Silvercrest Asset Management Group Inc. reported its results for the third quarter ended September 30, 2024, showing total Assets Under Management (AUM) increased by 12.5% year-over-year to $35.1 billion. Discretionary AUM, which drives revenue, also rose by 10.2% to $22.6 billion compared to the prior year period.
Revenue for the quarter increased by 2.4% to $30.4 million from $29.7 million in Q3 2023, primarily driven by market appreciation. However, total expenses saw a larger increase of 12.0% to $26.0 million, with compensation and benefits rising 11.4% to $18.6 million due to merit-based increases and new hires.
The higher expense growth led to a decrease in profitability metrics, with consolidated net income falling to $3.7 million from $5.4 million in the prior year. Adjusted EBITDA decreased to $6.3 million, or 20.9% of revenue, compared to $8.0 million, or 26.9% of revenue, in Q3 2023, reflecting the firm's ongoing investments in future growth.
The company's pipeline of new institutional business opportunities increased by 20% to $1.2 billion, not yet including potential mandates for the new Global Equity strategy. The Board of Directors approved a quarterly dividend of $0.20 per share of Class A common stock, payable on or about December 20, 2024.
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