The deal marks a continued industry shift toward outsourcing. SEI now supports more than 70,000 individual accounts in this space, making it one of the leading outsourcers in the industry.

SEI's outsourcing solution includes order management and accounting systems, trade affirmation and administration, account reconciliation, performance and client reporting, as well as a data warehousing solution that provides online access to management and account-level data. Edgewood had previously performed their operations in-house.

SEI was chosen in a competitive selection process among several outsourcing and technology providers. SEI's ability to support multiple products and interface with multiple sponsor and custodial platforms as well as its fully integrated workflow technology were pointed to as key differentiators in the process.

"SEI's innovative technology platform and industry expertise give us the confidence we need to step away from running these functions and really focus on our core expertise," said Fausto Rotundo, of Edgewood Management. "SEI has a proven track record of successfully converting and servicing clients. We're excited to have them as a partner as we look to grow our business going forward."

"With our proven track record of converting our clients on time and within budget, we've eliminated one of the critical reasons managers have been reluctant to outsource their SMA operations," said John Alshefski, head of Business Development for SEI's Investment Manager Services unit. "We're seeing more firms realize that outsourcing is a strategic way to streamline their business, minimize distractions and focus on managing portfolios and growing assets."