Sep 30, 2023

Silvercrest Q3 2023 Earnings Report

Silvercrest reported mixed results with revenue increase offset by rise in expenses. AUM decreased slightly due to market depreciation and client outflows, while adjusted EBITDA margin remained healthy.

Key Takeaways

Silvercrest Asset Management Group reported a 2.3% increase in revenue year-over-year for Q3 2023, but experienced a decrease in revenue for the nine months ended September 30, 2023. Total AUM concluded the quarter at $31.2 billion, with Discretionary AUM at $20.5 billion. Higher expenses negatively impacted Adjusted EBITDA and Adjusted EBITDA Margin, but the Adjusted EBITDA Margin remained healthy at 26.9%.

Total AUM was $31.2 billion, including discretionary AUM of $20.5 billion and non-discretionary AUM of $10.7 billion as of September 30, 2023.

Revenue reached $29.7 million.

GAAP consolidated net income was $5.4 million, with net income attributable to Silvercrest at $3.2 million.

Adjusted EBITDA was $8.0 million.

Total Revenue
$29.7M
Previous year: $29M
+2.3%
EPS
$0.36
Previous year: $0.34
+5.9%
Adjusted EBITDA
$8M
Previous year: $8.2M
-2.4%
Adjusted EBITDA Margin
26.9%
Previous year: 28.1%
-4.3%
Total AUM
$31.2B
Previous year: $27.4B
+13.9%
Gross Profit
$13.4M
Previous year: $12.8M
+4.7%
Cash and Equivalents
$58.9M
Previous year: $67.4M
-12.6%
Free Cash Flow
$15.4M
Previous year: $13.9M
+11.2%
Total Assets
$191M
Previous year: $205M
-6.7%

Silvercrest

Silvercrest

Forward Guidance

Silvercrest's pipeline of new business opportunities remain solid but have weakened since the second quarter. This is the result of slower decision-making, not lost opportunities. We attribute this to a changing and uncertain business environment, higher interest rates, and geopolitical concerns. We are focused on those new opportunities as well as investments to drive future growth in the business, including value-added hires.