Silvercrest Asset Management Reports Q1 2025 Revenue Growth but Decline in Net Income

Silvercrest Asset Management Group Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $31.4 million, a 3.7% increase from $30.3 million in the same period last year. The growth was primarily driven by a rise in management and advisory fees, which reached $30.3 million, up from $29.2 million in the prior year. However, net income attributable to Silvercrest decreased to $2.5 million, or $0.26 per diluted share, compared to $3.0 million, or $0.32 per diluted share, in the first quarter of 2024. The decline in profitability was attributed to increased expenses, which rose by 9% to $26.6 million, largely due to higher compensation and benefits costs.

In terms of operational metrics, Silvercrest's assets under management (AUM) decreased by 3.3% to $35.3 billion as of March 31, 2025, down from $36.5 billion at the end of 2024. This decline was influenced by market depreciation of $1.4 billion, offset by net client inflows of $0.2 billion. The firm reported a total of 9,474,000 shares of Class A common stock and 4,081,052 shares of Class B common stock outstanding as of the reporting date. The company continues to focus on maintaining its client base and enhancing its investment strategies to attract new clients.

Strategically, Silvercrest has been active in managing its capital structure, including a share repurchase program initiated in August 2024, which allows for the repurchase of up to $12 million of its Class A common stock. As of March 31, 2025, the company had repurchased approximately 482,887 shares for about $8.6 million. The firm also continues to evaluate its liquidity and capital resources, relying on cash generated from operations to meet its financial obligations, including dividends to Class A shareholders.

Looking ahead, Silvercrest's management expressed cautious optimism regarding its growth strategy, emphasizing the importance of client retention and the development of new investment strategies. The company remains focused on navigating market conditions and adapting to changes in client preferences to sustain its competitive position in the wealth management sector. The firm also highlighted the potential impact of its tax receivable agreement, which could result in substantial future payments related to tax benefits from increases in tax basis due to its ownership structure.

Overall, while Silvercrest experienced a decline in net income and AUM, the firm continues to implement strategic initiatives aimed at enhancing its operational efficiency and client service offerings, positioning itself for future growth in a challenging market environment.