Silvercrest Asset Management reported third-quarter results alongside updates on client flows, international expansion and its investment in staff. Revenue for the quarter was $32.7 million. Discretionary assets under management—the assets that primarily drive revenue—fell during the quarter, mainly because of weaker markets, while net client flows were nearly flat.
The company also declared a $0.21-per-share quarterly dividend and said it plans to change how it reports non-discretionary assets beginning in 2027. That change will reduce reported AUM but is not expected to affect revenue.
Third-quarter results and assets
- Total AUM was $36.2 billion at Sept. 30, including $23.8 billion in discretionary assets and $12.4 billion in non-discretionary assets.
- Discretionary AUM declined by $939.2 million during the quarter. Silvercrest attributed the decrease primarily to weaker markets; $753.1 million of the change had a revenue effect.
- Net flows were essentially flat, with a net inflow of $58.3 million. The quarter included $182.2 million in organic new client accounts—the strongest quarter for that measure in 2026—and a $373 million follow-on investment in the firm’s global value equity strategy. These inflows were offset mainly by seasonal high-net-worth client withdrawals for tax payments and some institutional outflows.
- Market growth has added $1.7 billion to AUM year to date, following unusually strong markets in the second quarter and weaker markets in the third.
- Silvercrest reported GAAP net income of $1.2 million, of which $0.6 million was attributable to Silvercrest, and basic and diluted earnings per share of $0.08.
- Adjusted EBITDA was $4.4 million, adjusted net income was $1.9 million, and adjusted basic and diluted earnings per share were $0.16. The company’s adjusted measures are non-GAAP.
- For the first nine months of 2026, revenue was up 2% from a year earlier. Silvercrest said its estimated annual run rate rose by a similar percentage compared with Sept. 30, 2025.
Business investment and expansion
- Compensation and benefits expense totaled $62.9 million for the first nine months, equal to 66.3% of revenue. Silvercrest said the ratio remains elevated because of its largest investment program to date and that it expects those costs to stay elevated as the investments mature.
- The company said shareholders had approved an increase in shares available under its equity incentive plan and that it intends to make grants soon to employees involved in building the business. Silvercrest described attracting and motivating staff and aligning their long-term interests with shareholders as central to its growth strategy.
- Silvercrest received a full MiFID license through the Central Bank of Ireland and opened a Dublin office to serve European high-net-worth and institutional clients. It also cited completed work on its Atlanta office, a UCITS fund, an Australian trust and regulatory licensing.
- The company expects legal and administrative costs tied to these initiatives to decline and the initiatives to begin contributing revenue.
- Silvercrest said its institutional pipeline has grown, especially in global and international equity strategies, and that both the number and potential scale of opportunities have increased. It is pursuing additional ratings from major global consultants to support institutional distribution.
Dividend and reporting change
- The board declared a quarterly dividend of $0.21 per Class A share, payable on or about Dec. 18 to shareholders of record on Dec. 11.
- Beginning at the end of the first quarter of 2027, Silvercrest plans to adjust how it reports non-discretionary AUM, likely eliminating that category. The company said most of those assets relate to flat-fee family-office and similar services, so changes in their reported level do not track revenue. The adjustment will lower reported non-discretionary and total AUM on a one-time basis, without affecting revenue.
The planned AUM reporting change is intended to put greater emphasis on discretionary assets, client flows and the economics that Silvercrest says more directly drive its business.