In This Article:
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Silvercrest Asset Management Group Inc (NASDAQ:SAMG) experienced strong new client organic flows of $0.4 billion in Q1 2025, following $1.4 billion in Q4 2024, totaling $1.8 billion over the past two quarters.
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The company completed a $12 million stock repurchase program, indicating confidence in its financial position and commitment to returning capital to shareholders.
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Silvercrest Asset Management Group Inc (NASDAQ:SAMG) declared a quarterly dividend of $0.20 per share of Class A common stock, reflecting a commitment to shareholder returns.
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The firm has invested in talent across the organization to drive new growth and transition the business toward the next generation, with a robust new business pipeline.
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The company's global value and international value strategies have shown strong performance, with significant interest from international markets, particularly in Europe and Southeast Asia.
Negative Points
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Total Assets Under Management (AUM) declined during the quarter due to volatile markets amidst global economic and trade concerns.
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Expenses for the quarter increased by 9% year over year, driven by higher compensation and benefits expenses, as well as general and administrative costs.
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The OCIO pipeline has slowed, with lots of activity but no strong measurable progress, indicating potential challenges in securing new business in this area.
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Market volatility and uncertainty about global trade and the macroeconomic environment could negatively impact short-term results and top-line revenue.
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Cash and cash equivalents decreased significantly from $68.6 million at the end of 2024 to $36.3 million as of March 31, 2025, partly due to the payout of 2024 bonuses.
Q & A Highlights
Q: Could you comment and give a little bit more color on the pipeline and what you're seeing for OCIO as well as global going forward? A: Rick Huff, Chairman and CEO, explained that the nature of searches has shifted from RFPs to cultivating consultant relationships. Silvercrest is focusing on building these relationships both domestically and internationally. The pipeline for global value is strong, with significant potential for growth in 2025. However, the OCIO pipeline has slowed, though the strategy remains promising. Despite market volatility affecting AUM, the organic growth outlook is positive.
Q: How are things progressing with the global expansion, particularly in Europe and Singapore? A: Rick Huff noted that Silvercrest is establishing a European entity to proactively market in Europe, with licensing expected within 6 to 10 months. In Southeast Asia, Silvercrest is fully licensed in Singapore and is expanding its team to capitalize on opportunities. The firm has long-standing relationships in Europe and is building on these to enhance its presence.