Information on the Target

GQG Partners, LLC (GQG) is a renowned investment boutique that specializes in global and emerging market equities, serving a diverse client base including institutions, advisors, and individuals worldwide. Headquartered in Fort Lauderdale, Florida, GQG is dedicated to providing long-only equity strategies designed to compound capital for its clients. The firm is recognized for its client-centric approach, adaptability, and commitment to leveraging diverse perspectives.

Recently, GQG has embraced an opportunity to expand its portfolio by launching its first Exchange-Traded Fund (ETF), the GQG US Equity ETF (NYSE: GQGU), which was facilitated by a strategic collaboration with SEI. This new fund allows GQG to enhance its offerings while catering to investors' increasing demand for flexible investment vehicles.

Industry Overview in the Target’s Specific Country

The U.S. investment management industry is experiencing significant growth, particularly in the active ETF sector. Projections indicate that assets under management (AUM) in active ETFs could soar from $856 billion in 2024 to an astonishing $11 trillion by 2035. This growth reflects a broader trend where active ETFs are expected to comprise a substantial portion—27%—of total ETF AUM and 17% of all open-ended, long-term fund AUM by the same year.

The surge in ETF launches has been dramatic, with over 60 asset managers entering the market just last year. This uprising has increased the number of ETF issuers globally to approximately 690, reiterating the rising preference for ETFs as a favored investment vehicle among both institutional and retail investors.

Additionally, the demand for investment choices is at an all-time high. With investors increasingly inclined toward diversified and flexible options, active ETFs have emerged as an appealing solution that blends the advantages of both mutual funds and traditional ETFs. These instruments provide unique exposure to various asset classes while enabling investors to access professional management.

SEI’s Advisors' Inner Circle Fund has capitalized on these trends by providing a robust operating infrastructure for investment organizations. It features tailored solutions that streamline the process of launching and managing mutual funds, ETFs, and other investment products efficiently.

The Rationale Behind the Deal

The collaboration between GQG Partners and SEI is strategically aimed at meeting the growing demand for active ETFs within the investment market. By utilizing SEI's established operational platform through the Advisors' Inner Circle Fund, GQG can effectively and efficiently launch its ETF, the GQG US Equity ETF. This move positions GQG to meet clients’ desire for innovative investment options while enhancing its own product offerings.

The transition of assets from an existing private fund into the new ETF format under Section 351 affords shareholders a unique, tax-efficient route, allowing for a smoother migration of their investments while optimizing future performance.

Information about the Investor

SEI (NASDAQ:SEIC) is a leading global provider of financial technology and operations within the financial services industry. With a strong emphasis on custom solutions, SEI aids its clients in deploying their capital efficiently for enhanced client service and growth. As of June 30, 2025, the firm administers, advises, or manages around $1.7 trillion in assets, reflecting its substantial influence in the investment management landscape.

SEI's Investment Managers business further highlights the company’s commitment to providing advanced operational infrastructures tailored specifically for investment organizations. This enables clients to streamline operations and focus on strategic growth in an increasingly challenging marketplace.

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In my expert opinion, the decision by GQG Partners to launch its first ETF in collaboration with SEI represents a strong strategic move that aligns well with current market trends. The significant anticipated growth in active ETFs indicates that GQG is positioning itself advantageously within a booming segment of the investment industry. By embracing this opportunity, GQG not only diversifies its offerings but also better caters to investor demand.

Furthermore, the partnership with SEI enhances GQG's operational capabilities, allowing for a seamless launch of the ETF, which is critical in maintaining competitive momentum in the market. This collaboration leverages SEI's expertise and established infrastructure, ensuring that operational challenges are mitigated, enabling GQG to focus on its core competencies of investment management and client service.

Overall, this deal is likely to be a positive investment for GQG, as it expands its market reach while also tapping into the growing interest among investors for active management within ETF structures. Given the broader industry trends and SEI's strong operational support, I believe that this move will strengthen GQG’s position as a key player in the investment management sector.

Should GQG successfully execute its ETF strategy, it stands to gain a competitive edge and attract a broader client base, thus enhancing its long-term viability and growth in a rapidly evolving market landscape.

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