from the continued shift out of SEI fund programs into separately managed accounts and other investment products; and • Fee reductions in our separately managed account programs.
Revenues during 2025 were primarily affected by: • Increased fees from separately managed account programs and Strategist programs due to growth from new and existing clients and market appreciation; and • Increased fee revenue of $31.4 million from the SEI Integrated Cash Program; partially offset by • Decreased investment management fees from SEI fund programs resulting from the continued shift out of SEI fund programs into separately managed accounts and other investment products; and • Lower fee structures in SEI fund programs and fee reductions in our separately managed account programs. 33 Operating margins were 46% in 2025 and 44% in 2024.
There was approximately $67.9 million of unrecognized compensation cost related to unvested employee stock options at December 31, 2024 and we expect to recognize approximately $31.1 million in stock-based compensation costs for stock options in 2025.
There was approximately $64.3 million of unrecognized compensation cost related to unvested employee stock options at December 31, 2025 and we expect to recognize approximately $29.1 million in stock-based compensation costs for stock options in 2026.
(C) Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds at December 31, 2024. (D) In addition to the assets presented, SEI also administers an additional $10.3 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of December 31, 2024).
(C) Equity and fixed-income programs include $8.1 billion of assets invested in various asset allocation funds at December 31, 2025. (D) In addition to the assets presented, SEI also administers an additional $13.0 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of December 31, 2025).
Our purchases, sales and maturities of marketable securities during 2024, 2023 and 2022 were as follows: 2024 2023 2022 Purchases $ (177,025) $ (143,389) $ (178,217) Sales and maturities 152,917 121,988 161,160 Net investing activities from marketable securities $ (24,108) $ (21,401) $ (17,057) See Note 5 to the Consolidated Financial Statements for more information related to marketable securities. • The capitalization of costs incurred in developing computer software.
Our purchases, sales and maturities of marketable securities during 2025, 2024 and 2023 were as follows: 2025 2024 2023 Purchases $ (157,510) $ (177,025) $ (143,389) Sales and maturities 123,800 152,917 121,988 Net investing activities from marketable securities $ (33,710) $ (24,108) $ (21,401) See Note 5 to the Consolidated Financial Statements for more information related to marketable securities. • The capitalization of costs incurred in developing computer software.
The following table lists information regarding repurchases of common stock during 2024, 2023 and 2022: Year Total Number of Shares Repurchased Average Price Paid per Share Total Cost 2024 6,840,000 $ 74.92 $ 512,477 2023 5,237,000 59.34 310,769 2022 5,914,000 57.22 338,442 • Proceeds from the issuance of our common stock.
The following table lists information regarding repurchases of common stock during 2025, 2024 and 2023: Year Total Number of Shares Repurchased Average Price Paid per Share Total Cost 2025 7,459,000 $ 82.61 $ 616,194 2024 6,840,000 74.92 512,477 2023 5,237,000 59.34 310,769 • Proceeds from the issuance of our common stock.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. (In thousands, except share and per-share data) This discussion reviews and analyzes the consolidated financial condition at December 31, 2024 and 2023, the consolidated results of operations for the years ended December 31, 2024, 2023 and 2022, and other factors that may affect future financial performance.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. (In thousands, except share and per-share data) This discussion reviews and analyzes the consolidated financial condition, the consolidated results of operations and other factors that may affect future financial performance.
Cash dividends paid during 2024, 2023 and 2022 were as follows: Year Cash Dividends Paid Cash Dividends Paid per Share 2024 $ 120,346 $ 0.92 2023 114,837 0.86 2022 109,830 0.80 The Board of Directors declared a semi-annual cash dividend of $0.49 per share on December 12, 2024.
Cash dividends paid during 2025, 2024 and 2023 were as follows: Year Cash Dividends Paid Cash Dividends Paid per Share 2025 $ 124,198 $ 0.98 2024 120,346 0.92 2023 114,837 0.86 The Board of Directors declared a semi-annual cash dividend of $0.52 per share on December 12, 2025.
As of January 31, 2025, the amount of the credit facility available for corporate purposes was $320.1 million. The availability of the credit facility is subject to compliance with certain covenants set forth in the agreement.
As of January 30, 2026, the amount of the credit facility available for corporate purposes was $495.4 million. The availability of the credit facility is subject to compliance with certain covenants set forth in the agreement.
Investment operations and investment management fees are earned as a percentage of assets under management, administration or advised assets. As of December 31, 2024, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer approximately $1.6 trillion in hedge, private equity, mutual fund and pooled or separately managed assets.
Investment operations and investment management fees are earned as a percentage of assets under management, administration or advised assets. As of December 31, 2025, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer approximately $1.9 trillion in assets.
Private Banks Year Ended December 31, 2024 2023 Percent Change 2022 Percent Change Revenues: Investment processing and software servicing fees $ 401,267 $ 363,730 10 % $ 447,916 (19) % Asset management, administration & distribution fees 140,147 132,587 6 % 122,094 9 % Total revenues $ 541,414 $ 496,317 9 % $ 570,010 (13) % Revenues increased $45.1 million, or 9%, in 2024 compared to the prior year.
Private Banks Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Revenues: Investment processing and software servicing fees $ 432,771 $ 401,267 8 % $ 363,730 10 % Asset management, administration & distribution fees 140,168 140,147 — % 132,587 6 % Total revenues $ 572,939 $ 541,414 6 % $ 496,317 9 % Revenues increased $31.5 million, or 6%, in 2025 compared to the prior year.
Revenues during 2024 were primarily affected by: • Decreased investment management fees from client losses; partially offset by • Increased investment management fees from existing clients due to higher assets under management due to market appreciation; • Revenues from new Outsourced Chief Investment Officer (OCIO) platform clients; and • Added revenues from the acquisition of XPS Pensions (Nexus) Limited.
Revenues during 2025 were primarily affected by: • Decreased investment management fees from client losses; partially offset by • Increased investment management fees from existing clients due to higher assets under management due to market appreciation; and • Revenues from new Outsourced Chief Investment Officer (OCIO) platform clients. Operating margins were 48% in 2025 and 46% in 2024.
Institutional Investors Revenues decreased $4.0 million, or 1%, in 2024 compared to the prior year.
Institutional Investors Revenues decreased $3.2 million, or 1%, in 2025 compared to the prior year.
(D) In addition to the assets presented, SEI also administers an additional $8.8 billion of average assets in Funds of Funds assets for the year ended December 31, 2024 on which SEI does not earn an administration fee.
(D) In addition to the assets presented, SEI also administers an additional $11.4 billion of average assets in Funds of Funds assets for the year ended December 31, 2025 on which SEI does not earn an administration fee. (E) Client assets under administration related to the Family Office Services business.
Amortization Amortization expense on the accompanying Consolidated Statements of Operations consists of: 2024 2023 Percent Change 2022 Percent Change Capitalized software development costs $ 28,100 $ 26,227 7% $ 41,437 (37)% Intangible assets 13,448 12,161 11% 12,580 (3)% Other 321 281 14% 263 7% Total amortization expense $ 41,869 $ 38,669 8% $ 54,280 (29)% Capitalized software development costs The increase in amortization expense related to capitalized software development costs during 2024 was primarily due to significant enhancements to SWP placed into service during 2024.
Amortization Amortization expense on the accompanying Consolidated Statements of Operations consists of: 2025 2024 Percent Change 2023 Percent Change Capitalized software development costs $ 31,283 $ 28,100 11% $ 26,227 7% Intangible assets 14,776 13,448 10% 12,161 11% Other 582 321 81% 281 14% Total amortization expense $ 46,641 $ 41,869 11% $ 38,669 8% Capitalized software development costs The increase in amortization expense related to capitalized software development costs was primarily due to significant enhancements to SWP and the placement into service of SEI Scope during the third quarter 2025.
The assets presented in the preceding tables do not include assets processed on SWP and are not included in the accompanying Consolidated Balance Sheets because we do not own them. 34 Business Segments Revenues, Expenses and Operating profit (loss) for our business segments for the year ended 2024 compared to the year ended 2023, and for the year ended 2023 compared to the year ended 2022 were: Year Ended December 31, 2024 2023 Percent Change 2022 Percent Change Investment Managers: Revenues $ 728,390 $ 645,254 13 % $ 599,661 8 % Expenses 453,085 419,196 8 % 381,965 10 % Operating profit $ 275,305 $ 226,058 22 % $ 217,696 4 % Operating margin 38 % 35 % 36 % Private Banks: Revenues 541,414 496,317 9 % 570,010 (13) % Expenses 460,375 448,490 3 % 467,821 (4) % Operating profit $ 81,039 $ 47,827 69 % $ 102,189 (53) % Operating margin 15 % 10 % 18 % Investment Advisors: Revenues 509,408 436,298 17 % 447,766 (3) % Expenses 282,902 259,142 9 % 251,650 3 % Operating profit $ 226,506 $ 177,156 28 % $ 196,116 (10) % Operating margin 44 % 41 % 44 % Institutional Investors: Revenues 285,723 289,708 (1) % 323,353 (10) % Expenses 154,701 165,455 (6) % 172,252 (4) % Operating profit $ 131,022 $ 124,253 5 % $ 151,101 (18) % Operating margin 46 % 43 % 47 % Investments in New Businesses: Revenues 60,216 52,216 15 % 50,247 4 % Expenses 74,699 70,745 6 % 73,432 (4) % Operating loss $ (14,483) $ (18,529) (22) % $ (23,185) (20) % For additional information pertaining to our business segments, see Note 12 to the Consolidated Financial Statements. 35 Investment Managers Revenues increased $83.1 million, or 13%, in 2024 compared to the prior year.
The assets presented in the preceding tables do not include assets processed on SWP and are not included in the accompanying Consolidated Balance Sheets because we do not own them. 31 Business Segments Revenues, Expenses and Operating profit (loss) for our business segments for the year ended 2025 compared to the year ended 2024, and for the year ended 2024 compared to the year ended 2023 were: Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Investment Managers: Revenues $ 815,005 $ 728,390 12 % $ 645,254 13 % Expenses 494,296 453,085 9 % 419,196 8 % Operating profit $ 320,709 $ 275,305 16 % $ 226,058 22 % Operating margin 39 % 38 % 35 % Private Banks: Revenues 572,939 541,414 6 % 496,317 9 % Expenses 474,935 460,375 3 % 448,490 3 % Operating profit $ 98,004 $ 81,039 21 % $ 47,827 69 % Operating margin 17 % 15 % 10 % Investment Advisors: Revenues 577,397 509,408 13 % 436,298 17 % Expenses 311,662 282,902 10 % 259,142 9 % Operating profit $ 265,735 $ 226,506 17 % $ 177,156 28 % Operating margin 46 % 44 % 41 % Institutional Investors: Revenues 282,498 285,723 (1) % 289,708 (1) % Expenses 148,132 154,701 (4) % 165,455 (6) % Operating profit $ 134,366 $ 131,022 3 % $ 124,253 5 % Operating margin 48 % 46 % 43 % Investments in New Businesses: Revenues 49,542 60,216 (18) % 52,216 15 % Expenses 60,222 74,699 (19) % 70,745 6 % Operating loss $ (10,680) $ (14,483) (26) % $ (18,529) (22) % For additional information pertaining to our business segments, see Note 12 to the Consolidated Financial Statements. 32 Investment Managers Revenues increased $86.6 million, or 12%, in 2025 compared to the prior year.
Operating income increased $49.4 million, or 28%, in 2024 compared to the prior year.
Operating income increased $45.4 million, or 16%, in 2025 compared to the prior year.
Average Asset Balances (In millions) For the Year Ended December 31, Percent Change Percent Change 2024 2023 2022 Investment Managers: Collective trust fund programs (A) $ 187,604 $ 148,097 27 % $ 125,595 18 % Liquidity funds 226 261 (13) % 311 (16) % Total assets under management $ 187,830 $ 148,358 27 % $ 125,906 18 % Client assets under administration (E) 990,305 859,596 15 % 821,256 5 % Total assets $ 1,178,135 $ 1,007,954 17 % $ 947,162 6 % Private Banks: Equity and fixed-income programs $ 25,336 $ 23,638 7 % $ 23,326 1 % Collective trust fund programs 5 6 (17) % 7 (14) % Liquidity funds 3,077 3,537 (13) % 3,834 (8) % Total assets under management $ 28,418 $ 27,181 5 % $ 27,167 — % Client assets under administration 8,027 4,976 61 % 4,204 18 % Total assets $ 36,445 $ 32,157 13 % $ 31,371 3 % Investment Advisors: Equity and fixed-income programs $ 75,115 $ 68,407 10 % $ 70,394 (3) % Liquidity funds 4,073 4,960 (18) % 5,682 (13) % Total Platform assets under management $ 79,188 $ 73,367 8 % $ 76,076 (4) % Platform-only assets 22,100 16,026 38 % 13,574 18 % Platform-only assets-deposit program 1,274 70 NM — NM Total Platform assets $ 102,562 89,463 15 % 89,650 — % Institutional Investors: Equity and fixed-income programs $ 76,622 $ 74,546 3 % $ 79,415 (6) % Collective trust fund programs 1 4 (75) % 5 (20) % Liquidity funds 1,976 1,636 21 % 1,939 (16) % Total assets under management $ 78,599 $ 76,186 3 % $ 81,359 (6) % Client assets under advisement 7,231 4,479 61 % 4,330 3 % Total assets $ 85,830 $ 80,665 6 % $ 85,689 (6) % Investments in New Businesses: Equity and fixed-income programs $ 2,421 $ 2,053 18 % $ 1,968 4 % Liquidity funds 375 205 83 % 247 (17) % Total assets under management $ 2,796 $ 2,258 24 % $ 2,215 2 % Client assets under advisement 1,801 1,089 65 % 1,191 (9) % Client assets under administration (E) 14,949 15,773 (5) % 16,391 (4) % Total assets $ 19,546 $ 19,120 2 % $ 19,797 (3) % LSV: Equity and fixed-income programs (B) $ 90,908 $ 85,661 6 % $ 87,220 (2) % 33 Total: Equity and fixed-income programs (C) $ 270,402 $ 254,305 6 % 262,323 (3) % Collective trust fund programs 187,610 148,107 27 % 125,607 18 % Liquidity funds 9,727 10,599 (8) % 12,013 (12) % Total assets under management $ 467,739 $ 413,011 13 % $ 399,943 3 % Client assets under advisement 9,032 5,568 62 % 5,521 1 % Client assets under administration (D) 1,013,281 880,345 15 % 841,851 5 % Platform-only assets 23,374 16,096 45 % 13,574 19 % Total assets $ 1,513,426 $ 1,315,020 15 % $ 1,260,889 4 % (A) Collective trust fund program average assets are included in assets under management since SEI is the trustee.
Average Asset Balances (In millions) For the Year Ended December 31, Percent Change Percent Change 2025 2024 2023 Investment Managers: Collective trust fund programs (A) $ 223,795 $ 187,604 19 % $ 148,097 27 % Liquidity funds 355 226 57 % 261 (13) % Total assets under management $ 224,150 $ 187,830 19 % $ 148,358 27 % Client assets under administration (E) 1,140,140 990,305 15 % 859,596 15 % Total assets $ 1,364,290 $ 1,178,135 16 % $ 1,007,954 17 % Private Banks: Equity and fixed-income programs $ 27,391 $ 25,336 8 % $ 23,638 7 % Collective trust fund programs 3 5 (40) % 6 (17) % Liquidity funds 2,734 3,077 (11) % 3,537 (13) % Total assets under management $ 30,128 $ 28,418 6 % $ 27,181 5 % Client assets under administration 8,599 8,027 7 % 4,976 61 % Total assets $ 38,727 $ 36,445 6 % $ 32,157 13 % Investment Advisors: Equity and fixed-income programs $ 80,637 $ 75,115 7 % $ 68,407 10 % Liquidity funds 3,345 4,073 (18) % 4,960 (18) % Total Platform assets under management $ 83,982 $ 79,188 6 % $ 73,367 8 % Platform-only assets 29,281 22,100 32 % 16,026 38 % Platform-only assets-deposit program 2,153 1,274 NM 70 NM Total Platform assets $ 115,416 102,562 13 % 89,463 15 % Institutional Investors: Equity and fixed-income programs $ 79,719 $ 76,623 4 % $ 74,550 3 % Liquidity funds 1,816 1,976 (8) % 1,636 21 % Total assets under management $ 81,535 $ 78,599 4 % $ 76,186 3 % Client assets under advisement 5,817 7,231 (20) % 4,479 61 % Total assets $ 87,352 $ 85,830 2 % $ 80,665 6 % Investments in New Businesses: Equity and fixed-income programs $ 2,872 $ 2,421 19 % $ 2,053 18 % Liquidity funds 265 375 (29) % 205 83 % Total assets under management $ 3,137 $ 2,796 12 % $ 2,258 24 % Client assets under advisement 2,343 1,801 30 % 1,089 65 % Client assets under administration (E) 14,774 14,949 (1) % 15,773 (5) % Total assets $ 20,254 $ 19,546 4 % $ 19,120 2 % LSV: Equity and fixed-income programs (B) $ 91,871 $ 90,908 1 % $ 85,661 6 % Stratos (F) $ 38,085 $ — $ — 30 Total: Equity and fixed-income programs (C) $ 282,490 $ 270,403 4 % 254,309 6 % Collective trust fund programs 223,798 187,609 19 % 148,103 27 % Liquidity funds 8,515 9,727 (12) % 10,599 (8) % Total assets under management $ 514,803 $ 467,739 10 % $ 413,011 13 % Client assets under advisement 8,160 9,032 (10) % 5,568 62 % Client assets under administration (D) 1,163,513 1,013,281 15 % 880,345 15 % Platform-only assets 31,434 23,374 34 % 16,096 45 % Stratos 38,085 — NM — NM Total assets $ 1,755,995 $ 1,513,426 16 % $ 1,315,020 15 % (A) Collective trust fund program average assets are included in assets under management since SEI is the trustee.
Investment Advisors Year Ended December 31, 2024 2023 Percent Change 2022 Percent Change Revenues: Investment management fees-SEI fund programs $ 233,992 $ 239,244 (2) % $ 263,266 (9) % Separately managed account fees 197,638 174,418 13 % 162,762 7 % Other fees 77,778 22,636 244 % 21,738 4 % Total revenues $ 509,408 $ 436,298 17 % $ 447,766 (3) % Revenues increased $73.1 million, or 17%, in 2024 compared to the prior year.
Investment Advisors Year Ended December 31, 2025 2024 Percent Change 2023 Percent Change Revenues: Investment management fees-SEI fund programs $ 225,196 $ 233,992 (4) % $ 239,244 (2) % Separately managed account fees 230,050 197,638 16 % 174,418 13 % Other fees 122,151 77,778 57 % 22,636 244 % Total revenues $ 577,397 $ 509,408 13 % $ 436,298 17 % Revenues increased $68.0 million, or 13%, in 2025 compared to the prior year.
Liquidity and Capital Resources Year Ended December 31, 2024 2023 2022 Net cash provided by operating activities $ 622,343 $ 447,030 $ 566,119 Net cash used in investing activities (117,302) (141,543) (89,809) Net cash used in financing activities (494,401) (331,324) (437,235) Effect of exchange rate changes on cash and cash equivalents (5,445) 7,476 (17,474) Net increase (decrease) in cash and cash equivalents 5,195 (18,361) 21,601 Cash, cash equivalents and restricted cash, beginning of year 834,998 853,359 831,758 Cash, cash equivalents and restricted cash, end of year $ 840,193 $ 834,998 $ 853,359 Our credit facility provides for borrowings up to $325.0 million and is scheduled to expire in April 2026.
Liquidity and Capital Resources Year Ended December 31, 2025 2024 2023 Net cash provided by operating activities $ 607,662 $ 622,343 $ 447,030 Net cash used in investing activities (399,092) (117,302) (141,543) Net cash used in financing activities (589,498) (494,401) (331,324) Effect of exchange rate changes on cash and cash equivalents 11,330 (5,445) 7,476 Net (decrease) increase in cash and cash equivalents (369,598) 5,195 (18,361) Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, beginning of year 840,193 834,998 853,359 Cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities, end of year $ 470,595 $ 840,193 $ 834,998 Our credit facility provides for borrowings up to $500.0 million and is scheduled to expire in August 2030.
The availability of this cash for other purposes beyond the operations of these subsidiaries may be limited. We therefore do not include accounts of our foreign subsidiaries in the calculation of free and immediately accessible cash for other general corporate purposes. A portion of the undistributed earnings of foreign subsidiaries are deemed repatriated.
We therefore do not include accounts of our foreign subsidiaries in the calculation of free and immediately accessible cash for other general corporate purposes. A portion of the undistributed earnings of foreign subsidiaries are deemed repatriated. Any subsequent transfer of available cash related to the repatriated earnings of foreign subsidiaries could significantly increase free and immediately accessible cash.
Revenues during 2024 were primarily affected by: • Increased revenues from hosted technology offerings through SEI Family Office Services due to increased non-recurring implementation fees and new business; and • Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business.
Revenues during 2025 were primarily affected by: • The divestiture of the SEI Family Office Services business in June 2025; partially offset by • Increased revenues from SEI Private Wealth Management through higher assets under advisement due to market appreciation and new business.
Operating income during 2024 was primarily affected by: • An increase in revenues as mentioned above; and • Decreased non-capitalized investment spending, mainly consulting costs; partially offset by • Increased costs associated with new business, primarily personnel expenses and third-party vendor costs; • Costs to enhance, support and maintain technologies and investment service capabilities; and • Increased incentive compensation and stock-based compensation costs related to the attainment of strong financial results during 2024.
Operating income during 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased costs associated with new business, primarily personnel costs, technology and third-party vendor costs; and • Costs to enhance, support and maintain technologies and investment service capabilities.
Further information about factors that could materially affect our results of operations and financial condition include, but are not limited to, the discussion contained in Item 1A, Risk Factors, in this Annual Report on Form 10-K. We have no obligation to publicly update or revise any forward-looking statements.
Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. Further information about factors that could materially affect our results of operations and financial condition include, but are not limited to, the discussion contained in Item 1A, Risk Factors, in this Annual Report on Form 10-K.
Condensed Consolidated Statements of Operations for the years ended 2024, 2023 and 2022 were: Year Ended December 31, 2024 2023 Percent Change* 2022 Percent Change Revenues $ 2,125,151 $ 1,919,793 11 % $ 1,991,037 (4) % Expenses 1,573,410 1,495,269 5 % 1,515,284 (1) % Income from operations 551,741 424,524 30 % 475,753 (11) % Net gain (loss) from investments 2,790 2,757 1 % (3,078) NM Interest income, net of interest expense 48,334 40,444 20 % 12,559 222 % Other income 8,151 — NM 3,379 NM Equity in earnings of unconsolidated affiliates 135,741 126,930 7 % 120,667 5 % Income before income taxes 746,757 594,655 26 % 609,280 (2) % Income taxes 165,566 132,397 25 % 133,813 (1) % Net income 581,191 462,258 26 % 475,467 (3) % Diluted earnings per common share $ 4.41 $ 3.46 27 % $ 3.46 — % * Variances noted "NM" indicate the percent change is not meaningful. 26 Significant Items Impacting Our Financial Results in 2024 Revenues increased $205.4 million, or 11%, to $2.1 billion in 2024 compared to 2023.
Condensed Consolidated Statements of Operations for the years ended 2025, 2024 and 2023 were: Year Ended December 31, 2025 2024 Percent Change* 2023 Percent Change Revenues $ 2,297,381 $ 2,125,151 8 % $ 1,919,793 11 % Expenses 1,670,070 1,573,410 6 % 1,495,269 5 % Income from operations 627,311 551,741 14 % 424,524 30 % Gain on sale of business 94,412 — NM — NM Equity in earnings of unconsolidated affiliates 132,685 135,741 (2) % 126,930 7 % Other income and expense items 61,925 59,275 4 % 43,201 37 % Income before income taxes 916,333 746,757 23 % 594,655 26 % Income taxes 198,783 165,566 20 % 132,397 25 % Net income 717,550 581,191 23 % 462,258 26 % Less: Net income attributable to non-controlling interests 2,245 — NM — NM Net income attributable to SEI Investments Company $ 715,305 $ 581,191 23 % $ 462,258 26 % Diluted earnings per common share $ 5.63 $ 4.41 28 % $ 3.46 27 % * Variances noted "NM" indicate the percent change is not meaningful. 25 Significant Items Impacting Our Financial Results in 2025 Revenues increased $172.2 million, or 8%, to $2.3 billion in 2025 compared to 2024.
Capitalized software development costs also include $10.6 million of software development costs in 2024 for a new platform for the Investment Managers segment. • Amortization expense related to SWP was $27.5 million in 2024 as compared to $25.6 million in 2023. • Interest and dividend income was $48.9 million in 2024 as compared to $41.0 million in 2023.
Capitalized software development costs also include $10.8 million of software development costs in 2025 for SEI Scope, a new platform for the Investment Managers segment placed into service during the third quarter 2025. • Amortization expense related to SWP was $29.0 million in 2025 as compared to $27.5 million in 2024.
Other income and expense items Other income and expense items on the accompanying Consolidated Statements of Operations consist of: Year Ended December 31, 2024 2023 2022 Equity in earnings of unconsolidated affiliates $ 135,741 $ 126,930 $ 120,667 Interest and dividend income 48,897 41,027 13,308 Net gain (loss) from investments 2,790 2,757 (3,078) Interest expense (563) (583) (749) Other income 8,151 — 3,379 Total other income and expense items, net $ 195,016 $ 170,131 $ 133,527 Equity in earnings of unconsolidated affiliates Equity in earnings of unconsolidated affiliate reflects our 38.6% ownership interest in LSV.
Other income and expense items Other income and expense items on the accompanying Consolidated Statements of Operations consist of: Year Ended December 31, 2025 2024 2023 Equity in earnings of unconsolidated affiliates $ 132,685 $ 135,741 $ 126,930 Gain on sale of business 94,412 — — Interest and dividend income 39,921 48,897 41,027 Net gain from investments 5,804 2,790 2,757 Interest expense (609) (563) (583) Other income 9,684 8,151 — Net gain from consolidated variable interest entities 7,125 — — Total other income and expense items, net $ 289,022 $ 195,016 $ 170,131 34 Equity in earnings of unconsolidated affiliates Equity in earnings of unconsolidated affiliates primarily includes the earnings from our 38.5% ownership interest in LSV.
Operating income in 2024 was primarily affected by: • An increase in revenues as mentioned above; and • Decreased non-capitalized consulting costs; partially offset by • Increased direct expenses associated with the increase in separately managed account fees; • Increased personnel costs from business growth; and • Increased incentive compensation and stock-based compensation costs related to the attainment of strong financial results during 2024.
Operating income increased $39.2 million, or 17%, in 2025 compared to the prior year. Operating income in 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased direct expenses associated with the increase in separately managed account fees; and • Increased personnel costs from business growth.
Average assets under management in equity and fixed income programs, excluding LSV, increased $10.9 billion, or 6%, to $179.5 billion in 2024 as compared to $168.6 billion during 2023. • Revenue from Information processing and software servicing fees increased in 2024 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients.
Average assets under management in equity and fixed income programs, excluding LSV, increased $11.1 billion, or 6%, to $190.6 billion in 2025 as compared to $179.5 billion during 2024. • Revenue from the SEI Integrated Cash Program in the Investment Advisors segment was $82.9 million during 2025 as compared to $51.5 million in 2024, an increase of $31.4 million due to the expansion of the program in late 2024. • Revenue from Information processing and software servicing fees increased in 2025 primarily from new client conversions and growth from existing SEI Wealth Platform SM (SWP) clients. • Earnings from LSV decreased to $132.3 million in 2025 as compared to $135.7 million in 2024 due to negative cash flows from existing clients and client losses.
As of January 31, 2025, the amount of cash and cash equivalents considered free and immediately accessible for other general corporate purposes was $276.3 million. Cash and cash equivalents include accounts managed by our subsidiaries that are used in their operations or to cover specific business and regulatory requirements.
Cash and cash equivalents include accounts managed by our subsidiaries that are used in their operations or to cover specific business and regulatory requirements. The availability of this cash for other purposes beyond the operations of these subsidiaries may be limited.
Revenues during 2024 were primarily affected by: • Increased investment processing fees from new SWP client conversions and growth from existing SWP clients due to market appreciation and increased transaction volumes; • Increased investment management fees from existing international clients due to market appreciation; and • Increased investment processing fees earned on our mutual fund trading solution; partially offset by • One-time early termination fees of $10.5 million from an investment processing client during the second quarter 2023; and • Lower investment processing fees from the recontracting of existing clients and a client loss.
Revenues during 2025 were primarily affected by: • Increased investment processing fees from new SWP client conversions and growth from existing SWP clients due to market appreciation and increased transaction volumes; • Increased investment management fees from existing international clients due to market appreciation; and • Various one-time buyout fees from lost clients; partially offset by • Negative cash flows and fee reductions from existing international clients; and • Lower investment processing fees from the recontracting of existing clients and client losses.
We believe the following items were significant to our business results during 2024: • Revenue from Assets under management, administration, and distribution fees increased in 2024 primarily from higher assets under administration due to cross sales to existing alternative investment clients of the Investment Managers segment as well as new sales within the segment.
The gain from the sale is reflected in Gain on sale of business on the accompanying Consolidated Statement of Operations (See caption "Gain on sale of business" later in this discussion). • Revenue from Assets under management, administration, and distribution fees increased in 2025 primarily from higher assets under administration due to cross sales to existing alternative investment clients of the Investment Managers segment as well as new sales within the segment.
The table below presents the revenues and net income of LSV and our proportionate share in LSV's earnings. 2024 2023 Percent Change 2022 Percent Change Revenues $ 457,589 $ 426,270 7 % $ 406,895 5 % Net income 351,815 328,905 7 % 312,180 5 % SEI's proportionate share in the earnings of LSV $ 135,741 $ 126,930 7 % $ 120,667 5 % 39 The increase in earnings from LSV in 2024 and 2023 was primarily due to higher assets under management from market appreciation and higher performance fees.
The table below presents the revenues and net income of LSV and our proportionate share in LSV's earnings. 2025 2024 Percent Change 2023 Percent Change Revenues $ 455,783 $ 457,589 — % $ 426,270 7 % Net income 342,989 351,815 (3) % 328,905 7 % SEI's proportionate share in the earnings of LSV $ 132,265 $ 135,741 (3) % $ 126,930 7 % The decrease in earnings from LSV in 2025 was primarily due to negative cash flows from existing clients and client losses.
Other income Other income during 2024 is related to a net gain of $8.2 million recognized from the sale of property located in New York, New York (See Note 19 to the Consolidated Financial Statements).
Other income We recognized a gains of $4.4 million from an insurance recovery and $4.5 million from the settlement of a matter with a third-party vendor during 2025. Other income during 2024 is related to a net gain of $8.2 million recognized from the sale of property located in New York, New York.
Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV. Average assets under management by LSV increased $5.2 billion to $90.9 billion during 2024 as compared to $85.7 billion during 2023, an increase of 6%.
Higher assets under management from market appreciation and higher performance fees partially offset the decrease in earnings from LSV. Average assets under management by LSV increased $1.0 billion to $91.9 billion during 2025 as compared to $90.9 billion during 2024, an increase of 1%.
In 2024, we received proceeds of $8.8 million after associated costs and expenses from the sale of property located in New York, New York. Net cash used in financing activities includes: • The repurchase of our common stock. The Board of Directors has authorized the repurchase of common stock through multiple authorizations.
We received gross proceeds of $116.0 million at the closing of the sale of the Family Office Services business in June 2025. Net cash used in financing activities includes: • The repurchase of our common stock. The Board of Directors has authorized the repurchase of common stock through multiple authorizations.
Net income increased $118.9 million, or 26%, to $581.2 million and diluted earnings per share increased to $4.41 per share in 2024 compared to $3.46 per share in 2023.
Net income attributable to SEI increased $134.1 million, or 23%, to $715.3 million and diluted earnings per share increased to $5.63 per share in 2025 compared to $4.41 per share in 2024.
Other Significant Items Impacting Our Business Infrastructure Investments We believe that a critical component of our long-term success is our ability to continually improve our technology infrastructure.
The LSV GEMNF recognized a gain of $7.1 million during 2025 from the change in fair value of the fund. SEI's portion of this gain was $5.3 million. 26 Other Significant Items Impacting Our Business Infrastructure Investments We believe that a critical component of our long-term success is our ability to continually improve our technology infrastructure.
The effective tax rate is affected by recurring items, such as the U.S. federal tax rates and tax rates in various states and foreign jurisdictions and the relative amount of income earned in those jurisdictions. The income earned by jurisdiction has been fairly consistent.
Income Taxes 2025 2024 Percent Change 2023 Percent Change Provision for income taxes 198,783 165,566 20% 132,397 25% Effective income tax rate 21.7 % 22.2 % 22.3 % The effective tax rate is affected by recurring items, such as the U.S. federal tax rates and tax rates in various states and foreign jurisdictions and the relative amount of income earned in those jurisdictions.
Any change in estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense and materially affect earnings (See Note 7 to the Consolidated Financial Statements for more information).
The amount of stock-based compensation expense related to stock options is recognized based upon an estimate of when the financial vesting targets may be achieved. Any change in estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed.
This discussion should be read in conjunction with the Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report. Certain information contained in this discussion is or may be considered forward-looking. Forward-looking statements relate to future operations, strategies, financial results, expenditures and other uses of capital or other developments.
Certain information contained in this discussion is or may be considered forward-looking. Forward-looking statements relate to future operations, strategies, financial results, expenditures and other uses of capital or other developments. Forward-looking statements are based upon estimates and assumptions that involve certain judgments, risks and uncertainties, many of which are beyond our control or are subject to change.
Revenue from this program is included in Asset management, administration and distribution fees on the accompanying Consolidated Statement of Operations. • Revenue from Asset management, administration and distribution fees also increased from market appreciation and positive cash flows into separately managed account programs and Strategist programs of the Investment Advisors segment.
Average assets under administration increased $150.2 billion, or 15%, to $1.2 trillion during 2025, as compared to $1.0 trillion during 2024. • Revenue from Asset management, administration and distribution fees also increased from market appreciation and positive cash flows into separately managed account programs and Strategist programs of the Investment Advisors segment.
Operating income in 2023 was primarily affected by: • A decrease in revenues; • Increased personnel costs; • Increased net direct expenses primarily associated with the increase in separately managed account fees; and • Increased non-capitalized consulting costs; partially offset by; • Decreased amortization expense related to SWP.
Operating income increased $3.3 million, or 3%, in 2025 compared to the prior year. Operating income during 2025 was primarily affected by: • Decreased direct expenses associated with investment management fees; and • Decreased personnel costs; partially offset by • A decrease in revenues as mentioned above.
Overview Consolidated Summary SEI Investments Company is a leading global provider of financial technology, operations, and asset management services within the financial services industry. Investment processing fees are earned as either monthly fees for contracted services or as a percentage of the market value of our clients' assets processed on our platforms.
We deliver modular or end ‑ to ‑ end solutions through a single, modern infrastructure that integrates platform technology, custody, operations, and investment expertise. Investment processing fees are earned as either monthly fees for contracted services or as a percentage of the market value of our clients' assets processed on our platforms.
Operating income during 2023 was primarily affected by: • A decrease in revenues; • A one-time operational charge of $4.5 million related to a client reimbursement; partially offset by • Decreased direct expenses associated with investment management fees; and • Decreased professional fees. 38 Investments in New Businesses 2024 2023 Percent Change 2022 Percent Change Revenues: SEI Family Office Services $ 34,641 $ 32,234 7% $ 30,873 4 % SEI Private Wealth Management 20,501 18,244 12% 17,907 2 % Other 5,074 1,738 192% 1,467 18 % Total revenues $ 60,216 $ 52,216 15% $ 50,247 4 % Revenues increased $8.0 million, or 15%, in 2024 compared to the prior year.
Investments in New Businesses 2025 2024 Percent Change 2023 Percent Change Revenues: SEI Private Wealth Management $ 22,277 $ 20,501 9% $ 18,244 12 % SEI Family Office Services 18,002 34,641 (48)% 32,234 7 % Other 9,263 5,074 83% 1,738 192 % Total revenues $ 49,542 $ 60,216 (18)% $ 52,216 15 % Revenues decreased $10.7 million, or 18%, in 2025 compared to the prior year.
The amortization expense related to these initial software development costs ended in the second quarter of 2022 (See Note 1 to the Consolidated Financial Statements). We expect to recognize amortization expense of $28.6 million related to all capitalized software development costs in 2025.
We expect to recognize amortization expense of $35.9 million related to all capitalized software development costs in 2026. 35 Intangible assets The increase in amortization expense related to intangible assets and asset purchases was due to the acquisition of the U.S.-based Stratos business during the fourth quarter 2025 (See Note 14 to the Consolidated Financial Statements).
Cash flows from operations decreased $119.1 million in 2023 compared to 2022 primarily from the decrease in net income, an increase in receivables from clients of the Investment Managers segment, and a decrease in accrued liabilities primarily from payments related to the VSP. Net cash used in investing activities includes: • Purchases, sales and maturities of marketable securities.
The decrease in cash flows from operations was partially offset by the increase in net income. 37 Net cash used in investing activities includes: • Purchases, sales and maturities of marketable securities.
During 2024, 2023 and 2022, we revised the estimates of when certain vesting targets for stock options were expected to be achieved. These changes in estimates resulted in an increase in stock-based compensation expense of $11.2 million in 2024, and a decrease of $6.9 million and $4.9 million in 2023 and 2022, respectively.
This may cause volatility in the recognition of stock-based compensation expense and materially affect earnings (See Note 7 to the Consolidated Financial Statements for more information). During 2024 and 2023, we revised the estimates of when certain vesting targets for stock options were expected to be achieved.
(E) Due to the reorganization of business segments, client assets under administration were reclassified from Investment Managers to Investments in New Businesses (See Note 12 to the Consolidated Financial Statements). 32 Average Asset Balances This table presents average asset balances of our clients, or of our clients’ customers, for which we provide management or administrative services through our subsidiaries and partnerships in which we have a significant interest.
(F) Stratos is a network of affiliated companies that provides financial services to $38.4 billion in client assets across business models and affiliation structures (as of November 30, 2025). 29 Average Asset Balances This table presents average asset balances of our clients, or of our clients’ customers, for which we provide management or administrative services through our subsidiaries and partnerships in which we have a significant interest.
Interest and dividend income Interest and dividend income is earned based upon the amount of cash that is invested daily. The increase in interest and dividend income in 2024 was due to rising market interest rates during 2023 and higher invested cash balances. The increase in 2023 was due to increased market interest rates.
Prior to the divestiture, the Family Office Services business was reported in our Investments in New Businesses segment. Interest and dividend income Interest and dividend income is earned based upon the amount of cash that is invested daily.
We will continue to invest in improving our technology and operational infrastructure in order to maintain the foundation that we believe enables us to best serve our clients’ needs. Investment Processing and Software Servicing Fees Investment processing and software servicing fees in our Private Banks segment primarily include application and business-process-outsourcing services, professional fees and transaction-based services.
We will continue to invest in improving our technology and operational infrastructure in order to maintain the foundation that we believe enables us to best serve our clients’ needs. Business Acquisitions To enhance our capabilities, scale our competitive presence, or enable strategic growth, we pursue selective acquisitions as part of our capital allocation strategy.
Level 3 financial liabilities at December 31, 2024 and December 31, 2023 consist of contingent considerations resulting from business acquisitions (See Note 15 to the Consolidated Financial Statements). 41 Regulatory Matters Like many firms operating within the financial services industry, we are experiencing a complex and changing regulatory environment across our markets.
There was approximately $49.7 million of unrecognized compensation cost related to RSUs at December 31, 2025 and we expect to recognize approximately $24.9 million in stock-based compensation costs for RSUs in 2026. Regulatory Matters Like many firms operating within the financial services industry, we are experiencing a complex and changing regulatory environment across our markets.
Our stock-based compensation expense in 2024 primarily consisted of $41.2 million related to stock options and $16.7 million related to restricted stock units (RSUs). The amount of stock-based compensation expense related to stock options is recognized based upon an estimate of when the financial vesting targets may be achieved.
Stock-Based Compensation During 2025, 2024 and 2023, we recognized approximately $53.6 million, $58.6 million and $31.3 million, respectively, in stock-based compensation expense. Our stock-based compensation expense in 2025 primarily consisted of $28.2 million related to stock options and $24.5 million related to restricted stock units (RSUs).
Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV. • Operating expenses increased from higher personnel costs due to business growth, primarily in the Investment Managers segment, and the impact of inflation on wages and services.
Market appreciation of assets under management and increased performance fees partially offset the decrease in earnings from LSV. • The increase in personnel costs was primarily due to business growth, primarily in the Investment Managers segment, and severance costs incurred from a reduction in force in fourth quarter 2025. • Operating expenses increased primarily from higher technology and third-party vendor costs related to the Investment Managers and Private Banks segments due to business growth.
The gain from the sale is included in Other income on the accompanying Consolidated Statement of Operations (See Note 19 to the Notes to Consolidated Financial Statements). • In December 2024, SEI acquired LifeYield, LLC (LifeYield), a Boston-based, tax-smart technology firm for a cash consideration of $29.0 million (See Note 15 to the Notes to Consolidated Financial Statements). • Effective tax rates were 22.2% during 2024 and 22.3% during 2023 (See the caption "Income Taxes" later in this discussion for more information). • SEI repurchased 6.8 million shares of its common stock at an average price of $74.92 per share for a total cost of $512.5 million and paid $120.3 million in cash dividends to shareholders during 2024. 27 Significant Items Impacting Our Financial Results in 2023 Revenues decreased $71.2 million, or 4%, to $1.9 billion in 2023 compared to 2022.
The financial results of Stratos are included in the Investment Advisors segment and were insignificant in 2025 (See Note 14 to the Notes to Consolidated Financial Statements). • Corporate overhead costs in 2025 include $8.5 million for one-time financial advisor fees related to the Stratos acquisition. • Effective tax rates were 21.7% during 2025 and 22.2% during 2024 (See the caption "Income Taxes" later in this discussion for more information). • SEI repurchased 7.5 million shares of its common stock at an average price of $82.61 per share for a total cost of $616.2 million and paid $124.2 million in cash dividends to shareholders during 2025. • SEI made a seed capital investment of $50.0 million in the LSV Global Equity Market Neutral Fund, LP (LSV GEMNF) in July 2025 and consolidated the accounts of the fund into its financial statements.
Any subsequent transfer of available cash related to the repatriated earnings of foreign subsidiaries could significantly increase free and immediately accessible cash. 42 Cash flows from operations increased $175.3 million in 2024 compared to 2023 primarily from the increase in net income, the increase in accrued liabilities primarily due to higher personnel compensation costs, increased partnership distributions from our unconsolidated affiliate, LSV, and non-cash items.
Cash flows from operations decreased $14.7 million in 2025 compared to 2024 primarily from higher receivables from clients of the Investment Managers segment, a decrease in accrued liabilities, lower partnership distributions from our unconsolidated affiliate, LSV, and non-cash items.
The increased personnel costs were primarily related to salary and incentive compensation costs. • Capitalized software development costs were $34.0 million in 2023, of which $18.2 million was for continued enhancements to SWP.
In addition, direct costs associated with the separately managed accounts programs and other investment product programs of the Investment Advisors segment also contributed to the increase in operating expenses. • Capitalized software development costs were $30.0 million in 2025, of which $19.2 million was for continued enhancements to SWP.
Operating income in 2024 was primarily affected by: • An increase in revenues as mentioned above; and • Decreased costs, mainly non-capitalized consulting and other vendor costs from cost containment measures; partially offset by • Increased amortization expense related to SWP; • Increased personnel costs from business growth; and • Increased incentive compensation and stock-based compensation costs related to the attainment of strong financial results during 2024.
Operating margins were 17% in 2025 and 15% in 2024. Operating income increased $17.0 million, or 21%, in 2025 compared to the prior year. Operating income in 2025 was primarily affected by: • An increase in revenues as mentioned above; partially offset by • Increased costs, mainly personnel, technology and third-party vendor costs supporting operations.
The decline in amortization expense was due to the amortization period of the initial development costs related to SWP which ended in second-quarter 2022. • Interest and dividend income was $41.0 million in 2023 as compared to $13.3 million in 2022.
Amortization expense related to the SEI Scope platform was $2.2 million in 2025. • Interest and dividend income, net of interest expense, was $39.9 million in 2025 as compared to $48.9 million in 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Information required by this item is set forth under the caption "Market-Driven Risks" under the heading "Strategic & Business Model Risks" and under the caption "Interest Rate, Currency, and Tax Changes" under the heading "Financial & Market Risks" in Item 1A, Risk Factors. 40
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Information required by this item is set forth under the captions "Our revenues and earnings are affected by changes in capital markets and significant changes in the value of financial instruments" and "Changes in interest rates may affect the value of our fixed-income investment securities" in Item 1A, Risk Factors and under the captions "Sensitivity of our 45 revenues and earnings to capital market fluctuations" and "SEI Integrated Cash Program" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. 46

Other SEIC 10-K year-over-year comparisons