Silvercrest’s Q3 AUM Surges $687M to $24.3B; Investments Pressure EBITDA
Silvercrest’s discretionary assets under management rose by $687 million to $24.3 billion in Q3, up 3% quarter-on-quarter and 8% year-on-year, while firm-wide AUM hit a record $37.6 billion. Strategic hires and capital investments have weighed on near-term adjusted EBITDA as the firm repurchased $16 million of shares.
1. Third-Quarter AUM Growth
Discretionary assets under management increased by $687 million in the third quarter, reaching $24.3 billion, a 3% sequential and 8% year-over-year gain. Total firm-wide AUM rose to a record $37.6 billion, driven by favorable equity markets and organic client inflows of $46.4 million in the quarter and $564 million year to date.
2. Strategic Investment Spending
Silvercrest has focused on expanding intellectual capital and adding headcount to support long-term growth, a strategy that has elevated operating expenses. These investments have weighed on adjusted EBITDA and earnings in the near term as the firm builds out its infrastructure.
3. Share Repurchase Program
Under its $25 million share repurchase authorization, Silvercrest has bought back approximately $16 million worth of stock through the end of the third quarter. The ongoing buyback is designed to return capital to shareholders and offset dilution from equity-based compensation.
4. Dividend and Incentive Plans
Silvercrest plans to pay a $0.21 per-share dividend in December and expects to distribute equity-based incentives to its professionals in the near future. The dividend reflects the firm’s commitment to returning cash to investors while aligning employee interests with long-term performance.