SEI 2026년 3분기 실적 발표: 사상 최고 판매 속도에 힘입어 매출 14% 증가

핵심 요약

• SEI는 2026년 3분기 매출이 전년 동기 대비 14% 증가했으며, 조정 영업이익은 25%, 조정 EPS는 24% 증가했다고 발표했다.
• 순매출 실적(Net sales events)은 4,700만 달러를 기록해 회사 역사상 두 번째로 높은 분기 실적을 달성했다. 연초 대비 누적 매출 실적은 총 1억 5,700만 달러로, 이미 SEI의 이전 연간 최고 기록을 넘어섰다.
• 조정 영업이익률은 전년 동기 대비 260bp 확대되었다. 600만 달러 규모의 성과 보상 조정으로 인해 분기 이익률이 약 100bp 하락했다.
• 투자 관리자(Investment Managers) 부문이 자체 성장을 이끌었으며, 매출과 영업이익 모두 14% 증가했다. 대체자산 운용사가 해당 부문 분기 매출 실적의 거의 90%를 차지했다.
• 프라이빗 반킹(Private Banking) 매출은 11%, 영업이익은 38% 증가했으며, 이는 전문 서비스, 플랫폼 확장 및 해외 자산 운용에 힘입은 결과다.
• 경영진은 수주 잔고(pipeline)가 2026년 4분기 및 2027년 초까지 견조하다고 설명했으나, 기관(Institutional) 고객의 전환 시점은 여전히 예측하기 어렵다고 강조했다.

핵심 재무 데이터

SEI와 스트라토스(Stratos)가 스트라토스의 멕시코 RIA인 NSC 인수 계획을 철회하기로 상호 합의함에 따라, GAAP 순이익은 기타 비용 3,250만 달러 차감의 영향을 받았다.

사업 및 영업 실적

투자 관리자

투자 관리자 부문은 매출과 영업이익 모두 전년 동기 대비 14% 성장을 기록했다. 늘어난 보상 충당금을 제외하면 영업이익은 17% 증가했을 것이다.

해당 부문은 3,200만 달러의 순매출 실적을 거두었다. 약 3분의 1은 신규 고객으로부터 나왔으며, 나머지는 기존 고객의 확장 계약에서 비롯되었다. 수요는 최초 외주 위탁 기관, 멀티스트래티지 운용사, 사모크레딧, 세컨더리 및 퇴직 상품을 포함한 대형 대체자산 운용사에 지속적으로 집중되었다.

SEI는 해당 분기 중 리테일 명의개서 대행 서비스를 출시했으며, 이후 추가 고객 서비스를 가동했다. 경영진은 명의개서 대행 및 펀드 행정 이니셔티브를 합친 연환산 매출이 2027년 말까지 1,000만 달러를 넘어설 것으로 예상된다고 밝혔다.

프라이빗 반킹

프라이빗 반킹 매출은 전년 동기 대비 11% 증가했고 영업이익은 38% 증가했다. 이러한 성장은 전문 서비스, 플랫폼 확장 및 해외 자산 운용이 반영된 결과다.

해당 사업부는 엔터프라이즈 전환, 전문 서비스 및 데이터 클라우드 기능에 대한 수요를 포함해 1,300만 달러의 매출 실적을 기록했다. 영국 중개 기관 대상 자산 운용 매출에서 약 300만 달러가 발생했다.

경영진은 영업 접근 방식이 핵심 플랫폼 교체를 넘어 운영 모델, 데이터 및 AI 도입을 포함하는 광범위한 전환 프로젝트로 확장되었다고 밝혔다. 또한 기존 은행 거래 관계를 통해 투자 역량을 판매할 수 있는 기회가 있다고 보고 있다.

어드바이저 및 스트라토스

스트라토스는 700만 달러의 상각비를 포함해 매출 2,300만 달러, 영업이익 400만 달러를 기여했다. 스트라토스는 전분기 대비 17% 증가한 1,150만 달러의 EBITDA를 창출했다.

스트라토스를 제외한 어드바이저 매출은 전년 동기 대비 10% 증가했고 영업이익은 7% 증가했다. 시장 가치 상승과 전년도 수주 고객의 신규 온보딩이 실적을 뒷받침했다.

SEI의 ETF 자산은 1년 전 약 40억 달러에서 90억 달러 이상으로 증가했다. 경영진은 SEI 플랫폼 내외에서 액티브, 펀드오브펀드, 채권 및 주식 전략에 걸쳐 ETF 라인업을 확장하고 있다고 밝혔다.

기관 및 LSV

기관 부문 매출은 전년 동기 대비 2% 감소했으나 2분기 대비 1% 증가했다. SEI는 대학 기금, 재단 및 의료 기관을 대상으로 수주 활동 역량을 집중하고 있다.

LSV의 운용자산은 1% 감소했다. 투자 성과 초과는 50억 달러의 순유출로 상쇄되었다. SEI에 귀속되는 성과 보수는 총 450만 달러를 기록했다.

경영진 전망

• 경영진은 2026년 4분기 자사주 매입이 3분기에 완료된 2억 1,500만 달러와 유사한 수준일 것으로 예상한다. 추가로 승인된 8억 달러 한도를 통해 2027년까지 적극적인 매입을 이어갈 수 있는 여력을 확보했다.
• 600만 달러의 성과 보상 조정은 3분기 정산(true-up)으로 설명되었다. 경영진은 추가 25%인 약 150만 달러가 4분기에 인식될 예정이라고 밝혔다.
• SEI는 명의개서 대행 및 펀드 행정의 합산 매출이 2027년 말까지 연환산 1,000만 달러를 초과할 것으로 예상한다. 경영진은 이 목표가 보수적인 수치일 수 있음을 내비쳤다.
• 경영진은 ETF 사업이 2027년에 다시 두 배로 성장할 잠재력이 있다고 밝혔으나, 이는 공식 전망이라기보다 목표라고 덧붙였다.
• LSV의 순유출은 다음 분기에 개선될 것으로 예상된다.
• 영업 파이프라인은 투자 관리자, 프라이빗 반킹, 어드바이저, 기관 전반에 걸쳐 2027년 초까지 견조하게 유지되는 것으로 평가되었다.

리스크 및 주시 항목

• 가변이익기업(VIE)으로부터의 투자 이익은 변동성이 클 수 있다. 이러한 이익은 3분기에 전분기 대비 800만 달러 감소했다.
• 기관 영업 파이프라인의 계약 전환 시점을 예측하기가 여전히 힘들어, 영업 활동이 보고 매출에 반영되는 시점에 대한 가시성이 제한적이다.
• 강력한 IMS 수요로 인해 인력 채용 및 시스템 도입 요구사항이 늘어나고 있다. 경영진은 SEI가 처리 용량을 지원하기 위해 자동화를 활용하는 동시에 빠르게 채용을 진행하고 있다고 밝혔다.
• 사모크레딧으로의 리테일 자금 유입이 약화되었으나, 경영진은 주력 제품 출시가 예정대로 진행 중이며 영업 파이프라인에 문제가 없다고 밝혔다.
• LSV는 해당 분기 동안 50억 달러의 순유출을 기록했다.
• 어드바이저 부문의 전분기 대비 이익률은 주로 스트라토스 어드바이저 경험 향상을 위한 기술 투자로 인해 약 50bp 하락했다.

애널리스트 Q&A 하이라이트

• ETF 유통: SEI는 자체 플랫폼 안팎에서 ETF를 판매하고 있으며, 다른 모델 포트폴리오 제공업체들도 SEI 제품을 편입하기 시작했습니다. 경영진은 ETF를 성장 동력으로 보고 있지만 구체적인 자산 목표치를 제시하지는 않았습니다.
• 대체 자산: IMS는 최초 외주 위탁 기관, 사모크레딧, 세컨더리, 집합투자신탁(CIT) 및 인터벌 펀드에서 수요를 확인하고 있습니다. 회사는 초기 레퍼런스 사례를 구축한 후 점진적으로 더 큰 규모의 리테일 대체투자 위탁 자금을 확보할 계획입니다.
• 구현 속도: 경영진은 온보딩 속도 향상의 원인으로 광범위한 전략적 관계를 통한 고객 운영 계획에 대한 빠른 접근과 자동화 및 AI 투자를 꼽았습니다.
• 반복 매출: SEI는 고객이 규제, 기술, 데이터 및 AI 관련 변화에 대한 지원을 지속적으로 필요로 하기 때문에 엔터프라이즈 전환 및 전문 서비스가 반복적인 수익 기회를 창출할 수 있다고 밝혔습니다.
• 사모크레딧: 경영진은 리테일 유입 감소를 인정했으나, 보험 자금이 사모크레딧에 지속적으로 유입되고 있으며 SEI의 파이프라인 둔화 현상은 관찰되지 않았다고 설명했습니다.
• 파이프라인 촉매제: 경영진은 자산관리 및 기관 사업 일부에서의 사상 최대 파이프라인, 스트라토스의 성장 모멘텀, 4분기 예정된 칼라일(Carlyle) 펀드 출시, 신규 제공업체를 찾는 최대 500억 달러 규모의 업계 플랫폼 전환을 주요 동인으로 언급했습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Greetings. Welcome to SEI Third Quarter 2026 Earnings Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Brad Burke, Head of Investor Relations and Treasurer. Thank you, sir. You may begin.

Bradley Burke

Thank you, and welcome, everyone, to SEI's Third Quarter 2026 Earnings Call. We appreciate you joining us today. On the call, we have Ryan Hicke, SEI's Chief Executive Officer; Sean Denham, our Chief Financial and Chief Operating Officer; and members of our executive management team, including Kristie Edling-Day, Michael Lane, Phil McCabe, Mike Peterson, Sneha Shah, Sanjay Sharma and Amy Sliwinski.

Before we begin, I'd like to point out that our earnings press release and the presentation accompanying today's call can be found under the Investor Relations section of our website at seic.com. This call is being webcast live, and a replay will be available on the Events and Webcast page of our website.

With that, I'll now turn the call over to Ryan. Ryan?

Ryan Hicke

Thank you, Brad. Good afternoon, everyone. The results SEI delivered in the third quarter reinforced the conversations we have been having with this audience for the last couple of years, and they confirm why we had the conviction in the strategy we discussed at the Investor Day last year. The results provide repeatable evidence that the strategic changes we have made are showing up across the company. It also demonstrates that the nature of our client relationships have evolved. SEI is now engaging with clients at the top of the organization on more strategic issues and bringing a broader set of capabilities to the relationship.

In the third quarter, SEI reported revenue growth of 14%, adjusted operating profit growth of 25% and adjusted EPS growth of 24% compared to the prior year. And for some longer historical context, the adjusted EPS achieved in the third quarter is nearly 50% above where the company stood 2 years ago. Our growth continues to broaden across the company, with contributions from multiple businesses in both financial performance and sales activity.

And speaking of sales events, third quarter net events totaled $47 million, bringing our year-to-date total to $157 million. With a full quarter still remaining in the year, we have already exceeded the highest level of full year sales results in the history of the company. We're excited about the results and the trajectory of the business. Sean will walk through the results in more detail, but I want to spend a couple of minutes talking about what we're seeing in each of the businesses at a macro level.

In IMS, demand remains strong, especially among large alternative asset managers. We continue to be the partner of choice for those looking for global scale, asset class breadth and modern technology. What has become clear to us over the last 18 months, is that SEI's reputation is one of our strongest competitive advantages. When firms evaluate outsourcing partners, they speak with our existing clients. They ask who can execute? Who can handle complexity? Who can support future growth? But they also ask who has a client-centric culture and truly understands the nature of partnership? Those conversations are opening new doors with some of the largest first-time outsourcers in the industry.

We are also encouraged by the strong demand for solutions in retail offer. We had a successful launch with our retail transfer agency and our Alton CIT capability is showing momentum, with multiple clients launched in Q3 and more expected to fund shortly. Our Private Banking business delivered another strong quarter, and we expect sales activity to remain solid. Professional services is a key driver of this acceleration.

When I step back and look at why we have seen sales activity accelerate and why our pipelines are strong, professional services looks less like a separate offering in banking and more like the missing piece that is now complementing the SEI offering. And this is a solution set that we believe has resonance across all of our client bases in the enterprise.

What does that mean? Just a few years ago, our discussions with clients were driven entirely by the platform offering. Here's the platform. Do you want to buy it? And when you do that, you box yourself in as a vendor. Those client conversations have evolved into discussions around transformation, how to simplify technology environments, modernize operating models, increase client acquisition, improve the use of data, harness AI and positioned for future growth.

Clients are looking for a partner that can help them define the future state of their business. As a result, the largest opportunities in our pipeline are no longer just platform replacements. They are comprehensive enterprise transformation initiatives. And on AI, specifically, I understand there's been a lot of concern in the market about how AI might impact SEI. The only effect we are seeing is that AI has accelerated client interest in partnering with SEI. It is driving more demand, not less, and we can point to multiple specific examples in our pipeline where this is the case.

Turning to Asset Management business. The team has moved beyond reimagining and is building momentum in the execution phase. The progress we have seen reflects substantial effort around client segmentation, distribution, adviser engagement, pricing, product development and new client acquisition. We're seeing stronger engagement with RIAs, improving activity across the institutional pipeline and continued adoption of our ETF strategies, which now total more than $9 billion in AUM, up from only $4 billion just last year.

We continue to invest in distribution, products, partnerships and talent. That includes the recent addition of Kristie Edling-Day as our new Chief Information Officer, bringing deep financial services and technology experience, to help advance our technology and product strategy. We believe the business is moving in the right direction, and we expect that direction to continue improving.

Also, our conviction and independent financial advice and the Stratos partnership increases every day. We got to see that firsthand at our recent adviser conference in Nashville, where more than 500 advisers, including Stratos advisers and their leadership team came together with real enthusiasm about what we can all accomplish together. After a year of working closely with Jeff and the Stratos team, we're even more confident that we chose the right partner to build alongside in the United States. The combination is already creating new opportunities across both Stratos and SEI, and we believe there is substantially more we can accomplish together.

Before concluding, I want to touch on profitability. Adjusted operating margins in the third quarter remained near record levels. And this was not driven by some shortsighted cost-cutting initiative. It is the result of building a more scalable business and paring thoughtful investment with strong revenue growth. We believe that combination creates significant value for shareholders. As I often say on these calls, an enormous thank you goes to our global workforce for their passion and their delivery. But also to our clients, for their continued trust and partnership.

In conclusion, the results this quarter are great. But in the words of Jelly Roll, the windshield is bigger than the rearview mirror for a reason, because what's in front of you is so much more important than what's behind you. I have a lot of confidence in what underpins our results, strong pipelines, enthusiastic clients and a business that is becoming more capable and efficient with each passing day. Some people tell us, SEI is back. Well, to that, we say thank you. But we believe SEI hasn't even remotely defined who we will be yet.

With that, I will turn the call over to Sean.

Sean Denham

Thank you, Ryan. Turning to Slide 4. SEI delivered another outstanding quarter. Ryan already covered the highlights, so I'll focus on just a few items that affected results. The third quarter included one notable item within operating expenses. Given the strength of our results year-to-date and our outlook for the remainder of the year, we increased our incentive compensation accrual during the quarter. This adjustment reduced operating profit by $6 million and adjusted operating margins by roughly 100 basis points. While it impacted reported profitability in the quarter, it is ultimately a reflection of the strong performance being delivered across the business.

Sustaining that performance requires the best people and a commitment to rewarding them. Adjusted EPS declined by $0.02 compared to the second quarter, driven by 2 items. First, net gains on investments in variable interest entities declined by $8 million from the second quarter. These investment gains can be volatile, and Q3 reflects what we believe is a more normalized level of contribution.

The second item is the incentive compensation adjustment I just discussed. Excluding that adjustment, adjusted operating profit would have increased approximately 4% and adjusted operating margins would have expanded by roughly 20 basis points compared to Q2. The quarter also benefited from a slightly lower effective tax rate than normal, driven by elevated employee stock option exercises after SEI shares reached a record high. In addition, GAAP net income was reduced by $32.5 million recorded in other expenses, related to our mutual agreement with Stratos to terminate the planned acquisition of NSC, its Mexican RIA.

Please turn to Slide 5 for the business segment results. SEI's strong financial performance was broad-based. Investment Managers led SEI's organic growth with revenue and operating profit, both increasing by 14% compared to the prior year. Absent the elevated compensation accrual, operating profit would have increased by 17%. Growth was driven by the conversion of prior sales success into revenue and our clients continuing to deploy capital at healthy levels.

Private Banking also posted another strong quarter, with revenue increasing 11% and operating profit increasing 38% compared to the prior year. That performance reflects strong operating leverage, with revenue growth driven by balanced contributions from professional services, platform expansion and international asset management.

Advisers benefited from the acquisition of Stratos, which contributed $23 million of revenue and $4 million of operating profit during the quarter, including $7 million of amortization. Stratos generated $11.5 million of EBITDA in Q3, an increase of 17% from the second quarter. Stratos also completed a tuck-in acquisition and onboarded several advisers during the quarter with additional opportunities in the pipeline. We continue to see interest from long tenured Stratos and SEI advisers seeking succession and continuity solutions, creating another avenue for growth across the combined platform.

Excluding Stratos, Advisors revenue increased 10% and operating profit increased 7% compared to the prior year. Results benefited from higher market values and onboarding clients won over the last year. Institutional revenue declined 2% compared to the prior year, but increased 1% sequentially from the second quarter. Pipelines in our Institutional business are improving, although the timing of when that progress translates into financial results remains difficult to predict.

Moving to Slide 6. Adjusted operating margins increased 260 basis points compared to last year. Sequentially, adjusted operating margins declined 80 basis points due to the higher compensation accrual. Excluding that impact, adjusted operating margins would have increased approximately 20 basis points. We achieved those margin levels while continuing to invest in the business. That includes adding senior talent across data, AI, professional services and asset management, along with continued investment in technology and product development.

We also opened our Singapore office in September, extending our global footprint in creating a platform to support clients with operations and growth ambitions across Asia Pacific. On a sequential basis, excluding incentive compensation, Private Banking and Institutional both generated modest margin improvement. IMS margins were essentially flat, and Advisers margins declined approximately 50 basis points, primarily reflecting investments in technology to support the Stratos adviser experience.

Turning to Slide 7. I Net sales events totaled $47 million, the second highest quarter in SEI's history, with recurring sales events also reaching their second highest level. IMS led the quarter with $32 million of net sales events, with approximately 1/3 driven by new clients and the remainder attributable to client expansions. Demand in the quarter remained strongest amongst alternative asset managers, which drove nearly 90% of sales events.

In July, we launched our retail transfer agency with our first client, with additional launches expected in the coming months. We expect the combined transfer agency and fund administration revenue from the initiative to exceed $10 million on a run rate basis by the end of next year.

Private Banking generated $13 million of sales events during the quarter. Results reflected continued demand for enterprise transformation initiatives, professional services, data cloud capabilities and broader strategic engagements with clients. Nearly $3 million of events came from asset management sales to U.K. intermediaries.

We're also starting to see momentum build in the U.S. The investments and talent we made early in the year to start -- early in the year to start driving asset management conversations are beginning to gain traction. New leadership, clear accountability and a renewed commercial focus are rebuilding pipelines that have been underdeveloped for years. Within Asset Management, positive sales events and advisers of $2 million offset $2 million of negative events in Institutional.

Please turn to Slide 8. Ending AUM was essentially flat for the second quarter, with limited impact from both market movements and net flows. Slightly positive net inflows in Advisers largely offset modest net outflows in Institutional. While flows remain mixed across our asset management businesses, we continue to see traction from newer products and initiatives, including ETFs, SMAs, strategic partnerships and our adviser engagement efforts.

Assets under administration increased 4% compared to Q2, with growth driven by expansion in the IMS business, including the funding of recently won mandates and clients continuing to deploy capital. Assets managed by LSV were down 1% as strong investment outperformance was offset by $5 billion in net outflows, a figure that we expect to improve next quarter. Performance fees in Q3 totaled $4.5 million at SEI share.

Turning to Slide 9. We ended the quarter with $400 million of cash, modestly higher than Q2 despite repurchasing $215 million of SEI shares at an average price of $105. Based on our current outlook, we would expect repurchase activity in the fourth quarter to be similar to the level achieved in the third quarter. Our commitment to share repurchases does not come at the expense of investing in the business. We continue to fund strategic growth initiatives across the enterprise while maintaining significant financial flexibility.

The recent authorization of an additional $800 million of repurchase capacity gives us the ability to remain active well into 2027. In closing, we delivered another strong quarter and remain confident in the outlook for the business. Healthy pipelines and continued client engagement support that confidence as we head into the fourth quarter.

With that, operator, please open the line for questions.

Operator

[Operator Instructions] Our first question is from Jeff Schmitt with William Blair.

질의응답

Jeffrey Schmitt

So I know ETF assets have been growing at a high rate, and you recently announced the integration with ICE ETF Hub. I think, a few weeks ago. So as you begin distributing these ETFs kind of outside of the SEI ecosystem, how should we think about kind of the size and pace of that opportunity?

Ryan Hicke

Yes, it's a great question. Thank you. Our ETF lineup is growing. So we both are growing the number of ETFs. We're out selling both on platform and off platform. And the size, the actual volume of the ETF business overall and the industry is growing as far, tripled just this year in terms of AUM from about $3 billion, $4 billion to about $9 billion, as I said earlier.

So we've also seen other model providers begin to use SEI in their models, and that is a first for the company. So we -- I can't give a number of what I expect the growth to be. But if you look at that business, the ETF business, we are growing our product line up across a range of fee schedules. It's not all very low-cost, cheap betas. There are active strategies, fund-to-funds strategies, across fixed income and equity. I would expect our hope is that, that business has the potential to double again next year. So we see it as a growth engine for us.

Jeffrey Schmitt

Okay. Great. And then just given the strength in IMS, are you running into capacity constraints that could limit how quickly you take on new business? And if so, I guess, could your automation initiatives support higher growth as those kind of progress?

Phil McCabe

Thanks, Jeff. This is Phil. I would definitely say the automation initiative is going to help us with IBM over the next several quarters or so. So we're definitely looking forward to that. We have never had a conversion queue. When a client wants to be converted, we rally the troops and convert them. We do have a lot of business right now, and we are hiring quickly as humanly possible. So it's a constant valet, a juggling act, and we're doing everything we can to bring revenue in as quickly as humanly possible.

Operator

Our next question is from Crispin Love with Piper Sandler.

Crispin Love

Just first on sales wins and IMS specifically the alternatives segment. Can you just discuss the areas where you're seeing the most success today? You've discussed being a leader in private credit and private equity. Kind of out of those 2, where you're seeing the most success? And then beyond PE and private credit, where else are you seeing strength?

Phil McCabe

So Jeff -- I'm sorry, Cris, it's Phil. I look at the pipeline in 3 different ways. I look at first-time outsourcers. So right now, we're doing really, really well with first-time outsourcers. We have 2 of the top 25, and we're probably speaking to another 15 of the top 100 managers out there. So we're really starting to resonate in the market with that.

But that's everything. It's not just private equity or private credit. Most of these managers are multi-strat managers, and we do everything for them. But we are seeing a ton of traction with secondaries out there. In private credit, we're still seeing flows. It's a little lighter on the retail side, but they're still launching flagship products. But we're seeing more insurance money falling or flying into private credit.

Beyond that, on the retirement side of the business, we've closed 14 managers already that want to put alternative products into collective investment trust. So we're seeing a lot of traction there. It's a little bit slow on the funding side, but that only bodes well for the future. And then lastly, we look on the wealth side. and the new TA capabilities enable us to go after interval funds, which we had been losing prior to a couple a few months ago. So we got a couple of them locked down. And we have a bunch stacked up for converting in October, November, December and well into next year.

Ryan Hicke

And Cris, the only other thing I'd add to what Phil said is something that we talked about at the Investor Day and to in the past, we track pretty closely our success rate of new fund launches from existing clients, and that's an area that we just continue to see, I think, outsized growth relative to peers.

Crispin Love

All right. Great. Then a little bit about the expense outlook, just given the success of sales and how that can flow into compensation. You did call out the additional $6 million plus of incentive comp. Is that just based on sales that have already been announced? And then also, as I look at my model on a go-forward basis, is it better jumping off point for expenses, the operating expenses, less that $6 million accrual? Just kind of curious as I look at the fourth quarter and beyond.

Phil McCabe

Well, first off, the $6 million incentive comp accrual is a one-timer that goes away next quarter. We did increase that this quarter. So that's a true-up. There's another 25% that hits in Q4, so call it, $1.5 million. Looking back historically, our incentive comp accrual overall is closer to 100%. So it's fair to call out as being a bit of a choppier impact, certainly in terms of the impact of Q3 results. Good expense from the standpoint that it goes up when the business performs great and if the business performs not great, then it goes down.

Ryan Hicke

The only thing I would add, Crispin, you but -- also, incentive comp is independent of sales comp at SEI. So the incentive comp incentive comp is a variable bonus element to the majority of our workforce that is completely independent of the sales compensation linked to our sales results.

Operator

Our next question is from Alex Kramm with UBS.

Alex Kramm

Just want to come back to your comments on the pipeline. I think you call it healthy and maybe some of this you just answered a couple of questions ago, but can you just give a little bit more detail where you're seeing most of the strength. You made the comment you already exceeded last year. So anything in particular on the 4Q, we should be mindful of? Any big chunky areas? Yes, how do you feel about year-end?

Ryan Hicke

Alex, it's Ryan. I mean, I think we'll do what we normally do on the call. When we get this question is I'll give a high-level overview and then I'll let the unit leads maybe give some color commentary. I think what's really exciting is when you compare Q3 to Q2, they look eerily similar in terms of the spread and the breadth, which is a great thing because we constantly talk about both the qualitative importance of our sales and results are just as important to us as the quantitative, but we really care about repeatability.

When we look at pipelines for Q4 and into early 2027, we see a lot of the same. A lot of the same trends in terms of the segments where we believe we can differentiate a lot of trends in terms of the value proposition residents. But I think it's always great to let Michael or Phil or Sanjay give a little bit of color around kind of what segments or what they're seeing where we continue to win.

Michael Lane

When you think about platform business and you think about custody and Welltec, one of the things that you have to count on, if you want to do something in a large degree, some sort of stimulus. And we're seeing those stimulus happen in the industry right now. There is a competitor to us that just recently announced that anybody where a certain asset level is going to have to lead within the next 9 months that produces and provides an opportunity for us. And so we are all over that opportunity. We think that opportunity industry-wide, just that one occurrence is probably somewhere in the $50 billion mark that will be coming out looking for a new home or platform.

So if you look at our pipelines that are in place right now across the institutional and wealth business, they are at all-time highs. Our institutional business, we have been focusing hard on top line growth. We've been retaining assets very well, but we need to focus more on top line growth. So we have that. Our advisory business has incredible momentum. But the stimulus that has happened in the industry where there's up to $50 billion seeking a new home, we feel will be new pipeline coming into '27. Phil?

Phil McCabe

Sure. Last quarter, I was practically giddy when I was talking about the pipeline. So I was constructed to dial a little bit. What I would say is the outlook is very, very strong for the next several -- several quarters or so. No matter what jurisdiction, no matter what product, I mean things are going really well. So we've talked about retirement. We talked about wealth. We've talked about insourcers to outsourcing. In general, we seem to be clicking on all cylinders. So not sure what else to say other than the team is working really hard, and we expect great things. Sanjay?

Sanjay Sharma

I would echo my colleagues here. Our pipeline is very strong, and we are very excited about it. Ryan, you talked about how we are going to market in PV segment now. We are not just leading with our platform. We are leading in PV segment with enterprise capabilities. And that is generating a lot of new opportunities, not just with new logos, but with existing clients as well.

I think about 100-plus existing clients in PV segment. We are very, very focused on how we can continue to grow our footprint with SEI enterprise capabilities, both here in U.S. as well as in international markets. So we are very excited about our pipeline.

Ryan Hicke

And I'll just say Sanjay, on top of that, Sanjay and I are working closely on bringing investments into banks -- we now have a team of people hired that are going out and capitalizing on the fact that we have deep relationships with banks on the technology side and operation side, but we've never brought investments to them. And as we've grown our investment lineup, we're now bringing that into the banks as well.

Michael Lane

Michael here. I was going to say the same thing and just add a little color of saying to Alex's question, like there are core kind of business areas, but to Sean's commentary around things that we have accelerated and activated in 2026. We are optimistic that things like asset management to the banking space, we're really excited about the momentum we see in Stratos. The Carlyle fund launches in Q4. So we have multiple different things actually that we know will start to get some momentum going into 2027 that we believe will be additive to the success that we've had.

Alex Kramm

Great. Lots of great color. And then maybe just very quickly, on the transfer agency launch, it sounds like one win live so far. Anything else you can talk about in that opportunity specifically? And you mentioned that $10 million by the end of next year. Maybe just -- how do you get there? And what needs to happen for that to actually be exceeded? So just a little bit more color how you're thinking about the ramping of that business.

Phil McCabe

Sure. This is Phil again. So the first one went live on August 3. We have other ones live now. And as I said, we have been stacked up for the next several months or so. I think the $10 million number will be a little bit light. The first deal was about $600,000. And from there, I think it's in a space that we've never been in before. So I think if we just keep doing what we're doing, we're going to be fine.

Operator

Our next question is from Ryan Kenny with Morgan Stanley.

Ryan Kenny

So you called out that the pull forward of net new sales helped drive some of the revenue growth. Is there any effect of accelerated implementation time lines, either because of process improvement or because of AI?

Sanjay Sharma

I can take that. From a private banking wealth managing perspective, as Ryan talked about, the quality of deals we are focusing on is a repeatable business. So we have invested very heavily in our onboarding process. And I think about when our clients are changing the platform pay to our platform, it's a significant undertaking in terms of people, process, technology. And SEI to enterprise capabilities, we have mastered that. So if you look at last 2 plus years, that is how we have like regional community bank space or the PCIM and IFA market in the U.K. It's a repeatable process. We are investing in automation, in AI, and that is helping us to fast track the overall onboarding process.

Ryan Hicke

I think the other thing, Ryan, which is a little bit more kind of independent is when Sanjay and Michael were talking about kind of how we're positioning the company, and we use phrases like an enterprise partner. And I know that sounds kind of trade like jargon, but clients and prospects are letting us in sooner, and we're getting more insight into their current and future operating models earlier in the process.

So that when these deals are struck, we are ready to go and we have a much clearer and granular understanding of what their ultimate destination looks like. So it is the combination of the technology, but I think it's also an additive part of the relationship and the way we've been going to market. We're just a lot smarter when the go button is hit of what we need to do, and that is paying off. And you're seeing it. I think that's why we're installing things faster than we have historically.

Ryan Kenny

That's great. And then you mentioned that the revenue mix is increasingly weighted towards the enterprise-wide sales activity and advisory and business transformation and other initiatives. Are those revenue streams or onetime in nature? Or is there a recurring nature to them that helps the revenue outlook be more resilient over time?

Sanjay Sharma

This is Sanjay again. So if you look at the professional services market, when you look at all these banking clients or any other segment clients, they are making a platform change decision, maybe once in 20 years, 15 years. But then continuously, they are keeping pace with the changes happening in the industry. Those could be driven by regulatory requirements. They could be technology treatment. They could be industry-driven.

And so they're constantly looking for trusted partners who can help them with that change journey. And that's how we are establishing ourselves and differentiating ourselves with other providers that we could be that trusted partner for them to continue to keep pace with the change. And that's where you could see the traction we are having, be it our Data Cloud solution or be it our professional services, even AI adoption.

Sean and I, we are working together. Literally, we talk to each other every day about how we can help our clients to adopt AI. Because this is not easy, that how you implement AI-driven initiatives in your landscape that a class significant undertaking. Reskilling your workflows, adopting new ways of compliance, resilience, and we are the one, we are helping our clients with that journey.

Sneha Shah

Yes. And maybe I'll add there. I think it's really important to understand what clients are going through because they're having to reinvest their operating models in the age of AI. And so they don't see us as just a provider for that one part of their platform. They're actually saying, what are you building that we don't have to? And so we're actually getting business that is recurring business that has nothing to do with what we started the conversation with them a couple of years back with. And we're also creating new services as a result of the client demand.

And so it's really interesting because we're seeing across the industry, people want fewer partners that are trusted, that are deeper in their ecosystem, because the amount of AI tools and the perforation of that is not deriving value for them because the value comes from integrated platforms and context. And that's where we really provide a lot of value to our clients.

Operator

Our next question is from Patrick O'Shaughnessy with Raymond James.

Patrick O'Shaughnessy

How would you characterize the general health of the private credit space right now in light of some of the growing concerns about credit quality? And then what's the read-through in terms of your sales pipeline? It sounds like no impact yet, but are there maybe some cracks starting to emerge?

Ryan Hicke

Phil, you can go. I mean, Patrick, the answer in the second part, there are no crack starting to emerge, but Phil can give clear color on that.

Phil McCabe

Yes. I mean on the private credit side, we track the flagship products, as I said before, that they're looking to launch, and we're still seeing them getting launched on schedule. I do think retail flows are down in private credit, but that didn't impact us before because we've only been in that space for about the last several months. And on the institutional side, we're seeing insurance money flowing into private credit, but that is only a fraction of a fraction of what we do. And we don't see any cracks in any particular part of our pipeline at all anywhere.

Patrick O'Shaughnessy

All right. That's helpful. And a question on Stratos. Can you kind of walk us through the U.S. versus the international strategy of that business at this point?

Ryan Hicke

So today, the Stratos footprint, Patrick, is predominantly the U.S., and they had one Latin American business that was part of their overall kind of ecosystem. That was the MSC business that we called out as determination. But the rest of the business is all domestic.

Operator

Our next question is from Alex Bond and with KBW.

Alexander Bond

I wanted to follow up on some of the commentary around retail alts and the interval fund side. It sounds like the near-term pipeline is strong there. And last quarter, you called out trying to target some of the larger existing funds in that area. So curious if you could share how those efforts, maybe specifically with converting some of the larger existing funds in that area are progressing?

Phil McCabe

Yes. This is Phil again. I think we needed a little bit of a proof case with the first couple of deals that we signed to get them in and done and they seem to be going really well. But I think over time, we'll keep moving up the food chain to try to get larger and larger deals. So as we said before, that market is kind of bifurcated the top 15 or 20 managers have about 60% of that market. So we definitely want to move up. I just think we have to sort of crawl, walk, run. And right now, we're walking and we'll go from there.

Ryan Hicke

And I think the only thing I'd add is we don't ever give out client names as Phil said, but I literally have the pipeline for our RegA in front of me. And as Phil said, we're really optimistic not just in the ability to continue to win business, but the brands that we're winning the business from are the right sort of brands that will put us in a good spot and will continue to grow.

Alexander Bond

Got it. Makes sense. That's helpful. And then also wondering maybe if you can expand on what you're seeing in the institutional business. You noted that it's difficult to time up when some of those pipeline opportunities concerning the revenue events, which is understandable and makes sense. But maybe if you could speak to which areas you're seeing the most traction in as it relates to the pipeline there as of late? And sort of near-term expectations there, that would be helpful as well.

Ryan Hicke

Absolutely. In the institutional pipeline, what we've been focusing on predominantly is in dominant foundation, health care. Those are the 2 primaries. Obviously, we're not focusing on new defined benefit plans. We're retaining the ones we have that haven't funded fully with a surplus that might annuitize at some point. If you look at the losses we had in the third quarter.

One, we had one plant loss that we did what we were supposed to do get into 100% funding ratio and then the annuities. But the pipeline is truly growing in that endowment and foundation space in health care. We are putting all of our resources behind a much more targeted approach to growing the top line than trying to spread a little too thin as we may have in the past.

Operator

[Operator Instructions] Our next question is from Dan Weldan with Wells Fargo.

Daniel F. Welden

I'm still recovering from your Jelly Roll quote.

Ryan Hicke

Thanks, Dan. If you might give it was my idea. If you don't, it was Brad.

Daniel F. Welden

Where do we get it? You sound positive on the outlook for private banks. You said expect to remain solid. I wonder if you could drill in a little bit in just the 2 areas. One, the recurring revenue sales events what's sort of driving that momentum? And then secondly, on AMD, you've got 3 quarters of positive flows there, a very good trajectory versus spotty historically. I'm curious on your views on sustainability in that trend.

Ryan Hicke

Yes, Dan, 2 great questions. I'll start and let Sanjay give color. So if you think about historically, private banking, as we said, was basically a cell SWP only value proposition. So when you look at the breadth of recurring revenue, SWP is still at the core of almost all of the sales agendas, but then the expansion, as Sanjay touched on earlier around professional services has really just been an amazing tailwind for the business and something that we see has great durability.

And then if you take your AMD comment, that is all international. And we made a shift about 18 months ago that we have a lot of resources in the U.K. that were split focused on the institutional space and only one resource focused on the intermediary space. And I have a lot of bias given that's kind of where I spent most of my career at SEI in the U.K.

So we shifted it probably one of our best leaders in the U.K. to the A&D intermediary space, gave him some resource to hire some talent and it really has paid off not just with new names, but with reigniting relationships with existing clients. And that's why Sean and Michael and Sanjay, Dan, were calling out that we made a couple of key hires earlier this year because we really believe we have a similar opportunity in the U.S. with our IMU platform and our OCIO capabilities in the banking space. Especially as Michael talked about, a different approach where maybe we are a component in somebody else's model.

So we are really excited about that opportunity. But at the core, we really love what we see in terms of the market core SWP. But when you add professional services and asset management, that's where we get excited about some differentiated top line growth for banking moving forward. But Sanjay, do you want to provide color on kind of the margin when we have those additional solutions?

Sanjay Sharma

Yes, certainly. This anchors us back to what we talked about private banking market on Investor Day, right? We said that apart from going to market with core platform. We'll also be expanding significantly in professional services and asset management. And what you're seeing now that international market is already showing those results and we are expanding through those capabilities in domestic market as well.

One other thing which I would call out once again, I talked about it earlier. Our earlier focus was winning new logos because we are just leading the platform. Think about any of our existing clients, once they buy the platform and if we are not selling them anything else, there's no other opportunity for SEI to grow. We changed that paradigm completely.

And now, while we are changing new logos with our enterprise capabilities, we are also helping our clients to grow their business. And that is translating a new revenue, recurring revenue stream for us. I'll talk about Data Cloud and AI. So think about the industry will keep changing. Based on us, we continue to innovate new services for our clients and help them to keep pace with change. So that's why you could see a good combination of core platform, our enterprise professional services, data cloud, asset management capabilities that will continue to help us to grow our business in this segment.

Operator

There are no further questions at this time. I would like to turn the conference back over to Ryan Hicke for closing comments.

Ryan Hicke

Well, thank you, everyone. This was, again, a terrific quarter. We really appreciate the engagement. We appreciate the support. We're extremely excited about what is ahead of us, and we look forward to speaking with you again next quarter.

Operator

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.