SEI, a global provider of investment and technology solutions, announced the launch of depositary services for Luxembourg’s alternative investment funds (AIFs) on Tuesday 7 January 2025. The move expands the firm’s service offering and operational presence in one of the world’s largest fund centres. Luxembourg, ranked as the second-largest fund centre globally, provides a strategic location for this expansion.

SEI’s demand for depositary services has grown significantly, with assets under management increasing from $17bn in 2018 to nearly $100bn by 2024. The firm now provides these services to over 430 funds across various global fund centres. SEI is also the largest fund administrator for private market funds managed by US firms in Luxembourg and the largest private credit fund administrator globally by assets under management, it said.

The depositary services will complement SEI’s existing offerings, which include fund administration, registrar and transfer agent services and regulatory reporting. These services allow asset managers to centralise their operations and work with a single provider for both technology and operational needs, it said. Fund managers can access SEI’s depositary services either as part of a full suite of services or on a standalone basis. The services include cash flow monitoring, oversight, ownership verification and safekeeping of assets. Additionally, SEI will offer depositary services to non-EU managers looking to market non-EU funds to EU investors under the Depo Lite Regime.

Bryan Astheimer, head of SEI’s Investment Managers business in EMEA, highlighted the growing demand for alternative investments and European private markets. He noted that the expansion of the sector has driven investment managers to seek new ways to broaden their investor base and attract capital. Astheimer also emphasised that SEI’s global operational expansion supports clients in efficiently launching funds while ensuring compliance with regulatory requirements in different jurisdictions.

SEI has provided depositary services in Ireland for 25 years, where it is recognised as the largest non-bank depositary by assets under management and the second-largest depositary for servicing non-Irish funds. The firm oversees $1.5trn in assets across its global client base.