Financial Data and Key Metrics Changes - Strong new client organic flows of $400 million during Q1 2025, following $1.4 billion in Q4 2024, totaling $1.8 billion over the past two quarters [4] - Total AUM declined to $34.3 billion, with discretionary AUM flat year over year at $22.7 billion [5][9] - Revenue for the quarter was $31.4 million, a year-over-year increase of $1.1 million or 3.7% [9] - Reported net income for the quarter was approximately $3.9 million, or $0.26 per Class A share [10] Business Line Data and Key Metrics Changes - The firm experienced strong performance in its Global Value strategy, with significant contacts and potential for large investments in 2025 [20][21] - OCIO pipeline has slowed, but there is optimism for future flows [20] Market Data and Key Metrics Changes - Market volatility affected AUM, with a noted pullback due to global economic and trade concerns [5][22] - The firm is optimistic about the medium to long-term outlook despite short-term market challenges [24] Company Strategy and Development Direction - The company plans to continue pursuing initiatives to enhance visibility in institutional and wealth markets [5] - Investments in talent and infrastructure are ongoing to support growth and transition to the next generation of business [5][6] - A European entity is being established to allow proactive marketing in Europe, with a focus on building relationships and expanding presence [38][39] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about organic growth despite current market volatility and uncertainty [22][24] - The firm is focused on long-term growth strategies and expects to see increasing margins year over year [61][62] - Management acknowledges potential short-term headwinds due to tax outflows and market conditions [66] Other Important Information - A $12 million stock repurchase program was completed, with plans to evaluate future buybacks [6][28] - A quarterly dividend of $0.20 per share was declared, to be paid in June [7] Q&A Session Summary Question: Comments on the pipeline and future outlook for OCIO and Global - Management noted a shift in the search environment towards cultivating consultant relationships rather than traditional RFPs, expressing confidence in the pipeline for Global Value [15][20] Question: Update on investment performance in the global area - Performance has been outstanding, with strong absolute and relative results despite market volatility [26] Question: Details on the stock buyback program - The buyback program was completed successfully, with management expressing satisfaction with the execution [28] Question: Update on global expansion in Europe and Singapore - Management highlighted ongoing efforts to establish a European entity for proactive marketing and noted strong opportunities in Southeast Asia [38][40] Question: Discussion on expenses and operating leverage - Management emphasized a long-term focus on achieving operating leverage and expects to see progress year over year [61][62] Question: Impact of international investors pulling capital from the U.S. - Management indicated that the majority of assets are U.S.-based, and the firm has global strategies to mitigate potential impacts [68][71]

Financial Data and Key Metrics Changes - The company experienced strong new client organic flows of $400 million in Q1 2025, following $1.4 billion in Q4 2024, totaling $1.8 billion over the past two quarters [4] - Total Assets under Management (AUM) was $34.3 billion, with discretionary AUM at $22.7 billion, remaining flat year over year [5][8] - Revenue for the quarter was $31.4 million, an increase of $1.1 million or 3.7% year over year, primarily driven by market appreciation [8] - Reported net income for the quarter was approximately $3.9 million, translating to $0.26 per Class A share [10] - Total assets decreased from $194.4 million at the end of 2024 to approximately $159.9 million as of March 31, 2025 [11] Business Line Data and Key Metrics Changes - The company noted a robust new business pipeline, particularly in Global Value strategies, with significant potential for future growth [19] - The OCIO pipeline has slowed, but there is optimism for future flows as the company builds relationships with consultants [19][20] Market Data and Key Metrics Changes - The company is expanding its presence in Europe and Southeast Asia, with a focus on building relationships and establishing a proactive marketing strategy [36][39] - The firm is working on obtaining a European license to market its services more effectively [36] Company Strategy and Development Direction - The company plans to continue investing in talent and initiatives to enhance its presence in institutional and wealth markets [5] - A $12 million stock repurchase program was completed, indicating a commitment to returning capital to shareholders while investing in growth [6][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing more significant organic flows throughout 2025 despite short-term market volatility affecting results [5][21] - The company is navigating a period of hesitation in the search environment due to global macroeconomic uncertainties, but remains confident in long-term growth prospects [22][63] Other Important Information - A quarterly dividend of $0.20 per share was declared, to be paid on or about June 20, 2025 [7] - The company is focused on maintaining a healthy balance sheet to support ongoing capital returns and growth initiatives [6] Q&A Session Summary Question: Could you comment on the pipeline and what you're seeing for OCI as well as Global going forward? - Management noted that the nature of searches has changed, focusing on cultivating consultant relationships rather than traditional RFPs, and expressed confidence in the pipeline for Global Value strategies [15][16] Question: How are things in Europe and Singapore regarding AUM? - Management highlighted strong relationships in Europe and ongoing efforts to establish a proactive marketing presence, with a focus on regulatory compliance [34][36] Question: Can you share any color on potentially a new buyback? - Management indicated that they are seriously considering another buyback, emphasizing the importance of returning capital to shareholders while investing in growth [42][43] Question: How do you view the operating leverage and timing of revenue versus expenses? - Management acknowledged the challenges of achieving operating leverage in the current environment but expressed optimism about long-term growth and increasing margins [56][58] Question: Is the trend of international investors pulling capital from the U.S. a concern for Silvercrest? - Management stated that the majority of their assets are U.S.-based and expressed confidence in their global strategies to mitigate any potential impacts [65][67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-35733 Silvercrest Asset Management Group Inc. (Exact name of registrant as specified in its charter) Securities registered purs ...

[Q1 2025 Financial Highlights and Business Update](index=1&type=section&id=Silvercrest%20Asset%20Management%20Group%20Inc.%20Reports%20Q1%202025%20Results) Silvercrest reported strong Q1 2025 new client inflows and continued capital returns, despite a market-driven AUM decline, with key financial metrics detailed [Business Update](index=1&type=section&id=Business%20Update) Silvercrest achieved strong new client inflows and returned capital to shareholders, despite a market-driven decline in total AUM, while investing in strategic growth initiatives - Experienced strong new client organic flows of **$0.4 billion** during Q1 2025, following significant flows of **$1.4 billion** in Q4 2024[3](index=3&type=chunk) - Total AUM declined during the quarter due to market volatility, with discretionary AUM at **$22.7 billion** (flat year-over-year) and total AUM at **$35.3 billion**[4](index=4&type=chunk) - Completed a **$12.0 million** stock repurchase program and the Board of Directors declared a quarterly dividend of **$0.20 per share**[7](index=7&type=chunk)[8](index=8&type=chunk) - Strategic focus includes investing in talent to drive new growth and pursuing initiatives to enhance the company's profile in institutional and wealth markets[5](index=5&type=chunk) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Q1 2025 highlights include **$35.3 billion** in total AUM, **$31.4 million** revenue, **$3.9 million** GAAP net income, and **$0.26** GAAP diluted EPS Q1 2025 Key Metrics | Metric | Value | | :--- | :--- | | Total AUM | $35.3 billion | | Discretionary AUM | $22.7 billion | | Non-discretionary AUM | $12.6 billion | | Revenue | $31.4 million | | GAAP Consolidated Net Income | $3.9 million | | GAAP Basic and Diluted EPS | $0.26 | | Adjusted EBITDA | $6.5 million | | Adjusted Net Income | $3.9 million | | Adjusted Diluted EPS | $0.27 | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) This section analyzes Q1 2025 financial performance, detailing revenue and expense trends, profitability metrics, and the company's liquidity position [Summary of Financial Results (Q1 2025 vs Q1 2024)](index=3&type=section&id=Summary%20of%20Financial%20Results%20%28Q1%202025%20vs%20Q1%202024%29) Q1 2025 revenue grew **3.7%** to **$31.4 million**, but net income and Adjusted EBITDA declined due to a **9.0%** increase in total expenses, compressing margins Financial Comparison (Q1 2025 vs Q1 2024) | Metric (in thousands, except percentages) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $31,392 | $30,272 | | Net Income | $3,928 | $4,915 | | Net Income Margin | 12.5% | 16.2% | | Adjusted EBITDA | $6,497 | $7,453 | | Adjusted EBITDA Margin | 20.7% | 24.6% | | Adjusted Net Income | $3,894 | $4,718 | | Assets Under Management (billions) | $35.3 | $34.5 | [Revenue and Expense Analysis](index=3&type=section&id=Revenue%20and%20Expense%20Analysis) Q1 2025 revenue increased **3.7%** to **$31.4 million** due to market appreciation, while total expenses rose **9.0%** to **$26.6 million**, driven by higher compensation and administrative costs - Revenue increased by **3.7% YoY** to **$31.4 million**, driven by market appreciation over the twelve-month period[14](index=14&type=chunk) - Total expenses increased by **9.0% YoY** to **$26.6 million**[15](index=15&type=chunk) - Compensation and benefits expense rose **6.9%** due to merit-based salary increases, while general and administrative expenses grew **14.6%** from higher professional fees, portfolio systems expense, and other operational costs[15](index=15&type=chunk) [Profitability Analysis](index=5&type=section&id=Profitability%20Analysis) Q1 2025 profitability declined, with consolidated net income at **$3.9 million** and Adjusted EBITDA at **$6.5 million** (margin **20.7%**), leading to an Adjusted Diluted EPS of **$0.27** Profitability Metrics Comparison (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Consolidated Net Income | $3.9 million | $4.9 million | | Adjusted EBITDA | $6.5 million | $7.5 million | | Adjusted EBITDA Margin | 20.7% | 24.6% | | Adjusted Net Income | $3.9 million | $4.7 million (from Exhibit 3) | | Adjusted Diluted EPS | $0.27 | $0.33 (from Exhibit 3) | [Liquidity and Capital Resources](index=5&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Silvercrest reported **$36.3 million** in cash and equivalents and **$81.0 million** in total equity, with no outstanding debt, though cash decreased from year-end 2024 - Cash and cash equivalents stood at **$36.3 million** at March 31, 2025, a decrease from **$68.6 million** at December 31, 2024[18](index=18&type=chunk) - The company had no outstanding balance on its term loan or revolving credit facility with City National Bank[18](index=18&type=chunk) - Total equity attributable to Silvercrest Asset Management Group Inc. was **$81.0 million** at the end of the quarter[19](index=19&type=chunk) [Assets Under Management (AUM) Analysis](index=3&type=section&id=Assets%20Under%20Management%20%28AUM%29%20Analysis) This section provides a detailed analysis of Assets Under Management (AUM), including total, discretionary, and non-discretionary AUM, and their roll-forward changes [AUM Overview](index=3&type=section&id=AUM%20Overview) As of March 31, 2025, total AUM reached **$35.3 billion**, up **2.3%** YoY but down **3.3%** QoQ due to market depreciation, with discretionary AUM remaining flat YoY - Total AUM increased **2.3% YoY** to **$35.3 billion**, primarily due to **$0.8 billion** in market appreciation[12](index=12&type=chunk) - Total AUM decreased **3.3% QoQ** from **$36.5 billion**, driven by market depreciation of **$1.4 billion**, partially offset by net client inflows of **$0.2 billion**[13](index=13&type=chunk) - Discretionary AUM was flat YoY at **$22.7 billion** and decreased **2.6% QoQ** from **$23.3 billion**[12](index=12&type=chunk)[13](index=13&type=chunk) [Total AUM](index=12&type=section&id=Total%20AUM) Total AUM ended Q1 2025 at **$35.3 billion**, with **$0.2 billion** net client inflows offset by **$1.4 billion** market depreciation Total AUM Roll-Forward (in billions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Beginning AUM | $36.5 | $33.3 | | Gross client inflows | $1.4 | $1.2 | | Gross client outflows | $(1.2) | $(1.5) | | Net client flows | $0.2 | $(0.3) | | Market (depreciation)/appreciation | $(1.4) | $1.5 | | **Ending AUM** | **$35.3** | **$34.5** | [Discretionary AUM](index=13&type=section&id=Discretionary%20AUM) Discretionary AUM was **$22.7 billion** in Q1 2025, flat YoY, with **$0.3 billion** net client inflows offset by **$0.9 billion** market depreciation Discretionary AUM Roll-Forward (in billions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Beginning AUM | $23.3 | $21.9 | | Gross client inflows | $1.0 | $0.7 | | Gross client outflows | $(0.7) | $(1.1) | | Net client flows | $0.3 | $(0.4) | | Market (depreciation)/appreciation | $(0.9) | $1.2 | | **Ending AUM** | **$22.7** | **$22.7** | [Non-Discretionary AUM](index=14&type=section&id=Non-Discretionary%20AUM) Non-Discretionary AUM reached **$12.6 billion** in Q1 2025, up **6.8%** YoY, despite **$0.1 billion** net client outflows and **$0.5 billion** market depreciation Non-Discretionary AUM Roll-Forward (in billions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Beginning AUM | $13.2 | $11.4 | | Gross client inflows | $0.4 | $0.5 | | Gross client outflows | $(0.5) | $(0.4) | | Net client flows | $(0.1) | $0.1 | | Market (depreciation)/appreciation | $(0.5) | $0.3 | | **Ending AUM** | **$12.6** | **$11.8** | [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of operations and financial condition, detailing revenue, expenses, net income, assets, and liabilities [Condensed Consolidated Financial Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenue was **$31.4 million**, but increased expenses led to a decline in income before taxes to **$5.1 million** and diluted net income per share to **$0.26** Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $31,392 | $30,272 | | Total expenses | $26,555 | $24,368 | | Income before provision for income taxes | $5,102 | $6,208 | | Net income | $3,928 | $4,915 | | Net income attributable to Silvercrest | $2,469 | $3,000 | | Diluted net income per share | $0.26 | $0.32 | [Condensed Consolidated Statements of Financial Condition](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) As of March 31, 2025, total assets were **$159.9 million** and total liabilities **$43.2 million**, both decreasing from year-end 2024, primarily due to changes in cash and accrued compensation Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $36,255 | $68,611 | | Goodwill | $63,675 | $63,675 | | Total assets | $159,926 | $194,432 | | Accrued compensation | $9,085 | $39,865 | | Total liabilities | $43,234 | $74,739 | | Total equity | $116,692 | $119,693 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS, to their GAAP equivalents [Explanation of Non-GAAP Financial Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like Adjusted EBITDA and Adjusted Net Income to offer insights into operational performance by adjusting GAAP figures for non-recurring items and specific expenses - Adjusted EBITDA is defined as EBITDA adjusted for items such as Delaware franchise tax, certain professional fees, severance, and other non-recurring expenses[20](index=20&type=chunk) - Adjusted Net Income represents recurring net income adjusted for similar items as Adjusted EBITDA and assumes a blended corporate tax rate of **26%**[20](index=20&type=chunk) - Adjusted Earnings Per Share is calculated using Adjusted Net Income and includes both Class A and Class B shares outstanding to provide a perspective of recurring EPS for the entire company[20](index=20&type=chunk) [Reconciliation of GAAP to non-GAAP Adjusted EBITDA Measure](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Adjusted%20EBITDA%20Measure) Q1 2025 GAAP Net Income of **$3.9 million** was reconciled to Adjusted EBITDA of **$6.5 million** by adding back income taxes, depreciation, amortization, and equity-based compensation Adjusted EBITDA Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $3,928 | $4,915 | | Provision for income taxes | 1,174 | 1,293 | | Depreciation and amortization | 1,039 | 1,019 | | Equity-based compensation | 454 | 354 | | Other adjustments | 110 | 118 | | Interest expense (net of income) | (258) | (296) | | Delaware Franchise Tax | 50 | 50 | | **Adjusted EBITDA** | **$6,497** | **$7,453** | [Reconciliation of GAAP to non-GAAP Adjusted Net Income and Adjusted Earnings Per Share Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20Per%20Share%20Measures) Q1 2025 Adjusted Net Income was **$3.9 million**, leading to Adjusted Diluted EPS of **$0.27**, after adjusting GAAP Net Income for taxes and other items using a **26%** tax rate Adjusted Net Income & EPS Reconciliation (in thousands, except per share) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $3,928 | $4,915 | | Adjustments (pre-tax) | 160 | 168 | | Adjusted earnings before provision for income taxes | 5,262 | 6,376 | | Adjusted provision for income taxes (26%) | (1,368) | (1,658) | | **Adjusted net income** | **$3,894** | **$4,718** | | **Adjusted basic earnings per share** | **$0.29** | **$0.34** | | **Adjusted diluted earnings per share** | **$0.27** | **$0.33** | [Supplemental Information](index=7&type=section&id=Supplemental%20Information) This section provides supplemental information, including equity investment strategy performance and essential corporate disclosures [Equity Investment Strategy Composite Performance](index=16&type=section&id=Equity%20Investment%20Strategy%20Composite%20Performance) As of March 31, 2025, Silvercrest's proprietary equity strategies showed mixed 1-year performance against benchmarks, though longer-term results generally exceeded them 1-Year Equity Performance vs. Benchmark (as of March 31, 2025) | Composite | 1-Year Return | Benchmark | Benchmark 1-Year Return | | :--- | :--- | :--- | :--- | | Large Cap Value | 1.1% | Russell 1000 Value | 7.2% | | Small Cap Value | -4.1% | Russell 2000 Value | -3.1% | | Smid Cap Value | -0.8% | Russell 2500 Value | -1.5% | | Focused Value | 6.3% | Russell 3000 Value | 6.7% | [Corporate Information and Disclosures](index=7&type=section&id=Corporate%20Information%20and%20Disclosures) This section details the upcoming Q1 2025 earnings call, includes forward-looking statement disclaimers, and provides background on Silvercrest as an independent investment adviser - A conference call to discuss Q1 2025 results is scheduled for **May 9, 2025**, at **8:30 am (Eastern Time)**[21](index=21&type=chunk) - The release contains forward-looking statements subject to risks and uncertainties as detailed in the company's Form 10-K[22](index=22&type=chunk)

Core Insights - Silvercrest Asset Management Group Inc. reported strong new client organic flows of $0.4 billion in Q1 2025, following $1.4 billion in Q4 2024, indicating a positive trend in client acquisition and potential revenue growth [2][3] - Total Assets Under Management (AUM) decreased to $35.3 billion, down 3.3% from $36.5 billion at the end of 2024, primarily due to market depreciation [3][16] - The company declared a quarterly dividend of $0.20 per share, reflecting its commitment to returning capital to shareholders [7] Financial Performance - Revenue for Q1 2025 increased by $1.1 million, or 3.7%, to $31.4 million compared to $30.3 million in Q1 2024, driven by market appreciation [17] - Consolidated net income was $3.9 million for Q1 2025, down from $4.9 million in the same period last year, with net income attributable to Silvercrest at $2.5 million [19][20] - Adjusted EBITDA for Q1 2025 was $6.5 million, representing a margin of 20.7%, compared to $7.5 million and a margin of 24.6% in Q1 2024 [20][31] Assets Under Management - Total AUM as of March 31, 2025, was $35.3 billion, a 2.3% increase from $34.5 billion a year earlier, attributed to market appreciation of $0.8 billion [15][44] - Discretionary AUM remained flat at $22.7 billion year-over-year, while non-discretionary AUM increased by 6.8% to $12.6 billion [16][49] - The company experienced net client inflows of $0.2 billion, a significant improvement from a net outflow of $0.3 billion in the previous year [44] Strategic Initiatives - Silvercrest is focused on enhancing its presence in both institutional and wealth markets, investing in talent to drive growth and transition the business [4] - The company completed a $12.0 million stock repurchase program, indicating a strategy to return capital to shareholders while pursuing growth opportunities [6] - The firm plans to adjust its interim compensation ratio to align with business investments, reflecting a commitment to growth and return on invested capital [5]

Core Points - Silvercrest Asset Management Group Inc. will host a teleconference on May 9, 2025, to discuss its financial results for Q1 2025 [1] - The teleconference will feature remarks from Chairman and CEO Richard R. Hough III and CFO Scott A. Gerard, followed by a Q&A session [2] - The company reported assets under management of $36.5 billion as of December 31, 2024 [4] Company Overview - Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser [4] - The firm provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors [4] - Silvercrest has offices in New York, Boston, Virginia, New Jersey, California, and Wisconsin [4]

Core Insights - Silvercrest Asset Management Group Inc. has appointed J. Allen Gray to its Board of Directors, effective immediately [1] - Mr. Gray has nearly 17 years of experience at Silvercrest, significantly contributing to the growth of the institutional asset management business, which now represents approximately 30% of the firm's discretionary assets under management [2] - The Chairman and CEO of Silvercrest, Richard Hough, expressed confidence that Mr. Gray's strategic insights will enhance the firm's growth in institutional asset management and global initiatives [3] Company Overview - Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser, with a reported assets under management of $36.5 billion as of December 31, 2024 [5] - The firm operates offices in New York, Boston, Virginia, New Jersey, California, and Wisconsin, providing traditional and alternative investment advisory and family office services to wealthy families and select institutional investors [5] J. Allen Gray's Background - J. Allen Gray is a Managing Director and Head of Institutional business at Silvercrest, previously serving as Managing Partner at Osprey Partners Investment Management and as President of the Osprey Concentrated Large Cap Value Equity Fund [4] - His career includes roles at Radnor Capital Management and Wheat, First Securities, where he was involved in sales, marketing, and client relations [4]

Financial Data and Key Metrics Changes - Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% over Q4 2023 to $32 million from $28.5 million [10][20] - Total AUM as of year-end 2024 reached $36.5 billion, up 9.6% from $33.3 billion at year-end 2023 [9][16] - Discretionary AUM rose 6.4% to $23.3 billion from $21.9 billion [9][16] - Reported net income for the fourth quarter was approximately $2.7 million, with adjusted net income of approximately $2.9 million [17][19] Business Line Data and Key Metrics Changes - The firm garnered $1.5 billion in new client assets under management inflows during 2024, marking the best year for new organic client inflows since at least 2015 [8] - The fourth quarter was bolstered by a successful seed investment in the global value equity strategy of $1.3 billion [8] Market Data and Key Metrics Changes - The firm has seen a robust pipeline, increasing from $1.2 billion at the end of last year to $1.6 billion [27] - OCIO assets now stand at $1.6 billion, with expectations for growth in 2025 [29] Company Strategy and Development Direction - The company is focused on building its global value equity strategy and expanding its presence in international markets, including Singapore and Australia [10][11] - Investments in talent and infrastructure are being made to drive growth and transition the business toward the next generation [11][14] - The firm aims to capitalize on opportunities in underserved markets outside the U.S. [87][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing significant new organic flows and highlighted a strong performance in the global value equity strategy [12][40] - The geopolitical environment has increased inquiries and business opportunities, particularly in Eastern Europe [66][69] - The firm is cautious about expenses but expects productivity gains from technology innovations in the medium term [45][49] Other Important Information - The firm has no debt and a significant amount of cash, allowing for potential buybacks and dividends [104][108] - The company is considering pursuing a license in the European Union to enhance its international capabilities [70][81] Q&A Session Summary Question: Can you comment on the pipeline amount and OCIO assets? - The pipeline has increased to $1.6 billion, including significant OCIO mandates, with expectations for growth in 2025 [27][29] Question: What are the expected levels for compensation and G&A expenses? - Management expects expenses to remain at current levels for the foreseeable future, with potential for productivity gains in the medium term [43][45] Question: What is the outlook for operating leverage? - Management believes that with steady state operations, EBITDA margins could return to the high twenties, but investments in personnel are necessary for growth [55][56] Question: What are the hurdles in international expansion? - The firm is not aggressively expanding but is focused on regulatory hurdles and the need for appropriate licenses to solicit business in certain countries [78][81] Question: How does geopolitical risk affect business opportunities? - Increased global volatility has driven interest and inquiries, benefiting the firm as clients seek to secure their assets [66][69] Question: What are the thoughts on dividend and buyback policy? - The firm aims to return capital to investors through dividends and buybacks, maintaining a high payout ratio while considering future growth opportunities [104][108]

Financial Data and Key Metrics Changes - Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% over Q4 2023 to $32 million from $28.5 million [10][17] - Total AUM as of year-end 2024 reached $36.5 billion, up 9.6% from $33.3 billion at year-end 2023 [9][16] - Discretionary AUM rose 6.4% to $23.3 billion from $21.9 billion [9][16] - Reported net income attributable to Silvercrest for 2024 was $9.5 million or $1 per basic and diluted Class A share [21] Business Line Data and Key Metrics Changes - The firm garnered $1.4 billion in Q4 and $1.5 billion during 2024 in new client assets under management inflows, marking the best year for new organic client inflows since at least 2015 [8] - The fourth quarter was bolstered by a successful seed investment in the global value equity strategy of $1.3 billion [8] Market Data and Key Metrics Changes - The firm has seen a robust pipeline, increasing from $1.2 billion at the end of last year to $1.6 billion [27] - OCIO opportunities have increased, with OCIO now standing at $1.6 billion [29] Company Strategy and Development Direction - Silvercrest is focusing on building its global value equity strategy and expanding its presence in international markets, including Singapore and Australia [10][11] - The firm is investing in talent and infrastructure to drive growth and transition the business toward the next generation [11][14] - The company aims to secure significant new organic flows and enhance its market position in both institutional and wealth markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing significant new organic flows in 2025, driven by a robust pipeline and strong performance in the global value equity strategy [12][40] - The management acknowledged the challenges posed by market volatility but noted that it has led to increased inquiries and business opportunities [66][69] Other Important Information - Total assets were approximately $194.4 million as of the end of 2024, compared to $199.6 million as of the end of 2023 [22] - The firm has no borrowings as of the end of 2024, indicating a strong balance sheet [22] Q&A Session Summary Question: Can you comment on the pipeline amount and OCIO assets? - The pipeline increased to $1.6 billion, including significant OCIO mandates, which are expected to grow in 2025 [27][29] Question: What are the expected levels for compensation and G&A expenses? - Management expects expenses to remain at current levels for the foreseeable future, with potential for productivity gains in the medium term [45][46] Question: What are the thoughts on operating leverage and future profitability? - Management believes that with steady state operations, EBITDA margins could return to the high twenties, but investments in personnel are necessary for growth [55][56] Question: How is geopolitical risk affecting business opportunities? - Increased geopolitical volatility has driven interest and inquiries, benefiting the firm as clients seek to secure their assets [66][69] Question: What is the company's approach to dividends and buybacks? - The company aims to maintain a high dividend payout and is considering buybacks as a good use of capital, while also exploring potential M&A opportunities [104][110]

Financial Performance - Revenue for the year ended December 31, 2024, was $123.651 million, compared to $117.410 million in 2023, reflecting a year-over-year increase of 5.3%[222] - Net income for 2024 was $15.709 million, slightly up from $15.183 million in 2023, resulting in a net income margin of 12.7%[222] - Adjusted EBITDA for 2024 was $26.101 million, with an adjusted EBITDA margin of 21.1%, down from 22.9% in 2023[222] - Total revenue increased by $6.2 million, or 5.3%, to $123.7 million for the year ended December 31, 2024, compared to $117.4 million for the year ended December 31, 2023[252] - Adjusted Net Income for 2024 was $15,782,000, compared to $16,104,000 in 2023, reflecting a decline of 2.0%[280] - Basic Adjusted Earnings Per Share for 2024 was $1.15, slightly down from $1.16 in 2023[280] Assets Under Management - Assets under management increased by 9.6% from $33.3 billion to $36.5 billion during the twelve months ended December 31, 2024[218] - Average assets under management for discretionary managed accounts increased to $22.2 billion in 2024 from $21.0 billion in 2023[225] - Discretionary assets under management increased by $1.4 billion, while non-discretionary assets increased by $1.8 billion during the same period[253] - The composition of assets under management as of December 31, 2024, was 64% discretionary and 36% non-discretionary[253] - Total discretionary assets under management at December 31, 2024, are projected to be $23.3 billion, up from $21.9 billion at December 31, 2023[258] - The average AUM for the year ended December 31, 2024, was approximately $34.9 billion, with a potential revenue change of approximately $12.4 million for a 10% increase or decrease in AUM[313] Revenue Sources - Discretionary managed accounts accounted for $115.2 million in revenue, representing 97% of management and advisory fees revenue for 2024[225] - Management and advisory fees increased by $6.5 million, or 5.8%, to $119.3 million for the year ended December 31, 2024[244] - Private funds generated $4.1 million in revenue for both 2024 and 2023, maintaining a 3% share of management and advisory fees revenue[226] - Family office services revenue decreased by $0.3 million, or 6.1%, to $4.3 million for the year ended December 31, 2024, from $4.6 million for the year ended December 31, 2023[254] - Proprietary fund management revenue remained flat at $2.9 million for the years ended December 31, 2024, and 2023[253] Expenses - Total compensation expense for 2024 was $76.663 million, an increase from $72.619 million in 2023[235] - Cash compensation and benefits for 2024 were $74.747 million, up from $70.992 million in 2023[235] - Total expenses rose by $7.4 million, or 7.5%, to $106.0 million for the year ended December 31, 2024, driven by a $4.0 million increase in compensation and benefits[262] - General and administrative expenses increased by $3.4 million, or 13.1%, to $29.4 million for the year ended December 31, 2024[264] Cash Flow and Financing - Cash flow from operations is expected to meet liquidity and capital requirements for the next twelve months[281] - Net cash provided by operating activities increased from $20,975 thousand in 2023 to $21,590 thousand in 2024, an increase of about 2.9%[290] - Net cash used in investing activities decreased from $3,878 thousand in 2023 to $1,700 thousand in 2024, a reduction of approximately 56.1%[290] - Net cash used in financing activities decreased from $24,216 thousand in 2023 to $21,549 thousand in 2024, a decrease of about 11.0%[290] - The company had $0 outstanding under the term loan as of December 31, 2024, compared to $2.7 million in 2023[282] Tax and Regulatory Matters - The provision for income taxes was $4.6 million for the year ended December 31, 2024, with a tax rate of 22.5%[273] - The company entered into a tax receivable agreement requiring it to pay 85% of cash savings realized from tax benefits[316] - The actual amount and timing of payments under the tax receivable agreement will vary based on several factors, including the timing of sales or exchanges by limited partnership unit holders[318] - The company recognizes the benefit of uncertain tax positions only when it is more likely than not to be sustained upon examination by taxing authorities[320] Market Impact - Market appreciation contributed to a 10.4% increase in total assets under management for the year ended December 31, 2024[253] - The majority of the company's revenues are based on assets under management, which are significantly impacted by market appreciation or depreciation[310]