SEI, the Oaks, Pa.-based fintech and management accounts provider overseeing about $1.6 trillion in assets, has taken a controlling stake in Stratos Wealth Holdings, the umbrella firm for a network of registered investment advisors and broker/dealer managing about $37 billion in client assets and 360 advisors.
SEI is paying about $527 million for a 57.5% stake in a newly formed entity, with the remaining 42.5% remaining with former Stratos equity holders. If those current owners exercise their right to sell out, SEI will own 100% of the new entity.
SEI will also buy out minority investor Emigrant Partners at closing. Emigrant took a stake in Stratos Wealth Holdings in 2020, helping to fuel an acquisition strategy that has seen the firm’s assets under management balloon in the past five years.
Through the deal, SEI will take control of Beachwood, Ohio-based Stratos Wealth Holdings’ RIAs: Stratos Wealth Advisors, Stratos Wealth Management and Stratos Wealth Partners, an LPL Financial affiliate.
If the deal goes through, Stratos founder and CEO Jeff Concepcion will continue to lead the firm’s business, which will operate under its brand name as an affiliate of SEI. Stratos’ entities will also maintain their existing custodial relationships, including Stratos Wealth’s LPL affiliation, though advisors will now be linked to SEI’s offerings across technology, custody, operations and asset management.
“As we strive to impact advisors’ success, we were seeking a partner that would not only provide investment capital, but also the expertise to help power growth,” Concepcion said in a statement. “We’re excited about this partnership because it strengthens our offerings. SEI’s robust set of solutions and services will enhance our ability to operate at scale, while delivering advisors a highly personalized level of service.”
The move will give SEI a network of financial advisors in 26 states for its advisor technology, managed accounts and other asset management offerings. Earlier this year, the firm launched an alternative investing marketplace aimed at wealth managers as it joins a roster of asset managers seeking to bring such investments downstream to retail investors.
“As we look to the future of wealth management, this partnership enables us to help accelerate growth for advisors and wealth managers, solve succession and business transition challenges, and develop the next generation of professionals delivering advice,” SEI CEO Ryan Hicke said in a statement.
Emigrant Partners had invested in the holdings firm when it oversaw about $14.5 billion in assets and was comprised of about 300 advisors, according to a release from the time.
“This is a transformational partnership for our industry, and I’m excited to see the new possibilities Stratos and SEI will unlock together,” Liz Nesvold, chair of Emigrant Partners and vice chair of Emigrant Bank, said in an emailed statement.
The final deal will need regulatory approval and other closing conditions. The U.S.-based part of the deal, or about 80%, is expected to close in the second half of 2025. A Mexico-based divison of the business should close in the first half of 2026.
Goldman Sachs was Stratos’ financial advisor, and Wells Fargo was SEI’s financial advisor.
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