Aquiline to acquire SEI’s family office services unit

PHILADELPHIA - Investment firm Aquiline Capital Partners (WA:CPAP) LP has agreed to purchase the Family Office Services business from financial services provider SEI (NASDAQ:SEIC), with the deal expected to conclude in the latter half of the second quarter of 2025. The acquisition, valued at $120 million, is subject to regulatory approval and other standard closing conditions. SEI, currently valued at $10.17 billion, has demonstrated strong financial performance with a robust financial health score according to InvestingPro analysis.

SEI’s Family Office Services, which will be rebranded as Archway following the sale, specializes in delivering technology and services that support accounting, investment management, and reporting for family offices and their financial intermediaries. The Archway Platform, known for its financial reporting capabilities, managed assets totaling $723 billion as of December 31, 2024. The company has maintained impressive operational metrics, with a gross profit margin of 79% and return on equity of 27% in the last twelve months. InvestingPro data reveals that SEI has maintained dividend payments for 37 consecutive years, showcasing its financial stability.

Employees of SEI’s Family Office Services, including its core leadership team from offices in Indianapolis, Denver, and Oaks, will transition to the new operation under Aquiline.

Vincenzo La Ruffa, Managing Partner at Aquiline, commented on the strategic importance of the Archway Platform, highlighting its role as a leading provider of accounting and reporting software solutions. La Ruffa expressed enthusiasm for investing in and expanding the platform’s capabilities to support complex family structures.

Sandy Ewing, Head of SEI’s Family Office Services, emphasized the division’s growth and the substantial investments made in its solutions and capabilities over the past seven years. Ewing also expressed confidence in Aquiline’s ability to accelerate the platform’s growth and adoption in the private wealth sector.

Aquiline, with approximately $11.3 billion in assets under management as of September 30, 2024, is a New York, London, and Philadelphia-based private investment firm focused on financial services and technology. SEI, a global provider of financial technology and asset management services, manages, advises, or administers around $1.6 trillion in assets as of the same date. According to InvestingPro analysis, SEI has demonstrated strong revenue growth of 10.7% in the last twelve months, with analysts projecting continued profitability. For detailed insights and comprehensive analysis of SEI’s financial performance, investors can access the full Pro Research Report, available exclusively on InvestingPro.

Morgan Stanley (NYSE:MS) & Co. LLC acted as the financial advisor to Aquiline, with Ropes & Gray LLP providing legal counsel. Holland & Knight served as legal counsel to SEI.

The announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties, including the possibility of delays or failure to complete the acquisition.

In other recent news, SEI Investments Company reported a 31% year-over-year increase in earnings per share (EPS) for the fourth quarter of 2024, reaching $1.19, although this was slightly below the forecast of $1.21. The company’s revenue exceeded expectations, coming in at $557.2 million compared to the anticipated $555.6 million. In terms of strategic movements, SEI announced the expansion of its partnerships with service providers Nifty, Jump, and TIFIN Wealth to enhance advisor efficiency and growth. This expansion is part of SEI’s ongoing strategy to provide tailored solutions that help clients deploy resources more effectively. Additionally, SEI made a strategic investment in TIFIN earlier in the year, and as of December 31, 2024, the company managed approximately $1.6 trillion in assets. The firm also highlighted its strong global expansion, particularly in European markets. Furthermore, SEI announced the acquisition of LifeShield for approximately $29 million, which will be integrated into its Investment Advisors segment. These developments reflect SEI’s commitment to growth and innovation in the financial services industry.

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