Silvercrest Asset Management swings to net loss in Q4

Overview

• U.S. asset manager's Q4 revenue was flat yr/yr as expenses rose, adjusted EPS declined

• Company posted a small net loss for Q4, compared to a profit a year earlier

• Silvercrest nearly completed $25 mln share repurchase program, buying back $50.4 mln in shares by the end of 2025

Outlook

• Company expects compensation ratio to remain elevated as investments mature and contribute to revenue growth

• Silvercrest anticipates regulatory approval for European operations to be completed in Q2

• Company says new business pipeline remains robust, especially for Global and International Equity strategies

Result Drivers

• CLIENT OUTFLOWS - Net client outflows reduced discretionary AUM, limiting revenue growth despite some market appreciation

• HIGHER COMPENSATION - Increased salaries, benefits, and bonus accruals drove compensation expenses higher

• STRATEGIC INVESTMENTS - Ongoing investments in talent and international expansion raised costs and weighed on earnings

Company press release: ID:nGNX1rGrYG

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Silvercrest Asset Management Group Inc is $21.25, about 49.4% above its March 13 closing price of $14.22

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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