Silvercrest Asset Management Group(US:SAMG)2025-05-09 13:32Financial 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]