SEI eyes UMH leadership with LifeYield acquisition

SEI is solidifying its leadership in providing unified managed solutions and tax-smart investing with a landmark acquisition deal.

On Wednesday, the firm revealed that it has acquired LifeYield, a Boston-based provider of tax-smart technology solutions, in a move to enhance its offerings in unified managed household capabilities.

The move is a significant development for SEI as it will be the first in the industry to offer real-time, fully automated UMH capabilities within a bundled overlay solution that looks across all account registrations.

LifeYield's technology focuses on optimizing after-tax returns by enabling financial advisors and institutions to manage portfolios across multiple accounts and coordinated models within a household. Its features include asset location, tax-loss harvesting, withdrawal optimization, and Social Security planning, all aimed at enhancing tax efficiency and streamlining portfolio management.

"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," J. Womack, chief product officer at SEI, said in a statement Wednesday. "As investor demands are driving significant industry transformation, investors are increasingly prioritizing tax management and the flexibility of a personalized approach to portfolio management."

SEI plans to integrate LifeYield's application programming interfaces into the SEI Wealth Platform, expanding its reach with a new front-end solution for both on- and off-platform distribution. The company anticipates this will improve efficiency and outcomes for wealth managers, advisors, and investors alike.

"Leading global financial institutions have leveraged our modular technology solutions through APIs in a Software-as-a-Service model," said Mark Hoffman, CEO of LifeYield. "Joining the SEI team is a next step in building upon our existing strategic partnership."

SEI's ties with LifeYield go back to a 2022 partnership, where SEI launched UMAs on its Wealth Platform product by integrating LifeYield's capabilities.

"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 said.

SEI said its partnership touches on a growing demand for tax-smart investing. Citing data from a Cerulli report on managed accounts, it said 86 percent of advisors value the ability to quantify and report on tax management.

Earlier this year in April, SEI unveiled a raft of updates to its managed accounts platform, including the capability for users to access in-depth reports and analytics, including an estimate of taxes saved or deferred through active management. LifeYield’s tools are expected to strengthen SEI’s tax-reporting capabilities

"We believe this acquisition further widens the gap between SEI and our competitors, allowing us to offer greater control, choice, and personalization at scale," said Arthur Worthington, senior business development director at SEI.