The following is a summary of the Silvercrest Asset Management Group Inc. (SAMG) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Silvercrest reported a decrease in discretionary AUM to $21.6 billion due to loss of institutional mandates.

• Total AUM was $33.4 billion, marking a modest increase of 4.7% year-over-year.

• Quarterly revenue experienced a growth of 4.2%, reaching $31 million, driven primarily by market appreciation.

• Reported consolidated net income for the quarter was $4.4 million.

• The company operates with a high interim compensation percentage, affecting profitability.

Business Progress:

• Focused on diversifying client base and growing institutional relationships, particularly in global equity and OCIO.

• Announced the hiring of a global equity investment team to drive future growth in international strategies.

• Added new business development professionals to enhance outreach to ultra-high net worth families in the Southeast.

• Increased quarterly dividend by approximately 5%, reflecting confidence in ongoing financial stability and shareholder value enhancement.

Opportunities:

• Investing in global equity teams may attract significant institutional mandates and raise Silvercrest's visibility globally.

• Diversification into serving ultra-high net worth families and international markets presents significant growth potential.

Risks:

• Subject to performance volatility where narrow market trends can impact business dramatically due to specialized focus on small cap and value strategy.

• Broader market participation is essential to support future AUM growth, with current narrow market leadership constituting a risk.

More details: Silvercrest Asset Management IR

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