Silvercrest Asset Management Group Inc. (SAMG) Bundle
A Brief History of Silvercrest Asset Management Group Inc.
Company Overview
Silvercrest Asset Management Group Inc. (SAMG) operates as a registered investment advisor. The firm primarily offers wealth management and advisory services to high-net-worth individuals, families, and institutions.
Financial Performance in 2024
As of September 30, 2024, Silvercrest reported total revenue of $91.7 million, representing a 3.2% increase from $88.9 million for the same period in 2023. The management and advisory fees accounted for $88.4 million of this total, up from $85.4 million in 2023.
Assets Under Management (AUM)
As of September 30, 2024, Silvercrest's total AUM was $35.1 billion, a 12.5% increase from $31.2 billion a year prior. The breakdown of AUM is as follows:
| Type | September 30, 2024 (in billions) | September 30, 2023 (in billions) |
|---|---|---|
| Discretionary AUM | $22.6 | $20.5 |
| Non-Discretionary AUM | $12.5 | $10.7 |
| Total AUM | $35.1 | $31.2 |
Client Flows
In the nine months ending September 30, 2024, the firm experienced net client outflows of $0.2 billion. Client inflows totaled $3.9 billion, while outflows were $5.7 billion.
Net Income and Expenses
Net income for the nine months ended September 30, 2024, was $13 million, compared to $15.8 million in 2023. Total expenses increased to $76 million from $69 million in the previous year, driven primarily by a rise in compensation and benefits.
| Financial Metrics | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Revenue | $91,689 | $88,868 |
| Net Income | $13,025 | $15,825 |
| Total Expenses | $76,019 | $69,080 |
Dividends and Shareholder Returns
Dividends paid on Class A common stock were $5.5 million for the nine months ended September 30, 2024. The company continues to return capital to shareholders through dividends and share repurchases, having purchased approximately 83,000 shares at a cost of $1.4 million in 2024.
Market Position and Strategy
Silvercrest remains focused on expanding its wealth management services while strategically managing its investment portfolios. The firm aims to enhance its market position by leveraging its expertise in high-net-worth and institutional investment strategies.
A Who Owns Silvercrest Asset Management Group Inc. (SAMG)
Ownership Structure
As of 2024, Silvercrest Asset Management Group Inc. (SAMG) operates primarily through its partnership, Silvercrest L.P. The ownership structure is significant in understanding the distribution of interests among stakeholders.
| Owner Type | Percentage Ownership | Details |
|---|---|---|
| Class A Common Stockholders | 68.3% | Silvercrest Asset Management Group Inc. holds 9,503,410 Class A units in Silvercrest L.P. |
| Class B Common Stockholders | 31.7% | Consists of limited partners in Silvercrest L.P., with restricted stock units for Class B units totaling 228,117. |
Major Shareholders
The major shareholders of Silvercrest Asset Management Group as of 2024 are categorized as follows:
| Shareholder | Type of Shares | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Silvercrest Asset Management Group Inc. | Class A Common Stock | 9,503,410 | 68.3% |
| Various Limited Partners | Class B Common Stock | 4,406,295 | 31.7% |
Financial Data
Silvercrest's financial performance provides insight into its operational success and shareholder returns:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $30,424,000 | $29,704,000 |
| Net Income | $3,730,000 | $5,380,000 |
| Assets Under Management | $35.1 billion | $31.2 billion |
| Adjusted EBITDA | $6,346,000 | $8,000,000 |
Dividends and Distributions
Details of dividends and distributions to shareholders are as follows:
| Type | Amount per Share | Total Paid (Q3 2024) |
|---|---|---|
| Class A Common Stock Dividend | $0.19 | $1,780,000 |
| Distributions to Partners | N/A | $6,395,000 |
Tax Considerations
As of September 30, 2024, Silvercrest had net deferred tax assets amounting to $3,456,000, reflecting the company’s tax strategy and implications for shareholders.
Conclusion on Ownership Dynamics
The ownership of Silvercrest Asset Management Group Inc. is characterized by a clear distinction between Class A and Class B shareholders, with the company's structure fostering a significant degree of control by the Class A shareholders through their majority stake in Silvercrest L.P.
Silvercrest Asset Management Group Inc. (SAMG) Mission Statement
Mission Statement Overview
The mission of Silvercrest Asset Management Group Inc. (SAMG) is to provide exceptional investment management and related family office services to ultra-high net worth individuals and institutional investors. The company emphasizes the importance of delivering personalized service and investment strategies that align with the unique needs of its clients.
Core Values
- Integrity: Maintaining the highest ethical standards in all interactions and decisions.
- Client Focus: Prioritizing client needs and tailoring services to meet those requirements.
- Excellence: Striving for the highest quality in investment performance and client service.
- Innovation: Continuously seeking new strategies and solutions to enhance client value.
Business Model
SAMG operates primarily through management and advisory fees, focusing on asset management for high-net-worth individuals and families. The company also provides family office services, which include comprehensive financial planning, investment management, and administrative services.
Financial Highlights
As of September 30, 2024, Silvercrest reported the following financial metrics:
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $91,689,000 | $88,868,000 | $2,821,000 | 3.2% |
| Management and Advisory Fees | $88,445,000 | $85,445,000 | $3,000,000 | 3.5% |
| Family Office Services | $3,244,000 | $3,423,000 | ($179,000) | (5.2%) |
| Net Income | $13,025,000 | $15,825,000 | ($2,800,000) | (17.7%) |
| Assets Under Management (AUM) | $35.1 billion | $31.2 billion | $3.9 billion | 12.5% |
Assets Under Management
As of September 30, 2024, the composition of assets under management was as follows:
| Type of AUM | Discretionary AUM | Non-Discretionary AUM | Total AUM |
|---|---|---|---|
| September 30, 2024 | $22.6 billion | $12.5 billion | $35.1 billion |
| September 30, 2023 | $20.5 billion | $10.7 billion | $31.2 billion |
Client Inflows and Outflows
The following data summarizes client inflows and outflows for the nine months ended September 30, 2024:
| Type | Gross Client Inflows | Gross Client Outflows | Net Client Flows |
|---|---|---|---|
| 2024 | $3.9 billion | ($5.7 billion) | ($1.8 billion) |
| 2023 | $4.5 billion | ($3.5 billion) | $1.0 billion |
Investment Strategies
SAMG employs various investment strategies focusing on long-term growth, including:
- Equity investments
- Fixed income strategies
- Alternative investments
Performance Metrics
As of September 30, 2024, the performance of key investment strategies included:
| Strategy | Composite Return (%) |
|---|---|
| Energy Infrastructure | 28.2% |
| Large Focused Opportunity | 18.5% |
| Large Cap Growth | 18.2% |
How Silvercrest Asset Management Group Inc. (SAMG) Works
Business Overview
Silvercrest Asset Management Group Inc. (SAMG) operates primarily in the asset management industry, focusing on providing investment management services for high net worth individuals, families, and institutional clients. The company offers a range of services including management and advisory services, performance fees, and family office services.
Financial Performance
For the three months ended September 30, 2024, SAMG reported total revenue of $30.4 million, an increase of 2.4% from $29.7 million in the same period of 2023. The nine-month revenue for 2024 was $91.7 million, compared to $88.9 million in 2023, reflecting a growth of 3.2%.
Assets Under Management
Total assets under management (AUM) increased by $3.9 billion, or 12.5%, to $35.1 billion as of September 30, 2024, compared to $31.2 billion as of September 30, 2023. This increase was attributed to market appreciation of $5.7 billion and client inflows of $3.9 billion, offset by client outflows of $5.7 billion.
| Period | Total AUM (in billion) | Discretionary AUM (in billion) | Non-Discretionary AUM (in billion) |
|---|---|---|---|
| September 30, 2024 | $35.1 | $22.6 | $12.5 |
| September 30, 2023 | $31.2 | $20.5 | $10.7 | June 30, 2024 | $33.4 | $21.6 | $11.8 |
Revenue Breakdown
Revenue from management and advisory fees for the three months ended September 30, 2024, was $29.4 million, while family office services generated $1.0 million. For the nine months, management and advisory fees totaled $88.4 million, and family office services accounted for $3.2 million.
| Revenue Source | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Management and Advisory Fees | $29.4 | $28.4 | $88.4 | $85.4 |
| Family Office Services | $1.0 | $1.3 | $3.2 | $3.4 |
| Total Revenue | $30.4 | $29.7 | $91.7 | $88.9 |
Investment Strategies
SAMG employs a variety of investment strategies, focusing on both discretionary and non-discretionary asset management. As of September 30, 2024, approximately 64% of AUM was in discretionary assets, which include separately managed accounts and proprietary/sub-advised funds, while 36% was in non-discretionary assets.
Client Flows
For the nine months ended September 30, 2024, SAMG experienced net client outflows of $1.5 billion. This included gross client inflows of $2.9 billion and outflows of $4.4 billion.
Net Income and Margins
Net income for the three months ended September 30, 2024, was $3.7 million, resulting in a net income margin of 12.3%. For the nine-month period, net income was $13.0 million, with a margin of 14.2%.
| Period | Net Income (in millions) | Net Income Margin (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $3.7 | 12.3% |
| Three Months Ended September 30, 2023 | $5.4 | 18.1% |
| Nine Months Ended September 30, 2024 | $13.0 | 14.2% |
| Nine Months Ended September 30, 2023 | $15.8 | 17.8% |
Operational Expenses
Total expenses for the three months ended September 30, 2024, were $26.0 million, compared to $23.2 million in the same period of 2023. Major components of expenses include compensation and benefits, which accounted for $18.6 million, and general and administrative expenses of $7.4 million.
| Expense Category | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Compensation and Benefits | $18.6 | $16.7 |
| General and Administrative | $7.4 | $6.5 |
| Total Expenses | $26.0 | $23.2 |
Equity Structure
As of September 30, 2024, SAMG had 10,394,542 shares of Class A common stock and 4,406,295 shares of Class B common stock outstanding. The total equity of the company was valued at $122.9 million.
| Equity Component | Value (in millions) |
|---|---|
| Total Class A Common Stock | $104 |
| Total Class B Common Stock | $43 |
| Additional Paid-In Capital | $56.6 |
| Treasury Stock | ($16.4) |
| Retained Earnings | $44.2 |
| Total Equity | $122.9 |
How Silvercrest Asset Management Group Inc. (SAMG) Makes Money
Revenue Streams
Silvercrest Asset Management Group Inc. generates revenue primarily through management and advisory fees, family office services, and performance-based fees. In the nine months ended September 30, 2024, the breakdown of revenue sources was as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Management and advisory fees | $88,445 | $85,445 | $3,000 | 3.5% |
| Family office services | $3,244 | $3,423 | ($179) | (5.2%) |
| Total revenue | $91,689 | $88,868 | $2,821 | 3.2% |
Assets Under Management (AUM)
As of September 30, 2024, Silvercrest's total assets under management (AUM) reached $35.1 billion, a significant increase from $31.2 billion in the previous year. The composition of AUM is critical for understanding their revenue generation capability:
| AUM Type | 2024 (in billions) | 2023 (in billions) | Change ($ billion) | Change (%) |
|---|---|---|---|---|
| Discretionary AUM | $22.6 | $20.5 | $2.1 | 10.2% |
| Non-Discretionary AUM | $12.5 | $10.7 | $1.8 | 16.8% |
| Total AUM | $35.1 | $31.2 | $3.9 | 12.5% |
Performance Metrics
Performance metrics provide insight into the profitability of Silvercrest's operations. As of September 30, 2024, key performance indicators included:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in thousands) | $13,025 | $15,825 |
| Net Income Margin (%) | 14.2% | 17.8% |
| Adjusted EBITDA (in thousands) | $21,031 | $24,297 |
| Adjusted EBITDA Margin (%) | 22.9% | 27.3% |
Market Performance and Client Flows
Client flows have a direct impact on revenue generation for Silvercrest. In the nine months ending September 30, 2024, the firm experienced:
- Gross client inflows of $3.9 billion.
- Gross client outflows of $5.7 billion.
- Net client flows resulting in a decrease of $1.8 billion.
Despite net outflows, market appreciation contributed positively, with total market appreciation of $5.7 billion enhancing the AUM figures.
Expenses Overview
Operational expenses can substantially affect profitability. For the nine months ended September 30, 2024, Silvercrest reported:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Compensation and benefits | $54,760 | $49,945 |
| General and administrative | $21,259 | $19,135 |
| Total Expenses | $76,019 | $69,080 |
This increase in expenses was primarily driven by higher compensation costs associated with partner incentives and general business growth.
Conclusion
Through its diverse revenue streams, substantial AUM, and strategic management of expenses, Silvercrest Asset Management Group Inc. continues to position itself as a key player in the asset management industry, effectively navigating market challenges while aiming for growth.
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Article updated on 8 Nov 2024
Resources:
- Silvercrest Asset Management Group Inc. (SAMG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Silvercrest Asset Management Group Inc. (SAMG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Silvercrest Asset Management Group Inc. (SAMG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.