Why scale, data, and partnership matter more than ever.

Financial services firms are operating in a market defined by accelerating complexity. 

Private markets continue to expand. Wealth platforms are evolving. Investor expectations are rising. Artificial intelligence is reshaping how firms think about data, scale, and service delivery. At the same time, institutions are under pressure to grow efficiently, launch products faster, and deliver more seamless experiences to clients and end investors.

In a recent conversation with Glenn Schorr on Evercore’s “Flow of Funds” podcast, SEI CEO Ryan Hicke described SEI’s role in that environment as sitting “right in the center of the delivery of modern investment solutions.” It’s a useful way to understand a company that does not fit neatly into one category. SEI is not only an asset manager, technology provider, fund administrator, investment processor, or wealth platform. It also connects many of those functions to help financial institutions simplify how investment solutions are created, administered, managed, processed, and delivered.

Private markets are changing the operating model

One of the clearest shifts discussed in the episode is the growing acceptance of outsourcing across private markets. As private investment managers scale, many are choosing to focus their capital, talent, and time on product creation, fundraising, distribution, and investment performance—while relying on specialized partners for the operational infrastructure required to support increasingly complex vehicles.

SEI now works with 10 of the 12 largest publicly traded private investment managers on the fund administration side—a sign of how quickly the appetite for outsourcing has grown. The rationale is straightforward: Private markets products are nuanced, data-intensive, and operationally demanding. Firms need partners that can handle complexity consistently and at scale.

Scale as strategic advantage

As private markets move further into wealth and retirement channels, operational scale matters even more. More frequent valuation cycles, greater transparency, new product structures, and increased investor education all require infrastructure that can keep pace. Ryan emphasized that the challenge is not simply whether a process can work once, but whether it can work reliably every time. One successful process is encouraging, but sustained, repeatable performance is the real test.

That reliability is shaping how firms choose partners. Rather than adding more vendors to manage discrete functions, many organizations are looking to do more with fewer partners that can support multiple needs across the investment lifecycle. In that environment, scale is not just an efficiency lever. It is a foundation for speed, confidence, and long-term growth.

AI strategies are only as strong as the data beneath them

Artificial intelligence was another central theme of the conversation. While AI has the potential to improve speed, capacity, and service delivery, Ryan made a point that is especially relevant for financial institutions: An AI strategy is only as good as the data infrastructure that supports it.

For firms that operate across complex products, platforms, and client segments, AI is not simply a tool to automate isolated tasks. It is a force multiplier for time, capacity, and decision-making. But realizing that potential depends on clean, connected, accessible data. Without that foundation, firms may struggle to turn AI from experimentation into enterprise-scale value.

The opportunity for established financial services providers is to use AI to improve existing services, reduce friction, and create new capabilities. The risk is that technology changes the value of individual services over time. For firms that sit in the middle of the ecosystem, the imperative is clear: Remain on the front foot, apply AI where it can meaningfully improve delivery, and continue investing in the data infrastructure needed to support future innovation.

Advice endures as wealth management evolves

The podcast also explored the continued evolution of wealth management. Ryan framed the economics of the space around three broad areas: advice, asset management, and administration. While asset management and administration have experienced persistent fee pressure, the value of quality, independent advice continues to resonate.

That belief is reflected in SEI’s partnership with Stratos. The move gives SEI a strategic foothold in the advice space and a closer view into the relationship between advisors and end investors. Importantly, Ryan described the partnership not as a way to force SEI products into advisor practices, but as a way to better understand advisor needs, support growth, and inform future solution development.

As advisors seek broader capabilities—from tax optimization and unified managed households to private markets access and more transparent cash solutions—the need for integrated platforms and flexible infrastructure will continue to grow. The firms that can help advisors simplify complexity while improving the end-client experience will be well positioned for the next phase of wealth management.

A culture built for the scoreboard

The conversation closed on a personal note, with Ryan discussing his love of basketball and the lessons the game offers about teamwork, accountability, and winning. His distinction between “scoreboard people” and “stat sheet people” provides a fitting metaphor for SEI’s role in the market. The work may not always be visible to the end investor, but it is essential to helping clients deliver outcomes.

Financial services will only become more complex. The growth of private markets, the evolution of advice, the rise of AI, and the demand for better data and transparency are reshaping how firms operate. In that environment, success will require more than best-of-breed products or point solutions. It will depend on connected infrastructure, trusted partnerships, and the ability to scale complexity with confidence.