Silvercrest Asset Management Group Inc.

What they do

Silvercrest provides financial advisory and family office services to ultra-high net worth individuals and institutional investors, alongside a range of investment strategies. It also manages the Silvercrest Funds, a set of funds of funds and other investment funds. The firm operates through Silvercrest L.P., of which it is general partner and consolidates; limited partners held a 34.0% partnership interest in Silvercrest L.P. as of December 31, 2025. Revenue is generated primarily from asset-based management fees tied to AUM.

Revenue drivers

• Discretionary AUM management fees — Discretionary AUM, which management says primarily drives revenue, was $24.7 billion at June 30, 2026, up 6.9% in the quarter and 4.2% year over year from $23.7 billion.
• Institutional strategies — Institutional AUM stood at $9.8 billion at June 30, 2026, up from $8.7 billion at March 31, 2026; the firm received a AUS$500 million (~$351 million) contribution to its Global Value strategy, which now manages $2.5 billion.
• OCIO business — The outsourced chief investment officer business, built from inception, manages $2.9 billion.
• Non-discretionary AUM and Silvercrest Funds — Non-discretionary AUM are associated with only a small portion of revenue, and management intends to likely eliminate the non-discretionary category in next quarter's reporting, with no revenue effect.

Recent performance

Total AUM increased 3.6% during the second quarter of 2026 to $37.0 billion, and discretionary AUM rose 6.9% to $24.7 billion, driven by market appreciation partially offset by net client outflows. Organic new client account flows were $111 million in Q2 2026, up from $81 million in Q1 2026 and $80 million in the prior-year period. Quarterly revenue was $30.8 million for the three months ended June 30, 2026, versus $31.4 million in the prior quarter, with management noting revenue was flat year over year. Total compensation and benefits expense was $20.5 million, or 66.6% of revenue, for the quarter. Full-year 2025 revenue was $125.3 million with net income of $8.1 million and Adjusted EBITDA of $19.6 million.

Strategy

Management describes the current period as the deliberate cost of the most significant investment program in the firm's history, focused on global infrastructure and distribution build-out. The firm expects to complete its MiFID license through the Central Bank of Ireland by the end of the third quarter of 2026, has established an Australian unit trust, and is nearing completion of a UCITS vehicle and European licensing. It continues institutional distribution efforts, including third-party ratings and work with major global consultants. Shareholders approved an increase in shares issuable under the equity incentive plan, and the firm intends to imminently make equity grants to professionals. It also plans to adjust how non-discretionary AUM is reported, likely eliminating the category without any revenue effect.

Risks

• Client outflows — Q2 2026 discretionary AUM growth was driven by market appreciation, partially offset by net client outflows, including seasonal high net worth withdrawals for tax payments and institutional outflows.
• Elevated compensation ratio — Compensation and benefits were 66.6% of revenue in Q2 2026, and management expects the ratio to remain elevated as investment spending matures.
• Margin pressure — Adjusted EBITDA margin fell to 15.7% in 2025 from 21.1% in 2024, and net income margin declined to 6.4% from 12.7%, reflecting the cost of the investment program.
• Investment program execution — The firm's international distribution build-out, including MiFID licensing and UCITS and Australian vehicles, is not yet complete and depends on third-party ratings and consultant relationships to generate institutional flows.

Outlook

Management says the third quarter begins with discretionary AUM meaningfully above the level that drove second-quarter billing. It expects to complete the MiFID license through the Central Bank of Ireland by the end of the third quarter of 2026, and says administrative and legal costs associated with the global build-out will decline meaningfully as distribution access begins to contribute. It expects the compensation ratio to remain elevated as investments mature, and notes an institutional pipeline that has grown substantially and remains robust, particularly in Global and International Equity strategies.