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    SAMG
    Earnings call· Jun 2026(Q2 FY26)

    Silvercrest Asset Management Group Q2 FY26 earnings call SAMG

    Jul 31, 2026 Source

    Executive summary

    Silvercrest Asset Management Group Q2 FY26 — Discretionary AUM at All-Time High, Robust Institutional Pipeline

    Silvercrest Asset Management Group reported an all-time high in discretionary AUM for Q2 FY26, driven by market appreciation and strong organic client flows, despite seasonal and institutional outflows. The firm is progressing with its global infrastructure build-out, expecting reduced administrative costs post-licensure and a significant institutional pipeline. Management anticipates an elevated compensation ratio as strategic investments mature, focusing on talent retention and long-term value creation.

    Highlights

    5

    • Discretionary AUM increased 6.9% QoQ to $24.7 billion, reaching an all-time high.

    • Organic new client account flows were $111 million for Q2 FY26, up from $81 million in Q1 FY26 and $80 million in Q2 FY25.

    • Institutional AUM grew to $9.8 billion, up from $8.7 billion at the end of Q1 FY26, including a recent A$500 million (~$350 million USD) contribution to the global value strategy.

    • OCIO business now manages $2.9 billion.

    • Global infrastructure and distribution build-out is nearing completion, expected to reduce administrative costs post-licensure.

    Concerns

    3

    • Total compensation and benefits expense was $20.5 million, representing an elevated 66.6% of revenue for Q2 FY26.

    • Expenses for the first half increased year over year by $6.8 million or 12.8%, primarily due to compensation and G&A.

    • Net client outflows partially offset market appreciation, with over $200 million of institutional outflows from value strategies.

    Guidance & targets

    2
    CategoryTargetConfidence
    MIFID license completion
    Completion
    medium materiality
    High
    Compensation ratio
    Remain elevated
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Institutional Business
    AUM increased from $8.7 billion at the end of Q1 FY26 to $9.8 billion.
    AUM: $9.8 billionAUM (Q1 FY26): $8.7 billion
    		————
    OCIO Business
    Manages $2.9 billion in AUM.
    AUM: $2.9 billion
    		————

    Operational metrics

    17
    Discretionary AUM
    $24.7 billionup 6.9% QoQ, up 4.2% YoY
    Q2 FY26

    Reached an all-time high.

    Total AUM
    $37.0 billionup 3.6% QoQ
    Q2 FY26

    Includes non-discretionary AUM.

    Organic new client account flows
    $111 millionup from $81 million in Q1 FY26 and $80 million in Q2 FY25
    Q2 FY26

    Reflects new client inflows.

    Global Value Strategy AUM
    $2.5 billion
    Q2 FY26

    Meaningful assets in the strategy.

    Compensation and benefits expense
    $20.5 million
    Q2 FY26

    Reflects deliberate cost of significant investment program.

    Compensation and benefits expense increase
    $1.7 million8.9% YoY
    Q2 FY26

    Primarily due to increases in sales salaries, merit-based increases, new hires (including Ireland staff), increased bonus accrual, and equity-based compensation.

    General and administrative expenses increase
    $1.5 million19.3% YoY
    Q2 FY26

    Primarily due to increases in professional fees, travel and entertainment expenses (related to global initiatives), and portfolio and systems expense.

    Adjusted EBITDA
    $3.4 million
    Q2 FY26

    Defined as EBITDA without equity-based compensation and non-core/non-recurring items.

    Adjusted Net Income
    $2.2 million
    Q2 FY26

    Defined as net income without non-core/non-recurring items and income tax expense assuming a 26% corporate rate.

    Total expenses increase
    $6.8 million12.8% YoY
    H1 FY26

    Primarily driven by increased compensation and benefits expense and general and administrative expenses.

    Compensation and benefits expense increase
    $3.9 million10.5% YoY
    H1 FY26

    Primarily due to increases in salaries and benefits, merit-based increases, bonus accrual, equity-based compensation, and severance expense.

    General and administrative expenses increase
    $2.8 million18.3% YoY
    H1 FY26

    Primarily due to increases in professional fees, occupancy and related expenses, travel and entertainment expenses, and portfolio and systems expense.

    Adjusted EBITDA
    $7.2 million
    H1 FY26

    Defined as EBITDA without equity-based compensation and non-core/non-recurring items.

    Adjusted Net Income
    $2.6 million
    H1 FY26

    Defined as net income without non-core/non-recurring items and income tax expense assuming a 26% corporate rate.

    Cash and cash equivalents
    $20.7 millioncompared to $44.1 million at end of last year
    Q2 FY26

    Balance sheet item.

    Borrowings
    $9.5 million
    Q2 FY26

    Balance sheet item.

    Total Class A stockholders' equity
    $46 million
    Q2 FY26

    Balance sheet item.

    Industry KPIs

    1
    MetricValueDetails
    Fundraising inflows$111 millionUSD

    Risks & headwinds

    3
    Net client outflowsQ2 FY26

    Partially offset market appreciation; over $200 million of outflows had no revenue effect; institutional outflows from value side due to past performance issues.

    Mitigation: Strong market performance in small cap and value strategies should help retention; focus on long-term high net worth clients; strategic investments in global distribution.

    Elevated compensation ratioExpected to remain elevated as investments mature.

    66.6% of revenue for Q2 FY26; $20.5 million total compensation and benefits expense.

    Mitigation: Deliberate cost for significant investment program; attracting and motivating professionals through equity grants to align long-term interests.

    Increased General and Administrative expensesQ2 FY26, H1 FY26

    Increased by $1.5 million or 19.3% YoY in Q2 FY26; $2.8 million or 18.3% YoY in H1 FY26.

    Mitigation: Expected to decline meaningfully post-licensure completion in Australia and Europe, as startup-type professional fees will go away.

    What to watch in Q3 FY26

    5

    MIFID license completion

    End of Q3 FY26
    CurrentNearing completion
    TargetCompleted

    Why it matters

    Completion of this license is key to the global infrastructure build-out and accessing European distribution channels, which is expected to reduce administrative costs and contribute to revenue.

    We expect to complete our MIFID license through the Central Bank of Ireland by the end of the third quarter with our Austrian The Australian Unit Trust established our usage vehicle and European licensing near completion and the administrative and legal costs associated with these initiatives will decline meaningfully as the distribution access they create begins to contribute.

    Q&A highlights

    4

    What is the expected normal run rate for G&A expenses after the completion of licensing processes in Australia and Europe, given the recent large jump?

    Management expects G&A expenses to decline meaningfully post-licensure, especially startup-type professional fees, though some recurring legal and accounting fees will remain. They declined to give a precise figure but emphasized the directional benefit.

    “I hesitate to give you a precise figure. I just directionally want everyone to understand that with the completion of the Australian Trust, with the near completion by the end of the third quarter of the USITS, as well as our work with the Central Bank of Ireland, expenses will come down.”

    asked by Sandy Mehta · answered by Unknown Speaker

    3 min read7 chapters

    Detailed Narrative

    01

    Strategic Progress and AUM Growth

    Silvercrest reported strategic progress in Q2 FY26, with discretionary AUM reaching an all-time high of $24.7 billion, up 6.9% from Q1 FY26 and 4.2% YoY. This growth was primarily driven by market appreciation, partially offset by net client outflows, including seasonal high net worth withdrawals and institutional outflows, though over $200 million of these outflows had no revenue effect. Total AUM increased 3.6% to $37.0 billion.

    02

    Organic Flows and Institutional Business

    Organic new client account flows were $111 million for the quarter, a significant increase from $81 million in Q1 FY26 and $80 million in Q2 FY25. The institutional pipeline is robust, particularly in global and international equity strategies, with a recent A$500 million (approximately $350 million USD) contribution to the global value strategy, bringing its AUM to $2.5 billion. Institutional AUM now stands at $9.8 billion, up from $8.7 billion in Q1 FY26, and the OCIO business manages $2.9 billion.

    03

    Global Infrastructure Build-out and Distribution

    The firm is nearing completion of its global infrastructure and distribution build-out, expecting to finalize its MIFID license through the Central Bank of Ireland by the end of Q3 FY26 and establish its Australian Unit Trust. These initiatives are expected to significantly reduce administrative and legal costs post-licensure, opening new institutional distribution channels worldwide. The firm has achieved important third-party ratings for its strategies and is pursuing additional ratings.

    04

    Compensation and Investment in Talent

    Total compensation and benefits expense was $20.5 million, representing 66.6% of revenue for the quarter, an 8.9% YoY increase. This elevated ratio reflects deliberate costs associated with significant investment in talent, including new hires in Ireland and merit-based increases. The firm plans to make equity grants to professionals to align long-term interests with shareholders and support growth, viewing intellectual capital as its most important resource.

    05

    Financial Performance and Expense Drivers

    Revenue for Q2 FY26 was $30.8 million, flat year-over-year, primarily due to market appreciation offset by client outflows. Reported consolidated net income for the quarter was $0.5 million, with net income attributable to Class A shareholders at $0.2 million or $0.02 per basic and diluted share. Total expenses increased by $3.2 million or 12% YoY, driven by the rise in compensation and benefits ($1.7 million) and general and administrative expenses ($1.5 million). G&A increases were attributed to professional fees, travel, entertainment related to global initiatives, and portfolio/systems expenses. For the first half, reported net income attributable to Class A shareholders was $0.4 million or $0.05 per share.

    06

    Adjusted Profitability

    Adjusted EBITDA for Q2 FY26 was $3.4 million, or 11.2% of revenue, and adjusted net income was $2.2 million, or $0.10 per adjusted basic and diluted EPS. For the first half, adjusted EBITDA was $7.2 million (11.5% of revenue) and adjusted net income was $2.6 million ($0.22 per adjusted basic and diluted EPS).

    07

    Balance Sheet Overview

    Total assets were approximately $139.9 million as of June 30, 2026. Cash and cash equivalents were $20.7 million as of June 30, 2026, compared to $44.1 million at the end of last year. Borrowings totaled $9.5 million, and total Class A stockholders' equity was $46 million as of the same period.

    AI-generated summary of the company’s earnings call. Not investment advice.