Silvercrest Asset Management Group(US:SAMG)2025-03-07 20:28Financial 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]