SEI Completes First Stage of Strategic Investment in Stratos Wealth Holdings
Rhea-AI Summary
SEI (NASDAQ: SEIC) completed the first stage of a strategic investment in Stratos Wealth Holdings on Dec. 3, 2025, buying the U.S. Stratos business for approximately $441 million, representing ~81% of the total transaction value.
SEI will pay a total cash consideration of approximately $544 million for 57.5% of SEI-Eclipse Holding Company; legacy holders retain 42.5% subject to put/call rights that could ultimately lead to 100% ownership. Stratos operates across 29 states with a network of more than 350 advisors. A second-stage purchase of Stratos' Mexico-based NSC business is expected to close in 2026, subject to regulatory approval.
Positive
- U.S. Stratos business purchase: $441 million
- SEI equity investment: $544 million for 57.5% stake
- Stratos distribution: >350 advisors across 29 states
- Combination enhances SEI technology, custody, and asset management
Negative
- Legacy holders retain 42.5% subject to put/call rights
- Second-stage Mexico NSC acquisition subject to regulatory approval in 2026
- Final 100% ownership contingent on put/call exercise and approvals
Insights
SEI's staged purchase of Stratos deepens its wealth-advice channel and is material to scale and product distribution.
SEI completed the first stage of a strategic investment by acquiring the U.S. Stratos business through SEI-Eclipse Holding Company for approximately
The transaction plugs an advice-oriented distribution platform into SEI's existing technology, custody, operations, and asset-management capabilities. That creates a clearer route to scale advisor-led fee-based relationships and to cross-sell services while keeping Stratos' brand and custodial relationships intact. The staged structure reduces near-term integration scope while preserving optionality to acquire the Mexico-based NSC business in a contractually distinct second stage expected to close in
Key dependencies and risks include regulatory approvals and customary closing conditions for the second stage, successful preservation of Stratos' advisor relationships under the new ownership, and execution of the put/call timeline that determines ultimate ownership. The announced dollar amounts and equity split make this a sizable, capital-intensive move that ties seizable strategic upside to effective post-close retention and regulatory clearance.
Concrete items to watch: regulatory approvals and closing of the Mexico-based NSC business in
Business Partnership Highlights Commitment to Helping Advisors Scale and Grow
As previously announced, Founder and CEO Jeff Concepcion will continue to lead the Stratos business, which will operate under its brand and as an affiliated business of SEI. Stratos' 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, CEO Ryan Hicke said:
"There are three core growth opportunities in wealth management: advice, asset management, and administration. We've built world-class administration and asset management platforms that enable the more effective delivery and execution of advice, and Stratos further enhances our ecosystem with an advice platform that respects advisor independence and capitalizes on trends in fee-based wealth management.
"We believe in the value of advice, and by combining our strengths in all three areas and fostering mutual learning across them, we can enhance the solutions and services we provide across all intermediaries, help them scale their businesses, and drive powerful, sustainable growth."
Concepcion added:
"Our success reflects our commitment to providing the flexibility, personalized service, robust solutions, and independence that advisors need to achieve their growth objectives. The breadth and strength of SEI's capabilities, including alternative investments and OCIO services, will enhance our ability to deliver on that commitment while scaling our own operations.
"SEI's evolution over the last few years has been remarkable, and its ecosystem powers its clients' transformation. We're thrilled to have a partner investing in this next step of our growth journey, so we can help advisors serve their clients more seamlessly and position their businesses for future success."
Based in
Subject to applicable regulatory approval and other customary closing conditions, the second stage of the transaction to purchase 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 Sept. 30, 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 approximately
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.
Company Contact: | Media Contact: |
Leslie Wojcik | Eric Hazard |
SEI | Vested |
+1 610-676-4191 | +1 917-765-8720 |
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SOURCE SEI
FAQ
What did SEI announce about its investment in Stratos (SEIC) on Dec. 3, 2025?
How much of SEI-Eclipse Holding Company will SEI own after the transaction for SEIC investors?
How large is Stratos' advisor network included in SEI's deal (SEIC)?
When will SEI complete the second stage of the Stratos transaction (SEIC)?
What business capabilities does SEI bring to Stratos (SEIC)?
Are there regulatory or closing conditions that could affect SEI's purchase of Stratos (SEIC)?
