Silvercrest Asset Management's Q4 2024: Navigating Contradictions in Expenses, Global Fund Launch, and Value Strategy
Friday, Mar 7, 2025 6:20 pm ET
1min read These are the key contradictions discussed in Silvercrest Asset Management's latest 2024Q4 earnings call, specifically including: Operating Leverage and Expenses, Global Fund Launch Plan, Value Strategy and Pipeline, and Expense Expectations:
Organic Inflows and Asset Growth:
- Silvercrest Asset Management reported $1.4 billion in new client assets under management in Q4 2024 and $1.5 billion for the full year, marking the best year for new organic client inflows since at least 2015.
- The increase was driven by strategic investments, including a successful seed investment in their global value equity strategy and new business development initiatives in Atlanta and Singapore.
Revenue and Earnings Trends:
- Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% to $32 million from $28.5 million.
- This growth was primarily due to increased discretionary AUM from market appreciation and new client inflows, although net client outflows impacted full-year revenue.
Pipeline and Future Opportunities:
- The firm's pipeline increased from $1.2 billion at the end of 2024 to $1.6 billion, with significant opportunities in OCIO and potential global inflows.
- The global value equity strategy is expected to contribute significantly to future inflows, with nearly $1.3 billion secured through a partnership with CBUS, opening avenues for follow-on institutional investors in Europe and Asia.
Operating Leverage and Expense Management:
- Expenses increased by 1.7% year-over-year in Q4, primarily due to general and administrative costs, offset by a decrease in compensation and benefits expenses.
- The firm is investing in personnel to drive future growth while seeking operational efficiencies through technology innovations to lower expenses over the medium term.
Organic Inflows and Asset Growth:
- Silvercrest Asset Management reported $1.4 billion in new client assets under management in Q4 2024 and $1.5 billion for the full year, marking the best year for new organic client inflows since at least 2015.
- The increase was driven by strategic investments, including a successful seed investment in their global value equity strategy and new business development initiatives in Atlanta and Singapore.
Revenue and Earnings Trends:
- Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% to $32 million from $28.5 million.
- This growth was primarily due to increased discretionary AUM from market appreciation and new client inflows, although net client outflows impacted full-year revenue.
Pipeline and Future Opportunities:
- The firm's pipeline increased from $1.2 billion at the end of 2024 to $1.6 billion, with significant opportunities in OCIO and potential global inflows.
- The global value equity strategy is expected to contribute significantly to future inflows, with nearly $1.3 billion secured through a partnership with CBUS, opening avenues for follow-on institutional investors in Europe and Asia.
Operating Leverage and Expense Management:
- Expenses increased by 1.7% year-over-year in Q4, primarily due to general and administrative costs, offset by a decrease in compensation and benefits expenses.
- The firm is investing in personnel to drive future growth while seeking operational efficiencies through technology innovations to lower expenses over the medium term.
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