SEI Investments Co. (SEIC – Free Report) has agreed to divest its Family Office Service operations to Acquiline Capital Partners LP (Acquiline) for $120 million.
Details of SEIC’s Divestiture
SEIC’s Family Office Services business offers technology and outsourced solutions that integrate accounting, investment management and reporting functions for family offices and financial intermediaries through the Archway Platform. The Archway Platform is designed to streamline family office operations and deliver advanced financial reporting for ultra-high-net-worth families.
The family office business will continue to operate as Archway upon completion and under the terms of the transaction, employees based in SEI’s Indianapolis, Denver and Oaks offices, including key members of the leadership team, will transition to Aquiline along with the business.
The deal is anticipated to be completed in the late second quarter of 2025, subject to requisite regulatory approvals.
Sandy Ewing, Head of SEI Investments’ Family Office Services business, stated, “As part of SEI’s broader growth strategy, we’re committed to investing in the areas of our business where we believe we can drive growth, and for more than seven years, we’ve made substantial investments in the solutions and capabilities we deliver for the family office segment.”
This move aligns with SEIC’s efforts to deploy its capital to boost profitability. The company has been focusing on higher growth areas. Last month, it rolled out depository services for Luxembourg alternative investment funds. In December 2024, the company acquired LifeYield to enhance its multi-account tax management.
Zacks Rank & Price Performance of SEI Investments
Shares of SEI Investments have risen 17.5% compared with the industry’s 11.3% growth in the past six months.
Image Source: Zacks Investment Research
Currently, SEIC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
Restructuring Efforts by Other Finance Firms
Earlier this week, State Street Corp. (STT – Free Report) announced the restructuring of the nearly 20-year-old European component of the International Financial Data Services (“IFDS”) LP joint venture arrangement in Luxembourg and Ireland with SS&C Technologies Holdings, Inc. (SSNC – Free Report) .
STT will integrate the transfer agency services capabilities for its clients, while SS&C Technologies will rebrand the existing transfer agency entities in Ireland and Luxembourg, integrating them into its Global Investor & Distribution Solutions division as a wholly-owned business.
Similarly, in January 2025, The Bank of Nova Scotia (BNS – Free Report) , or Scotiabank, agreed to transfer its banking operations in Colombia, Costa Rica and Panama to Davivienda. Further, Mercantil Colpatria will divest its stake in Scotiabank Colpatria in Colombia as part of the deal.
The deal will be neutral to BNS’ capital with a potential increment to earnings in the upcoming years, with an enhanced simplification of the business operations. At closing, the company’s common equity tier one ratio is estimated to increase 10-15 basis points on the back of a reduction in risk-weighted assets.
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