Silvercrest Asset Management Group Inc. (SMAG) Q3 2024 Earnings Conference Call November 1, 2024 8:30 AM ET

Company Participants

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

Conference Call Participants

Sandy Mehta - Evaluate Research
Chris Sakai - Singular Research

Operator

Good morning and welcome to the Silvercrest Asset Management Group Inc. Third Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. 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 protections 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. And thanks for joining us for the third quarter of 2024. Supportive markets and improving economic conditions helped Silvercrest's assets under management growth during the third quarter, pointing to improved top-line revenue.

The firm also saw improved business development results and will report a robust pipeline of new business opportunities. A persistent trend of the market's recovery since 2022 has been the narrow leadership of Large Cap Growth equities. We noted during our second quarter earnings call that, despite progress in the market, Large Cap value and Small Cap stocks had actually declined during that quarter.

We have been pleased to see broader company market participation throughout the third quarter and an increase in equities across the market cap spectrum, which benefits Silvercrest’s diversified wealth management business as well as our exposure to the Small Cap institutional business. The increases during the quarter bode well for future revenue. We are optimistic about securing significant organic net flows over the next two quarters.

Silvercrest’s discretionary AUM increased by $1.0 billion during the quarter to $22.6 billion, primarily due to rising markets. This net increase in discretionary AUM, which drives revenue, represents a 5% increase since the second quarter and a year-over-year increase of 10% since the third quarter of 2023.