Silvercrest Asset Management Group Inc. Reports Q3 2022 Results

NEW YORK, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended September 30, 2022.

Business Update

Volatile market conditions continued to affect Silvercrest’s assets under management (“AUM”) in the third quarter of 2022. The firm’s discretionary AUM, which drives revenue, decreased to $19.4 billion as of the end of the third quarter of 2022 from $22.5 billion as of the end of the same period in 2021. The firm’s third quarter 2022 revenue decreased year-over-year to $29.0 million from $33.5 million. Total AUM now stands at $27.4 billion. The firm’s quarterly Adjusted EBITDA1 was approximately $8.2 million, an annualized Adjusted EBITDA1 run-rate of $32.8 million. Silvercrest’s third quarter 2022 Adjusted EBITDA margin1 was 28.1%, a healthy margin in light of declining AUM and associated revenue.

Silvercrest added relationships during the third quarter and new accounts partially offset outflows for taxes and rebalancing. Silvercrest’s suite of proprietary equity capabilities have maintained solid performance. Our sub-advisory relationships continued to add assets during the third quarter of 2022 and Silvercrest launched a Large Cap Value Unit Investment Trust (UIT).

Silvercrest repurchased approximately 286,000 shares of Class A common stock for approximately $5.2 million during the third quarter.

Market volatility and uncertainty create long-term opportunities that typically benefit the high-quality of Silvercrest’s capabilities, and we look forward to more stable markets.

On November 1, 2022, the Company’s Board of Directors declared a quarterly dividend of $0.18 per share of Class A common stock. The dividend will be paid on or about December 16, 2022 to shareholders of record as of the close of business on December 9, 2022.

Third Quarter 2022 Highlights

  • Total AUM of $27.4 billion, inclusive of discretionary AUM of $19.4 billion and non-discretionary AUM of $8.0 billion at September 30, 2022.
  • Revenue of $29.0 million.
  • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $5 .6 million and $3.4 million, respectively.
  • Basic and diluted net income per share of $0.35.
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $8.2 million.
  • Adjusted net income1 of $5.0 million.
  • Adjusted basic and diluted earnings per share1, 2 of $0.35 and $0.34, respectively.

The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

    For the Three Months
Ended September 30,
    For the Nine Months
Ended September 30,
 
(in thousands except as indicated)   2022     2021     2022     2021  
Revenue   $ 29,042     $ 33,461     $ 94,725     $ 97,799  
Income before other income (expense), net   $ 7,102     $ 8,181     $ 34,441     $ 21,211  
Net income   $ 5,643     $ 6,354     $ 27,512     $ 16,350  
Net income margin     19.4 %     19.0 %     29.0 %     16.7 %
Net income attributable to Silvercrest   $ 3,433     $ 3,723     $ 16,771     $ 9,610  
Net income per basic and diluted share   $ 0.35     $ 0.38     $ 1.70     $ 0.99  
Adjusted EBITDA1   $ 8,172     $ 10,345     $ 27,585     $ 30,430  
Adjusted EBITDA Margin1     28.1 %     30.9 %     29.1 %     31.1 %
Adjusted net income1   $ 5,039     $ 6,607     $ 17,489     $ 19,530  
Adjusted basic earnings per share1, 2   $ 0.35     $ 0.46     $ 1.22     $ 1.35  
Adjusted diluted earnings per share1, 2   $ 0.34     $ 0.44     $ 1.19     $ 1.31  
Assets under management at period end (billions)   $ 27.4     $ 31.0     $ 27.4     $ 31.0  
Average assets under management (billions)3   $ 28.1     $ 31.0     $ 29.9     $ 29.4  
Discretionary assets under management (billions)   $ 19.4     $ 22.5     $ 19.4     $ 22.5  


     
     
Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 2 and 3.
     
Adjusted basic and diluted earnings per share measures for the three and nine months ended September 30, 2022 are based on the number of shares of Class A common stock and Class B common stock outstanding as of September 30, 2022. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units, and non-qualified stock options to the extent dilutive at the end of the reporting period.
     
We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.

AUM at $27.4 Billion

Silvercrest’s discretionary assets under management decreased by $3.1 billion, or 13.8%, to $19.4 billion at September 30, 2022, from $22.5 billion at September 30, 2021. The decrease was attributable to net client outflows of $0.5 billion and market depreciation of $2.6 billion. Silvercrest’s total AUM decreased by $3.6 billion, or 11.6%, to $27.4 billion at September 30, 2022, from $31.0 billion at September 30, 2021. The decrease was attributable to market depreciation of $5.0 billion, partially offset by net client inflows of $1.4 billion.

Silvercrest’s discretionary assets under management decreased by $1.0 billion, or 4.9%, to $19.4 billion at September 30, 2022, from $20.4 billion at June 30, 2022. The decrease was attributable to net client outflows of $0.4 billion and market depreciation of $0.6 billion. Silvercrest’s total AUM decreased by $1.3 billion, or 4.5%, to $27.4 billion at September 30, 2022, from $28.7 billion at June 30, 2022. The decrease was attributable to net client outflows of $0.3 billion and market depreciation of $1.0 billion.

Third Quarter 2022 vs. Third Quarter 2021

Revenue decreased by $4.4 million, or 13.2%, to $29.0 million for the three months ended September 30, 2022, from $33.5 million for the three months ended September 30, 2021. This decrease was driven by market depreciation and net client outflows in discretionary assets under management.

Total expenses decreased by $3.4 million, or 13.2%, to $21.9 million for the three months ended September 30, 2022, from $25.3 million for the three months ended September 30, 2021. Compensation and benefits expense decreased by $2.5 million, or 13.3%, to $16.3 million for the three months ended September 30, 2022, from $18.8 million for the three months ended September 30, 2021. The decrease was primarily attributable to a decrease in the accrual for bonuses of $2.8 million partially offset by an increase in salaries and benefits of $0.3 million primarily as a result of merit-based increases and newly hired staff. General and administrative expenses decreased by $0.9 million, or 13.5%, to $5.7 million for the three months ended September 30, 2022, from $6.5 million for the three months ended September 30, 2021. This was primarily attributable to a decrease in the adjustment to the fair value of contingent consideration related to the acquisition of substantially all of the assets and assumed certain liabilities of Cortina Asset Management, LLC (“Cortina Acquisition”) of $1.0 million and a decrease in trade errors of $0.1 million, partially offset by an increase in travel and entertainment expenses of $0.2 million due to the easing of restrictions related to the coronavirus pandemic.

Consolidated net income was $5.6 million or 19.4% of revenue for the three months ended September 30, 2022, as compared to consolidated net income of $6.4 million or 19.0% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $3.4 million, or $0.35 per basic and diluted share for the three months ended September 30, 2022. Our Adjusted Net Income1 was $5.0 million, or $0.35 per adjusted basic share and $0.34 per adjusted diluted share2 for the three months ended September 30, 2022.

Adjusted EBITDA1 was $8.2 million or 28.1% of revenue for the three months ended September 30, 2022, as compared to $10.3 million or 30.9% of revenue for the same period in the prior year.

Nine Months Ended September 30, 2022 vs. Nine Months Ended September 30, 2021

Revenue decreased by $3.1 million, or 3.1%, to $94.7 million for the nine months ended September 30, 2022, from $97.8 million for the nine months ended September 30, 2021. This decrease was driven by market depreciation partially offset by net client inflows.

Total expenses decreased by $16.3 million, or 21.3%, to $60.3 million for the nine months ended September 30, 2022, from $76.6 million for the nine months ended September 30, 2021. Compensation and benefits expense decreased by $2.0 million, or 3.6%, to $52.9 million for the nine months ended September 30, 2022, from $54.9 million for the nine months ended September 30, 2021. The decrease was primarily attributable to a decrease in the accrual for bonuses of $3.0 million and a decrease in equity-based compensation expense of $0.3 million due to a decrease in the number of vested and unvested restricted stock units and unvested non-qualified stock options outstanding, partially offset by an increase in salaries and benefits of $1.3 million primarily as a result of merit-based increases and newly hired staff. General and administrative expenses decreased by $14.3 million, or 66.0%, to $7.4 million for the nine months ended September 30, 2022, from $21.7 million for the nine months ended September 30, 2021. This was primarily attributable to a decrease in the adjustment to the fair value of contingent consideration related to the Cortina Acquisition of $15.5 million, a decrease in occupancy and related costs of $0.2 million primarily due to a decrease in cleaning and maintenance costs and a decrease in trade errors of $0.3 million, partially offset by an increase in travel and entertainment expenses of $0.8 million due to the easing of restrictions related to the coronavirus pandemic, an increase in professional fees of $0.2 million, an increase in portfolio and systems expense of $0.4 million, an increase in office expenses of $0.1 million, an increase in charitable donations of $0.1 million and an increase in sub-advisory referral fee expense of $0.1 million.

Consolidated net income was $27.5 million or 29.0% of revenue for the nine months ended September 30, 2022, as compared to consolidated net income of $16.4 million or 16.7% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $16.8 million, or $1.70 per basic and diluted share for the nine months ended September 30, 2022. Our Adjusted Net Income1 was $17.5 million, or $1.22 per adjusted basic share and $1.19 per adjusted diluted share2 for the nine months ended September 30, 2022.

Adjusted EBITDA1 was $27.6 million or 29.1% of revenue for the nine months ended September 30, 2022, as compared to $30.4 million or 31.1% of revenue for the same period in the prior year.

Liquidity and Capital Resources

Cash and cash equivalents were $67.4 million at September 30, 2022, compared to $85.7 million at December 31, 2021. As of September 30, 2022, there was $6.3 million outstanding under our term loan with City National Bank and nothing outstanding on our revolving credit facility with City National Bank.

Silvercrest Asset Management Group Inc.’s total equity was $87.1 million at September 30, 2022. We had 9,627,462 shares of Class A common stock outstanding and 4,667,695 shares of Class B common stock outstanding at September 30, 2022.

Non-GAAP Financial Measures

To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

  • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
  • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B shareholders.

  • Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B shareholders.

  • Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of 26%. We feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B shareholders.

  • Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we feel that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.

Conference Call

The Company will host a conference call on November 4, 2022, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/

Forward-Looking Statements and Other Disclosures

This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients from whom we derive a substantial portion of our assets under management; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; and our expectations with respect to deferred tax assets, adverse economic or market conditions, including the continued adverse effects of the coronavirus pandemic; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2021, which is accessible on the SEC’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Silvercrest

Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.


Exhibit 1

Silvercrest Asset Management Group Inc.
Condensed Consolidated Statements of Operations
(Unaudited and in thousands, except share and per share amounts or as noted)

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2022     2021     2022     2021  
Revenue                        
Management and advisory fees   $ 27,949     $ 32,248     $ 91,500     $ 94,435  
Performance fees           86       2       86  
Family office services     1,093       1,127       3,223       3,278  
Total revenue     29,042       33,461       94,725       97,799  
Expenses                        
Compensation and benefits     16,271       18,758       52,901       54,882  
General and administrative     5,669       6,522       7,383       21,706  
Total expenses     21,940       25,280       60,284       76,588  
Income before other (expense) income, net     7,102       8,181       34,441       21,211  
Other (expense) income, net                        
Other (expense) income, net     104       43       119       58  
Interest income     8       1       12       5  
Unrealized gain (loss)     (2 )           (3 )      
Interest expense     (109 )     (92 )     (270 )     (294 )
Total other (expense) income, net     1       (48 )     (142 )     (231 )
Income before provision for income taxes     7,103       8,133       34,299       20,980  
Provision for income taxes     1,460       1,779       6,787       4,630  
Net income     5,643       6,354       27,512       16,350  
Less: net income attributable to non-controlling interests     (2,210 )     (2,631 )     (10,741 )     (6,740 )
Net income attributable to Silvercrest   $ 3,433     $ 3,723     $ 16,771     $ 9,610  
Net income per share:                        
Basic   $ 0.35     $ 0.38     $ 1.70     $ 0.99  
Diluted   $ 0.35     $ 0.38     $ 1.70     $ 0.99  
Weighted average shares outstanding:                        
Basic     9,815,157       9,670,054       9,856,908       9,661,610  
Diluted     9,847,131       9,691,103       9,884,255       9,676,639  


Exhibit 2

Silvercrest Asset Management Group Inc.
Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure
(Unaudited and in thousands, except share and per share amounts or as noted)

Adjusted EBITDA   Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2022     2021     2022     2021  
Reconciliation of non-GAAP financial measure:                        
Net income   $ 5,643     $ 6,354     $ 27,512     $ 16,350  
Provision for income taxes     1,460       1,779       6,787       4,630  
Delaware Franchise Tax     50       50       150       150  
Interest expense     109       92       270       294  
Interest income     (8 )     (1 )     (12 )     (5 )
Depreciation and amortization     977       981       2,904       2,942  
Equity-based compensation     285       345       789       807  
Other adjustments (A)     (344 )     745       (10,815 )     5,262  
Adjusted EBITDA   $ 8,172     $ 10,345     $ 27,585     $ 30,430  
Adjusted EBITDA Margin     28.1 %     30.9 %     29.1 %     31.1 %

(A) Other adjustments consist of the following:

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2022     2021     2022     2021  
Acquisition costs (a)   $ 5     $ 16     $ 32     $ 347  
Severance     13       10       13       10  
Other (b)     (362 )     719       (10,860 )     4,905  
Total other adjustments   $ (344 )   $ 745     $ (10,815 )   $ 5,262  
  1. For the three months ended September 30, 2022, represents professional fees of $5 related to the acquisition of Cortina. For the nine months ended September 30, 2022, represents insurance costs of $22 and professional fees of $10 related to the acquisition of Cortina. For the three months ended September 30, 2021, represents insurance costs of $11 and professional fees of $5 related to the acquisition of Cortina. For the nine months ended September 30, 2021, represents equity-based compensation expense of $300 related to restricted stock unit grants issued to two associates hired as part of the Cortina Acquisition in conjunction with their admission to Silvercrest L.P., insurance costs of $34 and professional fees of $14 related to the acquisition of Cortina.
  2. For the three months ended September 30, 2022, represents a fair value adjustment to the Cortina contingent purchase price consideration of ($343), a fair value adjustment to the tax receivable agreement of ($93), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives and expenses related to obtaining of a business license of $26. For the nine months ended September 30, 2022, represents a fair value adjustment to the Cortina contingent purchase price consideration of ($10,943), a fair value adjustment to the tax receivable agreement of ($93), an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, expenses related to obtaining a business license of $26 and expenses related to the Coronavirus pandemic of $6. For the three months ended September 30, 2021, represents a fair value adjustment to the Cortina contingent purchase price consideration of $670, an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives and expenses related to the Coronavirus pandemic of $1. For the nine months ended September 30, 2021, represents a fair value adjustment to the Cortina contingent purchase price consideration of $4,570, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives and expenses related to the Coronavirus pandemic of $191.


Exhibit 3

Silvercrest Asset Management Group Inc.
Reconciliation of GAAP to non-GAAP (“Adjusted”)
Adjusted Net Income and Adjusted Earnings Per Share Measures
(Unaudited and in thousands, except per share amounts or as noted)

Adjusted Net Income and Adjusted Earnings Per Share   Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2022     2021     2022     2021  
Reconciliation of non-GAAP financial measure:                        
Net income   $ 5,643     $ 6,354     $ 27,512     $ 16,350  
Consolidated GAAP Provision for income taxes     1,460       1,779       6,787       4,630  
Delaware Franchise Tax     50       50       150       150  
Other adjustments (A)     (344 )     745       (10,815 )     5,262  
Adjusted earnings before provision for income taxes     6,809       8,928       23,634       26,392  
Adjusted provision for income taxes:                        
Adjusted provision for income taxes (26% assumed tax rate)     (1,770 )     (2,321 )     (6,145 )     (6,862 )
                         
Adjusted net income   $ 5,039     $ 6,607     $ 17,489     $ 19,530  
                         
GAAP net income per share (B):                        
Basic and diluted   $ 0.35     $ 0.38     $ 1.70     $ 0.99  
                         
Adjusted earnings per share/unit (B):                        
Basic   $ 0.35     $ 0.46     $ 1.22     $ 1.35  
Diluted   $ 0.34     $ 0.44     $ 1.19     $ 1.31  
                         
Shares/units outstanding:                        
Basic Class A shares outstanding     9,627       9,653       9,627       9,653  
Basic Class B shares/units outstanding     4,668       4,815       4,668       4,815  
Total basic shares/units outstanding     14,295       14,468       14,295       14,468  
                         
Diluted Class A shares outstanding (C)     9,659       9,675       9,659       9,675  
Diluted Class B shares/units outstanding (D)     5,041       5,239       5,041       5,239  
Total diluted shares/units outstanding     14,700       14,914       14,700       14,914  
  1. See A in Exhibit 2.        
  2. GAAP earnings per share is strictly attributable to Class A shareholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B shareholders.
  3. Includes 31,974 and 21,704 unvested restricted stock units at September 30, 2022 and 2021, respectively.
  4. Includes 120,772 and 170,854 unvested restricted stock units and 252,904 unvested non-qualified options at September 30, 2022 and 2021.


Exhibit 4

Silvercrest Asset Management Group Inc.
Condensed Consolidated Statements of Financial Condition
(Unaudited and in thousands)

    September 30,
2022
    December 31,
2021
 
Assets            
Cash and cash equivalents   $ 67,352     $ 85,744  
Investments     177       1,588  
Receivables, net     9,417       8,850  
Due from Silvercrest Funds     2,429       428  
Furniture, equipment and leasehold improvements, net     5,040       5,257  
Goodwill     63,675       63,675  
Operating lease assets     22,839       26,130  
Finance lease assets     372       247  
Intangible assets, net     21,993       23,924  
Deferred tax asset—tax receivable agreement     7,556       10,797  
Prepaid expenses and other assets     4,239       2,678  
Total assets   $ 205,089     $ 229,318  
Liabilities and Equity            
Accounts payable and accrued expenses   $ 2,977     $ 19,820  
Accrued compensation     29,001       41,707  
Borrowings under credit facility     6,330       9,025  
Operating lease liabilities     28,834       32,371  
Finance lease liabilities     373       253  
Deferred tax and other liabilities     9,603       9,334  
Total liabilities     77,118       112,510  
Commitments and Contingencies (Note 10)            
Equity            
Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and
outstanding, as of September 30, 2022 and December 31, 2021
           
Class A common stock, par value $0.01, 50,000,000 shares authorized; 9,946,054 and
9,627,462 shares issued and outstanding as of September 30, 2022, respectively;
9,902,184 and 9,869,101 shares issued and outstanding as of and December 31, 2021,
respectively
    99       99  
Class B common stock, par value $0.01, 25,000,000 shares authorized; 4,667,695 and
4,593,687 issued and outstanding, as of September 30, 2022 and December 31, 2021,
respectively
    46       45  
Additional Paid-In Capital     53,232       52,936  
Treasury Stock, at cost, 318,592 and 33,083 shares as of September 30, 2022 and
December 31, 2021, respectively
    (5,752 )     (512 )
Retained earnings     39,430       27,782  
Total Silvercrest Asset Management Group Inc.’s equity     87,055       80,350  
Non-controlling interests     40,916       36,458  
Total equity     127,971       116,808  
Total liabilities and equity   $ 205,089     $ 229,318  


Exhibit 5

Silvercrest Asset Management Group Inc.
Total Assets Under Management
(Unaudited and in billions)

Total Assets Under Management:

    Three Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 28.7     $ 31.0       -7.4 %
                   
Gross client inflows     1.1       1.2       -8.3 %
Gross client outflows     (1.4 )     (1.4 )     0.0 %
Net client flows     (0.3 )     (0.2 )     50.0 %
                   
Market (depreciation)/appreciation     (1.0 )     0.2     NM  
Ending assets under management   $ 27.4     $ 31.0       -11.6 %


    Nine Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 32.3     $ 27.8       16.2 %
                   
Gross client inflows     5.5       4.0       37.5 %
Gross client outflows     (5.2 )     (4.6 )     13.0 %
Net client flows     0.3       (0.6 )     -150.0 %
                   
Market (depreciation)/appreciation     (5.2 )     3.8       -236.8 %
Ending assets under management   $ 27.4     $ 31.0       -11.6 %

NM = Not Meaningful

Exhibit 6

Silvercrest Asset Management Group Inc.
Discretionary Assets Under Management
(Unaudited and in billions)

Discretionary Assets Under Management:

    Three Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 20.4     $ 22.9       -10.9 %
                   
Gross client inflows     0.9       1.1       -18.2 %
Gross client outflows     (1.3 )     (1.3 )     0.0 %
Net client flows     (0.4 )     (0.2 )     100.0 %
                   
Market depreciation     (0.6 )     (0.2 )     200.0 %
Ending assets under management   $ 19.4     $ 22.5       -13.8 %


    Nine Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 25.1     $ 20.6       21.8 %
                   
Gross client inflows     3.5       3.6       -2.8 %
Gross client outflows     (4.9 )     (4.2 )     16.7 %
Net client flows     (1.4 )     (0.6 )     133.3 %
                   
Market (depreciation)/appreciation     (4.3 )     2.5       -272.0 %
Ending assets under management   $ 19.4     $ 22.5       -13.8 %



Exhibit 7

Silvercrest Asset Management Group Inc.
Non-Discretionary Assets Under Management
(Unaudited and in billions)

Non-Discretionary Assets Under Management:

    Three Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 8.3     $ 8.1       2.5 %
                   
Gross client inflows     0.2       0.1       100.0 %
Gross client outflows     (0.1 )     (0.1 )     0.0 %
Net client flows     0.1             100.0 %
                   
Market (depreciation)/appreciation     (0.4 )     0.4       -200.0 %
Ending assets under management   $ 8.0     $ 8.5       -5.9 %


    Nine Months Ended
September 30,
    % Change from September 30,  
    2022     2021     2021  
Beginning assets under management   $ 7.2     $ 7.2       0.0 %
                   
Gross client inflows     2.0       0.4       400.0 %
Gross client outflows     (0.3 )     (0.4 )     -25.0 %
Net client flows     1.7             100.0 %
                   
Market (depreciation)/appreciation     (0.9 )     1.3       -169.2 %
Ending assets under management   $ 8.0     $ 8.5       -5.9 %


Exhibit 8

Silvercrest Asset Management Group Inc.
Assets Under Management
(Unaudited and in billions)

    Three Months Ended
September 30,
 
    2022     2021  
Total AUM as of June 30,   $ 28.686     $ 31.028  
Discretionary AUM:            
Total Discretionary AUM as of June 30,   $ 20.426     $ 22.865  
New client accounts/assets (1)     0.073       0.050  
Closed accounts (2)     (0.010 )     (0.041 )
Net cash inflow/(outflow) (3)     (0.507 )     (0.234 )
Non-discretionary to Discretionary AUM (4)     (0.001 )      
Market depreciation     (0.586 )     (0.148 )
Change to Discretionary AUM     (1.031 )     (0.373 )
Total Discretionary AUM at September 30,     19.395       22.492  
Change to Non-Discretionary AUM (5)     (0.252 )     0.298  
Total AUM as of September 30,   $ 27.403     $ 30.953  


    Nine Months Ended
September 30,
 
    2022     2021  
Total AUM as of January 1,   $ 32.320     $ 27.819  
Discretionary AUM:            
Total Discretionary AUM as of January 1,   $ 25.073     $ 20.650  
New client accounts/assets (1)     0.257       0.287  
Closed accounts (2)     (0.039 )     (0.375 )
Net cash inflow/(outflow) (3)     (1.633 )     (0.575 )
Non-discretionary to Discretionary AUM (4)     (0.004 )     (0.007 )
Market (depreciation)/appreciation     (4.259 )     2.511  
Change to Discretionary AUM     (5.678 )     1.842  
Total Discretionary AUM at September 30,     19.395       22.492  
Change to Non-Discretionary AUM (5)     0.761       1.292  
Total AUM as of September 30,   $ 27.403     $ 30.953  
  1. Represents new account flows from both new and existing client relationships.
  2. Represents closed accounts of existing client relationships and those that terminated.
  3. Represents periodic cash flows related to existing accounts.
  4. Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
  5. Represents the net change to Non-Discretionary AUM.


Exhibit 9

Silvercrest Asset Management Group Inc.
Equity Investment Strategy Composite Performance1, 2
As of September 30, 2022
(Unaudited)

PROPRIETARY EQUITY PERFORMANCE 1, 2   ANNUALIZED PERFORMANCE  
    INCEPTION   1-YEAR     3-YEAR     5-YEAR     7-YEAR     INCEPTION  
Large Cap Value Composite   4/1/02     -10.9       6.9       8.3       11.6       8.8  
Russell 1000 Value Index         -11.4       4.4       5.3       8.2       6.9  
                                   
Small Cap Value Composite   4/1/02     -10.7       6.0       4.1       8.4       9.8  
Russell 2000 Value Index         -17.7       4.7       2.9       7.4       7.2  
                                   
Smid Cap Value Composite   10/1/05     -15.4       4.1       3.9       8.8       8.7  
Russell 2500 Value Index         -15.4       4.5       3.8       7.3       6.7  
                                   
Multi Cap Value Composite   7/1/02     -15.4       5.2       5.8       9.6       8.9  
Russell 3000 Value Index         -11.8       4.4       5.1       8.1       7.4  
                                   
Equity Income Composite   12/1/03     -9.1       3.3       5.8       10.0       10.4  
Russell 3000 Value Index         -11.8       4.4       5.1       8.1       7.5  
                                   
Focused Value Composite   9/1/04     -17.5       2.1       3.4       8.0       9.0  
Russell 3000 Value Index         -11.8       4.4       5.1       8.1       7.3  
                                   
Small Cap Opportunity Composite   7/1/04     -17.7       8.1       8.0       10.8       10.4  
Russell 2000 Index         -23.5       4.3       3.6       7.5       7.2  
                                   
Small Cap Growth Composite   7/1/04     -30.5       12.9       10.9       13.6       10.3  
Russell 2000 Growth Index         -29.3       2.9       3.6       7.1       7.5  
                                   
Smid Cap Growth Composite   1/1/06     -36.6       11.9       12.1       13.7       10.2  
Russell 2500 Growth Index         -29.4       4.8       6.3       8.8       8.5  


1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®).
   
2 The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
   
  The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
   
  The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
   
  The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
   
  The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

Silvercrest Asset Management Group Inc.

Contact: Richard Hough
212-649-0601
rhough@silvercrestgroup.com

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Source: Silvercrest Asset Management Group Inc.