Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Revenues from Contracts with CustomersThe Company’s principal sources of revenues are: (1) asset management, administration and distribution fees primarily earned based upon a contractual percentage of net assets under management or administration; and (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the market value of the clients' assets processed on the Company's platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations.

Disaggregation of Revenue

The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the business segments for the three months ended June 30, 2023 and 2022:

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Three Months Ended June 30, 2023
Investment management fees from pooled investment products	$	32,092	$	61,103	$	13,154	$	104	$	352	$	106,805
Investment management fees from investment management agreements	824		43,159		56,627		—		4,025		104,635
Investment operations fees	337		—		—		152,713		—		153,050
Investment processing fees - PaaS	56,713		2,296		280		75		20		59,384
Investment processing fees - SaaS	28,581		—		2,790		4,296		—		35,667
Professional services fees (1)	14,589		—		—		730		—		15,319
Account fees and other	963		3,022		2,294		7,421		497		14,197
Total revenues	$	134,099	$	109,580	$	75,145	$	165,339	$	4,894	$	489,057
Primary Geographic Markets:
United States	$	91,282	$	109,580	$	63,123	$	150,533	$	4,894	$	419,412
United Kingdom	27,984		—		8,684		—		—		36,668
Canada	10,148		—		1,447		—		—		11,595
Ireland	4,685		—		1,891		8,978		—		15,554
Luxembourg	—		—		—		5,828		—		5,828
Total revenues	$	134,099	$	109,580	$	75,145	$	165,339	$	4,894	$	489,057

(1) Professional services fees of the Private Banks segment includes a one-time early contractual buyout fee of $10,457 recorded during the three months ended June 30, 2023 from an investment processing client acquired by an existing client.

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Three Months Ended June 30, 2022
Investment management fees from pooled investment products	$	31,993	$	67,490	$	15,700	$	123	$	402	$	115,708
Investment management fees from investment management agreements	616		40,398		63,212		—		4,073		108,299
Investment operations fees	344		—		—		144,742		—		145,086
Investment processing fees - PaaS	56,378		—		—		—		—		56,378
Investment processing fees - SaaS	29,845		—		3,021		3,911		—		36,777
Professional services fees	4,096		—		—		635		—		4,731
Account fees and other	912		5,306		1,550		6,515		408		14,691
Total revenues	$	124,184	$	113,194	$	83,483	$	155,926	$	4,883	$	481,670
Primary Geographic Markets:
United States	$	96,115	$	113,194	$	68,702	$	142,350	$	4,883	$	425,244
United Kingdom	13,036		—		11,283		—		—		24,319
Canada	11,023		—		1,424		—		—		12,447
Ireland	4,010		—		1,963		9,416		—		15,389
Luxembourg	—				—		4,160				4,160
Other	—		—		111		—		—		111
Total revenues	$	124,184	$	113,194	$	83,483	$	155,926	$	4,883	$	481,670

The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for the six months ended June 30, 2023 and 2022:

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Six Months Ended June 30, 2023
Investment management fees from pooled investment products	$	64,313	$	121,708	$	24,437	$	230	$	690	$	211,378
Investment management fees from investment management agreements	1,310		83,825		115,562		—		8,242		208,939
Investment operations fees	683		—		—		299,907		—		300,590
Investment processing fees - PaaS	114,298		2,296		280		75		20		116,969
Investment processing fees - SaaS	55,398		—		5,441		8,417		—		69,256
Professional services fees (2)	18,675		—		—		2,244		—		20,919
Account fees and other	2,025		8,289		3,715		15,152		944		30,125
Total revenues	$	256,702	$	216,118	$	149,435	$	326,025	$	9,896	$	958,176
Primary Geographic Markets:
United States	$	171,452	$	216,118	$	125,341	$	296,805	$	9,896	$	819,612
United Kingdom	55,830		—		17,779		—		—		73,609
Canada	20,238		—		2,816		—		—		23,054
Ireland	9,182		—		3,499		18,003		—		30,684
Luxembourg	—		—		—		11,217		—		11,217
Total revenues	$	256,702	$	216,118	$	149,435	$	326,025	$	9,896	$	958,176

(2) Professional services fees of the Private Banks segment includes a one-time early contractual buyout fee of $10,457 recorded during during the three months ended June 30, 2023 from an investment processing client acquired by an existing client.

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Six Months Ended June 30, 2022
Investment management fees from pooled investment products	$	65,111	$	139,483	$	29,566	$	207	$	769	$	235,136
Investment management fees from investment management agreements	871		82,406		131,672		—		8,199		223,148
Investment operations fees	704		—		—		290,121		—		290,825
Investment processing fees - PaaS	112,833		—		—		—		—		112,833
Investment processing fees - SaaS	59,404		—		6,131		7,569		—		73,104
Professional services fees (3)	96,825		—		—		1,024		—		97,849
Account fees and other	1,984		10,535		2,953		13,906		840		30,218
Total revenues	$	337,732	$	232,424	$	170,322	$	312,827	$	9,808	$	1,063,113
Primary Geographic Markets:
United States	$	177,001	$	232,424	$	139,265	$	286,375	$	9,808	$	844,873
United Kingdom	129,699		—		24,032		—		—		153,731
Canada	22,823		—		2,666		—		—		25,489
Ireland	8,209		—		4,130		19,238		—		31,577
Luxembourg	—				—		7,214				7,214
Other	—		—		229		—		—		229
Total revenues	$	337,732	$	232,424	$	170,322	$	312,827	$	9,808	$	1,063,113

(3) Professional services fees of the Private Banks segment includes one-time early termination fees of $88,000 related to a contractual agreement with a significant client of the Company. In accordance with Accounting Standards Codification 606, the entire amount of the fees received were recorded during the three months ended March 31, 2022 as there were no future performance obligations of the Company related to the agreement upon termination.

Investment management fees from pooled investment products - Revenues associated with clients' assets invested in Company-sponsored pooled investment products. Contractual fees are stated as a percentage of the market value of assets under management and collected on a monthly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment management fees from investment management agreements - Revenues based on assets of clients of the Institutional Investors segment primarily invested in Company-sponsored products. Each client is charged an investment management fee that is stated as a percentage of the market value of all assets under management. The client is billed directly on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Revenues associated with the separately managed account program offered through registered investment advisors located throughout the United States. The contractual fee is stated as a percentage of the market value of all assets invested in the separately managed account and collected on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment operations fees - Revenues earned from accounting and administrative services, distribution support services and regulatory and compliance services to investment management firms and family offices. The Company contracts directly with the investment management firm or family office. The contractual fees are stated as a percentage of net assets under administration and billed when asset valuations are finalized. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Platform as a Service - Revenues associated with clients that outsource their entire investment operation and back-office processing functions. Through the use of the Company's proprietary platforms, the Company assumes all back-office investment processing services including investment processing, custody and safekeeping of assets, income collections, securities settlement and other related trust activities. The contractual fee is

based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. Contractual fees can also be stated as a percentage of the value of assets processed on the Company's platforms each month as long as the fee is in excess of a monthly contractual minimum. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Software as a Service - Revenues associated with clients of the Private Banks segment for application software services. Clients retain responsibility for all investment operations, client administration and other back-office trust operations. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. The client is billed directly on a monthly basis.

Revenues associated with clients of the Investment Managers segment processed on the Archway PlatformSM are fees for hosted technology services to family offices and financial institutions. The Archway Platform is an integrated technology platform used for investment, operations, accounting and client reporting by these institutions. The contractual fee is based on a monthly subscription fee to access the Archway Platform along with additional fees on a per transaction basis.

Revenues associated with clients of the Institutional Investors segment processed on the SEI NovusSM portfolio intelligence tool are fees for data management, performance measurement, reporting, and risk analytics. The contractual fee is based on a fixed fee to access SEI Novus and includes fees for integration of historical fund data and custom reporting.

All revenues from investment processing fees are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Professional services fees - Revenues associated with the business services migration for investment processing clients of the Private Banks segment and investment operations clients of the Investment Managers segment. In addition, Professional services include other services such as business transformation consulting. Typically fees are stated as a contractual fixed fee. The client is billed directly and fees are collected according to the terms of the agreement.

Account fees and other - Revenues associated with custody account servicing, account terminations, reimbursements received for out-of-pocket expenses, and other fees for the provision of ancillary services.