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SEI Investments Acquires LifeYield, Boosts Multi-Account Tax Management
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SEI Investments Co. (SEIC - Free Report) acquired a Boston-based, tax-smart technology provider — LifeYield. This acquisition will enable SEIC to provide cost-effective automated, real-time unified managed household (UMH) capabilities in a fully bundled overlay solution. This approach will allow advisors to look across all account registrations and optimize clients' after-tax returns.
The acquisition is not deemed significant in terms of asset size or material impacts on SEI's operations or financial performance. The LifeYield team will join SEI, providing technical, sales, client support and marketing expertise. This move builds upon a collaboration established in 2022 between SEI Investments and LifeYield.
Details of SEI Investments’ Acquisition of LifeYield
Three main advantages offered by LifeYield's capabilities include facilitating large-scale tax-efficient investing, enhancing investor outcomes, and increasing adviser and wealth manager efficiency.
The technology from LifeYield will be integrated into SEI's unified managed account capabilities -- SEI Wealth PlatformSM, expanding its capabilities in areas such as withdrawal optimization, tax transition services, multi-account household portfolio management, asset location and tax-loss harvesting.
The SEI Wealth PlatformSM will fully integrate all of LifeYield's APIs to facilitate the expeditious execution of investments across various accounts within a single household. With a new front-end solution for on and off-platform distribution, SEI plans to increase these capabilities and assist asset managers, institutions and financial advisers in managing and implementing household accounts more effectively.
Management Remarks
J. Womack, chief product officer at SEI Investments stated, "Millennials and Gen X are in their prime earning years, and baby boomers are retiring—putting money in motion for the next decade and beyond. As investor demands are driving significant industry transformation, investors are increasingly prioritizing tax management and the flexibility of a personalized approach to portfolio management. We believe that integrating LifeYield's tax-smart technology with our investment, technology, and evolving multi-custody capabilities creates a unique suite of tax management solutions that position SEI as the industry leader in enabling the efficient accumulation and transfer of wealth, as well as maximizing retirement income, he added.
Arthur Worthington, senior business development director at SEI, emphasized the acquisition's competitive edge, allowing SEI to offer greater control and personalization in tax management. He also noted the importance of providing a 360-degree view of client household accounts in the evolving landscape of wealth management.
LifeYield CEO Mark Hoffman observed that SEI’s position in the industry could significantly elevate his firm’s ability to make its technology available to a wider audience. “Joining the SEI team is a next step in building upon our existing strategic partnership,” Hoffman said. “We’re excited to deliver a UMH solution that considers the entirety of a household, so the tax benefits extend to everyone who is part of a client's financial picture,” Hoffman added.
SEIC’s Price Performance & Zacks Rank
Over the past six months, SEIC shares have gained 34.4% compared with the industry’s growth of 44.7%.
This month, Independent Bank Corp. (INDB - Free Report) agreed to acquire Enterprise Bancorp, Inc. (“Enterprise”). The deal has been valued at roughly $562 million, to be paid through 7.5 million shares and $27.1 million in cash.
This acquisition will deepen INDB’s footprint in demographically lucrative markets, including northern Massachusetts and southern New Hampshire. It will also expand wealth assets under administration in adjacent markets.
In November 2024, Old National Bancorp. (ONB - Free Report) announced its decision to acquire Bremer Financial Corp. (“Bremer”). The transaction is valued at $1.4 billion. The consideration will be paid through 50 million shares of ONB and $315 million in cash.
This transaction is likely to improve ONB’s deposit mix through low-cost and granular deposits. This will also establish the company as the premier regional bank in the Midwest, deepening its footprint in lucrative markets. The deal will expand wealth management and contribute to high-value and lower-volatility revenues.
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SEI Investments Acquires LifeYield, Boosts Multi-Account Tax Management
SEI Investments Co. (SEIC - Free Report) acquired a Boston-based, tax-smart technology provider — LifeYield. This acquisition will enable SEIC to provide cost-effective automated, real-time unified managed household (UMH) capabilities in a fully bundled overlay solution. This approach will allow advisors to look across all account registrations and optimize clients' after-tax returns.
The acquisition is not deemed significant in terms of asset size or material impacts on SEI's operations or financial performance. The LifeYield team will join SEI, providing technical, sales, client support and marketing expertise. This move builds upon a collaboration established in 2022 between SEI Investments and LifeYield.
Details of SEI Investments’ Acquisition of LifeYield
Three main advantages offered by LifeYield's capabilities include facilitating large-scale tax-efficient investing, enhancing investor outcomes, and increasing adviser and wealth manager efficiency.
The technology from LifeYield will be integrated into SEI's unified managed account capabilities -- SEI Wealth PlatformSM, expanding its capabilities in areas such as withdrawal optimization, tax transition services, multi-account household portfolio management, asset location and tax-loss harvesting.
The SEI Wealth PlatformSM will fully integrate all of LifeYield's APIs to facilitate the expeditious execution of investments across various accounts within a single household. With a new front-end solution for on and off-platform distribution, SEI plans to increase these capabilities and assist asset managers, institutions and financial advisers in managing and implementing household accounts more effectively.
Management Remarks
J. Womack, chief product officer at SEI Investments stated, "Millennials and Gen X are in their prime earning years, and baby boomers are retiring—putting money in motion for the next decade and beyond. As investor demands are driving significant industry transformation, investors are increasingly prioritizing tax management and the flexibility of a personalized approach to portfolio management. We believe that integrating LifeYield's tax-smart technology with our investment, technology, and evolving multi-custody capabilities creates a unique suite of tax management solutions that position SEI as the industry leader in enabling the efficient accumulation and transfer of wealth, as well as maximizing retirement income, he added.
Arthur Worthington, senior business development director at SEI, emphasized the acquisition's competitive edge, allowing SEI to offer greater control and personalization in tax management. He also noted the importance of providing a 360-degree view of client household accounts in the evolving landscape of wealth management.
LifeYield CEO Mark Hoffman observed that SEI’s position in the industry could significantly elevate his firm’s ability to make its technology available to a wider audience. “Joining the SEI team is a next step in building upon our existing strategic partnership,” Hoffman said. “We’re excited to deliver a UMH solution that considers the entirety of a household, so the tax benefits extend to everyone who is part of a client's financial picture,” Hoffman added.
SEIC’s Price Performance & Zacks Rank
Over the past six months, SEIC shares have gained 34.4% compared with the industry’s growth of 44.7%.
Currently, SEIC carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Similar Steps by Other Finance Firms
This month, Independent Bank Corp. (INDB - Free Report) agreed to acquire Enterprise Bancorp, Inc. (“Enterprise”). The deal has been valued at roughly $562 million, to be paid through 7.5 million shares and $27.1 million in cash.
This acquisition will deepen INDB’s footprint in demographically lucrative markets, including northern Massachusetts and southern New Hampshire. It will also expand wealth assets under administration in adjacent markets.
In November 2024, Old National Bancorp. (ONB - Free Report) announced its decision to acquire Bremer Financial Corp. (“Bremer”). The transaction is valued at $1.4 billion. The consideration will be paid through 50 million shares of ONB and $315 million in cash.
This transaction is likely to improve ONB’s deposit mix through low-cost and granular deposits. This will also establish the company as the premier regional bank in the Midwest, deepening its footprint in lucrative markets. The deal will expand wealth management and contribute to high-value and lower-volatility revenues.