SEI Debuts Cloud Solution For Private Fund Investor Transaction Processing

Jan 6 2017 | 7:06pm ET

SEI has unveiled a new cloud-based solution that automates the paperwork-intensive process of handling, documenting, and tracking investors’ private fund transactions, developing the new component in part using a private blockchain.   

Named SEI Trade, the new capability comes after a year-long deployment of the solution into the alternative investment arm of a major global financial institution and its various wealth and brokerage divisions, the company said in a statement.

SEI Trade is designed to streamline a notoriously inefficient and error-prone set of processes, providing digital document management, workflow automation, intelligent form completion, and real-time tracking and transparency of investor transactions. The system also simplifies steps in the fulfillment, transaction, and on-boarding processes. 

The new module has been released as a component of SEI’s global operating platform, the company said. Accordingly, it can handle all major investment vehicles or transaction types.

“In building this solution, SEI looked to address an area that our clients have felt was a cumbersome paper-driven process vulnerable to simple errors and process delays,” said Jim Warren, head of solutions strategy & development of SEI’s Investment Manager Services division. “Investment automation has been critical throughout the financial services industry, and we wanted to apply those improvements to the investment subscription process, allowing our manager clients and their investors to benefit from these technological improvements.”

As part of SEI Trade’s development, the company created a proof of concept integrating the solution into a private blockchain, which brings encryption and distributed general ledger functionality and advantages to the security, storage and delivery of the sensitive investor data captured in the application. 

Alternative investment managers, wealth management firms, and distribution platforms, many of which have lagged behind other financial services firms in bringing processes online, have the most to gain from the new technology, SEI said. 

SEI is a provider of investment processing, investment management, and investment operations to corporations, financial institutions, and family offices. As of September 30, 2016, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $751 billion in mutual fund and pooled or separately managed assets, including $281 billion in assets under management and $470 billion in client assets under administration.

The firm’s Investment Manager Services Division presently partners with more than 300 traditional, alternative and sovereign wealth managers representing $15.5 trillion in assets, including 35 of the top 100 managers worldwide. 

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