Silvercrest Asset Management Group Inc. (SAMG): Boston Consulting Group Matrix [10-2024 Updated]
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Silvercrest Asset Management Group Inc. (SAMG) Bundle
In the dynamic landscape of asset management, understanding the positioning of Silvercrest Asset Management Group Inc. (SAMG) through the lens of the Boston Consulting Group Matrix reveals critical insights into its business performance as of 2024. With assets under management (AUM) soaring to $35.1 billion and a notable 3.2% revenue increase year-over-year, SAMG showcases promising strengths. However, challenges such as client outflows of $1.3 billion and declining revenue in specific segments illustrate the complexities the firm faces. Explore how SAMG's offerings are categorized as Stars, Cash Cows, Dogs, and Question Marks to better understand its strategic positioning and future potential.
Background of Silvercrest Asset Management Group Inc. (SAMG)
Silvercrest Asset Management Group Inc. (“Silvercrest”) was established as a Delaware corporation on July 11, 2011. The company serves as a holding entity for its operating subsidiary, Silvercrest L.P., a limited partnership formed on December 10, 2008, which commenced operations on January 1, 2009. As of June 26, 2013, Silvercrest became the sole general partner of Silvercrest L.P., holding approximately 68.3% of its outstanding interests through 9,503,410 Class A units. This structure allows Silvercrest to exercise control over the businesses and affairs of Silvercrest L.P. and its subsidiaries, continuing the operations previously conducted by these entities prior to the reorganization.
Silvercrest L.P. provides a wide array of investment management and family office services tailored for ultra-high-net-worth individuals, families, and institutional investors primarily located in the United States. The company's offerings include the management of funds of funds and investment funds collectively known as the “Silvercrest Funds.”
Throughout its history, Silvercrest has expanded its capabilities through various acquisitions. Key transactions include the acquisition of James C. Edwards Asset Management, Inc. in March 2004, which was later renamed Silvercrest Financial Services, Inc., and the purchase of assets from multiple entities, including Heritage Financial Management, LLC and Marathon Capital Group, LLC. Notably, in January 2019, Silvercrest acquired certain assets of Neosho Capital LLC, further enhancing its investment management services.
As of September 30, 2024, Silvercrest reported total assets under management of approximately $35.1 billion, reflecting a 5.1% increase from the previous quarter. The company’s revenue for the three months ended September 30, 2024, was reported at $30.4 million, with management and advisory fees constituting a significant portion of this revenue stream.
Silvercrest Asset Management Group Inc. (SAMG) - BCG Matrix: Stars
Strong growth in assets under management (AUM)
Assets under management (AUM) reached $35.1 billion as of September 30, 2024, reflecting significant growth from $31.2 billion as of September 30, 2023.
Revenue increase
Total revenue increased by 3.2% year-over-year to $91.7 million for the nine months ended September 30, 2024, compared to $88.9 million for the same period in 2023.
Performance in discretionary managed accounts
Discretionary managed accounts contributed 97% of management fee revenue, showcasing the strength of this segment within the overall business model.
Market appreciation contributing to AUM growth
Positive market conditions contributed a $5.7 billion increase in AUM, highlighting the impact of market appreciation on overall asset values.
Robust client inflows
Strong demand for investment strategies is indicated by significant client inflows, which totaled $3.9 billion during the period, despite $5.7 billion in client outflows.
| Metric | Value as of September 30, 2024 | Value as of September 30, 2023 | Change |
|---|---|---|---|
| Assets Under Management (AUM) | $35.1 billion | $31.2 billion | $3.9 billion (12.5% increase) |
| Total Revenue | $91.7 million | $88.9 million | $2.8 million (3.2% increase) |
| Discretionary Managed Accounts Revenue | $28.4 million | $27.4 million | $1 million (3.6% increase) |
| Client Inflows | $3.9 billion | N/A | N/A |
| Client Outflows | $5.7 billion | N/A | N/A |
Silvercrest Asset Management Group Inc. (SAMG) - BCG Matrix: Cash Cows
Established management and advisory fee income stream, generating $88.4 million for the nine months ended September 30, 2024.
For the nine months ended September 30, 2024, Silvercrest Asset Management Group Inc. reported management and advisory fees of $88,445,000, compared to $85,445,000 for the same period in 2023, reflecting an increase of $3,000,000 or 3.5%.
Consistent profitability with net income attributable to Silvercrest of $7.9 million for the nine months ended September 30, 2024.
The net income attributable to Silvercrest for the nine months ended September 30, 2024, was $7,917,000, down from $9,505,000 for the same period in 2023, indicating a decline of $1,588,000 or 16.7%.
Strong client retention rates in discretionary accounts.
As of September 30, 2024, the total assets under management (AUM) increased to $35.1 billion, up from $31.2 billion a year prior, representing a growth of $3.9 billion or 12.5%. The composition of AUM included 64% in discretionary assets and 36% in non-discretionary assets.
Ability to fund dividends from profit distributions, maintaining shareholder confidence.
For the nine months ended September 30, 2024, Silvercrest paid dividends totaling $5.5 million to Class A shareholders. The distributions to partners during the same period were $6.4 million, compared to $7.8 million in the prior year.
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Management and Advisory Fees | $88,445,000 | $85,445,000 | $3,000,000 | 3.5% |
| Net Income Attributable to Silvercrest | $7,917,000 | $9,505,000 | ($1,588,000) | (16.7%) |
| Total Assets Under Management | $35.1 billion | $31.2 billion | $3.9 billion | 12.5% |
| Dividends Paid to Class A Shareholders | $5,500,000 | $5,200,000 | $300,000 | 5.8% |
| Distributions to Partners | $6,400,000 | $7,800,000 | ($1,400,000) | (17.9%) |
Silvercrest Asset Management Group Inc. (SAMG) - BCG Matrix: Dogs
Family Office Services Revenue Decline
The family office services segment has experienced a revenue decline of 5.2% year-over-year, indicating potential underperformance in this segment. For the nine months ended September 30, 2024, family office services revenue was $3,244,000, down from $3,423,000 in the same period of 2023.
Limited Growth in Private Funds
Private funds have contributed only 3% to total management and advisory fees. For the three months ended September 30, 2024, the revenue from private funds was $1,000,000, consistent with the previous year. The average assets under management in private funds were $0.4 billion, showing no growth compared to the same period last year.
Underperformance of Certain Strategies
Several investment strategies are underperforming relative to market benchmarks, which can potentially impact client retention. The overall management and advisory fees for the nine months ended September 30, 2024, totaled $88,445,000, a slight increase from $85,445,000 in 2023, but still reflecting limited growth.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Family Office Services Revenue | $3,244,000 | $3,423,000 | (5.2) |
| Private Funds Revenue | $1,000,000 | $1,000,000 | 0.0 |
| Total Management and Advisory Fees | $88,445,000 | $85,445,000 | 3.5 |
Silvercrest Asset Management Group Inc. (SAMG) - BCG Matrix: Question Marks
High client outflows impacting net client flows
Silvercrest Asset Management Group Inc. reported net client outflows of $1.3 billion recently, indicating a significant challenge in maintaining client assets.
Need for strategic adjustments in investment strategies
To improve competitiveness, Silvercrest needs to implement strategic adjustments in its investment strategies. The total revenue for the three months ended September 30, 2024, was $30.4 million, an increase of 2.4% from $29.7 million in the same period in 2023. This increase was driven by market appreciation but was offset by client outflows.
Exploration of new markets or service offerings to enhance growth potential
Silvercrest's 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 growth was attributed to market appreciation of $5.7 billion and client inflows of $3.9 billion, although client outflows also totaled $5.7 billion.
Reliance on market conditions for AUM growth raises concerns about sustainability in fluctuating markets
The reliance on market conditions for AUM growth poses sustainability concerns, especially in fluctuating markets. As of September 30, 2024, the composition of AUM was 64% in discretionary assets and 36% in non-discretionary assets. The discretionary AUM at this date was $22.6 billion, up from $20.5 billion a year earlier.
| Category | Value |
|---|---|
| Net Client Outflows | $1.3 billion |
| Total Revenue (Q3 2024) | $30.4 million |
| Total AUM (Sept 2024) | $35.1 billion |
| Market Appreciation (Sept 2024) | $5.7 billion |
| Client Inflows (Sept 2024) | $3.9 billion |
| Client Outflows (Sept 2024) | $5.7 billion |
| Discretionary AUM (Sept 2024) | $22.6 billion |
| Year-over-Year AUM Growth | 12.5% |
In summary, Silvercrest Asset Management Group Inc. (SAMG) exhibits a dynamic portfolio as illustrated by the BCG Matrix. The firm's Stars show strong growth in AUM and revenue, while Cash Cows maintain a reliable income stream and profitability. However, challenges arise in the Dogs segment with declining family office services and underperforming private funds. Lastly, Question Marks highlight the need for strategic shifts to address client outflows and enhance growth potential. Addressing these areas will be crucial for SAMG's future stability and growth.
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.