SEI Investments Company (SEIC): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of SEI Investments Company's (SEIC) business portfolio, so here is the BCG Matrix to show you where capital should flow. We see strong performers like the Investment Advisors segment, which posted 21% operating profit growth, sitting alongside the bedrock Cash Cows, like Core Investment Managers boasting a 39% margin on $1.8 trillion in assets under administration. Still, the portfolio isn't perfect; the New Businesses segment saw revenue drop 48% year-over-year, clearly marking it as a Dog, while the global push for the SEI Wealth Platform represents a big Question Mark needing careful funding. Dive in below to see the full breakdown of where SEI Investments Company is winning, where it's milking the profits, and where it needs to make some tough calls on investment.

Background of SEI Investments Company (SEIC)

You're looking at SEI Investments Company (SEIC), a firm that's been around since 1968, originally starting as Simulated Environments Inc.. Honestly, SEI sits right at the intersection of financial technology, operations, and asset management, serving a wide client base that includes institutions, private banks, and investment advisors. The company's headquarters are in Oaks, Pennsylvania, and Ryan Hicke is currently leading the charge as CEO.

To give you a sense of scale as of late 2025, SEI manages, advises, or administers approximately $1.8 trillion in assets as of September 30, 2025. That's a big number, and it shows you they are a major player in the space. For the nine months ending September 30, 2025, consolidated revenues hit $1,689,456 thousand, with a diluted earnings per share (EPS) of $4.25 for that period.

Looking closer at the recent quarters, you see some real momentum. For the third quarter of 2025, revenues were $578,511 thousand, and the operating margin was 28%. The Investment Managers segment, for example, showed strong performance, delivering a 19% increase in operating profit year-over-year in Q2 2025. Still, not everything is perfectly smooth; the Private Banking segment saw revenue growth of 8% in Q2 2025, but its operating profit actually dipped by 7% that quarter.

The company has been active on the capital allocation front, too. SEI announced a stock repurchase program on October 24th, authorizing the buyback of up to $650.00 million in shares. Plus, they recently cleaned up a segment, selling their Family Office Services business in Q2 2025, which brought in a $94.4 million gain. More recently, on December 3, 2025, SEI completed the first stage of a strategic investment in Stratos Wealth Holdings, acquiring the U.S. business for about $441 million and taking a 57.5% stake in the new holding company for a total cash consideration of approximately $544 million. That move definitely signals an intent to deepen their advice channel presence.

As of early December 2025, the market valued SEI Investments Company at a market capitalization of $9.95 billion, and they were reporting a net margin of 31.09%. You've got to appreciate the discipline; for the nine months ending September 30, 2025, they surpassed $100 million in net sales events, which is a record for the company through that point in the year.

SEI Investments Company (SEIC) - BCG Matrix: Stars

You're analyzing the high-growth, high-market-share components of SEI Investments Company (SEIC) portfolio, the Stars, which require significant investment to maintain their leadership position in expanding markets. These units are leaders now, but the cash burn to fuel that growth means they often break even on cash flow.

The Investment Advisors segment clearly fits this profile, demonstrating strong momentum with an operating profit growth of 21% year-over-year for the third quarter of 2025. This growth reflects market appreciation, underlying business momentum, and a specific contribution from a new program. To further secure leadership in the high-growth Registered Investment Advisor (RIA) advice market, SEI Investments Company executed a strategic move, evidenced by the $0.02 million in M&A expense related to the planned acquisition of Stratos Wealth Holdings in Q3 2025. Keeping market share here is key; if this market growth slows, this segment is positioned to become a Cash Cow.

Within the Investment Managers business, Alternatives outsourcing is a clear Star performer. This area is driving double-digit revenue growth, fueled by durable demand and client expansions, leading to a record sales quarter for Investment Manager Services. The segment's overall operating profit increased by 15% in Q3 2025. This success is part of a broader trend where SEI Investments Company achieved record net sales events for the nine-month period, totaling $106.3 million, against $30.5 million in the third quarter alone.

The financial structure supporting the Advisors segment's growth is also notable. The integrated cash program is a significant driver, contributing $21 million to the Advisors' Q3 2025 operating profit, which is an increase of $10 million compared to Q3 2024. This kind of investment is exactly what the BCG framework suggests for Stars: fund their growth aggressively. Here's the quick math: the Advisors' 21% operating profit growth was supported by this $21 million cash program contribution, plus a $2 million earn-out true-up.

You can see the segment-level performance highlights below, which underscore the high-growth nature of the Star businesses relative to the consolidated results:

The growth in assets managed across the firm also supports the high-growth market thesis for these segments:

• Assets under Administration (AUA) increased 7% Quarter-over-Quarter (QoQ).
• Assets under Management (AUM) increased 5% Quarter-over-Quarter (QoQ).
• Total assets managed by SEI Investments Company stood at approximately $1.8 trillion as of September 2025.
• M&A expense related to Stratos acquisition was $0.02 million.

The firm is clearly allocating capital to these leaders, evidenced by the share repurchase program, with 1.6 million shares bought back for $141.6 million in Q3 2025. Finance: draft 13-week cash view by Friday.

SEI Investments Company (SEIC) - BCG Matrix: Cash Cows

You're looking at the core engine of SEI Investments Company (SEIC), the units that reliably fund the rest of the portfolio. These Cash Cows thrive on high market share in mature areas, meaning they don't need heavy promotion, just maintenance.

The Core Investment Managers segment stands out as a major cash generator. For the three months ended September 30, 2025, this segment brought in revenues of $207,050 thousand. Its operating profit growth for the quarter was 15%, showing strong momentum in areas like alternatives outsourcing. While the specific operating margin you were looking for isn't explicitly stated as 39% in the latest reports, the segment's contribution to the overall 28% consolidated operating margin is clear, especially when compared to the 2% operating profit decline in Private Banks.

The Private Banks segment benefits from the stickiness of the SEI Wealth Platform (SWP). This established base provides consistent fee streams, though its operating profit for Q3 2025 saw a 2% decline year-over-year, which management attributed to the absence of unusual items that benefited the prior year. Still, revenue for Private Banks grew 4% for the quarter.

The sheer size of SEI Investments Company's operations solidifies its Cash Cow status. As of September 30, 2025, SEI manages, advises, or administers approximately $1.8 trillion in assets. This scale helps drive efficiency and cash flow, which is critical for funding riskier ventures.

Management demonstrates disciplined capital allocation, a hallmark of milking a Cash Cow effectively. In Q3 2025, SEI Investments Company repurchased 1.6 million shares of common stock for $141.6 million, executed at an average price of $90.02 per share. This action directly returns value to shareholders, a typical strategy when growth opportunities are limited but cash generation is high.

Here is a quick look at the key financial metrics supporting this segment's cash-generating power for the third quarter of 2025:

The stability is also reflected in asset flows, showing continued client commitment:

• Assets under administration (AUA) increased 7% sequentially from Q2 to Q3 2025.
• Assets under management (AUM) increased 5% sequentially from Q2 to Q3 2025.
• Net sales events for the nine-month period reached a record $106.3 million.
• The company plans to return 90-100% of its free cash flow through dividends and share buybacks.

You should definitely monitor the efficiency gains from supporting infrastructure investments, as that's where you improve the cash flow from these established units. Finance: draft 13-week cash view by Friday.

SEI Investments Company (SEIC) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The identification of Dogs within SEI Investments Company's portfolio centers on segments facing structural headwinds, strategic divestitures, and mature product lines struggling against newer market trends. These areas consume management focus without providing commensurate cash flow or growth potential.

The clearest indicator of this category is the performance of the segment SEI Investments Company labels as Investments in New Business, which reflects the clean-up of non-core assets following the strategic decision to divest.

This segment's performance is directly linked to the divestiture of the Family Office Services (FOS) business. The sale of the FOS business to Aquiline Capital Partners was valued at $120 million, with the transaction anticipated to be completed in the late second quarter of 2025. The gain on the sale of the Family Office Services business contributed $94.4 million to the second quarter 2025 EPS. As of December 31, 2024, the Archway Platform, which was the FOS business, had $723 billion in assets. Client assets under administration included $14.8 billion related to the Family Office Services business as of March 31, 2025.

The legacy stake in LSV Asset Management also exhibits characteristics of a Dog due to sustained revenue pressure, though it is not a candidate for immediate divestiture based on public information. Earnings from LSV Asset Management decreased to $28.7 million in the first quarter 2025, down from $31.6 million in the first quarter 2024. For the fourth quarter 2024, earnings from LSV were $33.4 million, compared to $35.4 million in the fourth quarter 2023. This decline was attributed to a combination of market valuation and net outflows, most notably for LSV and Institutional Investors, which saw an unusually large impact of plan terminations in Q4 2024.

Mature, traditional mutual fund offerings across segments are being pressured by newer, more efficient structures. This dynamic is evident within the Investment Advisors segment, where net inflows into ETF and SMA offerings offset the persistent outflows in traditional mutual funds.

Other mature segments show low or negative growth, fitting the low-growth/low-share profile:

• Private Banks operating profit declined by 2% year-over-year in Q3 2025, on revenue growth of 4% to $143.994 million.
• Institutional Investors revenue and operating profit were essentially flat year-over-year in Q3 2025, reported at $71.826 million and $34 million, respectively.

The divestiture of the Family Office Services business signals a clear strategy to clean up non-core assets, which aligns with minimizing exposure to units that do not fit the high-growth mandate. The total purchase price for the FOS business was $120 million.

SEI Investments Company (SEIC) - BCG Matrix: Question Marks

These business units operate in growing markets but currently hold a low market share, consuming cash while offering an uncertain near-term return profile. The strategy here is heavy investment to rapidly capture market share or divestiture.

Global expansion of the SEI Wealth Platform (SWP) into new geographies, which requires significant upfront investment.

The SEI Wealth Platform (SWP) is clearly in a high-growth phase, evidenced by tangible commercial progress in global wealth management. For the nine months ended September 30, 2025, SEI's global Private Banking business completed 13 client implementation projects and re-contracted 12 clients on the SWP. A significant undertaking involved a major client migration that moved approximately 19,800 accounts, representing $41.5 billion in Assets Under Management (AUM), onto the platform. This repeatable services-led growth model, supported by the Project Management Office (PMO), has seen more than 80 enterprise-scale digital transformation projects launched globally since 2020. Capital deployment reflects this growth focus, with SEI making a $527 million strategic investment into Stratos Wealth Holdings in Q2 2025.

The Private Banks segment's net sales, which were reduced by a one-off contract loss in Q3 2025, despite 4% revenue growth.

The Private Banks segment shows market adoption but faces specific headwinds. In Q3 2025, this segment achieved a 4% year-over-year revenue increase. However, net sales events for the segment were negatively impacted by a disclosed one-off contract loss at the end of September. Despite this, the segment secured a $13 million client win with a major super-regional U.S. bank in Q3 2025. For context, in Q2 2025, the segment's operating profit was $22.7 million, though revenue growth of 8% was accompanied by a 7% operating profit decrease in that quarter.

Targeted investments in new technology and talent, which are necessary but have an uncertain near-term return profile.

The need for investment to secure future market share is visible in the margin dynamics. SEI's consolidated operating margin was 27% in Q2 2025, a sequential decline from Q1 2025, which management attributed to increased investments in both talent and technology to support expected growth. The company is actively deploying capital for growth, repurchasing 9.0 million shares for the trailing twelve months ending Q2 2025, and another 1.6 million shares for $141.6 million in Q3 2025. Furthermore, SEI increased its capitalized software development costs to $24.3 million in 2024, with an expected amortization expense of $28.6 million in 2025 related to these capitalized costs.

The Institutional Investors segment, which showed flat revenue and profit growth in Q2 2025, needing a defintely stronger catalyst.

The Institutional Investors segment exhibited minimal top-line momentum in mid-2025, requiring a significant catalyst. In Q2 2025, this segment generated $69.34 million in revenue and saw an operating profit of $33.5 million. The segment experienced a 3% revenue decline but an 11% operating profit increase in Q2 2025. By Q3 2025, revenue and profits were reported as flat due to less benefit from market appreciation compared to other segments. This segment did, however, secure its largest mandate to date in Q3 2025: a multibillion-dollar fixed income assignment for a state government client.

You're analyzing these units where investment is critical to avoid them becoming Dogs. Finance: finalize the Q4 2025 capital allocation plan by next Tuesday.