#Luxembourg #SEI #private markets

SEI's Strategic Expansion in Luxembourg

On January 7, 2025, SEI® (NASDAQ: SEIC) unveiled its latest offering—depositary services specifically designed for Luxembourg-based alternative investment funds (AIFs). This strategic launch comes in response to an impressive surge in demand for depositary services, with Luxembourg recognized as the second-largest fund center globally. From 2018 to 2024, depositary assets in Luxembourg skyrocketed from $17 billion to an astounding $100 billion. SEI is no stranger to this market; the firm currently administers depositary services for over 430 funds from various fund centers, solidifying its role as a major player in the arena.

With a firm stance as the largest fund administrator for private market funds in Luxembourg managed by U.S. firms, and as the global leader in administering private credit funds by assets, SEI is well-positioned to cater to the diverse needs of asset managers. Over the last two decades, private markets have consistently outperformed their public market counterparts, leading to increased interest from asset managers eager to capitalize on this trend.

Bryan Astheimer, the head of SEI's Investment Managers business in the EMEA region, emphasized the importance of this service's launch: "The demand for alternatives and European private markets continues to grow, and investment managers of all sizes are looking to expand their investor base and introduce new sources of capital. Our commitment to this region is further underscored by this expansion."

This launch not only broadens SEI's existing offering—which includes fund administration, registrar and transfer agent services, and regulatory reporting—but it also supplies asset managers a single contact point for all operational tech needs. As global standards in compliance and regulations become more intricate, providing comprehensive solutions helps clients streamline their processes and focus on growth.

In conjunction with the services offered in Luxembourg, SEI has been delivering depositary services in Ireland for 25 years. Currently the largest non-bank depositary in Ireland by assets under management, this experience in the Irish landscape enhances SEI’s capabilities in Luxembourg, paving the way for a cohesive operational model across Europe. The Luxembourg depositary services aim to facilitate funds that invest primarily in private assets, allowing alternative investment fund managers the flexibility to choose between a suite of services or standalone options.

The services provided by SEI cover essential functions such as cash flow monitoring, oversight, ownership verification, and asset safekeeping. Notably, SEI has also extended its services to non-EU managers, enabling them to market non-EU funds to EU investors under the Depo Lite Regime.

With operational hubs strategically located in Oaks, PA; London; Dublin; and Luxembourg, SEI offers clients an integrated platform that enhances transparency and optimizes their day-to-day operations. Impressively, SEI surpassed $1.5 trillion in alternative assets under administration, recently expanding its presence in Dublin to cater to strategic growth opportunities.

As the world of investment management evolves, SEI’s comprehensive approach ensures it not only meets current market demands but is also prepared to seize emerging opportunities. Its focus on operational excellence and client-centric services positions SEI favorably for the ever-growing landscape of European private markets, and shows its commitment to providing its clients with the tools needed for successful fund launches in compliance with various regulations.

In conclusion, SEI's entry into depositary services in Luxembourg marks a significant step forward in strengthening its European operations, ensuring that its clients can navigate the complexities of the investment landscape effectively. As the demand for alternative investments continues to rise, SEI remains at the forefront, ready to support its clients as they venture into new investment territories.