Silvercrest Asset Management Group Inc. Q1 FY2025 earnings call

• Strong new client organic flows: $0.4 billion in Q1 2025, totaling $1.8 billion over the past two quarters.
• Total AUM declined due to market volatility, but new business pipeline remains robust.
• Invested in talent across the firm to drive growth and transition the business.
• Pursuing initiatives to highlight Silvercrest in institutional and wealth markets.
• Completed a $12 million stock repurchase program and declared a quarterly dividend of $0.20 per share of Class A common stock.

Discretionary AUM stood at $22.7 billion as of March 31, 2025, and total AUM was $35.3 billion. Revenue for the quarter was $31.4 million, a year-over-year increase of $1.1 million or 3.7%, driven by market appreciation. Expenses rose by $2.2 million or 9% year-over-year, primarily due to higher compensation and general administrative costs. Adjusted EBITDA was approximately $6.5 million, representing 20.7% of revenue. Adjusted net income was $3.9 million. Cash and cash equivalents were $36.3 million, total assets were $159.9 million, and Class A stockholders' equity was $80 million.

• Anticipate continued market volatility to impact short-term results and top-line revenue.
• Optimistic about securing more significant organic flows throughout 2025.
• Will evaluate opportunities to return capital to shareholders as part of growth initiatives.

• Market volatility and global economic/trade concerns can negatively affect short-term performance.
• Uncertainty in the global macro environment may cause asset allocators to pause, impacting short-term results.
• Market hesitation can affect the search environment in the short term.

Q: Could you comment and give more color on the pipeline and what you're seeing for OCIO as well as global going forward?

A: With regards to OCIO and the pipeline, the search environment has changed; it's about cultivating consultant relationships. Confident about the global value strategy pipeline, but market volatility has a short-term impact. OCIO pipeline has slowed, but medium to long-term outlook is optimistic.

Q: In the global area, your team is now fully built out and how is the investment performance result?

A: Team is nearly fully built out. Investment performance is outstanding, beating benchmarks despite volatile markets.

Q: How are things in Europe and Singapore regarding global expansion? And can you add some color as to the AUM there?

A: European entity is being licensed to proactively market; Southeast Asia team is being built. AUM details are complex due to global client domiciles, but there are strong opportunities with new relationships.

Q: Can you share any color on potentially a new buyback and the amount there and how much that would be?

A: Considering a new buyback, but no specific amount announced yet; evaluating based on growth opportunities and capital structure.

Q: Drill down on expenses and the timing of getting additional revenue versus expenses (operating leverage)?

A: Long-term focus, optimistic about increasing margins as markets stabilize. Investments in global teams and expansion will take time, but see year-over-year progress.

Q: Do you see international investors pulling capital from the U.S. as an issue for Silvercrest?

A: Not a significant issue as most assets are U.S.-based. Global strategies have ample capital opportunities, and the U.S. remains a large economy with global capital flows.