Silvercrest Asset Management Group(US:SAMG)2025-10-31 13:30Financial Data and Key Metrics Changes - Discretionary assets under management (AUM) increased by $687 million during Q3 2025, reaching $24.3 billion, representing a 3% sequential increase and an 8% year-over-year increase [3][4] - Total AUM hit a new high of $37.6 billion at the end of Q3 2025, with non-discretionary AUM comprising $13.3 billion, which accounts for only 4% of total revenue [4][8] - Revenue for Q3 2025 was $31.3 million, an increase of $0.9 million or 2.9% year-over-year [8][9] - Reported net income for Q3 2025 was approximately $1.1 million, with adjusted net income of approximately $2.4 million, or $0.19 per adjusted basic and diluted earnings per share [9][10] Business Line Data and Key Metrics Changes - The firm added $46.4 million in organic new client accounts during Q3 2025, totaling $564 million in new client accounts year-to-date [3] - Approximately $2 billion in organic new client accounts were added year-over-year, indicating a strong focus on organic growth [3][4] - Adjusted EBITDA for Q3 2025 was approximately $4.5 million, or 14.5% of revenue [10] Market Data and Key Metrics Changes - The firm is actively expanding its marketing efforts in Europe, Oceania, and Asia, with a focus on institutional and family clients [6][28] - The OCIO assets currently stand at almost $2.2 billion, with a strong pipeline and recent new client additions [36] Company Strategy and Development Direction - The company is focused on significant strategic investments to promote growth opportunities, particularly in intellectual capital and headcount [5][6] - A new global value equity strategy is being emphasized, with a robust new business pipeline [6][28] - The firm plans to adjust how it reports non-discretionary AUM in 2026 to provide a clearer picture of its asset management and advisory businesses [4][5] Management's Comments on Operating Environment and Future Outlook - Management expects that the increase in AUM will bode well for future revenue, barring short-term market volatility [5] - The company anticipates that investments made will start yielding results within 6 to 12 months, with a longer-term horizon of 18 to 24 months for other initiatives [19][20] - Management expressed confidence in the potential for substantial progress from recent investments and expects to report meaningful improvements soon [20][46] Other Important Information - The company announced a dividend of $0.21 per share of Class A common stock, payable around December 19, 2025 [8] - A buyback program of $25 million was initiated, with approximately $16 million worth of shares repurchased by the end of Q3 2025 [6][7] Q&A Session Summary Question: Timing of AUM and revenue recovery - Management indicated a longer-term horizon of 18 to 24 months for overall investments to pay off, but expects shorter-term results from the new global value equity strategy within 6 to 12 months [19][20] Question: Professional fees and future expenses - Some professional fees are temporary, particularly related to global initiatives, and disclosures are available in the earnings release [21] Question: Future EBITDA margins - Management expects EBITDA margins to return to previous levels barring new investments, with ongoing investments being on a larger scale [22][23] Question: Current status of OCIO assets - OCIO assets are nearly $2.2 billion, with a strong performance and pipeline [36] Question: Share buyback pricing - Management did not disclose specific buyback prices but indicated favorable pricing during the buyback period [37][38]