Silvercrest Asset Management Group Inc. Reports Q4 and Year-End 2024 Results
Silvercrest Asset Management Group Inc. reported its financial results for the fourth quarter and year ended December 31, 2024. The company experienced significant growth in assets under management (AUM) and revenue, driven by strategic investments and new client inflows.
Financial Highlights
For the year ended December 31, 2024, Silvercrest reported a revenue increase of 5.3% to $123.7 million, up from $117.4 million in 2023. The fourth quarter revenue saw a notable rise of 12.0% to $32.0 million compared to $28.5 million in the same period of the previous year. Net income for the year was $15.7 million, with a net income margin of 12.7%.
Discretionary AUM, which is a key driver of revenue, increased by 6.4% to $23.3 billion from $21.9 billion at the end of 2023. Total AUM reached $36.5 billion, marking a 9.6% increase from $33.3 billion at the end of the previous year.
Business and Operational Highlights
Silvercrest's strong performance in 2024 was bolstered by significant new client inflows, particularly in the fourth quarter, where the firm secured a $1.3 billion seed investment in its new Global Value Equity strategy in partnership with CBUS, one of Australia's largest superannuation funds. This contributed to the best year for new organic client inflows since 2015, with $1.5 billion in new client AUM inflows for the year.
The company also expanded its business development efforts by hiring market leads in Atlanta and Singapore and obtaining a full MAS license for operations in Singapore. These strategic moves are expected to enhance Silvercrest's presence in both institutional and wealth markets.
Strategic Initiatives and Corporate Developments
Silvercrest has been actively investing in talent and infrastructure to support future growth. The firm developed new institutional consulting relationships and is optimistic about securing significant new organic flows. The pipeline for the new Global Value Equity strategy remains robust, with high capacity for additional assets.
Additionally, Silvercrest continues to adjust its compensation structure to align with these investments, ensuring that the firm can attract and retain top talent to drive future growth.
Management's Perspective
Richard R. Hough III, Chief Executive Officer and President, expressed optimism about the company's future, highlighting the numerous business opportunities and the positive impact of recent strategic investments. He emphasized the firm's commitment to making further investments to sustain growth and transition the business towards the next generation.
Future Outlook
Looking ahead, Silvercrest remains highly optimistic about securing more significant organic net flows over the course of 2025. The firm expects continued revenue growth driven by the positive momentum in AUM inflows and strategic initiatives.
SEC Filing: Silvercrest Asset Management Group Inc. [ SAMG ] - 8-K - Mar. 06, 2025