SEI Investments Company (NASDAQ:SEIC) Q2 2023 Earnings Call Transcript

Mike Brown: Okay, great. I just wanted to touch based on capital allocation and maybe the balance sheet here. Any change in your views on – your – kind of cash levels that you want to run with going forward? And then – and maybe I can dovetail into how you’re thinking about capital allocation here, obviously seeing some inorganic growth here recently. But how are you thinking about other transformational M&A down the road and maybe balancing that with capital return?

Dennis McGonigle: Sure. So I mean, I’ll start with our capital allocation hasn’t – today it’s consistent with where it’s been for quite a while now, which is reinvesting the business, first and foremost. And that includes M&A to the extent there’s an asset or a business out there that may makes a lot of sense for SEI and for us to own that business and make it part of SEI. And then second is to continue to return capital to shareholders. And you saw that – you’ve seen that kind of continue consistently. The word transformational gets thrown around a lot and to the extent we had a bigger transaction that our current balance sheet makeup wasn’t sufficient enough to fund, we’re not hesitant to go to market and raise capital.

And I think sometimes we get this – there’s this perception that we’re – these are my words, allergic to debt, and that’s not the case at all. We’ll be proven certainly in our capital approach, but we’re not afraid of or large with the changing the nature of our balance sheet if it meant, putting us in a better position for growth and success in the markets we’re in.

Mike Brown: Okay, great. Thank you.

Operator: And there are no further questions at this time, Mr. Hicke.

Ryan Hicke: Thanks. So in closing, we have an outstanding foundation and momentum to drive continued growth for our stakeholders. Looking at the future, it is with mixed emotions that after 38 years, numerous leadership and executive positions and countless, enormous and lasting contributions to SEI’s success and culture. Dennis McGonigle has decided to step away at the end of 2023 to reallocate his time to other parts of his life. Dennis has been an invaluable partner, friend, advisor, and colleague to me over my entire career, and I personally owe him an enduring debt of gratitude. He and I will work with the executive team on a smooth transition of duties over the coming months and we will explore ongoing opportunities for Dennis to remain involved with SEI. As we focus on the opportunities ahead, I’m confident in our strategy and I’m confident in our ability to deliver just as we’ve done for 55 years. Thank you for joining today’s call.

Operator: That does conclude our conference for today. Thank you for your participation and for using AT&T Teleconferencing Services. You may now disconnect.