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seic-20240424
0000350894FALSE00003508942024-04-242024-04-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________
FORM 8-K
________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
April 24, 2024
Date of report (Date of earliest event reported)
________________________________________
https://cdn.kscope.io/ee50e36f3bf004453f630cb70f031402-GIF_sei_logo_final_black.gif
________________________________________
SEI INVESTMENTS COMPANY
(Exact name of registrant as specified in charter)
________________________________________
Pennsylvania 0-10200 23-1707341
(State or Other Jurisdiction
of Incorporation)
 (Commission
File Number)		 (I.R.S. Employer
Identification No.)
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
(Address of Principal Executive Offices and Zip Code)
(610) 676-1000
(Registrants’ Telephone Number, Including Area Code)
________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareSEICThe NASDAQ Stock Market LLC



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition.
On Wednesday, April 24, 2024, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the first quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference. A recording of the earnings call referenced in the press release furnished as Exhibit 99.1 is available for replay on the Company’s website at seic.com/investor-relations.
As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.
Exhibit No.Description
99.1
104  Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SEI INVESTMENTS COMPANY
Date:April 24, 2024By:/s/ Dennis J. McGonigle
Dennis J. McGonigle
Chief Financial Officer






Document
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Investor Contact:                         Media Contact:
Alex Whitelam                            Leslie Wojcik
SEI                                SEI
+1 610-676-4924                        +1 610-676-4191
awhitelam@seic.com                        lwojcik@seic.com
Pages:        8

FOR IMMEDIATE RELEASE

SEI Reports First-Quarter 2024 Financial Results

OAKS, Pa., April 24, 2024 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first-quarter 2024. Diluted earnings per share were $0.99 in first-quarter 2024 compared to $0.79 in first-quarter 2023.
Consolidated Overview
(In thousands, except earnings per share)For the Three Months Ended March 31,
20242023%
Revenues$511,579 $469,119 9%
Net income 131,400 107,015 23%
Diluted earnings per share$0.99 $0.79 25%

“We entered 2024 with continued momentum, reflecting our strategic focus on increasing sales and profitability across SEI. In the first quarter, we delivered strong topline growth and margin expansion—with notable sales and implementation activity in our technology and investment processing businesses,” said CEO Ryan Hicke.
“We are well-positioned to capitalize on opportunities in the markets we serve globally. Our strong financial position, unmatched set of capabilities, and unique ability to connect the financial services ecosystem enable us to deliver comprehensive solutions to drive growth and deliver long-term value for our clients and shareholders.”

1


Summary of First-Quarter Results by Business Segment

(In thousands)For the Three Months Ended March 31,
20242023%
Private Banks:
Revenues$130,137 $120,902 8%
Expenses112,974 112,462 —%
Operating Profit17,163 8,440 103%
Operating Margin13 %7 %
Investment Advisors:
Revenues122,718 106,538 15%
Expenses66,958 63,546 5%
Operating Profit55,760 42,992 30%
Operating Margin45 %40 %
Institutional Investors:
Revenues71,778 74,290 (3)%
Expenses40,109 40,868 (2)%
Operating Profit31,669 33,422 (5)%
Operating Margin44 %45 %
Investment Managers:
Revenues172,653 154,497 12%
Expenses109,550 101,685 8%
Operating Profit63,103 52,812 19%
Operating Margin37 %34 %
Investments in New Businesses:
Revenues14,293 12,892 11%
Expenses18,383 17,639 4%
Operating Loss(4,090)(4,747)NM
Totals:
Revenues$511,579 $469,119 9%
Expenses347,974 336,200 4%
Corporate Overhead Expenses37,754 31,152 21%
Income from Operations$125,851 $101,767 24%
2


First-Quarter Business Highlights:
•Revenues from Assets under management, administration, and distribution fees increased primarily from higher assets under administration due to sales to new and existing alternative investment clients of the Investment Managers segment. Additionally, first-quarter 2024 revenues included fees of $9.6 million from the SEI Integrated Cash Program of the Investment Advisors segment launched in December 2023.
•Market appreciation and positive cash flows into separately managed account programs and Strategist programs of the Investment Advisors segment also contributed to the increase in revenues. This was partially offset by negative cash flows from SEI fund programs in the Investment Advisors segment and client losses in the Institutional Investors segment.
•Average assets under management in equity and fixed income programs, excluding LSV, increased $8.1 billion, or 5%, to $175.9 billion during the first-quarter 2024, as compared to $167.8 billion during the first-quarter 2023 (see attached Average Asset Balances schedule for further details).
•Average assets under administration increased $121.0 billion, or 14%, to $961.7 billion during the first-quarter 2024, as compared to $840.7 billion during the first-quarter 2023 (see attached Average Asset Balances schedules for further details).
•Revenues from Information processing and software servicing fees increased from new client conversions and growth from existing SEI Wealth PlatformSM (SWP) clients.
•Net sales events in the Private Banks and Investment Managers segments during the first-quarter 2024 were $24.5 million and are expected to generate net annualized recurring revenues of approximately $20.7 million when contract values are completely realized.
•Net sales events in asset management-related businesses of the Investment Advisors and Institutional Investors segments and the Asset Management Distribution (AMD) business in the Private Banks segment during the first-quarter 2024 were negative $5.7 million.
•Net sales events for newer initiatives, which includes SEI Family Office Services, SEI Private Wealth Management and SEI Sphere, were $2.5 million during the first-quarter 2024.
•The increase in operational expenses was due to higher personnel costs from business growth, primarily in the Investment Managers segment, severance costs of $6.2 million, and the impact of inflation on wages and services. Cost containment measures related to consulting and other outsourced vendor costs partially offset the increase in operating expenses during the first-quarter 2024.
•Earnings from LSV increased to $31.6 million in the first-quarter 2024 as compared to $28.9 million in the first-quarter 2023 due to market appreciation and increased performance fees. Net negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
•Capitalized software development costs were $6.3 million in the first-quarter 2024, of which $3.8 million was for continued enhancements to SWP. Capitalized software development costs also include $2.5 million in the first-quarter 2024 for a new platform for the Investment Managers segment.
•Effective tax rates were 22.9% in the first-quarter 2024 and 23.6% in the first-quarter 2023.
•Repurchased shares of SEI common stock were 808 thousand for $56.0 million during the first-quarter 2024 at an average price of $69.32 per share.
•Cash flow from operations was $112.3 million, and free cash flow was $92.9 million during the first-quarter 2024.
3


Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on April 24, 2024. Investors may listen to the call at seic.com/ir-events. Investors may also listen to a replay by telephone at (USA) 866-207-1041; (International) 402-970-0847; Access Code: 3297429.

About SEI®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of March 31, 2024, SEI manages, advises, or administers approximately $1.5 trillion in assets. For more information, visit seic.com.

This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:
•the momentum generated by our focus on increasing sales and profitability and the benefits we may realize from such momentum;
•the degree to which we are positioned to capitalize on opportunities in the markets we serve;
•when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of any such revenue; and
•the degree to which our financial position, set of capabilities, and ability to connect the financial services ecosystem enable us to deliver comprehensive solutions to drive growth and deliver long-term value for our clients and shareholders.
We anticipate that we may deliver forward-looking statements during today’s earnings call that include our current expectations as to the matters in this release and set forth above as well as:
•what our strategic priorities will be;
•our ability to execute against our strategic priorities;
•the size of the markets that we identify as growth areas and our ability to capture market share in these markets;
•the degree to which we are well-positioned for the future;
•whether we will pursue geographic expansion and the benefits that such expansion may yield;
•our ability to align our cost structure to talent and the benefits of such alignment;
•the degree to which our capabilities benefit our clients;
•our ability to accelerate growth and market share;
•the benefits we will derive from the businesses and/or assets we acquire and our ability to successful integrate these assets in order to drive the expected benefits, strategic and otherwise;
•the headwinds our businesses face and our ability to respond to these headwinds;
•our ability to capitalize on our pipeline and opportunities, manage expenses, and drive profit to the bottom line;
•the amount, if any, of our current backlog of sold but expected to be installed revenue and recurring revenue in the next 18 months that will actually be installed during such period, if ever;
•the market dynamics affecting our market units;
•the areas in which we will invest;
•our ability to expand the margins of our Private Banking business and the degree to which this business is positioned for growth;
•the amount of revenue and profit that our new FDIC cash sweep program will generate during 2024; and
•our tax rate for the remainder of 2024.
You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended Dec. 31, 2023, filed with the Securities and Exchange Commission.
# # #
4


SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended March 31,
20242023
Asset management, admin. and distribution fees$404,366 $371,829 
Information processing and software servicing fees107,213 97,290 
Total revenues511,579 469,119 
Subadvisory, distribution and other asset mgmt. costs46,768 47,379 
Software royalties and other information processing costs8,471 7,293 
Compensation, benefits and other personnel192,916 173,415 
Stock-based compensation11,059 8,074 
Consulting, outsourcing and professional fees51,976 61,104 
Data processing and computer related37,160 33,340 
Facilities, supplies and other costs18,603 18,792 
Amortization10,386 9,424 
Depreciation8,389 8,531 
Total expenses385,728 367,352 
Income from operations125,851 101,767 
Net gain from investments2,256 744 
Interest and dividend income10,819 8,778 
Interest expense(139)(141)
Equity in earnings of unconsolidated affiliate31,643 28,879 
Income before income taxes170,430 140,027 
Income taxes39,030 33,012 
Net income$131,400 $107,015 
Basic earnings per common share$1.00 $0.80 
Shares used to calculate basic earnings per share131,417 134,020 
Diluted earnings per common share$0.99 $0.79 
Shares used to calculate diluted earnings per share132,745 135,311 
5


SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,December 31,
20242023
Assets
Current Assets:
Cash and cash equivalents$846,628 $834,697 
Restricted cash301 301 
Receivables from investment products55,606 55,886 
Receivables, net of allowance for doubtful accounts of $1,165 and $663
561,395 501,434 
Securities owned31,958 31,334 
Other current assets59,136 54,464 
Total Current Assets1,555,024 1,478,116 
Property and Equipment, net of accumulated depreciation of $475,832 and $474,034
168,204 171,364 
Operating Lease Right-of-Use Assets20,687 22,477 
Capitalized Software, net of accumulated amortization of $619,875 and $612,971
239,156 239,783 
Available for Sale and Equity Securities164,027 155,413 
Investments in Affiliated Funds, at fair value8,149 7,316 
Investment in Unconsolidated Affiliate57,291 110,781 
Goodwill137,204 137,333 
Intangible Assets, net of accumulated amortization of $45,923 and $42,520
78,739 82,443 
Deferred Contract Costs40,000 40,221 
Deferred Income Taxes45,257 37,709 
Other Assets, net54,699 37,047 
Total Assets$2,568,437 $2,520,003 
Liabilities and Equity
Current Liabilities:
Accounts payable$10,290 $10,618 
Accrued liabilities242,856 318,945 
Current portion of long-term operating lease liabilities7,562 8,118 
Deferred revenue15,274 15,366 
Total Current Liabilities275,982 353,047 
Long-term Income Taxes Payable803 803 
Long-term Operating Lease Liabilities15,599 17,235 
Other Long-term Liabilities16,999 17,090 
Total Liabilities309,383 388,175 
Shareholders' Equity:
Common stock, $0.01 par value, 750,000 shares authorized; 131,329 and 131,178 shares issued and outstanding
1,313 1,312 
Capital in excess of par value1,455,162 1,404,962 
Retained earnings843,870 762,586 
Accumulated other comprehensive loss, net(41,291)(37,032)
Total Shareholders' Equity2,259,054 2,131,828 
Total Liabilities and Shareholders' Equity$2,568,437 $2,520,003 
6


ENDING ASSET BALANCES
(In millions) (Unaudited)
Mar. 31,Jun. 30,Sept. 30,Dec. 31,Mar. 31,
20232023202320232024
Private Banks:
Equity and fixed-income programs$23,653 $24,091 $23,039 $24,496 $25,282 
Collective trust fund programs6 7 6 4 5 
Liquidity funds3,427 3,433 3,636 3,916 2,733 
Total assets under management$27,086 $27,531 $26,681 $28,416 $28,020 
Client assets under administration4,299 4,154 4,399 7,267 8,024 
Total assets$31,385 $31,685 $31,080 $35,683 $36,044 
Investment Advisors:
Equity and fixed-income programs$68,065 $69,439 $66,911 $71,634 $74,715 
Liquidity funds4,965 4,968 5,175 4,812 4,722 
Total Platform assets under management$73,030 $74,407 $72,086 $76,446 $79,437 
Platform-only assets14,980 16,103 16,232 18,324 20,516 
Platform-only assets-deposit program— — — 843 897 
Total Platform assets$88,010 $90,510 $88,318 $95,613 $100,850 
Institutional Investors:
Equity and fixed-income programs$74,939 $75,854 $72,387 $77,208 $75,969 
Collective trust fund programs4 4 4 1 1 
Liquidity funds1,576 1,353 2,119 1,734 2,179 
Total assets under management$76,519 $77,211 $74,510 $78,943 $78,149 
Client assets under advisement4,559 4,368 4,085 6,120 6,862 
Total assets$81,078 $81,579 $78,595 $85,063 $85,011 
Investment Managers:
Collective trust fund programs (A)$146,176 $149,779 $146,991 $156,376 $161,660 
Liquidity funds203 249 180 114 202 
Total assets under management$146,379 $150,028 $147,171 $156,490 $161,862 
Client assets under administration829,352 857,801 871,385 920,757 959,904 
Total assets$975,731 $1,007,829 $1,018,556 $1,077,247 $1,121,766 
Investments in New Businesses:
Equity and fixed-income programs$2,031 $2,104 $2,017 $2,174 $2,269 
Liquidity funds217 217 202 209 223 
Total assets under management$2,248 $2,321 $2,219 $2,383 $2,492 
Client assets under advisement1,081 1,098 1,070 1,150 1,248 
Client assets under administration16,476 15,769 14,997 14,807 15,411 
Total assets$19,805 $19,188 $18,286 $18,340 $19,151 
LSV Asset Management:
Equity and fixed-income programs (B)$84,964 $86,469 $83,684 $89,312 $93,616 
Total:
Equity and fixed-income programs (C)$253,652 $257,957 $248,038 $264,824 $271,851 
Collective trust fund programs146,186 149,790 147,001 156,381 161,666 
Liquidity funds10,388 10,220 11,312 10,785 10,059 
Total assets under management$410,226 $417,967 $406,351 $431,990 $443,576 
Client assets under advisement5,640 5,466 5,155 7,270 8,110 
Client assets under administration (D)850,127 877,724 890,781 942,831 983,339 
Platform-only assets14,980 16,103 16,232 19,167 21,413 
Total assets$1,280,973 $1,317,260 $1,318,519 $1,401,258 $1,456,438 
(A)Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B)Equity and fixed-income programs include $2.0 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of March 31, 2024).
(C)Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of March 31, 2024).
(D)    In addition to the assets presented, SEI also administers an additional $11.0 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2024).
7


AVERAGE ASSET BALANCES
(In millions) (Unaudited)
1st Qtr.2nd Qtr.3rd Qtr.4th Qtr.1st Qtr.
20232023202320232024
Private Banks:
Equity and fixed-income programs$23,576 $23,748 $23,920 $23,309 $24,593 
Collective trust fund programs7 7 6 5 4 
Liquidity funds3,253 3,500 3,585 3,808 3,902 
Total assets under management$26,836 $27,255 $27,511 $27,122 $28,499 
Client assets under administration4,316 4,282 4,221 7,083 7,753 
Total assets$31,152 $31,537 $31,732 $34,205 $36,252 
Investment Advisors:
Equity and fixed-income programs$67,578 $68,371 $69,309 $68,369 $72,689 
Liquidity funds4,995 4,808 4,990 5,046 4,649 
Total Platform assets under management$72,573 $73,179 $74,299 $73,415 $77,338 
Platform-only assets14,812 15,548 16,544 17,201 19,198 
Platform-only assets-deposit program— — — 281 849 
Total Platform assets$87,385 $88,727 $90,843 $90,897 $97,385 
Institutional Investors:
Equity and fixed-income programs$74,653 $74,865 $75,023 $73,644 $76,414 
Collective trust fund programs5 4 4 3 1 
Liquidity funds1,715 1,537 1,611 1,682 1,812 
Total assets under management$76,373 $76,406 $76,638 $75,329 $78,227 
Client assets under advisement4,431 4,583 4,294 4,607 6,498 
Total assets$80,804 $80,989 $80,932 $79,936 $84,725 
Investment Managers:
Collective trust fund programs (A)$144,914 $147,543 $150,379 $149,551 $156,737 
Liquidity funds317 286 237 205 207 
Total assets under management$145,231 $147,829 $150,616 $149,756 $156,944 
Client assets under administration820,014 843,065 873,821 901,487 938,804 
Total assets$965,245 $990,894 $1,024,437 $1,051,243 $1,095,748 
Investments in New Businesses:
Equity and fixed-income programs$1,991 $2,057 $2,096 $2,069 $2,200 
Liquidity funds212 199 211 197 214 
Total assets under management$2,203 $2,256 $2,307 $2,266 $2,414 
Client assets under advisement1,098 1,075 1,101 1,080 1,194 
Client assets under administration16,396 16,231 15,682 14,781 15,147 
Total assets$19,697 $19,562 $19,090 $18,127 $18,755 
LSV Asset Management:
Equity and fixed-income programs (B)$86,987 $84,492 $86,671 $84,492 $90,708 
Total:
Equity and fixed-income programs (C)$254,785 $253,533 $257,019 $251,883 $266,604 
Collective trust fund programs144,926 147,554 150,389 149,559 156,742 
Liquidity funds10,492 10,330 10,634 10,938 10,784 
Total assets under management$410,203 $411,417 $418,042 $412,380 $434,130 
Client assets under advisement5,529 5,658 5,395 5,687 7,692 
Client assets under administration (D)840,726 863,578 893,724 923,351 961,704 
Platform-only assets14,812 15,548 16,544 17,482 20,047 
Total assets$1,271,270 $1,296,201 $1,333,705 $1,358,900 $1,423,573 
(A)    Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B)    Equity and fixed-income programs during first-quarter 2024 include $1.9 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee.
(C)    Equity and fixed-income programs include $6.3 billion of average assets invested in various asset allocation funds during first-quarter 2024.
(D)    In addition to the assets presented, SEI also administers an additional $11.1 billion of average assets in Funds of Funds assets during first-quarter 2024 on which SEI does not earn an administration fee.
8