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Silvercrest Asset Management Group: Focus On High Net Worth Segment Is Yielding Great Results

Apr. 01, 2021 8:00 AM ETSilvercrest Asset Management Group Inc. (SAMG)


  • Despite negative headwinds in their industry, management has continued to attract net positive asset flows.
  • Total AUM was up 10.8% year-over-year indicating management's ability to execute in a challenging environment.
  • The institutional asset management pipeline is picking up steam with the current 6-month actionable pipeline at $1.34 billion.
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The company announced solid Q4:20 results, delivering AUM growth amidst a challenging environment. SAMG is primarily focused on the high net worth segment, which is large and attractive. We remain bullish on the firm’s long-term prospects. We maintain our BUY rating and increase our target price to $19.50 per share (earlier $17.50).

Q4:20 Highlights

  • Q4:20 AUM was $27.8 billion, up 10.8% from Q4:19 due to higher client inflows and a supportive equity market.
  • Discretionary assets under management, which is the primary driver of revenue, rose to $20.6 billion, up 9.6% versus $18.8 billion in Q4:19.
  • Revenue was $28.4 million, up 2.1% YOY compared to $27.8 million in Q4:19.
  • Adjusted EBITDA was $7.3 million (or a 25.7% margin), flat compared to $7.3 million (or a 26.3% margin) in the prior year quarter.
  • Adjusted net income at $4.4 million in Q4:20, or $0.31 per diluted share, was flat compared to $4.4 million or $0.31 per diluted share in Q4:19.
  • We adjust our estimates based on the quarter end results and management’s commentary. We maintain our BUY rating and increase our target price to $19.50, with an implied capital appreciation of 39%.


  • Volatility in capital markets could cause a decline in AUM which could adversely impact SAMG’s revenues.
  • The business is highly regulated and is subjected to frequent regulatory changes. Any unfavorable change could negatively impact operations.


  • Total AUM up 10.8% YOY. Total assets under management (AUM) increased ~10.8% to $27.8 billion versus $25.1 billion in Q4:19. The increase was attributable to client inflows of $4.2 billion and market appreciation of $2.3 billion, partially offset by client outflows of $3.8 billion. Discretionary assets under management, which is the primary driver of revenue, rose to $20.6 billion, up 9.6% versus $18.8 billion in Q4:19.
  • Revenue

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This article was written by

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Singular Research aims to be a trusted supplier of independent research on micro/small cap companies. We provide initiation reports and quarterly updates on roughly 40 uncovered companies. We cover growth and value style equity ideas leveraging the extensive experience and knowledge of our in house staff of over 6 CFA's. Award winning original research with a following of over 105 institutional clients with over $60 billion in assets under mgmt. Singular is closely associated with the existing author Cook Capital Management.

Analyst’s Disclosure: I am/we are long SAMG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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