Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the
“Company” or “Silvercrest”) today reported the results of its
operations for the quarter ended March 31, 2024.
Business Update
Supportive equity markets in the first quarter of 2024 set the
stage for a better environment for our business, continuing
progress that began in the fourth quarter of 2023 as the market
broadened. While we continue to expect an uncertain economic and
market environment, Silvercrest has never had more business
opportunities or initiatives underway. We are focused on those
new opportunities, as well as investments to drive future growth in
the business, including value-added hires. As part of those
initiatives, Silvercrest is accruing a higher interim percentage of
revenue for compensation and will adjust compensation accruals to
match important investments in the business.
Silvercrest just announced hiring a new team to expand its
international and global equity investment capabilities and global
outreach. The team will complement Silvercrest’s existing
International team and capabilities for a more diversified
offering. The team brings significant investment expertise, a
proven track record, and experience managing significant equity
mandates on behalf of large institutions around the world.
Primarily due to more supportive markets, Silvercrest’s
Discretionary Assets Under Management (“AUM”) increased by $0.8
billion during the quarter, or 3.7%, to $22.7 billion. The firm’s
Total AUM increased by $1.2 billion, to end the first quarter at
$34.5 billion. Year-over-year from the first quarter of 2023, our
Discretionary AUM and Total AUM increased by 6.6% and 15.4%,
respectively. While top-line revenue increased by 2.9% from the end
of the first quarter last year, most metrics of the business are
down due to higher expenses, primarily related to compensation
expense.
Silvercrest’s pipeline of new institutional business
opportunities have more than doubled since the fourth quarter of
2023. The firm’s total new business pipeline is now stands at $2.0
billion, which is up substantially from $0.7 billion in the fourth
quarter. We expect near-term positive flows to result from those
opportunities for both our institutional equity and OCIO
capabilities.
As a high-end wealth and asset management firm, Silvercrest
serves families and institutions from across the globe. Despite
headline news of international tensions, we continue to see
substantial new opportunities globally for a firm with our
high-quality capabilities coupled with superior client service.
On May 1, 2024, the Company’s Board of Directors declared a
quarterly dividend of $0.19 per share of Class A common stock. The
dividend will be paid on or about June 21, 2024 to shareholders of
record as of the close of business on June 14, 2024.
First Quarter 2024
Highlights
- Total AUM of $34.5 billion, inclusive of discretionary AUM of
$22.7 billion and non-discretionary AUM of $11.8 billion at
March 31, 2024.
- Revenue of $30.3 million.
- U.S. Generally Accepted Accounting Principles (“GAAP”)
consolidated net income and net income attributable to Silvercrest
of $4.9 million and $3.0 million, respectively.
- Basic and diluted net income per share of $0.32.
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (“EBITDA”)1 of $7.5 million.
- Adjusted net income1 of $4.7 million.
- Adjusted basic and diluted earnings per share1, 2 of $0.34 and
$0.33, respectively.
The table below presents a comparison of certain GAAP and
non-GAAP (“Adjusted”) financial measures and AUM.
|
|
For the Three Months Ended March 31, |
|
(in thousands except as indicated) |
|
2024 |
|
|
2023 |
|
Revenue |
|
$ |
30,272 |
|
|
$ |
29,430 |
|
Income before other income
(expense), net |
|
$ |
5,904 |
|
|
$ |
6,751 |
|
Net income |
|
$ |
4,915 |
|
|
$ |
5,310 |
|
Net income margin |
|
|
16.2 |
% |
|
|
18.0 |
% |
Net income attributable to
Silvercrest |
|
$ |
3,000 |
|
|
$ |
3,204 |
|
Net income per basic
share |
|
$ |
0.32 |
|
|
$ |
0.34 |
|
Net income per diluted
share |
|
$ |
0.32 |
|
|
$ |
0.33 |
|
Adjusted EBITDA1 |
|
$ |
7,453 |
|
|
$ |
8,181 |
|
Adjusted EBITDA Margin1 |
|
|
24.6 |
% |
|
|
27.8 |
% |
Adjusted net income1 |
|
$ |
4,718 |
|
|
$ |
5,042 |
|
Adjusted basic earnings per
share1, 2 |
|
$ |
0.34 |
|
|
$ |
0.36 |
|
Adjusted diluted earnings per
share1, 2 |
|
$ |
0.33 |
|
|
$ |
0.35 |
|
Assets under management at
period end (billions) |
|
$ |
34.5 |
|
|
$ |
29.9 |
|
Average assets under
management (billions)3 |
|
$ |
33.9 |
|
|
$ |
29.4 |
|
Discretionary assets under
management (billions) |
|
$ |
22.7 |
|
|
$ |
21.3 |
|
________________ |
1 |
|
Adjusted measures are non-GAAP measures and are explained and
reconciled to the comparable GAAP measures in Exhibits 2 and
3. |
2 |
|
Adjusted basic and diluted
earnings per share measures for the three months ended
March 31, 2024 are based on the number of shares of Class A
common stock and Class B common stock outstanding as of
March 31, 2024. Adjusted diluted earnings per share are
further based on the addition of unvested restricted stock units,
and non-qualified stock options to the extent dilutive at the end
of the reporting period. |
3 |
|
We have computed average
AUM by averaging AUM at the beginning of the applicable period and
AUM at the end of the applicable period. |
|
AUM at $34.5 Billion
Silvercrest’s discretionary assets under management increased by
$1.4 billion, or 6.6%, to $22.7 billion at March 31, 2024,
from $21.3 billion at March 31, 2023. The increase was
attributable to market appreciation of $2.8 billion partially
offset by net client outflows of $1.4 billion. Silvercrest’s total
AUM increased by $4.6 billion, or 15.4%, to $34.5 billion at
March 31, 2024, from $29.9 billion at March 31, 2023. The
increase was attributable to market appreciation of $4.2 billion
and net client inflows of $0.4 billion.
Silvercrest’s discretionary assets under management increased by
$0.8 billion, or 3.7%, to $22.7 billion at March 31, 2024,
from $21.9 billion at December 31, 2023. The increase was
attributable to market appreciation of $1.2 billion partially
offset by net client outflows of $0.4 billion. Silvercrest’s total
AUM increased by $1.2 billion, or 3.6%, to $34.5 billion at
March 31, 2024, from $33.3 billion at December 31, 2023. The
increase was attributable to market appreciation of $1.5 billion
partially offset by net client outflows of $0.3 billion.
First Quarter 2024 vs. First Quarter 2023
Revenue increased by $0.8 million, or 2.8%, to $30.3 million for
the three months ended March 31, 2024, from $29.4 million for
the three months ended March 31, 2023. This increase was
driven by market appreciation partially offset by net client
outflows.
Total expenses increased by $1.7 million, or 7.4%, to $24.4
million for the three months ended March 31, 2024, from $22.7
million for the three months ended March 31, 2023.
Compensation and benefits expense increased by $1.2 million, or
7.1%, to $17.7 million for the three months ended March 31,
2024, from $16.5 million for the three months ended March 31,
2023. The increase was primarily attributable to an increase in the
accrual for bonuses of $1.0 million, an increase in salaries and
benefits of $0.1 million primarily as a result of merit-based
increases and severance of $0.1 million paid in the current
quarter. General and administrative expenses increased by $0.5
million, or 8.4%, to $6.7 million for the three months ended
March 31, 2024, from $6.2 million for the three months ended
March 31, 2023. This was primarily attributable to increases
in travel and entertainment expenses of $0.1 million, occupancy and
related costs of $0.1 million, professional fees of $0.2 million
and depreciation and amortization expense of $0.1 million.
Consolidated net income was $4.9 million for the three months
ended March 31, 2024, as compared to consolidated net income
of $5.3 million for the same period in the prior year. Net income
attributable to Silvercrest was $3.0 million, or $0.32 per basic
share and diluted share for the three months ended March 31,
2024. Our Adjusted Net Income1 was $4.7 million, or $0.34 per
adjusted basic share and $0.33 per adjusted diluted share2 for the
three months ended March 31, 2024.
Adjusted EBITDA1 was $7.5 million, or 24.6% of revenue for the
three months ended March 31, 2024, as compared to $8.2 million
or 27.8% of revenue for the same period in the prior year.
Liquidity and Capital Resources
Cash and cash equivalents were $39.7 million at March 31,
2024, compared to $70.3 million at December 31, 2023. As of
March 31, 2024, there was $1.8 million outstanding under our
term loan with City National Bank and nothing outstanding on our
revolving credit facility with City National Bank.
Silvercrest Asset Management Group Inc.’s total equity was $83.9
million at March 31, 2024. We had 9,482,022 shares of
Class A common stock outstanding and 4,428,080 shares of Class B
common stock outstanding at March 31, 2024.
Non-GAAP Financial Measures
To provide investors with additional insight, promote
transparency and allow for a more comprehensive understanding of
the information used by management in its financial and operational
decision-making, we supplement our consolidated financial
statements presented on a basis consistent with GAAP with Adjusted
EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted
Earnings Per Share, which are non-GAAP financial measures of
earnings. These adjustments, and the non-GAAP financial
measures that are derived from them, provide supplemental
information to analyze our operations between periods and over
time. Investors should consider our non-GAAP financial measures in
addition to, and not as a substitute for, financial measures
prepared in accordance with GAAP.
- EBITDA represents net income before provision for income taxes,
interest income, interest expense, depreciation and
amortization.
- We define Adjusted EBITDA as EBITDA without giving effect to
the Delaware franchise tax, professional fees associated with
acquisitions or financing transactions, gains on extinguishment of
debt or other obligations related to acquisitions, impairment
charges and losses on disposals or abandonment of assets and
leaseholds, client reimbursements and fund redemption costs,
severance and other similar expenses, but including partner
incentive allocations, prior to our initial public offering, as an
expense. We feel that it is important to management and
investors to supplement our consolidated financial statements
presented on a GAAP basis with Adjusted EBITDA, a non-GAAP
financial measure of earnings, as this measure provides a
perspective of recurring earnings of the Company, taking into
account earnings attributable to both Class A and Class B
shareholders.
- Adjusted EBITDA Margin is calculated by dividing Adjusted
EBITDA by total revenue. We feel that it is important to management
and investors to supplement our consolidated financial statements
presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP
financial measure of earnings, as this measure provides a
perspective of recurring profitability of the Company, taking into
account profitability attributable to both Class A and Class B
shareholders.
- Adjusted Net Income represents recurring net income without
giving effect to professional fees associated with acquisitions or
financing transactions, losses on forgiveness of notes receivable
from our principals, gains on extinguishment of debt or other
obligations related to acquisitions, impairment charges and losses
on disposals or abandonment of assets and leaseholds, client
reimbursements and fund redemption costs, severance and other
similar expenses, but including partner incentive allocations,
prior to our initial public offering, as an expense. Furthermore,
Adjusted Net Income includes income tax expense assuming a blended
corporate rate of 26%. We feel that it is important to
management and investors to supplement our consolidated financial
statements presented on a GAAP basis with Adjusted Net Income, a
non-GAAP financial measure of earnings, as this measure provides a
perspective of recurring income of the Company, taking into account
income attributable to both Class A and Class B
shareholders.
- Adjusted Earnings Per Share represents Adjusted Net Income
divided by the actual Class A and Class B shares outstanding as of
the end of the reporting period for basic Adjusted Earnings Per
Share, and to the extent dilutive, we add unvested RSUs and
non-qualified stock options to the total shares outstanding to
compute diluted Adjusted Earnings Per Share. As a result of our
structure, which includes a non-controlling interest, we feel that
it is important to management and investors to supplement our
consolidated financial statements presented on a GAAP basis with
Adjusted Earnings Per Share, a non-GAAP financial measure of
earnings, as this measure provides a perspective of recurring
earnings per share of the Company as a whole as opposed to being
limited to our Class A common stock.
Conference Call
The Company will host a conference call on May 3, 2024, at 8:30
am (Eastern Time) to discuss these results. Hosting the call will
be Richard R. Hough III, Chief Executive Officer and President and
Scott A. Gerard, Chief Financial Officer. Listeners may access the
call by dialing 1-844-836-8743 or for international listeners the
call may be accessed by dialing 1-412-317-5723. A live,
listen-only webcast will also be available via the investor
relations section of www.silvercrestgroup.com. An archived
replay of the call will be available after the completion of the
live call on the Investor Relations page of the Silvercrest website
at http://ir.silvercrestgroup.com/.
Forward-Looking Statements and Other
Disclosures
This release contains, and from time to time our management may
make, forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, each as amended. For those statements, we
claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are subject to
risks, uncertainties and assumptions. These statements are only
predictions based on our current expectations and projections about
future events. Important factors that could cause actual results,
level of activity, performance or achievements to differ materially
from those indicated by such forward-looking statements include,
but are not limited to: incurrence of net losses; fluctuations in
quarterly and annual results; adverse economic or market
conditions; our expectations with respect to future levels of
assets under management, inflows and outflows; our ability to
retain clients; our ability to maintain our fee structure; our
particular choices with regard to investment strategies employed;
our ability to hire and retain qualified investment professionals;
the cost of complying with current and future regulation coupled
with the cost of defending ourselves from related investigations or
litigation; failure of our operational safeguards against breaches
in data security, privacy, conflicts of interest or employee
misconduct; our expected tax rate; and our expectations with
respect to deferred tax assets, adverse economic or market
conditions, including the continued adverse effects of the
coronavirus pandemic; incurrence of net losses; adverse effects of
management focusing on implementation of a growth strategy; failure
to develop and maintain the Silvercrest brand; and other factors
disclosed under “Risk Factors” in our annual report on Form 10-K
for the year ended December 31, 2023, which is accessible on the
U.S. Securities and Exchange Commission’s website at www.sec.gov.
We undertake no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law.
About Silvercrest
Silvercrest was founded in April 2002 as an independent,
employee-owned registered investment adviser. With offices in New
York, Boston, Virginia, New Jersey, California and Wisconsin,
Silvercrest provides traditional and alternative investment
advisory and family office services to wealthy families and select
institutional investors.
Silvercrest Asset Management Group
Inc.
Contact: Richard Hough
212-649-0601rhough@silvercrestgroup.com
Exhibit 1 |
|
Silvercrest Asset Management Group Inc. |
Condensed Consolidated Statements of Operations |
(Unaudited and in thousands, except share and per share amounts or
as noted) |
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Management and advisory fees |
|
$ |
29,165 |
|
|
$ |
28,368 |
|
Family office services |
|
|
1,107 |
|
|
|
1,062 |
|
Total revenue |
|
|
30,272 |
|
|
|
29,430 |
|
Expenses |
|
|
|
|
|
|
Compensation and benefits |
|
|
17,669 |
|
|
|
16,498 |
|
General and
administrative |
|
|
6,699 |
|
|
|
6,181 |
|
Total expenses |
|
|
24,368 |
|
|
|
22,679 |
|
Income before other
(expense) income, net |
|
|
5,904 |
|
|
|
6,751 |
|
Other (expense)
income, net |
|
|
|
|
|
|
Other (expense) income,
net |
|
|
8 |
|
|
|
45 |
|
Interest income |
|
|
347 |
|
|
|
19 |
|
Interest expense |
|
|
(51 |
) |
|
|
(116 |
) |
Total other (expense) income, net |
|
|
304 |
|
|
|
(52 |
) |
Income before
provision for income taxes |
|
|
6,208 |
|
|
|
6,699 |
|
Provision for income
taxes |
|
|
(1,293 |
) |
|
|
(1,389 |
) |
Net income |
|
|
4,915 |
|
|
|
5,310 |
|
Less: net income attributable to non-controlling interests |
|
|
(1,915 |
) |
|
|
(2,106 |
) |
Net income attributable to Silvercrest |
|
$ |
3,000 |
|
|
$ |
3,204 |
|
Net income per
share: |
|
|
|
|
|
|
Basic |
|
$ |
0.32 |
|
|
$ |
0.34 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.33 |
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
9,480,027 |
|
|
|
9,548,766 |
|
Diluted |
|
|
9,515,581 |
|
|
|
9,577,901 |
|
|
Exhibit 2 |
|
Silvercrest Asset Management Group Inc. |
Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA
Measure |
(Unaudited and in thousands, except share and per share amounts or
as noted) |
|
Adjusted
EBITDA |
|
For the Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Reconciliation of
non-GAAP financial measure: |
|
|
|
|
|
|
Net income |
|
$ |
4,915 |
|
|
$ |
5,310 |
|
Provision for income
taxes |
|
|
1,293 |
|
|
|
1,389 |
|
Delaware Franchise Tax |
|
|
50 |
|
|
|
50 |
|
Interest expense |
|
|
51 |
|
|
|
116 |
|
Interest income |
|
|
(347 |
) |
|
|
(19 |
) |
Depreciation and
amortization |
|
|
1,019 |
|
|
|
959 |
|
Equity-based compensation |
|
|
354 |
|
|
|
312 |
|
Other adjustments (A) |
|
|
118 |
|
|
|
64 |
|
Adjusted
EBITDA |
|
$ |
7,453 |
|
|
$ |
8,181 |
|
Adjusted EBITDA
Margin |
|
|
24.6 |
% |
|
|
27.8 |
% |
(A) Other adjustments consist
of the following: |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Acquisition costs (a) |
|
$ |
— |
|
|
$ |
5 |
|
Severance |
|
|
60 |
|
|
|
— |
|
Other (b) |
|
|
58 |
|
|
|
59 |
|
Total other
adjustments |
|
$ |
118 |
|
|
$ |
64 |
|
|
(a) |
|
For the three months ended March 31, 2023, represents
professional fees of $5 related to the acquisition of Cortina. |
|
(b) |
|
For the three months ended
March 31, 2024, represents an ASC 842 rent adjustment of $48
related to the amortization of property lease incentives and
software implementation costs of $10. For the three months
ended March 31, 2023, represents an ASC 842 rent adjustment of
$48 related to the amortization of property lease incentives and
software implementation costs of $11. |
|
Exhibit 3 |
|
Silvercrest Asset Management Group Inc. |
Reconciliation of GAAP to non-GAAP (“Adjusted”) |
Adjusted Net Income and Adjusted Earnings Per Share Measures |
(Unaudited and in thousands, except per share amounts or as
noted) |
|
Adjusted Net Income
and Adjusted Earnings Per Share |
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Reconciliation of
non-GAAP financial measure: |
|
|
|
|
|
|
Net income |
|
$ |
4,915 |
|
|
$ |
5,310 |
|
Consolidated GAAP Provision for
income taxes |
|
|
1,293 |
|
|
|
1,389 |
|
Delaware Franchise Tax |
|
|
50 |
|
|
|
50 |
|
Other adjustments (A) |
|
|
118 |
|
|
|
64 |
|
Adjusted earnings before
provision for income taxes |
|
|
6,376 |
|
|
|
6,813 |
|
Adjusted provision for income
taxes: |
|
|
|
|
|
|
Adjusted provision for income
taxes (26% assumed tax rate) |
|
|
(1,658 |
) |
|
|
(1,771 |
) |
|
|
|
|
|
|
|
Adjusted net
income |
|
$ |
4,718 |
|
|
$ |
5,042 |
|
|
|
|
|
|
|
|
GAAP net income per share
(B): |
|
|
|
|
|
|
Basic |
|
$ |
0.32 |
|
|
$ |
0.34 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
Adjusted earnings per
share/unit (B): |
|
|
|
|
|
|
Basic |
|
$ |
0.34 |
|
|
$ |
0.36 |
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
Shares/units
outstanding: |
|
|
|
|
|
|
Basic Class A shares
outstanding |
|
|
9,482 |
|
|
|
9,474 |
|
Basic Class B shares/units
outstanding |
|
|
4,428 |
|
|
|
4,544 |
|
Total basic shares/units
outstanding |
|
|
13,910 |
|
|
|
14,018 |
|
|
|
|
|
|
|
|
Diluted Class A shares
outstanding (C) |
|
|
9,518 |
|
|
|
9,497 |
|
Diluted Class B shares/units
outstanding (D) |
|
|
4,817 |
|
|
|
5,010 |
|
Total diluted shares/units
outstanding |
|
|
14,335 |
|
|
|
14,507 |
|
|
(A) |
|
See A in Exhibit 2. |
|
(B) |
|
GAAP earnings per share is
strictly attributable to Class A shareholders. Adjusted
earnings per share takes into account earnings attributable to both
Class A and Class B shareholders. |
|
(C) |
|
Includes 35,554 and 23,732
unvested restricted stock units at March 31,204 and 2023,
respectively. |
|
(D) |
|
Includes 240,998 and 212,927
unvested restricted stock units at March 31, 2024 and 2023,
respectively, and 147,506 and 252,904 unvested non-qualified
options at March 31, 2024 and 2023, respectively. |
|
|
|
|
Exhibit 4 |
|
Silvercrest Asset Management Group Inc. |
Condensed Consolidated Statements of Financial Condition |
(Unaudited and in thousands) |
|
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
39,658 |
|
|
$ |
70,301 |
|
Investments |
|
|
219 |
|
|
|
219 |
|
Receivables, net |
|
|
11,933 |
|
|
|
9,526 |
|
Due from Silvercrest Funds |
|
|
846 |
|
|
|
558 |
|
Furniture, equipment and
leasehold improvements, net |
|
|
7,610 |
|
|
|
7,422 |
|
Goodwill |
|
|
63,675 |
|
|
|
63,675 |
|
Operating lease assets |
|
|
18,490 |
|
|
|
19,612 |
|
Finance lease assets |
|
|
298 |
|
|
|
330 |
|
Intangible assets, net |
|
|
18,361 |
|
|
|
18,933 |
|
Deferred tax asset—tax receivable
agreement |
|
|
4,878 |
|
|
|
5,034 |
|
Prepaid expenses and other
assets |
|
|
4,207 |
|
|
|
3,964 |
|
Total
assets |
|
$ |
170,175 |
|
|
$ |
199,574 |
|
Liabilities and
Equity |
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
2,743 |
|
|
$ |
1,990 |
|
Accrued compensation |
|
|
9,089 |
|
|
|
37,371 |
|
Borrowings under credit
facility |
|
|
1,813 |
|
|
|
2,719 |
|
Operating lease liabilities |
|
|
25,089 |
|
|
|
26,277 |
|
Finance lease liabilities |
|
|
305 |
|
|
|
336 |
|
Deferred tax and other
liabilities |
|
|
9,086 |
|
|
|
9,071 |
|
Total
liabilities |
|
|
48,125 |
|
|
|
77,764 |
|
Commitments and
Contingencies (Note 10) |
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Preferred Stock, par value $0.01,
10,000,000 shares authorized; none issued and
outstanding |
|
|
— |
|
|
|
— |
|
Class A Common Stock, par value
$0.01, 50,000,000 shares authorized; 10,290,477 and
9,482,022 issued and outstanding, respectively, as of March 31,
2024; 10,287,452 and 9,478,997 issued and outstanding,
respectively, as of December 31, 2023 |
|
|
103 |
|
|
|
103 |
|
Class B Common Stock, par value
$0.01, 25,000,000 shares authorized; 4,428,080 and
4,431,105 issued and outstanding as of March 31, 2024 and December
31, 2023, respectively |
|
|
43 |
|
|
|
43 |
|
Additional Paid-In Capital |
|
|
55,835 |
|
|
|
55,809 |
|
Treasury Stock, at cost,
808,455 shares as of March 31, 2024 and December 31,
2023, respectively |
|
|
(15,057 |
) |
|
|
(15,057 |
) |
Accumulated other comprehensive
income (loss) |
|
|
(22 |
) |
|
|
(12 |
) |
Retained earnings |
|
|
43,043 |
|
|
|
41,851 |
|
Total Silvercrest Asset
Management Group Inc.’s equity |
|
|
83,945 |
|
|
|
82,737 |
|
Non-controlling interests |
|
|
38,105 |
|
|
|
39,073 |
|
Total
equity |
|
|
122,050 |
|
|
|
121,810 |
|
Total liabilities and
equity |
|
$ |
170,175 |
|
|
$ |
199,574 |
|
|
Exhibit 5 |
|
Silvercrest Asset Management Group Inc. |
Total Assets Under Management |
(Unaudited and in billions) |
|
Total Assets Under Management: |
|
|
|
Three Months Ended March 31, |
|
|
% Change from March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
Beginning assets under management |
|
$ |
33.3 |
|
|
$ |
28.9 |
|
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
|
1.2 |
|
|
|
0.6 |
|
|
|
100.0 |
% |
Gross client outflows |
|
|
(1.5 |
) |
|
|
(0.8 |
) |
|
|
87.5 |
% |
Net client flows |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
50.0 |
% |
|
|
|
|
|
|
|
|
|
|
Market appreciation |
|
|
1.5 |
|
|
|
1.2 |
|
|
|
25.0 |
% |
Ending assets under
management |
|
$ |
34.5 |
|
|
$ |
29.9 |
|
|
|
15.4 |
% |
|
Exhibit 6 |
|
Silvercrest Asset Management Group Inc. |
Discretionary Assets Under Management |
(Unaudited and in billions) |
|
Discretionary Assets Under Management: |
|
|
|
Three Months Ended March 31, |
|
|
% Change from March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
Beginning assets under management |
|
$ |
21.9 |
|
|
$ |
20.9 |
|
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
|
0.7 |
|
|
|
0.5 |
|
|
|
40.0 |
% |
Gross client outflows |
|
|
(1.1 |
) |
|
|
(0.7 |
) |
|
|
57.1 |
% |
Net client flows |
|
|
(0.4 |
) |
|
|
(0.2 |
) |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Market appreciation |
|
|
1.2 |
|
|
|
0.6 |
|
|
|
100.0 |
% |
Ending assets under
management |
|
$ |
22.7 |
|
|
$ |
21.3 |
|
|
|
6.6 |
% |
Exhibit 7 |
|
Silvercrest Asset Management Group Inc. |
Non-Discretionary Assets Under Management |
(Unaudited and in billions) |
|
Non-Discretionary Assets Under Management: |
|
|
|
Three Months Ended March 31, |
|
|
% Change from March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
Beginning assets under management |
|
$ |
11.4 |
|
|
$ |
8.0 |
|
|
|
42.5 |
% |
|
|
|
|
|
|
|
|
|
|
Gross client inflows |
|
|
0.5 |
|
|
|
0.1 |
|
|
|
400.0 |
% |
Gross client outflows |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
300.0 |
% |
Net client flows |
|
|
0.1 |
|
|
|
— |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Market appreciation |
|
|
0.3 |
|
|
|
0.6 |
|
|
|
-50.0 |
% |
Ending assets under
management |
|
$ |
11.8 |
|
|
$ |
8.6 |
|
|
|
37.2 |
% |
|
Exhibit 8 |
|
Silvercrest Asset Management Group Inc. |
Assets Under Management |
(Unaudited and in billions) |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Total AUM as of January 1, |
|
$ |
33.281 |
|
|
$ |
28.905 |
|
Discretionary AUM: |
|
|
|
|
|
|
Total Discretionary AUM as of
January 1, |
|
$ |
21.885 |
|
|
$ |
20.851 |
|
New client accounts/assets
(1) |
|
|
0.035 |
|
|
|
0.075 |
|
Closed accounts (2) |
|
|
(0.439 |
) |
|
|
(0.048 |
) |
Net cash inflow/(outflow)
(3) |
|
|
0.007 |
|
|
|
(0.174 |
) |
Non-discretionary to
Discretionary AUM (4) |
|
|
(0.002 |
) |
|
|
0.002 |
|
Market appreciation |
|
|
1.195 |
|
|
|
0.545 |
|
Change to
Discretionary AUM |
|
|
0.796 |
|
|
|
0.400 |
|
Total Discretionary AUM at
March 31, |
|
|
22.681 |
|
|
|
21.251 |
|
Change to Non-Discretionary
AUM (5) |
|
|
0.432 |
|
|
|
0.597 |
|
Total AUM as of March
31, |
|
$ |
34.509 |
|
|
$ |
29.902 |
|
(1) |
|
Represents new account flows from both new and existing client
relationships. |
(2) |
|
Represents closed accounts of
existing client relationships and those that terminated. |
(3) |
|
Represents periodic cash flows
related to existing accounts. |
(4) |
|
Represents client assets that
converted to Discretionary AUM from Non-Discretionary AUM. |
(5) |
|
Represents the net change to
Non-Discretionary AUM. |
|
|
|
Exhibit 9 |
|
Silvercrest Asset Management Group Inc. |
Equity Investment Strategy Composite Performance1, 2 |
As of March 31, 2024 |
(Unaudited) |
|
PROPRIETARY EQUITY
PERFORMANCE 1, 2 |
|
ANNUALIZED PERFORMANCE |
|
|
|
INCEPTION |
|
1-YEAR |
|
|
3-YEAR |
|
|
5-YEAR |
|
|
7-YEAR |
|
|
INCEPTION |
|
Large Cap Value Composite |
|
4/1/02 |
|
|
21.0 |
|
|
|
9.2 |
|
|
|
12.2 |
|
|
|
12.2 |
|
|
|
9.7 |
|
Russell 1000 Value Index |
|
|
|
|
20.3 |
|
|
|
8.1 |
|
|
|
10.3 |
|
|
|
9.2 |
|
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Value
Composite |
|
4/1/02 |
|
|
16.4 |
|
|
|
5.7 |
|
|
|
10.4 |
|
|
|
8.2 |
|
|
|
10.4 |
|
Russell 2000 Value Index |
|
|
|
|
18.8 |
|
|
|
2.2 |
|
|
|
8.2 |
|
|
|
6.6 |
|
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smid Cap Value
Composite |
|
10/1/05 |
|
|
16.6 |
|
|
|
4.2 |
|
|
|
8.4 |
|
|
|
7.8 |
|
|
|
9.5 |
|
Russell 2500 Value Index |
|
|
|
|
21.3 |
|
|
|
5.4 |
|
|
|
9.4 |
|
|
|
7.7 |
|
|
|
7.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi Cap Value
Composite |
|
7/1/02 |
|
|
22.1 |
|
|
|
6.4 |
|
|
|
10.1 |
|
|
|
9.8 |
|
|
|
9.7 |
|
Russell 3000 Value Index |
|
|
|
|
20.2 |
|
|
|
7.7 |
|
|
|
10.2 |
|
|
|
9.0 |
|
|
|
8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Income
Composite |
|
12/1/03 |
|
|
15.6 |
|
|
|
6.7 |
|
|
|
8.2 |
|
|
|
9.1 |
|
|
|
11.0 |
|
Russell 3000 Value Index |
|
|
|
|
20.2 |
|
|
|
7.7 |
|
|
|
10.2 |
|
|
|
9.0 |
|
|
|
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Focused Value
Composite |
|
9/1/04 |
|
|
12.7 |
|
|
|
1.1 |
|
|
|
4.9 |
|
|
|
6.0 |
|
|
|
9.3 |
|
Russell 3000 Value Index |
|
|
|
|
20.2 |
|
|
|
7.7 |
|
|
|
10.2 |
|
|
|
9.0 |
|
|
|
8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Opportunity
Composite |
|
7/1/04 |
|
|
16.9 |
|
|
|
4.9 |
|
|
|
11.1 |
|
|
|
10.6 |
|
|
|
11.1 |
|
Russell 2000 Index |
|
|
|
|
19.7 |
|
|
|
-0.1 |
|
|
|
8.1 |
|
|
|
7.7 |
|
|
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Growth
Composite |
|
7/1/04 |
|
|
9.3 |
|
|
|
-3.6 |
|
|
|
10.9 |
|
|
|
12.2 |
|
|
|
10.6 |
|
Russell 2000 Growth Index |
|
|
|
|
20.3 |
|
|
|
-2.7 |
|
|
|
7.4 |
|
|
|
8.4 |
|
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smid Cap Growth
Composite |
|
1/1/06 |
|
|
11.0 |
|
|
|
-5.1 |
|
|
|
12.7 |
|
|
|
13.5 |
|
|
|
10.8 |
|
Russell 2500 Growth Index |
|
|
|
|
21.1 |
|
|
|
-0.8 |
|
|
|
9.4 |
|
|
|
10.6 |
|
|
|
9.6 |
|
1 |
|
Returns are based upon a time weighted rate of return of various
fully discretionary equity portfolios with similar investment
objectives, strategies and policies and other relevant criteria
managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a
subsidiary of Silvercrest. Performance results are gross of fees
and net of commission charges. An investor’s actual return will be
reduced by the advisory fees and any other expenses it may incur in
the management of the investment advisory account. SAMG LLC’s
standard advisory fees are described in Part 2 of its Form ADV.
Actual fees and expenses will vary depending on a variety of
factors, including the size of a particular account. Returns
greater than one year are shown as annualized compounded returns
and include gains and accrued income and reinvestment of
distributions. Past performance is no guarantee of future results.
This piece contains no recommendations to buy or sell securities or
a solicitation of an offer to buy or sell securities or investment
services or adopt any investment position. This piece is not
intended to constitute investment advice and is based upon
conditions in place during the period noted. Market and economic
views are subject to change without notice and may be untimely when
presented here. Readers are advised not to infer or assume that any
securities, sectors or markets described were or will be
profitable. SAMG LLC is an independent investment advisory and
financial services firm created to meet the investment and
administrative needs of individuals with substantial assets and
select institutional investors. SAMG LLC claims compliance with the
Global Investment Performance Standards (GIPS®). |
2 |
|
The market indices used to
compare to the performance of Silvercrest’s strategies are as
follows: |
|
|
The Russell 1000 Index is a
capitalization-weighted, unmanaged index that measures the 1000
largest companies in the Russell 3000. The Russell 1000 Value Index
is a capitalization-weighted, unmanaged index that includes those
Russell 1000 Index companies with lower price-to-book ratios and
lower expected growth values. |
|
|
The Russell 2000 Index is a
capitalization-weighted, unmanaged index that measures the 2000
smallest companies in the Russell 3000. The Russell 2000 Value
Index is a capitalization-weighted, unmanaged index that includes
those Russell 2000 Index companies with lower price-to-book ratios
and lower expected growth values. |
|
|
The Russell 2500 Index is a
capitalization-weighted, unmanaged index that measures the 2500
smallest companies in the Russell 3000. The Russell 2500 Value
Index is a capitalization-weighted, unmanaged index that includes
those Russell 2000 Index companies with lower price-to-book ratios
and lower expected growth values. |
|
|
The Russell 3000 Value Index is a
capitalization-weighted, unmanaged index that measures those
Russell 3000 Index companies with lower price-to-book ratios and
lower forecasted growth. |
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