SEI and Stratos Wealth Holdings Announce Strategic Investment and Business Partnership
Rhea-AI Summary
SEI (NASDAQ:SEIC) has announced a strategic investment and business partnership with Stratos Wealth Holdings, acquiring a 57.5% stake for approximately $527 million. Stratos, a national network of over 360 financial advisors across 26 states, will continue operating under its brand as an SEI affiliate, led by CEO Jeff Concepcion.
The transaction will close in two stages: the U.S.-based business (80% of value) in H2 2025 and the Mexico-based NSC business in H1 2026. Legacy Stratos equity holders will retain 42.5% ownership, with put/call rights that could lead to SEI's 100% ownership. The partnership aims to enhance service delivery, scale operations, and strengthen wealth management capabilities while maintaining Stratos' existing business model and custodial relationships.
Positive
- Strategic acquisition of 57.5% stake in Stratos for $527 million expands SEI's wealth management capabilities
- Partnership provides access to network of 360+ financial advisors across 26 states
- Potential for full ownership through put/call rights on remaining 42.5%
- Maintains existing Stratos business model while adding SEI's technology and operational capabilities
Negative
- Significant cash outlay of $527 million for partial ownership
- Complex two-stage closing process extending into 2026
- Integration risks with existing Stratos operations and custodial relationships
News Market Reaction – SEIC
On the day this news was published, SEIC declined 0.44%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Partnership Reinforces Value of Advice, Delivering Wealth Management and Services at Scale
Founder and CEO Jeff Concepcion will continue to lead the Stratos business, which will operate under its recognized brand and as an affiliated business of SEI. Stratos' existing business and client service model, including custodial relationships, will continue, and its current offerings will be reinforced by SEI's capabilities across technology, custody, operations, and asset management.
Commenting on the partnership, Concepcion said:
"As we strive to impact advisors' success, we were seeking a partner that would not only provide investment capital, but also the expertise to help power growth. Working with SEI is a key aspect of our ongoing strategic vision, which provides advisors with the flexibility they need to achieve their goals. We're excited about this partnership because it strengthens our offerings. 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."
"We have worked closely with SEI for 15 years, and we appreciate their shared commitment to consistently delivering value to our advisors. We are closely aligned with their leadership on how to foster independence—a key for advisors in helping clients meet their financial goals. 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."
Ryan Hicke, CEO of SEI, added:
"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."
"Partnering with Stratos allows us to build upon our world-class investment management, processing, and operations capabilities with deeper insight into the demands and needs of the end client, so we can continue to enhance the solutions and services we provide across all intermediaries. As we look to the future of wealth management, 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. We share Stratos' deep respect for independence and look ahead with excitement as we build a long-standing partnership that can simplify the complex and amplify the value of advice."
A newly formed entity will purchase the operating entities comprising the current Stratos business. SEI will pay a total cash consideration of approximately
Subject to applicable regulatory approval and other customary closing conditions, the transaction is expected to close in two stages: The
About SEI®
SEI (NASDAQ: SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services 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. As of March 31, 2025, SEI manages, advises, or administers approximately
About Stratos Wealth Holdings
Stratos is a family of companies including affiliated registered investment advisors. Stratos supports a network of independent financial advisors by providing flexible affiliation models, including a hybrid option, and practice management consulting, operations, IT, and compliance services. Financial advisors associated through the Stratos network of registered investment advisors advise and service more than
Forward-looking statements
This communication 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," "remain" and "continue" or "appear." SEI's forward-looking statements include its current expectations as to:
- the benefits that SEI's clients may derive from its capabilities;
- the going-forward operating model for Stratos;
- SEI's ability to realize the various aspects of its strategic rationale for the Stratos partnership;
- the benefits that Stratos may derive from SEI's investment and capabilities; and
- the degree to which the put/call features of the transaction will be exercised.
You should not place undue reliance on any forward-looking statements, as they are based on the current beliefs and expectations of management and subject to significant risks and uncertainties, many of which are beyond management's control or are subject to change. Although management believes the assumptions upon which the forward-looking statements are based are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in SEI's forward-looking statements can be found in the "Risk Factors" section of SEI's Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the Securities and Exchange Commission.
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SEI | Vested |
+1 610-676-4191 | +1 917-765-8720 |
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SOURCE SEI Investments Company
FAQ
What is the value of SEI's investment in Stratos Wealth Holdings?
How many financial advisors does Stratos Wealth Holdings have?
When will SEI's acquisition of Stratos close?
Who will lead Stratos after SEI's investment?
Will Stratos maintain its existing business model after SEI's investment?
