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SEI Investments (SEIC) Enhances Integration With Canoe

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SEI Investments Company (SEIC - Free Report) announced an enhanced integration with Canoe Intelligence (“Canoe”) to boost operational efficiency for family offices via the SEI Archway Platform.

This expanded relationship between both entities aims to automate the transmission of private equity and hedge fund valuations alongside private equity call and distribution data.

Per a Preqin report, global alternative assets are projected to reach $23 trillion by 2027. Family offices allocated 42% of their investment portfolios to these assets in 2023, per a UBS report. Nonetheless, amid the rising demand for alternative assets, single-family offices have struggled with manual data management workflows. This has, thus, led to inefficient data aggregation and accounting with error-prone reporting.
 
Automating data transmission and maintaining data consistency can simplify the accessibility and integration of alternative assets data. This will enable family offices to enhance operational efficiency and decision-making capability.

Sandy Ewing, head of SEI Investments’ family office services business, stated, “Investors expect a personalized wealth management experience tailored to meet their individual financial goals, and alternatives can play an important role in portfolio diversification. Family offices require solutions that help make alternatives data more accessible and accurate given the complex and historically manual nature of the ongoing data management process.”

“SEI has been at the forefront of this trend, offering a client-centric approach to managing alternative assets that meet the industry's needs for more than 25 years. We are investing in solutions like the SEI Archway Platform and SEI Altigo Platform that further enhance the end-to-end alternatives investment experience. We're thrilled to expand our relationship with Canoe as we continue to deliver on our commitment to our clients,” Ewing further added.

This enhanced integration sets up a new data channel that makes it simple for SEI Archway Platform’s users to collect, aggregate and analyze their alternative assets data. Through the combination of these two platforms, mutual clients will be able to automate fund and allocation-level data gathering, improve the processing of alternative asset pricing and capital transactions, and streamline alternative investment reporting processes.

Since the inception of this strategic partnership, Canoe has processed more than 150,000 documents on behalf of SEIC’s clients and enabled 24 mutual clients to automate data transmission across more than 3,400 alternative investments. This integration is part of several alternative asset-specific features of the SEI Archway Platform, which aim to enhance the user experience via improved reporting, operational efficiency, data connectivity and integrations.

This move aligns with SEI Investments’ revenue growth strategy. This February, the company invested $10 million in TIFIN, a leading force in AI-driven wealth management innovation. This strategic partnership is poised to reshape the landscape of wealth management through rapid exploration, market innovation access and talent development. Earlier, in 2023, the company acquired Altigo, a cloud-based technology platform that provides inventory, e-subscription and reporting capabilities for alternative investments. With the integration of Altigo within SEIC’s capabilities across intermediary wealth channels, the company aims to deliver a broader end-to-end solution.

Over the past year, shares of SEI Investments have gained 9%.

Currently, SEIC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Financial Services Firms Taking Similar Steps

In May, KKR & Co. Inc. (KKR - Free Report) entered into a strategic partnership with Capital Group to augment alternative investment solutions for client portfolios. This move aimed to make hybrid public-private market investment solutions available to investors across asset classes, channels and geographies.

While the alternatives are accessible to high-net-worth individuals and accredited investors, mass affluent investors (constituting more than 40% of the global wealth market) have been deprived of this asset class. KKR’s strategic initiative paves the way for many finance professionals and their clients to access alternative investments and include them in their portfolios.

In March, The Bank of New York Mellon Corp. (BK - Free Report) announced a partnership expansion between its Investment Management business and alternative credit specialist CIFC. This is expected to enhance product offerings across public and private markets, particularly in the U.S. private credit.

BNY Mellon has been providing services to CIFC as a valuable client for more than 10 years. This partnership aligns with the company’s expansion efforts and enables its Investment Management business to access CIFC’s U.S. direct lending strategy.


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