The following is a summary of the Silvercrest Asset Management Group Inc. (SAMG) Q3 2024 Earnings Call Transcript:
Financial Performance:
In Q3 2024, Silvercrest reported discretionary AUM of $22.6 billion and total AUM of $35.1 billion.
Revenue for the quarter was $30.4 million, with a net income of $3.7 million.
Year-over-year, revenue increased by approximately 2%, driven by increased discretionary AUM, while expenses increased by 12% due to higher compensation and benefits.
Business Progress:
Silvercrest saw growth in assets under management due to supportive market conditions, with a 5% increase since Q2 and a 10% increase year-over-year.
The firm is expanding its global equity strategy and has seen increased business opportunities with a $1.2 billion pipeline.
New client accounts and relationships increased, particularly through new Small Cap Opportunity mandates.
Opportunities:
Silvercrest plans significant inflows from a new global equity strategy and expects robust net organic flows over the next quarters.
The firm is actively hiring to support business growth and invest in its future capabilities.
Risks:
Despite increased revenue, most business metrics are down due to higher operational expenses.
The firm faces the challenge of managing increased expenses while still aiming for growth.
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