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Silvercrest Asset Management Group Inc. (SAMG)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered solid top-line growth: revenue $32.0M (+12.0% y/y) with GAAP diluted EPS $0.17 and adjusted diluted EPS $0.20; adjusted EBITDA margin improved to 15.9% from 9.0% y/y .
  • AUM momentum accelerated: total AUM ended at $36.5B (vs. $35.1B in Q3, $33.3B y/y), supported by gross inflows of $2.2B and net client flows of +$0.9B; quarterly inflows were buoyed by a $1.3B seed into the new Global Value Equity strategy (CBUS) .
  • Expense mix showed investment posture: compensation accruals were managed higher in 2024 and are expected to continue in 2025; Q4 G&A rose 18.5% y/y while total expenses increased only 1.7% y/y, enabling margin uplift despite growth investments .
  • 2025 catalysts: robust institutional pipeline ($1.6B), MAS license in Singapore, planned EU license, and new Atlanta market initiative position SAMG for additional organic flows; management sees medium-term operating leverage potential back toward high-20s+ EBITDA margins if investments normalize .
  • Consensus estimates from S&P Global were unavailable at time of request; beat/miss vs. Street cannot be assessed. We will update estimate comparisons when S&P Global data is accessible.

What Went Well and What Went Wrong

What Went Well

  • Record organic business development: “The firm garnered $1.4 billion in the fourth quarter and $1.5 billion during 2024 in new client AUM inflows… the best year since 2015,” underpinned by the $1.3B CBUS seed into Global Value Equity .
  • Sequential AUM growth and revenue acceleration: Q4 AUM $36.5B (+4.0% q/q) with revenue +12.0% y/y; discretionary AUM rose to $23.3B (+3.1% q/q) on net client inflows .
  • Adjusted profitability improved: adjusted EBITDA $5.1M and margin 15.9% vs. 9.0% y/y, reflecting better revenue capture with controlled total expenses growth .

What Went Wrong

  • Elevated operating costs: Q4 G&A +18.5% y/y (professional fees, portfolio/systems, office, recruiting) and continued investment-led pressure on compensation ratio into 2025 .
  • Mixed market backdrop within the quarter: discretionary AUM saw market depreciation of $0.2B (offset by net inflows), tempering flow-through to revenue vs. a pure market tailwind .
  • Estimates unavailable: Street comparisons could not be performed due to an S&P Global data access issue during this analysis window; monitoring for resumption of access.

Financial Results

Quarterly progression (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$30.993 $30.424 $31.962
GAAP Diluted EPS ($)$0.28 $0.24 $0.17
Adjusted Diluted EPS ($)$0.30 $0.26 $0.20
Adjusted EBITDA ($USD Millions)$7.232 $6.346 $5.070
Adjusted EBITDA Margin %23.3% 20.9% 15.9%
Net Income Margin %14.1% 12.3% 8.4%
Net Income Attributable to Silvercrest ($USD Millions)$2.665 $2.252 $1.618
Total AUM (Period End, $USD Billions)$33.4 $35.1 $36.5
Discretionary AUM (Period End, $USD Billions)$21.6 $22.6 $23.3

YoY comparison (Q4 2023 → Q4 2024)

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$28.542 $31.962
GAAP Diluted EPS ($)($0.04) $0.17
Adjusted Diluted EPS ($)$0.07 $0.20
Adjusted EBITDA ($USD Millions)$2.581 $5.070
Adjusted EBITDA Margin %9.0% 15.9%
Net Income Margin %(2.2%) 8.4%
Total AUM (Period End, $USD Billions)$33.3 $36.5

Segment breakdown (revenue)

Segment Revenue ($USD Millions)Q2 2024Q3 2024Q4 2024
Management and advisory fees$29.900 $29.380 $30.871
Family office services$1.093 $1.044 $1.091
Total$30.993 $30.424 $31.962

KPIs (AUM flows)

KPI ($USD Billions)Q2 2024Q3 2024Q4 2024
Gross client inflows0.6 1.1 2.2
Gross client outflows(1.5) (1.3) (1.3)
Net client flows(0.9) (0.2) 0.9
Market appreciation/(depreciation)(0.2) 1.9 0.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Compensation accrual managementFY 2024 → FY 2025Increased interim variable accruals to narrow Q4 adjustment Maintain similar accrual management approach in 2025 Maintained
EBITDA margin potentialMedium-term (target)Historical peak ~32% in strong markets; high-20s possible without growth hires Medium-term operating leverage back toward high-20s+ if investments normalize; 2026 is “possible” if everything falls into place Qualitative target reiterated
Dividend per Class A shareQuarterly$0.20 declared 10/30/24 for Dec 2024 payment Maintain high dividend; aim to keep and increase prudently; comfortable with payout ratio even in downturns Maintained (policy tone)
Share repurchasesOngoingBuyback previously announced; capital return historically prioritized Continuing execution; buybacks remain under consideration depending on alternative uses of capital Maintained
Licensing/market expansion2025MAS license secured; building Singapore presence Pursuing EU license in 2025; active global BD (Asia, Australia, Europe) Expanded scope

Note: No formal quantitative revenue/EPS/margin guidance ranges were issued for Q4 2024 or FY 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Technology/productivityInvesting in systems; rising portfolio/systems expense Expect medium-term productivity gains from technology to lower expenses by 2026–27 (premature to quantify for 2025) Improving medium-term
International expansion & licensingHired global equity team in Q2; building infrastructure; MAS license noted Pursuing EU license; active BD trips to Asia/Australia/Europe; Singapore office ramp Expanding
Institutional pipeline & OCIOPipeline $1.0B (Q2) → $1.2B (Q3); OCIO capability emphasized Pipeline $1.6B; OCIO $1.6B with expected 2025 increase (steady markets assumed) Strengthening
Compensation/investmentsHigher interim compensation accruals supporting next-gen hires (Q2/Q3) Maintain accrual approach in 2025; team investments ongoing (analyst, trader, client associate) Continued investment
Capital returnQ3 dividend $0.20 declared Maintain high dividend; opportunistic buybacks; M&A optionality Consistent policy
AUM drivers/market breadthQ3 noted broader market participation; small cap exposure benefited Q4 discretionary AUM net inflows +$0.9B; market depreciation (0.2B) within discretionary offset by inflows; CBUS seed $1.3B Positive net flows

Management Commentary

  • Strategy and growth posture: “Silvercrest has never had more business opportunities. Those initiatives are beginning to bear results… we expect to make more hires to complement our outstanding professional team” .
  • Global platform build: “We have our full MAS license for doing business in Singapore… we will be pursuing more initiatives to better highlight Silvercrest in both the institutional and wealth markets” ; “We are highly likely to be pursuing a license in the European Union” .
  • Financial discipline (comp): “We increased the amount of the interim variable compensation accrual during 2024… We intend to do the same accrual management in 2025” .
  • Operating leverage: “In a steady state… we would bump back up into the high 20s EBITDA margin… all-time high around 32% in 2021; getting back there is within the realm of possibility” .
  • Capital return: “We have no debt and a lot of cash… appropriate once again to do a buyback… general goal is to keep [the dividend] high and increase it prudently” .

Q&A Highlights

  • Pipeline and OCIO: Pipeline grew to $1.6B from $1.2B (with wins removed); OCIO stands at $1.6B with expectation to increase in 2025, assuming steady markets .
  • Expense trajectory: Expect compensation and G&A at current levels in the near term as investments continue; technology productivity gains should help in 2026–27 .
  • Operating leverage: Medium-term EBITDA margin back to high-20s possible; 2026 is “possible” if execution and markets cooperate .
  • Global expansion: Pursuing EU license; active BD across Asia/Australia/Europe; Singapore MAS license complete; global inflows expected in 2025–26 .
  • Capital allocation: Maintaining a high dividend with prudent increases; buybacks ongoing/under consideration; M&A remains optionality given cash and no debt .

Estimates Context

  • S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable at the time of analysis due to an access limitation; as a result, we cannot determine beat/miss versus Street. Monitoring for data availability to update this section.

Key Takeaways for Investors

  • Organic growth is re-accelerating: Q4 gross inflows $2.2B, net flows +$0.9B, and total AUM $36.5B position SAMG for stronger fee revenue capture in 2025 .
  • Strategic CBUS seed ($1.3B) validates Global Value Equity and should catalyze follow-on mandates in Europe/Asia, expanding institutional reach and scale .
  • Margin path depends on investment cadence: management can recapture high-20s EBITDA margins in a steady state; near term, compensation accruals remain elevated to fund growth .
  • Technology/process investments are a medium-term EPS lever: management anticipates productivity gains that can lower run-rate expenses in 2026–27 .
  • Capital return remains supportive: high dividend policy with prudent increases and opportunistic buybacks provide downside support amid small-cap value headwinds .
  • Global licensing and Atlanta market entry expand TAM: MAS license, planned EU license, and domestic market build (Atlanta) should broaden the pipeline and sustain net flows .
  • Near-term narrative: focus on institutional pipeline conversion (including OCIO), stabilization of compensation ratio as new teams mature, and progress toward operating leverage—key stock catalysts into 2025 .
Sources:
• Q4 2024 8-K and press release: **[1549966_0000950170-25-034624_samg-ex99_1.htm:0]** **[1549966_0000950170-25-034624_samg-ex99_1.htm:1]** **[1549966_0000950170-25-034624_samg-ex99_1.htm:2]** **[1549966_0000950170-25-034624_samg-ex99_1.htm:7]** **[1549966_0000950170-25-034624_samg-ex99_1.htm:8]** **[1549966_0000950170-25-034624_samg-ex99_1.htm:9]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_0]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_1]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_3]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_4]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_14]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_15]** **[1549966_ecf78d61e4c543d8ae0c7244172e7597_16]**
• Q4 2024 earnings call transcript: **[1549966_SAMG_3419887_0]** **[1549966_SAMG_3419887_1]** **[1549966_SAMG_3419887_2]** **[1549966_SAMG_3419887_3]** **[1549966_SAMG_3419887_4]** **[1549966_SAMG_3419887_5]** **[1549966_SAMG_3419887_6]** **[1549966_SAMG_3419887_7]** **[1549966_SAMG_3419887_8]** **[1549966_SAMG_3419887_9]** **[1549966_SAMG_3419887_10]** **[1549966_SAMG_3419887_11]**
• Q3 2024 8-K and press release: **[1549966_0000950170-24-119536_samg-ex99_1.htm:2]** **[1549966_0000950170-24-119536_samg-ex99_1.htm:3]** **[1549966_0000950170-24-119536_samg-ex99_1.htm:8]** **[1549966_0000950170-24-119536_samg-ex99_1.htm:11]** **[1549966_1d04ec50441f40af84b849a08692b5a4_0]** **[1549966_1d04ec50441f40af84b849a08692b5a4_1]** **[1549966_1d04ec50441f40af84b849a08692b5a4_2]** **[1549966_1d04ec50441f40af84b849a08692b5a4_3]**
• Q2 2024 8-K press release: **[1549966_0000950170-24-089266_samg-ex99_1.htm:1]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:2]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:3]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:8]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:9]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:10]** **[1549966_0000950170-24-089266_samg-ex99_1.htm:11]**
• CBUS seed press release (Dec 11, 2024): **[1549966_7a36b0cba67b43bbb6815cd32258f025_0]**