SEI taking majority stake in Stratos Wealth Holdings in $527M deal

SEI has agreed to acquire a majority stake in Stratos Wealth Holdings, marking a significant move in the wealth management sector aimed at helping advisors scale their businesses.

Under the terms of the agreement, SEI will pay approximately $527 million in cash for 57.5 percent of a newly formed entity that will own Stratos’ operating businesses. The remaining 42.5 percent will stay with certain legacy Stratos equity holders, with provisions in place that could eventually give SEI full ownership.

Emigrant Partners, a previous investor in Stratos, will exit its position as part of the deal.

The transaction announced Friday, which is subject to regulatory approval and customary closing conditions, is expected to close in two phases. The US-based portion of Stratos, accounting for about four-fifths of the transaction value, is slated to close in the second half of 2025. The Mexico-based NSC business is anticipated to close in the first half of 2026.

Stratos, headquartered in Beachwood, Ohio, has built a national network of more than 360 financial advisors and planning practitioners across 26 states. The firm’s advisors oversee more than $37 billion in client assets.

SEI, meanwhile, manages, advises, or administers roughly $1.6 trillion in assets as of March 31.

Founder and chief executive Jeff Concepcion will continue to lead Stratos, which will maintain its brand and operate as an affiliated business of SEI. The company’s existing business model and client service approach, including its custodial relationships, will remain in place.

SEI’s technology, custody, operations, and asset management capabilities are expected to reinforce Stratos’ capabilities.

The deal between SEI and Stratos comes on the heels of new data showing a continuing flurry of dealmaking in the RIA space this year. Devoe & Company's second quarter 2025 RIA deal book highlighted a historic first-half count of 148 transactions, with consolidators roaring back to represent 53% of buyers.

Schwab's latest RIA benchmarking report also showed enduring strength, with firms in the survey boasting a median AUM surge of 16.6% in 2024 alongside a 17.6% yearly increase in revenue.

“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.

“Working with SEI is a key aspect of our ongoing strategic vision, which provides advisors with the flexibility they need to achieve their goals. We’re excited about this partnership because it strengthens our offerings.”

Ryan Hicke, chief executive of SEI, highlighted his firm's "unwavering belief in financial advisors and their delivery of advice", as well as Stratos' "intimate understanding of what adds value to an advisor’s business."

"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,” Hicke said