Silvercrest’s Strategic Growth Amidst Rising Expenses

Silvercrest Asset Management Group’s recent earnings call painted a picture of strategic growth and investment. The company reported significant increases in both discretionary and total assets under management (AUM), alongside robust client acquisition and promising new business pipelines. However, this growth phase was accompanied by increased expenses and a dip in net income, suggesting a transitional period with potential long-term benefits. Increase in Discretionary AUM Silvercrest Asset Management Group reported a notable increase in discretionary assets under management (AUM), which rose by $687 million during the third quarter. This marks a 3% sequential quarterly increase and an 8% year-over-year growth, bringing the total to $24.3 billion. This growth highlights the firm’s ability to attract and manage substantial discretionary investments. Record Total AUM The company achieved a new milestone with its total assets under management reaching $37.6 billion by the end of the third quarter. This record high underscores Silvercrest’s expanding influence and capability in asset management. Significant Organic Client Growth Silvercrest added $46.4 million in organic new client accounts during the third quarter, contributing to a total of $564 million in new client accounts through the third quarter of 2025. This growth in client base is indicative of the firm’s successful client acquisition strategies. Strong Pipeline and New Initiatives The firm is actively pursuing new business opportunities, with a robust pipeline particularly focused on its new global value equity strategy. Expansion initiatives in Europe, Oceania, and Asia are also underway, signaling Silvercrest’s commitment to global growth. OCIO Assets Growth Silvercrest’s OCIO assets have grown to nearly $2.2 billion, supported by a strong pipeline that includes a new foundation joining with $70 million in assets. This growth reflects the firm’s expanding capabilities in outsourced chief investment officer services. Share Repurchase Program As part of its capital management strategy, Silvercrest repurchased approximately $16 million worth of shares by the end of the third quarter of 2025. With $8-9 million remaining in the buyback program, the company continues to focus on returning value to shareholders. Increased Expenses The quarter saw a 15.4% year-over-year increase in expenses, amounting to $4 million. This rise was primarily driven by increased compensation and benefits expenses, as well as general and administrative costs, reflecting the company’s investment in talent and infrastructure. Decreased Cash and Cash Equivalents Silvercrest reported a decrease in cash and cash equivalents, which fell to approximately $36.1 million as of September 30, compared to $68.6 million at the end of last year. This reduction is indicative of the firm’s ongoing investment activities. Lower Net Income The company reported a consolidated net income of $1.1 million for the quarter, with net income attributable to Class A shareholders at approximately $0.6 million or $0.07 per share. This decrease in net income highlights the financial impact of the company’s strategic investments. Forward-Looking Guidance Looking ahead, Silvercrest Asset Management Group remains focused on strategic growth and investment. The company plans to adjust the reporting of nondiscretionary AUM in 2026 and continues to invest in growth initiatives, including talent acquisition and the development of its global value equity strategy. A dividend of $0.21 per share is expected to be paid in December to Class A stockholders, reflecting the company’s commitment to shareholder returns. In summary, Silvercrest Asset Management Group’s earnings call highlighted a period of strategic investment and growth. While the company reported increased AUM and client acquisition, it also faced higher expenses and lower net income. However, with a strong pipeline and ongoing initiatives, Silvercrest is poised for potential long-term success.