Silvercrest Q3 2021 Earnings Report
Key Takeaways
Silvercrest Asset Management Group Inc. reported strong Q3 2021 financial results, with revenue reaching $33.5 million and adjusted EBITDA of $10.3 million, representing year-over-year increases of 23.1% and 27.4%, respectively. Discretionary AUM increased by 25.7% year-over-year. The OCIO business now has $1.1 billion in AUM.
Total AUM reached $31.0 billion, including $22.5 billion in discretionary AUM and $8.5 billion in non-discretionary AUM.
Revenue amounted to $33.5 million.
GAAP consolidated net income and net income attributable to Silvercrest were $6.4 million and $3.7 million, respectively.
Adjusted EBITDA was $10.3 million.
Silvercrest
Silvercrest
Forward Guidance
Silvercrest sought to achieve $1.0 billion in AUM with its relatively new Outsourced Chief Investment Officer (OCIO) capability by the end of 2021. We are pleased to report that the OCIO business now has $1.1 billion in AUM. We have a strong new business pipeline of opportunities and crossing this AUM threshold will be helpful to building that business.
Positive Outlook
- Company is pleased to report strong financial results for the third quarter of 2021
- The firm's discretionary assets under management (“AUM”), which drives revenue, increased 25.7% year over year.
- Adjusted Diluted Earnings Per Share1 increased 25.7% year over year to $0.44 per Adjusted Diluted Earnings Per Share.
- OCIO business now has $1.1 billion in AUM.
- Silvercrest's new business opportunities continue to grow thanks to continued strong relative investment performance for high net worth and institutional clients alike.
Challenges Ahead
- anemic markets
- institutional rebalancing during the third quarter.
- Silvercrest’s discretionary assets under management decreased by $0.4 billion, or 1.7%, to $22.5 billion at September 30, 2021 from $22.9 billion at June 30, 2021.
- The decrease was attributable to client outflows of $1.3 billion and market depreciation of $0.2 billion, partially offset by client inflows of $1.1 billion.
- Silvercrest’s total AUM remained at $31.0 billion at September 30, 2021 and June 30, 2021. This was attributable to client inflows of $1.2 billion and market appreciation of $0.2 billion, offset by client outflow of $1.4 billion.