SEI Investments Co. SEIC announced the integration of investment vehicles from KKR & Co. Inc. KKR into its platform. This will enhance users’ accessibility to private markets. The platform is used by registered investment advisors, broker-dealers and other clients.
Rationale Behind SEIC’s Strategic Move
SEIC platform’s technology integrates electronic subscription documents, proprietary firm paperwork, custodian forms and e-signature capabilities to facilitate quick and accurate processing of alternative investment transactions.
SEI Investments’ e-subscription technology offers better access to alternative investments, improved processing efficiency, and an enhanced advisor and client experience.
Per Cerulli Associates 2022 report, alternative assets are projected to rise $1.2 trillion over the next four years. Moreover, 85% of wealth managers are anticipated to increase their allocations to one or more alternative assets within the next year as per a Mercer report released in November 2023. Per the same report, 55% of managers cited operational challenges such as paperwork and administrative tasks, as obstacles to adopting alternatives into their practice.
Hence, the integration of investment vehicles from KKR to the platform will enhance product offerings.
Kevin Crowe, senior vice president at SEI Investments, said, “Investor demand for alternative investments continues to increase, and this trend presents tremendous opportunity to broaden access to alternatives for advisors and wealth managers, while delivering the capabilities for enhanced portfolio diversification.”
This move aligns with the company’s emphasis on boosting its technological capabilities to offer broader accessibility and greater experience to its clients. Further, the company acquired Altigo in 2023 to expand its presence in the alternative investments space. These efforts will likely enable SEIC to gain market share and increase its client base.
Zacks Rank & Price Performance of SEI Investments
Year to date, shares of SEI Investments have risen 5.1% compared with the industry’s 11% growth.
Image Source: Zacks Investment Research
Currently, SEIC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Initiatives by Other Finance Firms
Earlier this week, Huntington Bancshares Inc. HBAN announced its plans to expand its banking franchise in North Carolina and South Carolina. The bank intends to add more than 350 employees across varied business divisions and launch roughly 55 retail branches within the next five years.
This move furthers the company’s presence and investment in the region and supports its strategic plan and long-term growth efforts. The bank aims to capture an estimated $8 billion long-term deposit market.
Huntington's full-scale retail expansion into the Carolinas complements its ongoing multi-million dollar and multi-year plan to expand its banking franchise in numerous strategic markets, including Denver, Minneapolis and Chicago.
Similarly, per The Guardian report, HSBC Holdings plc HSBC seeks a larger share of the wealth management market in the U.K. The bank has gone on a hiring spree to recruit hundreds of bankers to serve the ultra-rich.
HSBC aims to strengthen the U.K. arm of its wealth and private banking operations by recruiting more relationship managers who offer bespoke services and advice to rich clients in exchange for lucrative fees.
The bankers that are being recruited will be given the task of doubling the assets under management at HSBC’s British wealth business to £100 billion in the next five years.
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