The deal points to an emerging outsourcing trend where money management firms are outsourcing these functions to leverage infrastructure and scale to compete in the evolving institutional space. Eudaimonia, which focuses on institutional clients, was recently founded by three highly-regarded former Nicholas-Applegate managers.

Under the agreement, SEI will provide Eudaimonia with a full range of integrated services including order management, portfolio accounting, performance measurement, comprehensive reporting, business continuity and disaster recovery. SEI's ability to provide a scalable and complete offering, integrate with the client's current systems, as well as its extensive experience were pointed to as key factors in the selection process.

"As managers look to package their investment expertise through various product and distribution strategies, it's important to have the supporting technology and infrastructure that enables that flexibility," said Steve Meyer, Executive Vice President, SEI and head of SEI's Investment Manager Services division. "Managers are finding that they can leverage technology to improve investment performance, build relationships with clients, and expand the range of products provided, among other things. We're seeing more managers looking for operational and technology expertise and innovation when selecting an outsourcing partner."

"As an emerging institutional asset manager, it's critical that our operations procedures match the robustness of our investment processes to ensure the reliability of our new endeavor," said Travis Prentice, Co-Founder and President of Eudaimonia. "We were attracted to SEI for its comprehensive solution - including its knowledgeable staff of operations professionals, integrated business processes, and state-of-the-art information technology platform. Working with SEI is a real game-changer as it allows our boutique to compete on a level playing field with large asset managers. SEI's outsourcing solution is unique in that it's both institutional-caliber and cost-effective, enabling us to enhance our overall value proposition. Backed by a dedicated client service team at SEI, our Chief Operating Officer oversees our operations activities, freeing-up our investment professionals to focus on the task of generating alpha."

"SEI's institutional separate account processing solution incorporates all the operational and administrative components to support Eudaimonia's business," said John Alshefski, Head of Business Development for SEI's Investment Manager Services division. "Our solution gives managers the opportunity to grow their business without having to bear all the operational risk and cost. This is a great long-term strategic partnership and we're pleased to be working with such highly-respected money managers."

"This outsourcing model is a key enabler as it allows asset managers to establish a foothold in the market without financing the human resource and systems burden associated with building an in-house operations department," said Montie Weisenberger, Co-Founder and Senior Vice President of Eudaimonia. "It empowers portfolio managers to employ their intellectual capital and provide a focused offering without compromising the level of service and soundness required by institutional investors."