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Sep 30, 2024
Silvercrest Q3 2024 Earnings Report
Silvercrest's AUM grew, driven by supportive markets and improved economic conditions, leading to increased revenue, while strategic investments in future growth impacted profitability metrics.
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
Revenue by Segment
Management and advisory fees Revenue
CapyFin.comFamily office services Revenue
CapyFin.com 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