SilverCrest’s Mixed Earnings Call: Growth Amid Challenges

SilverCrest Asset Management ((SAMG)) has held its Q2 earnings call. Read on for the main highlights of the call.

In the latest earnings call, SilverCrest Asset Management presented a mixed sentiment, showcasing positive momentum in asset growth and strategic initiatives, while also addressing challenges such as revenue decreases, increased expenses, and net client outflows. Despite these hurdles, the firm remains optimistic due to strong asset management performance and strategic investments, which provide a promising outlook.

Increase in Discretionary Assets Under Management

SilverCrest reported a significant increase in discretionary assets under management, which rose by $1 billion during the second quarter, reaching $23.7 billion. This marks a 4.4% sequential quarterly increase and a 9.7% year-over-year growth, reflecting strong asset management capabilities.

Record Total Assets Under Management

The company achieved a new milestone with total assets under management reaching $36.7 billion at the end of the second quarter. This record high underscores SilverCrest’s ability to attract and manage substantial client assets effectively.

Strong Organic New Client Accounts

SilverCrest added $80 million in organic new client accounts during the quarter and $0.5 billion in the first half of 2025. Over the past four quarters, approximately $2 billion in organic new client accounts were added, highlighting the firm’s successful client acquisition strategies.

Stock Repurchase Program and Dividend Increase

The company completed a $12 million stock repurchase program and announced a new $25 million buyback initiative. Additionally, SilverCrest increased its quarterly dividend by 5%, from $0.20 to $0.21 per share, reflecting confidence in its financial health and commitment to returning value to shareholders.

Positive Developments in Global Value Strategy

SilverCrest’s Global Value Composite performance remains strong, attracting significant global interest. This has led to ongoing discussions and potential inflows, indicating promising future growth in this area.

Revenue Decrease

Despite the positive developments, the company experienced a revenue decrease of $0.3 million or 1% year-over-year. This decline was primarily attributed to a decrease in the average annual management fee rate.

Increase in Expenses

Expenses for the quarter rose by $0.9 million or 3.7%, driven by increased compensation, benefits, and general and administrative expenses, which impacted the overall financial performance.

Net Client Outflows

The firm faced net client outflows that partially offset market appreciation, presenting a challenge despite the strong market performance.

Decrease in Cash and Cash Equivalents

Cash and cash equivalents decreased significantly to $30 million as of June 30, from $68.6 million at the end of last year, indicating a reduction in liquid assets.

Moderate OCIO Pipeline

The OCIO pipeline has seen a decrease compared to previous levels, although there are upcoming finals for $100 million mandates, suggesting potential future growth opportunities.

Forward-Looking Guidance

SilverCrest remains optimistic about future organic flows and strategic investments aimed at supporting growth, particularly in the institutional and wealth markets. Despite current market volatility, the firm is committed to leveraging its strong asset management performance and strategic initiatives to drive future success.

In conclusion, SilverCrest Asset Management’s earnings call highlighted a blend of positive growth in assets under management and strategic initiatives, alongside challenges such as revenue decreases and increased expenses. The firm remains optimistic about its future, driven by strong asset management performance and continued strategic investments, positioning itself for growth in the institutional and wealth markets.