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Jun 30, 2024
Silvercrest Q2 2024 Earnings Report
Silvercrest's performance was affected by narrow market leadership and increased investments in future growth.
Key Takeaways
Silvercrest Asset Management Group reported a revenue increase of 4.2% year-over-year, reaching $31.0 million. However, the company's discretionary AUM decreased by $1.1 billion to $21.6 billion due to institutional mandate losses. Despite increased revenue, most business metrics were down due to higher expenses related to investments in future growth, including new hires.
Total AUM reached $33.4 billion, a 4.7% increase year-over-year.
Revenue increased by 4.2% to $31.0 million compared to the same quarter last year.
Discretionary AUM decreased to $21.6 billion due to the loss of institutional mandates.
The company is investing in future growth, including hiring a global equity investment team and a new business development professional.
Silvercrest
Silvercrest
Forward Guidance
Silvercrest is focused on investing in future growth by expanding its team and exploring global opportunities. The company expects positive flows from its institutional equity and OCIO capabilities and anticipates significant institutional mandates from its new Global Equity team.
Positive Outlook
- Broader market participation should improve future AUM growth.
- New Global Equity team has potential for significant institutional mandates.
- Pipeline of new institutional business opportunities remains up from the fourth quarter of last year.
- Expect near-term positive flows from institutional equity and OCIO capabilities.
- Substantial new opportunities globally for a firm with high-quality capabilities and superior client service.
Challenges Ahead
- Market leadership remained unusually narrow during the second quarter.
- Other market segments, including Large Cap Value and Small Cap, declined during the second quarter.
- Silvercrest’s discretionary AUM decreased due to the loss of institutional mandates.
- New client accounts and relationships during the quarter were modest but positive.
- Silvercrest continues to accrue a higher interim percentage of revenue for compensation.