Silvercrest Asset Management Group Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a modest increase in revenue but a decline in net income compared to the same periods in 2023. For the third quarter of 2024, total revenue reached $30.4 million, up 2.4% from $29.7 million in Q3 2023. For the nine-month period, revenue increased by 3.2% to $91.7 million from $88.9 million in the prior year. The growth in revenue was primarily driven by an increase in management and advisory fees, which rose to $29.4 million in Q3 2024, a 3.4% increase from $28.4 million in Q3 2023.
Despite the revenue growth, net income for the third quarter fell to $3.7 million, down from $5.4 million in the same quarter last year. For the nine months ended September 30, 2024, net income totaled $13.0 million, a decrease from $15.8 million in 2023. The decline in profitability was attributed to a significant rise in total expenses, which increased by 12.0% to $26.0 million in Q3 2024, and by 10.0% to $76.0 million for the nine-month period. The increase in expenses was largely due to higher compensation and benefits costs, which rose to $18.6 million in Q3 2024 from $16.7 million in Q3 2023.
As of September 30, 2024, total assets under management (AUM) increased to $35.1 billion, a 12.5% rise from $31.2 billion a year earlier. This growth was supported by market appreciation of $5.7 billion, although client inflows and outflows were balanced at $3.9 billion each. Discretionary AUM also saw an increase, rising to $22.6 billion from $20.5 billion in the previous year.
In terms of strategic developments, Silvercrest announced a new share repurchase program in August 2024, authorizing up to $12.0 million in repurchases of Class A common stock. As of September 30, 2024, the company had repurchased 82,677 shares for approximately $1.4 million under this program. The company continues to manage its capital structure effectively, with no outstanding borrowings under its credit facility as of the reporting date.
Overall, while Silvercrest experienced revenue growth and an increase in AUM, the rise in expenses led to a decline in net income, reflecting the challenges faced in maintaining profitability amidst rising operational costs.
About Silvercrest Asset Management Group Inc.
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