SEI Accelerates Momentum in Q4 2024 with Broad-Based Sales Growth

SEI, a leading global financial services company, reported impressive sales growth in the fourth quarter of 2024, building on its momentum over the past 18 months. The company's net sales events reached nearly $130 million for the full year, with a significant increase in SCI net events, which were almost double what was achieved in 2022.

According to Ryan Hickey, SEI's Chief Executive Officer, 'Sales events for Q4 2024 were $38 million, with $28 million net recurring... This is the second consecutive quarter where SEI has realized significant growth in net sales events.' The company's broad-based sales growth is driven by existing and new clients across various business units, both in the US and globally.

SEI's strong financial performance for the year allowed the company to approve a one-time increase in its 2024 incentive compensation. This decision reflects the company's confidence in its employees' efforts to drive momentum and its commitment to rewarding them. Despite some challenges in the quarter, including asset outflows due to planned terminations and structural pressures facing active asset managers, SEI's core business remains strong.

The company's assets under management and administration are nearly flat with the prior quarter, despite a modest headwind from capital markets. However, SEI continues to see strong demand for alternative investment products, particularly in its Investment Managers business and intermediary businesses. Strategically, the company looks to 2025 to drive continued change across its operating model, aligning its capabilities more effectively with how clients and prospects want to engage and consume its services.

SEI's EPS reached $4.41 for the full year, growing 27% versus 2023. Although the company saw an approximate $0.02 headwind from incentive compensation and other items affecting comparability, its broad-based revenue growth across all business units is a testament to its strength. As Ryan Hickey noted, 'the sales are broad-based across the organization coming from existing and new clients, both in the U.S. and globally.' This momentum gives SEI increased confidence across its workforce.

The company's focus on maintaining and growing this momentum will likely drive continued success in 2025. As SEI continues to evolve and adapt to changing client needs, its commitment to innovation and employee engagement will be crucial to sustaining its growth trajectory.