Silvercrest Asset Management Group (SAMG) Q3 2024 earnings summary

Executive summary

• Assets under management (AUM) reached $35.1 billion at quarter end, up 13% year-over-year and 5% sequentially, driven by market appreciation and new business wins despite some client outflows.

• Revenue increased 2.4% year-over-year to $30.4 million for Q3 2024, supported by market appreciation and new client mandates, especially in small-cap and diversified strategies.

• Net income declined to $3.7 million for Q3 2024 (down from $5.4 million), reflecting higher compensation and investments in business development and infrastructure.

• Adjusted EBITDA margin decreased to 20.9% for Q3 2024 from 26.9% in Q3 2023, and to 22.9% for the nine months from 27.3% year-over-year.

• The pipeline of new institutional business opportunities grew 20% during the quarter to $1.2 billion, with optimism for significant organic net flows in the next two quarters.

Financial highlights

• Q3 2024 revenue: $30.4 million (up 2.4% year-over-year); net income: $3.7 million (down from $5.4 million); adjusted EBITDA: $6.3 million (down from $8.0 million); adjusted net income: $3.8 million.

• For the nine months ended September 30, 2024: revenue $91.7 million (up 3.2%), net income $13.0 million (down from $15.8 million), adjusted EBITDA $21.0 million (down from $24.3 million).

• Net income margin for Q3 2024 was 12.3% (down from 18.1% year-over-year); adjusted EBITDA margin was 20.9% (down from 26.9%).

• Basic and diluted EPS for Q3 2024: $0.24 (down from $0.34); adjusted basic/diluted EPS: $0.27/$0.26.

• Cash and cash equivalents at quarter end: $58.1 million; no outstanding debt under credit facilities.

Outlook and guidance

• Management expects continued positive AUM flows and revenue growth, supported by a robust pipeline and broader market participation.

• Ongoing investments in talent and infrastructure, including global equity and OCIO teams, are expected to drive future growth.

• Long-term target for adjusted EBITDA margin remains in the upper 20s%.

• Management expects cash and liquidity needs for the next twelve months to be met primarily through operating cash flows.

• Distributions to partners and dividends to shareholders will continue, subject to operating results and dividend policy.