Close Brothers Asset Management and SEI Announce Strategic Partnership

Rhea-AI Summary

Close Brothers Asset Management (CBAM) and SEI (NASDAQ:SEIC) have announced a strategic partnership for operational transformation. CBAM, managing approximately £20 billion in assets, will implement the SEI Wealth Platform and SEI Data Cloud for integrated technology and operational outsourcing solutions. The partnership includes data integration, migration, and orchestration services. As part of the agreement, several CBAM employees will transition to SEI's SWP Operations team. The collaboration aims to enhance CBAM's service delivery while maintaining high-quality client service levels.

Positive

• Strategic partnership with major asset manager CBAM (£20B AUM)
• Expansion of SEI's operational presence in the UK market
• Addition of experienced personnel through employee transfer

Negative

• None.

Insights

Financial Technology Analyst

This strategic partnership represents a significant operational transformation for both companies. For SEI, securing a £20 billion AUM client adds substantial recurring revenue to their wealth management platform business. The deal includes both technology licensing and operational staff transfer, creating a deeper, more sticky relationship that typically yields higher margins and longer contract duration.

The partnership demonstrates SEI's competitive strength in the UK wealth management technology market, particularly in winning large-scale platform migrations. The integration of CBAM employees into SEI's operations team suggests a comprehensive solution beyond simple software licensing, potentially leading to operational synergies and enhanced service delivery capabilities.

For investors, this validates SEI's platform strategy and could serve as a blueprint for similar deals in the European market. The recurring revenue model and operational integration aspects make this an attractive addition to SEI's business portfolio.

Technology and Operational Outsourcing Drives Scale and Growth

LONDON, Nov. 6, 2024 /PRNewswire/ -- Close Brothers Asset Management (CBAM) and SEI^® (NASDAQ:SEIC) today announced a strategic partnership to power CBAM's operational transformation and growth. CBAM will adopt the SEI Wealth Platform^SM (SWP) and SEI Data Cloud, which provides access to real-time data and analytics to leverage a fully integrated technology and operational outsourcing solution.

CBAM, which manages approximately £20 billion in assets, chose SEI following a comprehensive, multi-stage selection process involving several providers. The strategic partnership between CBAM and SEI Investments Europe Ltd., SEI's wholly-owned UK subsidiary, will deliver integrated market-leading technology and services, including data integration, migration, and orchestration, which will enable CBAM to deliver on their strategic objectives.

A number of CBAM employees will also join SEI's SWP Operations team as part of the agreement, and SEI and CBAM will work closely to ensure a smooth and successful transition.

Commenting on the strategic partnership, Gregg Clarke, COO of CBAM, said:

"Our new partnership with SEI marks an important moment for CBAM. Our adoption of the SEI Wealth Platform enables us to realise multiple benefits and deliver on our strategy to become the best place in the UK for wealth professionals and their clients—whilst having complete confidence that high-quality service levels will be maintained for our clients.

"After a thorough selection process, it was clear that CBAM and SEI are both technologically and culturally aligned. SEI understands our business and is committed to partnering with us to help us achieve our strategic objectives. We are committed to working closely with SEI to ensure the positive transition of our colleagues to the SEI team, which is a critical success factor for this project."

Jim London, CEO of SEI Investments Europe Limited, said:

"CBAM is a leading UK wealth manager dedicated to delivering an end-to-end, modern wealth management experience for their clients. We're thrilled to partner with CBAM and to provide access to the full breadth of SEI's integrated technology, data, and operations solutions that can help them achieve their growth aspirations.

"Our team of experts and client-centric approach are at the core of our best-in-class solutions and service, and we look forward to welcoming some of CBAM's valued talent to the SEI team as we power the future of wealth."

About SEI^®

SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Sept. 30, 2024, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.

This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:

• the extent and quality of the services to be delivered,
• the ability of SEI's products and solutions to enable client growth objectives, and
• the value of personnel to be employed by SEI and SEI's ability to effectively integrate new personnel.

You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended Dec. 31, 2023, filed with the Securities and Exchange Commission.

Company Contact:	Media Contact:
Leslie Wojcik	Amelia Graham
SEI	Vested
+1 610-676-4191	+44 (0)7393 477 057
lwojcik@seic.com	amelia@fullyvested.com

 

View original content:https://www.prnewswire.com/news-releases/close-brothers-asset-management-and-sei-announce-strategic-partnership-302297482.html

SOURCE SEI Investments Company

FAQ

What is the value of assets managed by CBAM in the SEI partnership announced in November 2024?

Close Brothers Asset Management (CBAM) manages approximately £20 billion in assets.

Which SEI products will CBAM implement in their 2024 strategic partnership?

CBAM will implement the SEI Wealth Platform (SWP) and SEI Data Cloud for integrated technology and operational outsourcing solutions.

How will the 2024 SEIC-CBAM partnership affect CBAM employees?

As part of the agreement, a number of CBAM employees will transition to SEI's SWP Operations team.

What is the main purpose of the SEIC and CBAM strategic partnership?

The partnership aims to power CBAM's operational transformation and growth through integrated technology and operational outsourcing solutions.