What drove SEI's earnings growth in 2024?

SEI Investments Co's 2024 earnings growth was driven by several key factors:

1. Revenue Growth: SEI's revenue increased by 13% year-over-year, reaching $537.4 million, surpassing analyst estimates. This growth was primarily driven by record net sales events of $46 million and a rise in assets under management, administration, and advisement to a record $1.6 trillion.
2. Earnings Per Share (EPS) Growth: The company reported a 37% increase in EPS, reaching $1.19, which is the second-highest level in the company's history. This growth was fueled by operational efficiency improvements and cost management, as evidenced by the increase in operating margins to 26.8%.
3. Assets Under Management (AUM): SEI experienced a significant increase in AUM, with a 16% year-over-year rise, reaching approximately $1.6 trillion. This growth in AUM is a direct result of successful business strategies and market conditions.
4. Strategic Initiatives: SEI's strategic focus on capital allocation, operational leverage, and revenue growth has contributed to its financial success. The company's investment in areas such as talent, professional services, innovation, private assets, and emerging technology has likely led to increased efficiency and profitability.
5. Market Conditions: Favorable market conditions, including positive cash flows into separately managed account programs and strategist programs of the Investment Advisors segment, have contributed to the increase in revenues.

In summary, SEI's earnings growth in 2024 was driven by a combination of revenue growth, increased operational efficiency, strategic initiatives, and favorable market conditions.