Sei Investments Revenues Rise 15% on Asset Appreciation
Consolidated revenues reached $641.6 million in the second quarter as assets under management climbed to $606.7 billion.
Revenue growth at Sei Investments (SEIC), the investment processing and management firm, was driven by market appreciation and segment expansion in the second quarter. Consolidated revenues rose 15% year-over-year to $641.6 million.
Assets under management ended the period at $606.7 billion, a 9.5% increase from the previous quarter. Assets under administration also grew 5% sequentially.
The Investment Advisors segment led growth with a 30% year-over-year revenue increase to $177.9 million, driven by higher market values and contributions from Stratos. The Investment Managers segment saw revenue rise 17% year-over-year to $227.7 million, while its operating margin expanded to 40% from 38% in the prior year.
Performance in the Private Banks segment remained positive, with revenue increasing 11% year-over-year to $156.9 million and operating profit growing 39% to $31.7 million. In contrast, the Institutional Investors segment remained flat, with revenue increasing 1% to $69.7 million and operating profit declining 2% to $32.9 million.
Efficiency improved across the firm as the adjusted operating margin expanded 5 percentage points year-over-year to 32%. These gains occurred despite a 43% year-over-year decline in revenue from the Investments in New Businesses segment, which fell to $9.5 million.
Capital return focused on equity reductions. The company repurchased 1.3 million shares of common stock for $112.4 million during the quarter, reducing the total share count by 3% relative to the prior year.
Forward indicators showed a deceleration in new business activity. Total sales events for the second quarter were $43.5 million, down from $67.2 million in the first quarter. LSV generated $2.0 billion of net inflows during the period, with performance fees totaling approximately $17 million, of which $6.5 million was attributable to the company.