SEI Acquires Archway Technology Partners In Family Office Push

Jul 5 2017 | 8:41pm ET

Global fund operations specialist SEI has acquired family office technology company Archway Technology Partners as the company expands its offerings in fragmented and underserved family office services arena. 

Indianapolis-based Archway supports the accounting, investment management and reporting functions for family offices, private banks, private wealth advisors and fund administrators through a single, integrated proprietary software solution designed to efficiently handle complex partnership, portfolio and corporate accounting alongside bill payment, investment management and multi-asset class data aggregation. 

SEI, which has not historically been an active acquirer, selected Archway as one of its first acquisitions as a means of entry into the family office sector, the company said in a statement to FINalternatives. “This announcement represents a modest shift in SEI’s long-held belief in purely organic growth,” said Alfred West, Jr., Chairman and CEO of SEI, in the statement. “We believe there is value in growing through carefully considered strategic acquisitions that add to our expanding geographic footprint, market reach, platform functionality and expertise.” 

“Archway’s stellar reputation in the family office industry, market-leading solutions, and talented, client-oriented employees make them a valuable addition to SEI, and we look forward to welcoming the Archway team into our culture and company,” he continued.

“Archway’s specialized technologies and deep knowledge of the private wealth services industry give us a more powerful, differentiated solution to a $7 trillion global family-office market that has been underserved by legacy service providers,” added Steve Meyer, head of SEI’s Investment Manager Services division. “SEI’s operating solutions, enhanced by Archway’s capabilities, will help family offices, institutions, wealth managers, and asset owners better navigate this new operational frontier and service their clients more effectively.”

SEI will pay $80 million for Archway, plus growth earn-outs of up to $8 million based on financial targets, according to a regulatory filing with the U.S. Securities & Exchange Commission.

SEI's Investment Manager Services Division works with more than 300 traditional, alternative and hybrid managers representing $15.5 trillion in assets, including 35 of the top 100 managers worldwide. The company as a whole provides investment processing, investment management, and investment operations solutions to corporations, financial institutions, financial advisors, and ultra-high-net-worth families.

Founded in 1961, SEI managed or administered $779 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including $297 billion in assets under management and $478 billion in client assets under administration, as of March 31, 2017.

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