Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) Q2 2024 Earnings Conference Call August 2, 2024 8:30 AM ET

Company Participants

Richard Hough - Chief Executive Officer, President & Chairman
Scott Gerard - Chief Financial Officer

Conference Call Participants

Sandy Mehta - Evaluate Research
Christopher Marinac - Janney Montgomery Scott

Operator

Good morning and welcome to the Silvercrest Asset Management Group Inc. Q2 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

Before we begin, let me remind you that during today's call, certain statements made regarding our future performance are forward-looking statements. They are based on current expectations and projections, which are subject to a number of risks and uncertainties, and many factors could cause actual results to differ materially from the statements that are made. Those factors are disclosed in our filings with the SEC under the caption Risk Factors. For all such forward-looking statements, we claim the protection provided by the Litigation Reform Act of 1995. All forward-looking statements made on this call are made as of the date hereof, and Silvercrest assumes no obligation to update them.

I would now like to turn the conference over to Rick Hough, Chairman and CEO of Silvercrest. Please go ahead.

Richard Hough

Thank you so much, and thank you for joining us for the Second Quarter Earnings Call of 2024. Generally supportive markets and economic conditions continued their progress since the fourth quarter of 2023, but market leadership remained unusually narrow during the second quarter. Large Cap growth primarily drove higher markets, a persistent trend of the market's recovery since 2022.

Other segments, including large-cap value and small cap, actually declined during the second quarter, which negatively affected Silvercrest's assets. It's important to note that Silvercrest's U.S. value strategies and U.S. small-cap growth strategies continue to perform well on a relative basis. Broader market participation benefits Silvercrest long term due to the firm's diversified wealth management business and the firm's exposure to the small-cap institutional business. The markets have more recently broadened during the quarter, and if sustained, should improve Silvercrest's future assets under management and our growth. Silvercrest's discretionary AUM decreased $1.1 billion during the quarter to $21.6 billion, primarily due to the loss of institutional mandates. New client accounts and relationships during the quarter were modest but positive. Total AUM at the end of the second quarter was $33.4 billion, an increase modestly at 4.7% year-over-year from the second quarter of 2023. Quarterly revenue year-over-year increased $1.3 million or 4.2%. Silvercrest has been investing in the future growth of the business, including on higher compensation. As a result, while top line revenue has increased, most metrics of the business are down due to higher expenses.