SEI Pushes Further Into RIA Sector With $527 Million “Strategic Investment”

Under the terms of the transaction, SEI will pay about $527 million for the equity in a newly-formed entity that is buying the Stratos business, with options that mean that the entire operation can be built in future.

Nasdaq-listed SEI, which
provides investment processing and management, and investment
operations solutions, has made a “strategic” investment in
Stratos Wealth Holdings. 

Stratos, based in Beachwood, Ohio, is a family of companies
including affiliated registered investment advisors, operating in
26 states of the US and comprising more than 360 advisors.

SEI, which announced the move in a statement late last week, is
also due to issue second-quarter financial results later
today. 

Family Wealth Report may update this report with more
details about the rationale of the Stratos move.

The transaction shows how firms eye wealth management as a sector
ripe for consolidation – and growth. The US is going through a
multi-trillion-dollar transfer of wealth to younger cohorts,
raising the need for RIAs and other firms to invest in systems
and talent.

A newly-formed entity will buy the operating entities comprising
the Stratos business, SEI said. 

SEI will pay about $527 million for 57.5 per cent of the equity
of this entity. Certain legacy Stratos equity holders will
continue to own 42.5 per cent, which is subject to put/call
rights that, if fully exercised, will result in SEI owning the
entire entity. As part of the deal, Emigrant Partners will exit
its investment in Stratos at closing.

Stratos’s founder and CEO Jeff Concepcion will continue to lead
that business, which will operate under its brand and as an
affiliated business of SEI. Stratos’ existing business and client
service model, including custodial relationships, will continue,
SEI said.

“SEI’s robust set of solutions and services will enhance our
ability to operate at scale, while delivering advisors a highly
personalized level of service,” Concepcion said. 

“We have worked closely with SEI for 15 years, and we appreciate
their shared commitment to consistently delivering value to our
advisors,” he continued. “SEI’s breadth of capabilities and its
connections across the industry can significantly enhance and
advance the services we deliver to make doing business and
serving clients more seamless for advisors.”

A strategic investment

Ryan Hicke, CEO of SEI, said: “We’re making a strategic
investment that reinforces our unwavering belief in financial
advisors and their delivery of advice, and Stratos brings an
intimate understanding of what adds value to an advisor’s
business. Their approach to coaching, building sustainable value,
and focusing on client acquisition and service can help advisors
scale their businesses, drive more organic growth, and address
the industry’s most prevalent challenges.”

“This partnership enables us to help accelerate growth for
advisors and wealth managers, solve succession and business
transition challenges, and develop the next generation of
professionals delivering advice,” Hicke said.

Subject to applicable regulatory approval and other customary
closing conditions, the transaction is expected to close in two
stages: The US-based Stratos business, making up about 80 per
cent of the transaction value, is expected to close in the second
half of 2025. The Mexico-based NSC business is expected to close
in the first half of 2026. 

Goldman Sachs served as financial advisor, and Alston & Bird
served as legal counsel to Stratos. Wells Fargo served as
financial advisor to SEI, and Holland & Knight served as legal
counsel to SEI. 

This is already proving to be a busy week for M&A.
SS&C Technologies is to buy Calastone, the global funds
network and technology solutions provider to the wealth and asset
management industry.