Silvercrest Q3 2024 Earnings Report
Key Takeaways
Silvercrest Asset Management Group reported an increase in total AUM to $35.1 billion and discretionary AUM to $22.6 billion, driven by supportive markets. Revenue increased to $30.4 million. However, strategic investments in the business led to higher expenses, impacting net income and adjusted EBITDA.
Total AUM reached $35.1 billion, with discretionary AUM at $22.6 billion.
Revenue increased to $30.4 million.
GAAP net income was $3.7 million, with net income attributable to Silvercrest at $2.3 million.
Adjusted EBITDA stood at $6.3 million.
Silvercrest
Silvercrest
Silvercrest Revenue by Segment
Forward Guidance
Silvercrest is optimistic about securing significant organic net flows over the next two quarters and anticipates near-term positive AUM flows and resulting revenue increases from its growing pipeline of new institutional business opportunities.
Positive Outlook
- Optimistic about securing significant organic net flows over the next two quarters.
- Expects near-term positive AUM flows.
- Anticipates resulting revenue increases from the pipeline.
- New Global Equity strategy has a high capacity for significant inflows.
- Pipeline of new institutional business opportunities increased during the third quarter by 20% and now stands at $1.2 billion.
Challenges Ahead
- Investments in the future growth of the business have resulted in higher total compensation.
- Most metrics of the business are down due to these higher expenses.
- Reported discretionary outflows during the third quarter, although the outflows were revenue neutral to the firm.
- Total expenses increased by $2.8 million, or 12.0%, to $26.0 million.
- Consolidated net income was $3.7 million or 12.3% of revenue, as compared to consolidated net income of $5.4 million or 18.1% of revenue for the same period in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income