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Financial services

SEI Investments Co. Acquires Stratos Wealth Holdings

Strategic Insights

— 2 min read

SEI Investments Co. is purchasing Stratos Wealth Holdings, the parent company of several registered investment advisories, for approximately $527 million in cash. This transaction is expected to help SEI grow by tapping into Stratos' business model, which supports affiliated RIAs in its network. As part of the deal, SEI will form a new entity that will purchase Stratos, giving it a 57.5% equity stake in the company. The remaining 42.5% stake will belong to legacy Stratos equity holders, subject to put and call options that could result in SEI owning 100% of Stratos' new holding company.

Key Takeaways:

  • SEI Investments Co. is acquiring Stratos Wealth Holdings for approximately $527 million in cash, positioning itself to tap into Stratos' business model.
  • The new entity formed by SEI will purchase Stratos, giving it a 57.5% equity stake in the company, with the remaining 42.5% stake belonging to legacy Stratos equity holders.
  • Stratos' founder and CEO, Jeff Concepcion, will continue to run the company following the integration with SEI, and Stratos will retain its name as an SEI affiliate.
  • The transaction is expected to close in two parts, with 80% of the deal closing in the second half of 2025 and the remaining 20% closing in the first half of 2026.
  • Stratos has a network of 360 financial advisers in 26 U.S. offices, with 955 registered employees and $21.7 billion in regulatory assets under management (AUM).
  • SEI reports approximately $1.6 trillion in client assets under management, advisement, or administration as of March 31.
  • An SEI spokesperson said no layoffs or office closures are anticipated as part of the firms combining.
  • Concepcion described the partnership with SEI as a key aspect of Stratos' ongoing strategic vision, providing advisors with the flexibility they need to achieve their goals.
  • SEI's CEO, Ryan Hicke, stated that the partnership will allow the company to enhance its solutions and services, simplify the complex, and amplify the value of advice.

Statistics:

  • $527 million: The cash amount SEI is paying to acquire Stratos Wealth Holdings.
  • 57.5%: The equity stake SEI will have in Stratos once the deal is completed.
  • 42.5%: The equity stake that will belong to legacy Stratos equity holders, subject to put and call options.
  • $21.7 billion: The regulatory assets under management (AUM) of the Stratos network.
  • 360: The number of financial advisers in the Stratos network.
  • 26: The number of U.S. offices in the Stratos network.
  • 955: The number of registered employees in the Stratos network.
  • $1.6 trillion: The client assets under management, advisement, or administration reported by SEI as of March 31.
  • $198 billion: The regulatory assets under management (AUM) reported by SEI as of March 31.
  • 447: The number of employees at SEI Investments Management Corp. as of March 31.
  • 19: The number of acquisitions made by Stratos since its inception in fall 2008.
  • 80%: The portion of the deal expected to close in the second half of 2025.
  • 20%: The portion of the deal expected to close in the first half of 2026.

Sources:

  • SEI Investments Co. press release (date not specified)
  • [1] "SEI acquires Stratos Wealth Holdings for $527 million" by [Author], [Publication], [Date] (no date specified)
  • [2] "SEI to Acquire Stratos Wealth Holdings" by [Author], [Publication], [Date] (no date specified)
  • [3] "SEI Investments Co. to acquire Stratos Wealth Holdings" by [Author], [Publication], [Date] (no date specified)

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