#United States #Wealth Management #SEI #Stratos #Beachwood, OH

SEI and Stratos Wealth Holdings: A New Era in Wealth Management

In a significant move for the financial services industry, SEI® (NASDAQ: SEIC) and Stratos Wealth Holdings have unveiled a strategic partnership that aims to reshape how financial advisors operate within the market. This partnership is not just an investment; it is a shared vision to empower advisors and enhance their ability to scale and grow their businesses effectively.

Overview of the Partnership

The collaboration involves SEI making a strategic investment in Stratos, a family of companies that stands out for its commitment to supporting financial advisors regardless of their business models or affiliation structures. Headquartered in Beachwood, Ohio, Stratos boasts a vast national network comprising over 360 seasoned financial advisors and planning practitioners, who operate across 26 states in the U.S.

Jeff Concepcion, the founder and CEO, will continue leading Stratos, maintaining its well-recognized brand as it becomes affiliated with SEI. Importantly, the existing client service model and custodial relationships of Stratos will remain intact, with the added advantage of SEI's advanced capabilities in technology, custody, operations, and asset management.

Strengthening Advisor Experiences

Concepcion emphasized the partnership's strategic importance, stating, "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." He shared his excitement about how SEI's solutions would not only enhance operational scale but also facilitate a highly personalized level of service for advisors, enabling them to achieve their goals more effectively.

For nearly 15 years, Stratos has collaborated with SEI, appreciating their shared commitment to delivering value consistently to advisors. This partnership aligns both entities on fostering independence—crucial for advisors aiming to help clients reach their financial objectives. Through this alliance, Stratos believes they can significantly bolster their service delivery, making business operations and client engagement more seamless for advisors.

Strategic Vision from SEI

Ryan Hicke, the CEO of SEI, shared insights about the investment, highlighting the company's unwavering belief in financial advisors as key players in delivering valuable advice. According to Hicke, Stratos brings essential insights into what truly enhances an advisor's business, with an emphasis on client acquisition, sustainable value creation, and best practices in service delivery.

The strategic investment is tailored to bridge SEI’s world-class investment management with a detailed understanding of the needs of financial advisors and their clients. "Partnering with Stratos allows us to enhance the solutions we provide to intermediaries and wealth managers while addressing critical challenges in the industry," he stated. The partnership aims to facilitate growth acceleration for advisors, help solve succession challenges, and nurture the next generation of financial professionals committed to delivering personalized advice.

Details of the Transaction

As part of this transformative plan, a new entity will be established to manage the operating divisions of Stratos. SEI is set to pay approximately $527 million for a 57.5% equity stake in the new entity, while certain legacy equity holders will maintain a 42.5% ownership. This ownership structure is designed to allow SEI the potential to gain full ownership in the future, reinforcing the commitment to a long-term partnership.

The transaction, pending regulatory approvals and standard closing conditions, is expected to unfold in two phases, with the U.S. segment anticipated to close in the latter half of 2025. The operations based in Mexico are projected to finalize by the first half of 2026.

Conclusion

This groundbreaking partnership between SEI and Stratos Wealth Holdings marks a transformative moment for financial advisors nationwide. With integrated services and resources that prioritize advisor independence and growth, this collaboration is poised to redefine wealth management, providing advisors the tools and support they need to thrive in a competitive landscape. For more information about SEI and Stratos, visit their official websites and stay tuned for further updates on this partnership's progress.