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What changed in Silvercrest Asset Management Group Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Silvercrest Asset Management Group Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+123 added−128 removedSource: 10-K (2025-03-06) vs 10-K (2024-03-07)

Top changes in Silvercrest Asset Management Group Inc.'s 2024 10-K

123 paragraphs added · 128 removed · 105 edited across 2 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+1 added−0 removed17 unchanged
Biggest changeWe are dedicated to business continuity and resiliency, and have documented strategies, policies, and procedures in place to protect employee, business, and client data in the event of an emergency or natural disaster.
Biggest changeWe are dedicated to business continuity and resiliency, and have documented strategies, policies, and procedures in place to protect employee, business, and client data in the event of an emergency or natural disaster. Our information security risk management processes are integrated into our broader risk management program.
If an information security incident occurs, Silvercrest will assemble an incident response team responsible 36 for the identification, remediation, and post-incident review of such incident, engage outside advisors and notify third parties as appropriate and assess the materiality of the nature, scope and timing of a given incident and whether public disclosure is required.
If an information security incident occurs, Silvercrest will assemble an incident response team responsible for the identification, remediation, and post-incident review of such incident, engage outside advisors and notify third parties as appropriate and assess the materiality of the nature, scope and timing of a given incident and whether public disclosure is required.
We believe our current facilities are adequate for our current needs and that suitable additional space will be available as and when needed. It em 3. Legal Proceedings. We are, and will continue to be, subject to litigation from time to time in the ordinary course of business. Currently, there are no material legal proceedings pending or threatened against us.
We believe our current facilities are adequate for our current needs and that suitable additional space will be available as and when needed. 36 It em 3. Legal Proceedings. We are, and will continue to be, subject to litigation from time to time in the ordinary course of business.
Added
Currently, there are no material legal proceedings pending or threatened against us.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

102 edited+17 added−23 removed117 unchanged
Biggest changeFinancial Statements and Supplementary Data” of this filing. 43 Operating Results Revenue Our revenues for the years ended December 31, 2023, 2022 and 2021 are set forth below: For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Management and advisory fees $ 112,794 $ 118,725 $ (5,931 ) (5.0 )% Performance fees and allocations — 2 (2 ) (100.0 )% Family office services 4,616 4,490 126 2.8 % Total revenue $ 117,410 $ 123,217 $ (5,807 ) (4.7 )% For the Years Ended December 31, (in thousands) 2022 2021 2022 vs. 2021 ($) 2022 vs. 2021 (%) Management and advisory fees $ 118,725 $ 126,976 $ (8,251 ) (6.5 )% Performance fees and allocations 2 86 (84 ) 100.0 % Family office services 4,490 4,541 (51 ) (1.1 )% Total revenue $ 123,217 $ 131,603 $ (8,386 ) (6.4 )% The growth in our assets under management from January 1, 2021 to December 31, 2023 is described below: Assets Under Management (in billions) Discretionary Non- Discretionary Total As of January 1, 2021 $ 20.6 $ 7.2 $ 27.8 (1) Gross client inflows 5.7 0.5 6.2 Gross client outflows (5.5 ) (0.5 ) (6.0 ) Net client flows 0.2 — 0.2 Market appreciation 4.3 — 4.3 As of December 31, 2021 $ 25.1 $ 7.2 $ 32.3 (1) Gross client inflows 4.4 2.0 6.4 Gross client outflows (5.8 ) (0.5 ) (6.3 ) Net client flows (1.4 ) 1.5 0.1 Market depreciation (2.8 ) (0.7 ) (3.5 ) As of December 31, 2022 $ 20.9 $ 8.0 $ 28.9 (1) Gross client inflows 3.0 2.4 5.4 Gross client outflows (4.1 ) (0.7 ) (4.8 ) Net client flows (1.1 ) 1.7 0.6 Market appreciation 2.1 1.7 3.8 As of December 31, 2023 $ 21.9 $ 11.4 $ 33.3 (1) (1) Less than 5% of assets under management generate performance fees. 44 PROPRIETARY EQUITY PERFORMANCE 1, 2 ANNUALIZED PERFORMANCE AS OF 12/31/2023 INCEPTION 1-YEAR 3-YEAR 5-YEAR 7-YEAR INCEPTION Large Cap Value Composite 4/1/02 13.0 9.6 13.4 11.7 9.4 Russell 1000 Value Index 11.5 8.9 10.9 8.3 7.6 Small Cap Value Composite 4/1/02 15.6 9.0 11.7 7.4 10.3 Russell 2000 Value Index 14.6 7.9 10.0 6.1 7.9 Smid Cap Value Composite 10/1/05 9.6 6.4 9.6 7.0 9.2 Russell 2500 Value Index 16.0 8.8 10.8 7.1 7.6 Multi Cap Value Composite 7/1/02 12.4 7.1 11.1 8.9 9.4 Russell 3000 Value Index 11.7 8.8 10.8 8.2 8.1 Equity Income Composite 12/1/03 7.0 8.4 9.4 8.7 10.8 Russell 3000 Value Index 11.7 8.8 10.8 8.2 8.2 Focused Value Composite 9/1/04 4.4 2.5 6.6 5.6 9.1 Russell 3000 Value Index 11.7 8.8 10.8 8.2 8.0 Small Cap Opportunity Composite 7/1/04 18.1 5.1 12.6 10.1 10.8 Russell 2000 Index 16.9 2.2 10.0 7.3 8.0 Small Cap Growth Composite 7/1/04 7.5 (1.0 ) 12.8 12.1 10.5 Russell 2000 Growth Index 18.7 (3.5 ) 9.2 8.1 8.2 Smid Cap Growth Composite 1/1/06 11.5 (5.3 ) 14.9 13.7 10.5 Russell 2500 Growth Index 18.9 (2.7 ) 11.4 10.2 9.2 1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest.
Biggest changeOperating Results Revenue Our revenues for the years ended December 31, 2024, 2023 and 2022 are set forth below: For the Years Ended December 31, (in thousands) 2024 2023 2024 vs. 2023 ($) 2024 vs. 2023 (%) Management and advisory fees $ 119,316 $ 112,794 $ 6,522 5.8 % Family office services 4,335 4,616 (281 ) (6.1 )% Total revenue $ 123,651 $ 117,410 $ 6,241 5.3 % For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Management and advisory fees $ 112,794 $ 118,725 $ (5,931 ) (5.0 )% Performance fees and allocations — 2 (2 ) 100.0 % Family office services 4,616 4,490 126 2.8 % Total revenue $ 117,410 $ 123,217 $ (5,807 ) (4.7 )% 44 The growth in our assets under management from January 1, 2022 to December 31, 2024 is described below: Assets Under Management (in billions) Discretionary Non- Discretionary Total As of January 1, 2022 $ 25.1 $ 7.2 $ 32.3 (1) Gross client inflows 4.4 2.0 6.4 Gross client outflows (5.8 ) (0.5 ) (6.3 ) Net client flows (1.4 ) 1.5 0.1 Market depreciation (2.8 ) (0.7 ) (3.5 ) As of December 31, 2022 $ 20.9 $ 8.0 $ 28.9 (1) Gross client inflows 3.0 2.4 5.4 Gross client outflows (4.1 ) (0.7 ) (4.8 ) Net client flows (1.1 ) 1.7 0.6 Market appreciation 2.1 1.7 3.8 As of December 31, 2023 $ 21.9 $ 11.4 $ 33.3 (1) Gross client inflows 3.9 1.2 5.1 Gross client outflows (4.6 ) (1.1 ) (5.7 ) Net client flows (0.7 ) 0.1 (0.6 ) Market appreciation 2.1 1.7 3.8 As of December 31, 2024 $ 23.3 $ 13.2 $ 36.5 (1) (1) Less than 5% of assets under management generate performance fees.
In 2022, represents a fair value adjustment to the Cortina contingent purchase price consideration of ($11,781), a fair value adjustment to the Neosho contingent purchase price consideration of ($299), an adjustment to the fair value of the tax receivable agreement of ($202), an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, expenses related to obtaining a business license of $26, system implementation costs of $6 and expenses related to the Coronavirus pandemic of $6.
In 2022, represents a fair value adjustment to the Cortina contingent purchase price consideration of ($11,781), a fair value adjustment to the Neosho contingent purchase price consideration of ($299), Tax Receivable Agreement adjustment of ($202), an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, expenses related to obtaining a business license of $26, system implementation costs of $6 and expenses related to the Coronavirus pandemic of $6.
Investing Activities Year Ended December 31, 2023 versus Year Ended December 31, 2022 For the years ended December 31, 2023 and 2022, investing activities used $3.9 million and $1.0 million, respectively.
Year Ended December 31, 2023 versus Year Ended December 31, 2022 For the years ended December 31, 2023 and 2022, investing activities used $3.9 million and $1.0 million, respectively.
SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS ® ). 2 The market indices used to compare to the performance of our strategies are as follows: The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 smallest companies in the Russell 3000.
SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS ® ). 45 2 The market indices used to compare to the performance of our strategies are as follows: The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 smallest companies in the Russell 3000.
This increase was attributable to an increase in general and administrative expenses of $12.9 million and an increase in compensation and benefits expense of $1.0 million. 47 Compensation and benefits expense increased by $1.0 million, or 1.4%, to $72.6 million for the year ended December 31, 2023 from $71.6 million for the year ended December 31, 2022.
This increase was attributable to an increase in general and administrative expenses of $12.9 million and an increase in compensation and benefits expense of $1.0 million. Compensation and benefits expense increased by $1.0 million, or 1.4%, to $72.6 million for the year ended December 31, 2023 from $71.6 million for the year ended December 31, 2022.
The increase was primarily attributable to increases in the fair value of contingent consideration related to the Cortina Acquisition of $11.8 million and the Neosho Acquisition of $0.3 million, portfolio and systems expenses of $0.5 million, occupancy and related costs of $0.2 million, marketing costs of $0.2 million, depreciation and amortization of $0.1 million and office expense of $0.1 million.
The increase was primarily attributable to increases in the fair value of contingent consideration related to the Cortina Acquisition of $11.8 million and the Neosho Acquisition of $0.3 million, portfolio 48 and systems expenses of $0.5 million, occupancy and related costs of $0.2 million, marketing costs of $0.2 million, depreciation and amortization of $0.1 million and office expense of $0.1 million.
The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the estimated fair values determined by management as of the acquisition date. 55 We measure the fair value of contingent consideration at each reporting period using a probability-adjusted discounted cash flow method based on significant inputs not observable in the market and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings.
The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the estimated fair values determined by management as of the acquisition date. 56 We measure the fair value of contingent consideration at each reporting period using a probability-adjusted discounted cash flow method based on significant inputs not observable in the market and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings.
Tax Receivable Agreement In connection with our initial public offering and reorganization of Silvercrest L.P. that was completed on June 23, 2013, we entered into a tax receivable agreement with the partners of Silvercrest L.P. that requires it to pay them 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that it actually realizes (or is deemed to realize in the case of an early 57 termination payment by it, or a change in control) as a result of the increases in tax basis and certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement or attributable to exchanges of shares of Class B common stock for shares of Class A common stock.
Tax Receivable Agreement In connection with our initial public offering and reorganization of Silvercrest L.P. that was completed on June 23, 2013, we entered into a tax receivable agreement with the partners of Silvercrest L.P. that requires the Company to pay them 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in the case of an early termination payment by it, or a change in control) as a result of the increases in tax basis and certain other tax benefits 58 related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement or attributable to exchanges of shares of Class B common stock for shares of Class A common stock.
In relation to the Cortina Acquisition, the income approach was used to determine the fair value o the contingent consideration by estimating a range of likely outcomes and payouts given these outcomes.
In relation to the Cortina Acquisition, the income approach was used to determine the fair value of the contingent consideration by estimating a range of likely outcomes and payouts given these outcomes.
As a result, there is no estimate or variability in the consideration when revenue is recorded. 56 Because the majority of our revenues are earned based on assets under management that have been determined using fair value methods and since market appreciation/depreciation has a significant impact on our revenue, we have presented our assets under management using the GAAP framework for measuring fair value.
As a result, there is no estimate or variability in the consideration when revenue is recorded. 57 Because the majority of our revenues are earned based on assets under management that have been determined using fair value methods and since market appreciation/depreciation has a significant impact on our revenue, we have presented our assets under management using the GAAP framework for measuring fair value.
Our expenses are driven primarily by our compensation costs. The table included in “—Expenses—Compensation and Benefits Expense” describes the components of our compensation expense for the three years ended December 31, 2023. Other expenses, such as rent, professional service fees, data-related costs, and sub-advisory fees incurred are included in our general and administrative expenses in the Consolidated Statement of Operations.
Our expenses are driven primarily by our compensation costs. The table included in “—Expenses—Compensation and Benefits Expense” describes the components of our compensation expense for the three years ended December 31, 2024. Other expenses, such as rent, professional service fees, data-related costs, and sub-advisory fees incurred are included in our general and administrative expenses in the Consolidated Statement of Operations.
Most of our revenue for the years ended December 31, 2023, 2022 and 2021 was derived from advisory fees, which are typically based on the market value of assets under management. Accordingly, a decline in the prices of securities would cause our revenue and income to decline due to a decrease in the value of the assets we manage.
Most of our revenue for the years ended December 31, 2024, 2023 and 2022 was derived from advisory fees, which are typically based on the market value of assets under management. Accordingly, a decline in the prices of securities would cause our revenue and income to decline due to a decrease in the value of the assets we manage.
Advisory fees are also adjusted for any cash flows into or out of a portfolio, where the cash flow represents greater than 10% of the previous quarter-end market value of the portfolio. These cash flow-related adjustments were insignificant for the years ended December 31, 2023, 2022 and 2021.
Advisory fees are also adjusted for any cash flows into or out of a portfolio, where the cash flow represents greater than 10% of the previous quarter-end market value of the portfolio. These cash flow-related adjustments were insignificant for the years ended December 31, 2024, 2023 and 2022.
The interests of the limited partners’ collective 32.9% partnership interest in Silvercrest L.P. as of December 31, 2023 are reflected in non-controlling interests in our consolidated financial statements. This Item 7 generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022.
The interests of the limited partners’ collective 32.9% partnership interest in Silvercrest L.P. as of December 31, 2024 are reflected in non-controlling interests in our consolidated financial statements. This Item 7 generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
This was driven by market downturns, which had the effect of lower revenue during 2023 when compared with 2022. 45 Assets under management increased by $4.4 billion, or 15.2%, to $33.3 billion at December 31, 2023 from $28.9 billion at December 31, 2022.
This was driven by market downturns, which had the effect of lower revenue during 2023 when compared with 2022. 46 Assets under management increased by $4.4 billion, or 15.2%, to $33.3 billion at December 31, 2023 from $28.9 billion at December 31, 2022.
Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. 50 The following tables contain reconciliations of net income to Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share (amounts in thousands except per share amounts).
Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. 51 The following tables contain reconciliations of net income to Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share (amounts in thousands except per share amounts).
We believe that we have sufficient cash from our operations to fund our operations and commitments for the next twelve months. The following table sets forth certain key financial data relating to our liquidity and capital resources as of December 31, 2023, 2022 and 2021.
We believe that we have sufficient cash from our operations to fund our operations and commitments for the next twelve months. The following table sets forth certain key financial data relating to our liquidity and capital resources as of December 31, 2024, 2023 and 2022.
Sub-advisory fees will fluctuate based on the level of management fees from funds that utilize sub-advisors. 42 Other Income Other income is derived primarily from investment income arising from our investments in various private investment funds that were established as part of our investment strategies.
Sub-advisory fees will fluctuate based on the level of management fees from funds that utilize sub-advisors. 43 Other Income Other income is derived primarily from investment income arising from our investments in various private investment funds that were established as part of our investment strategies.
Performance Graph As a “smaller reporting company” as defined in Item 10 of Regulation S-K, the Company is not required to provide this information. Ite m 6. [Reserved] 38 It em 7.
Performance Graph As a “smaller reporting company” as defined in Item 10 of Regulation S-K, the Company is not required to provide this information. Ite m 6. [Reserved] 39 It em 7.
As of December 31, 2023 and 2022, there were no borrowings outstanding on our revolving credit facility with City National Bank. Off-Balance Sheet Arrangements We did not have any significant off-balance sheet arrangements as of December 31, 2023 or December 31, 2022.
As of December 31, 2024 and 2023, there were no borrowings outstanding on our revolving credit facility with City National Bank. Off-Balance Sheet Arrangements We did not have any significant off-balance sheet arrangements as of December 31, 2024 or December 31, 2023.
Our provision for income taxes as a percentage of income before provision for income taxes for the year ended December 31, 2022 and 2021 was 19.8% and 21.7%, respectively. 49 Supplemental Non-GAAP Financial Information To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization. • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense.
Our provision for income taxes as a percentage of income before provision for income taxes for the year ended December 31, 2023 and 2022 was 22.1% and 19.8%, respectively. 50 Supplemental Non-GAAP Financial Information To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization. • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense.
Assuming no material changes in the relevant tax law and that we earn sufficient taxable income to realize the full tax benefit of the increased depreciation and amortization of our assets, we expect that future payments to the selling principals of Silvercrest L.P. in respect of our purchase of Class B units from them will aggregate approximately $8.8 million.
Assuming no material changes in the relevant tax law and that we earn sufficient taxable income to realize the full tax benefit of the increased depreciation and amortization of our assets, we expect that future payments to the selling principals of Silvercrest L.P. in respect of our purchase of Class B units from them will aggregate approximately $10.1 million.
We utilized this option when performing our annual impairment assessment in 2023 and 2022, and concluded that our single reporting unit’s fair value was more likely than not greater than its carrying value, including goodwill.
We utilized this option when performing our annual impairment assessment in 2024 and 2023, and concluded that our single reporting unit’s fair value was more likely than not greater than its carrying value, including goodwill.
Discussions of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on March 2, 2023.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on March 7, 2024.
The business includes the management of funds of funds, and other investment funds, collectively referred to as the “Silvercrest Funds”. Silvercrest L.P. has issued restricted stock units exercisable for 240,998 Class B units which entitle the holders thereof to receive distributions from Silvercrest L.P. to the same extent as if the underlying Class B units were outstanding.
The business includes the management of funds of funds, and other investment funds, collectively referred to as the “Silvercrest Funds”. Silvercrest L.P. has issued restricted stock units exercisable for 205,079 Class B units which entitle the holders thereof to receive distributions from Silvercrest L.P. to the same extent as if the underlying Class B units were outstanding.
Average annual management fee is calculated by dividing our actual revenue earned over a period by our average assets under management during the same period (which is calculated by averaging quarter-end assets under management for the applicable period). Our average management fee was 0.38%, 0.40% and 0.44% for the years ended December 31, 2023, 2022 and 2021, respectively.
Average annual management fee is calculated by dividing our actual revenue earned over a period by our average assets under management during the same period (which is calculated by averaging quarter-end assets under management for the applicable period). Our average management fee was 0.35%, 0.38% and 0.40% for the years ended December 31, 2024, 2023 and 2022, respectively.
Quantitative and Qualitative Disclosures Regarding Market Risk Our exposure to market risk is directly related to our role as investment adviser for the separate accounts we manage and the funds for which we act as sub-investment adviser.
It em 7A. Quantitative and Qualitative Disclosures Regarding Market Risk. Our exposure to market risk is directly related to our role as investment adviser for the separate accounts we manage and the funds for which we act as sub-investment adviser.
There was a $0.2 million adjustment to the fair value of our tax receivable agreement liability as of December 31, 2022. The adjustment in fair value was a result of a reduction in the future effective corporate tax rates at the federal level and in New York City as a result of law changes.
There was a $0.1 million adjustment to the fair value of our tax receivable agreement liability as of December 31, 2024. The adjustment in fair value was a result of a reduction in the future effective corporate tax rates at the federal level and in New York City as a result of law changes.
Repayment of borrowings under the credit facility was $3.6 million and $2.7 million in 2023 and 2022, respectively. Payments of contingent purchase price consideration totaled $0.1 million and $4.6 million in 2023 and 2022, respectively.
Repayment of borrowings under the credit facility was $2.7 million and $3.6 million in 2024 and 2023, respectively. Payments of contingent purchase price consideration totaled $0.1 million and $0.1 million in 2024 and 2023, respectively.
We intend to fund required payments pursuant to the tax receivable agreement from the distributions received from Silvercrest L.P. 53 Cash Flows The following table sets forth our cash flows for the years ended December 31, 2023, 2022 and 2021.
We intend to fund required payments pursuant to the tax receivable agreement from the distributions received from Silvercrest L.P. 54 Cash Flows The following table sets forth our cash flows for the years ended December 31, 2024, 2023 and 2022.
Interest income increased as a result of higher balances in interest-bearing accounts during the year. Provision for Income Taxes Year Ended December 31, 2023 versus Year Ended December 31, 2022 The provision for income taxes was $4.3 million and $7.6 million for the years ended December 31, 2023 and 2022, respectively.
Interest income increased as a result of higher balances in interest-bearing accounts during the year. 49 Provision for Income Taxes Year Ended December 31, 2024 versus Year Ended December 31, 2023 The provision for income taxes was $4.6 million and $4.3 million for the years ended December 31, 2024 and 2023, respectively.
We anticipate that distributions to principals of Silvercrest L.P. will continue to be a material use of our cash resources, and will vary in amount and timing based on our operating results and dividend policy. As of December 31, 2023 and 2022, $2.7 million and $6.3 was outstanding under our term loan with City National Bank.
We anticipate that distributions to principals of Silvercrest L.P. will continue to be a material use of our cash resources, and will vary in amount and timing based on our operating results and dividend policy. As of December 31, 2024 and 2023, $0 and $2.7 was outstanding under our term loan with City National Bank.
The decrease was primarily attributable to a decrease in the accrual for bonuses of $2.3 million and a decrease in equity based compensation expense of $0.3 million due to a decrease in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, partially offset by an increase in salaries and benefits expense of $1.7 million primarily as a result of merit-based increases and newly-hired staff.
The increase was primarily attributable to an increase in equity based compensation expense of $0.3 million due to an increase in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, an increase in salaries and benefits expense of $2.5 million primarily as a result of merit-based increases and newly-hired staff and an increase in the accrual for bonuses of $1.2 million.
Equity income from investments increased by $0.1 million in 2023 as compared with the same period in the prior year as a result of increased performance fee allocations. Interest expense for the year ended December 31, 2023 was flat as compared to the prior year. Interest income increased as a result of higher balances in interest-bearing accounts during the year.
Equity income from investments increased by $0.1 million in 2023 as compared with the same period in the prior year as a result of increased performance fee allocations. Interest expense for the year ended December 31, 2023 was flat as compared to the prior year.
Payments received from partners on notes receivable was $0.2 million in each of 2022 and 2021. Distributions to partners of Silvercrest L.P. of $7.9 million and $6.7 million were paid during 2022 and 2021, respectively. Repayment of borrowings under the credit facility was $2.7 million and $3.6 million in 2022 and 2021, respectively.
Payments received from partners on notes receivable was $0.1 million and $0.2 million during 2023 and 2022, respectively. Distributions to partners of Silvercrest L.P. of $7.8 million and $7.9 million were paid during 2023 and 2022, respectively. Repayment of borrowings under the credit facility was $3.6 million and $2.7 million in 2023 and 2022, respectively.
Level 1 Level 2 Level 3 Total (in billions) December 31, 2023 AUM $ 23.8 $ 4.8 $ 4.7 $ 33.3 December 31, 2022 AUM $ 22.4 $ 3.6 $ 2.9 $ 28.9 As substantially all our assets under management are valued by independent pricing services based upon observable market prices or inputs, we believe market risk is the most significant risk underlying valuation of our assets under management, as discussed under the heading “Risk Factors” in this annual report.
Level 1 Level 2 Level 3 Total (in billions) December 31, 2024 AUM $ 24.7 $ 6.1 $ 5.7 $ 36.5 December 31, 2023 AUM $ 23.8 $ 4.8 $ 4.7 $ 33.3 As substantially all our assets under management are valued by independent pricing services based upon observable market prices or inputs, we believe market risk is the most significant risk underlying valuation of our assets under management, as discussed under the heading “Risk Factors” in this annual report.
(B) GAAP net income per share is strictly attributable to Class A shareholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B shareholders. (C) Includes 35,554 and 31,974 unvested restricted stock units at December 31, 2023 and 2022, respectively.
(B) GAAP net income per share is strictly attributable to Class A shareholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B shareholders. (C) Includes 37,109 and 35,554 unvested restricted stock units at December 31, 2024 and 2023, respectively.
Assuming a 10% increase or decrease in our average assets under management and the change being proportionately distributed over all our products, the value would increase or decrease by approximately $3.1 billion for the year ended December 31, 2022, which would cause an annualized increase or decrease in revenues of approximately $12.3 million for the year ended December 31, 2022, at a weighted average fee rate for the year ended December 31, 2022 of 0.40%.
Assuming a 10% increase or decrease in our average assets under management and the change being proportionately distributed over all our products, the value would increase or decrease by approximately $3.5 billion for the year ended December 31, 2024, which would cause an annualized increase or decrease in revenues of approximately $12.4 million for the year ended December 31, 2024, at a weighted average fee rate for the year ended December 31, 2024 of 0.35%.
As of December 31, 2022, the composition of our assets under management was 72% in discretionary assets, which includes both separately managed accounts and proprietary and sub-advised funds, and 28% in non-discretionary assets which represent assets on which we provide portfolio reporting but do not have investment discretion.
As of December 31, 2024, the composition of our assets under management was 64% in discretionary assets, which includes both separately managed accounts and proprietary and sub-advised funds, and 36% in non-discretionary assets which represent assets on which we provide portfolio reporting but do not have investment discretion.
Dividends of $7.0 million and $6.8 million were paid during 2023 and 2022, respectively, to Class A shareholders. Payments received from partners on notes receivable was $0.1 million and $0.2 million during 2023 and 2022, respectively. Distributions to partners of Silvercrest L.P. of $7.8 million and $7.9 million were paid during 2023 and 2022, respectively.
Dividends of $7.4 million and $7.0 million were paid during 2024 and 2023, respectively, to Class A shareholders. Payments received from partners on notes receivable was $0.1 million and $0.1 million during 2024 and 2023, respectively. Distributions to partners of Silvercrest L.P. of $6.7 million and $7.8 million were paid during 2024 and 2023, respectively.
Payments of contingent purchase price consideration totaled $4.6 million and $3.0 million in 2022 and 2021, respectively. During 2022 and 2021, approximately 476 thousand and 33 thousand shares of Class A common stock of Silvercrest Asset Management Group Inc. were purchased at a cost of $8.8 million and $0.5 million, respectively.
Payments of contingent purchase price consideration totaled $0.1 million and $4.6 million in 2023 and 2022, respectively. During 2023 and 2022, approximately 300 thousand and 476 thousand shares of Class A common stock of Silvercrest Asset Management Group Inc. were purchased at a cost of $5.8 million and $8.8 million, respectively.
Our management and advisory fees may fluctuate based on a number of factors, including the following: • changes in assets under management due to appreciation or depreciation of our investment portfolios, and the levels of the contribution and withdrawal of assets by new and existing clients; • allocation of assets under management among our investment strategies, which have different fee schedules; 41 • allocation of assets under management between separately managed accounts and advised funds, for which we generally earn lower overall advisory fees; and • the level of our performance with respect to accounts and funds on which we are paid incentive fees.
Our management and advisory fees may fluctuate based on a number of factors, including the following: • changes in assets under management due to appreciation or depreciation of our investment portfolios, and the levels of the contribution and withdrawal of assets by new and existing clients; • allocation of assets under management among our investment strategies, which have different fee schedules; • allocation of assets under management between separately managed accounts and advised funds, for which we generally earn lower overall advisory fees; and • the level of our performance with respect to accounts and funds on which we are paid incentive fees. 42 Our family office services capabilities enable us to provide comprehensive and integrated services to our clients.
In addition to a wide range of investment capabilities, we offer a full suite of complementary and customized family office services for families seeking a comprehensive oversight of their financial affairs. During the twelve months ended December 31, 2023, our assets under management increased 15.2% from $28.9 billion to $33.3 billion.
In addition to a wide range of investment capabilities, we offer a full suite of complementary and customized family office services for families seeking a comprehensive oversight of their financial affairs. During the twelve months ended December 31, 2024, our assets under management increased 9.6% from $33.3 billion to $36.5 billion.
Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. Recently Issued Accounting Pronouncements Information regarding recent accounting developments and their impact on Silvercrest can be found in Note 2.
Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. Recently Issued Accounting Pronouncements Information regarding recent accounting developments and their impact on Silvercrest can be found in Note 2. “Summary of Significant Accounting Policies” in the accompanying consolidated financial statements.
These increases were partially offset by decreases in professional fees of $0.1 million, sub-advisory and referral fees of $0.1 million and telephone and internet costs of $0.1 million. Information regarding acquisitions can be found in Note 3. “Acquisitions” in the “Notes to Consolidated Financial Statements” in “Item 8. Financial Statements and Supplementary Data” of this filing.
These increases were partially offset by decreases in professional fees of $0.1 million, sub-advisory and referral fees of $0.1 million and telephone and internet costs of $0.1 million. Information regarding acquisitions can be found in Note 3. “Acquisitions” in the “Notes to Consolidated Financial Statements” in the accompanying consolidated financial statements.
Discretionary Managed Accounts As of and for the Year Ended December 31, (in billions) 2023 2022 2021 AUM concentrated in Discretionary Managed Accounts $ 21.5 $ 20.5 $ 24.6 Average AUM For Discretionary Managed Accounts $ 21.0 $ 22.6 $ 22.4 Discretionary Managed Accounts Revenue (in millions) $ 108.7 $ 114.3 $ 122.3 Percentage of management and advisory fees revenue 96 % 96 % 96 % 40 Private Funds As of and for the Year Ended December 31, (in billions) 2023 2022 2021 AUM concentrated in Private Funds $ 0.4 $ 0.4 $ 0.5 Average AUM For Private Funds $ 0.4 $ 0.5 $ 0.5 Private Funds Revenue (in millions) $ 4.1 $ 4.4 $ 4.7 Percentage of management and advisory fees revenue 4 % 4 % 4 % Our management and advisory fees are primarily driven by the level of our assets under management.
Discretionary Managed Accounts As of and for the Year Ended December 31, (in billions) 2024 2023 2022 AUM concentrated in Discretionary Managed Accounts $ 22.8 $ 21.5 $ 20.5 Average AUM For Discretionary Managed Accounts $ 22.2 $ 21.0 $ 22.6 Discretionary Managed Accounts Revenue (in millions) $ 115.2 $ 108.7 $ 114.3 Percentage of management and advisory fees revenue 97 % 96 % 96 % Private Funds As of and for the Year Ended December 31, (in billions) 2024 2023 2022 AUM concentrated in Private Funds $ 0.5 $ 0.4 $ 0.4 Average AUM For Private Funds $ 0.5 $ 0.4 $ 0.5 Private Funds Revenue (in millions) $ 4.1 $ 4.1 $ 4.4 Percentage of management and advisory fees revenue 3 % 4 % 4 % 41 Our management and advisory fees are primarily driven by the level of our assets under management.
During 2023, 2022 and 2021, Silvercrest L.P. granted restricted stock units (“RSU”) to existing Class B unit holders. During 2022 and 2021, Silvercrest L.P. granted non-qualified options (“NQO”) to an existing Class B unit holder. Information regarding restricted stock units can be found in Note 16. “Equity-Based Compensation” in the “Notes to Consolidated Financial Statements” in “Item 8.
During 2024, 2023 and 2022, Silvercrest L.P. granted restricted stock units (“RSU”) to existing Class B unit holders. During 2024 and 2022, Silvercrest L.P. granted non-qualified options (“NQO”) to an existing Class B unit holder. Information regarding restricted stock units can be found in Note 16. “Equity-Based Compensation” in the accompanying consolidated financial statements.
Years Ended December 31, (in thousands) 2023 2022 2021 Cash and cash equivalents $ 70,301 $ 77,432 $ 85,744 Accounts receivable $ 9,526 $ 9,118 $ 8,850 Due from Silvercrest Funds $ 558 $ 577 $ 428 We anticipate that distributions to the principals of Silvercrest L.P. will continue to be a material use of our cash resources and will vary in amount and timing based on our operating results and dividend policy.
Years Ended December 31, (in thousands) 2024 2023 2022 Cash and cash equivalents $ 68,611 $ 70,301 $ 77,432 Accounts receivable $ 12,225 $ 9,526 $ 9,118 Due from Silvercrest Funds $ 945 $ 558 $ 577 We anticipate that distributions to the principals of Silvercrest L.P. will continue to be a material use of our cash resources and will vary in amount and timing based on our operating results and dividend policy.
Our provision for income taxes as a percentage of income before provision for income taxes for the year ended December 31, 2023 and 2022 was 22.1% and 19.8%, respectively.
Our provision for income taxes as a percentage of income before provision for income taxes for the year ended December 31, 2024 and 2023 was 22.5% and 22.1%, respectively.
On June 17, 2022, the revolving credit facility was further amended to extend the maturity date to June 18, 2023 and amended to replace LIBOR terms with its successor, SOFR The loan bears interest at either (a) the higher of the prime rate plus a margin of 0.25 percentage points and 2.5% or (b) the SOFR rate plus 2.80 percentage points, at the borrowers’ option.
On June 17, 2022, the revolving credit facility was amended to replace LIBOR terms with its successor, Secured Overnight Financing Rate (“SOFR”). The loan bears interest at either (a) the higher of the prime rate plus a margin of 0.25 percentage points and 2.5% or (b) the SOFR rate plus 2.80 percentage points, at the borrowers’ option.
Financial Statements and Supplementary Data” of this filing. General and Administrative Expenses General and administrative expenses include occupancy-related costs, professional and outside services fees, office expenses, depreciation and amortization, sub-advisory fees and the costs associated with operating and maintaining our research, trading and portfolio accounting systems.
General and Administrative Expenses General and administrative expenses include occupancy-related costs, professional and outside services fees, office expenses, depreciation and amortization, sub-advisory fees and the costs associated with operating and maintaining our research, trading and portfolio accounting systems.
The primary use of cash during 2023 and 2022 was for the acquisition of furniture, equipment and leasehold improvements. 54 Year Ended December 31, 2022 versus Year Ended December 31, 2021 For the years ended December 31, 2022 and 2021, investing activities used $1.0 million and $0.9 million, respectively.
Investing Activities Year Ended December 31, 2024 versus Year Ended December 31, 2023 For the years ended December 31, 2024 and 2023, investing activities used $1.7 million and $3.9 million, respectively. The primary use of cash during 2024 and 2023 was for the acquisition of furniture, equipment and leasehold improvements.
Our basic annual fee schedule for management of clients’ assets in separately managed accounts is: (i) for managed equity or balanced portfolios, 1% of the first $10 million and 0.60% on the balance, (ii) for managed fixed income only portfolios, 0.40% on the first $10 million and 0.30% on the balance, (iii) for the municipal value strategy, 0.65%, (iv) for Cortina’s equity portfolios, 1% on the first $25 million, 0.90% on the next $50 million and 0.80% on the balance and (v) for outsourced chief investment officer portfolios, 0.40% on the first $50 million, 0.32% on the next $50 million and 0.24% on the balance.
Our basic annual fee schedule for management of clients’ assets in separately managed accounts is: (i) for managed equity or balanced portfolios, 1% of the first $10 million and 0.60% on the balance, (ii) for managed fixed income only portfolios, 0.40% on the first $10 million and 0.30% on the balance, (iii) for the municipal value strategy, 0.65%, (iv) for Cortina’s equity portfolios, 1% on the first $25 million, 0.90% on the next $50 million and 0.80% on the balance, (v) for outsourced chief investment officer portfolios, 0.40% on the first $50 million, 0.32% on the next $50 million and 0.24% on the balance and (vi) for the global value equity strategy, 0.15% per annum on the first AUD1.5 billion, 0.14% per annum on the next AUD1.5 billion, 0.11% per annum on the next AUD1.0 billion, 0.08% per annum on the next AUD1.0 billion and 0.05% per annum above AUD5.0 billion.
(D) Includes 240,998 and 212,927 unvested restricted stock units and 147,506 and 252,904 non-qualified stock options at December 31, 2023 and 2022, respectively. Liquidity and Capital Resources Historically, the working capital needs of our business have primarily been met through cash generated by our operations.
(D) Includes 205,079 and 240,998 unvested restricted stock units and 366,293 and 147,506 non-qualified stock options at December 31, 2024 and 2023, respectively. Liquidity and Capital Resources Historically, the working capital needs of our business have primarily been met through cash generated by our operations.
Year Ended December 31, 2022 versus Year Ended December 31, 2021 The provision for income taxes was $7.6 million and $6.9 million for the years ended December 31, 2022 and 2021, respectively.
Year Ended December 31, 2023 versus Year Ended December 31, 2022 The provision for income taxes was $4.3 million and $7.6 million for the years ended December 31, 2023 and 2022, respectively.
The components of our compensation and benefits expenses for the years ended December 31, 2023, 2022 and 2021 are as follows: For the Year Ended December 31, (in thousands) 2023 2022 2021 Cash compensation and benefits (1) $ 70,992 $ 70,461 $ 71,138 Non-cash equity-based compensation expense 1,627 1,149 1,426 Total compensation expense $ 72,619 $ 71,610 $ 72,564 (1) For the years ended December 31, 2023, 2022 and 2021, $31,289, $32,262 and $34,781 of partner incentive payments were included in cash compensation and benefits expense, respectively.
The components of our compensation and benefits expenses for the years ended December 31, 2024, 2023 and 2022 are as follows: For the Year Ended December 31, (in thousands) 2024 2023 2022 Cash compensation and benefits (1) $ 74,747 $ 70,992 $ 70,461 Non-cash equity-based compensation expense 1,916 1,627 1,149 Total compensation expense $ 76,663 $ 72,619 $ 71,610 (1) For the years ended December 31, 2024, 2023 and 2022, $31,140, $31,289 and $32,262 of partner incentive payments were included in cash compensation and benefits expense, respectively.
Holders As of March 4, 2024, there were 17 holders of record of our Class A common stock and 57 holders of record of our Class B common stock. A substantially greater number of holders of our Class A common stock are held in “street name” and held of record by banks, brokers and other financial institutions.
Holders As of March 3, 2025, there were 20 holders of record of our Class A common stock and 59 holders of record of our Class B common stock. A substantially greater number of holders of our Class A common stock are held in “street name” and held of record by banks, brokers and other financial institutions.
The primary use of cash during 2022 and 2021was for the acquisition of furniture, equipment and leasehold improvements. Financing Activities Year Ended December 31, 2023 versus Year Ended December 31, 2022 For the years ended December 31, 2023 and 2022, financing activities used $24.2 million and $30.7 million, respectively.
The primary use of cash during 2023 and 2022 was for the acquisition of furniture, equipment and leasehold improvements. 55 Financing Activities Year Ended December 31, 2024 versus Year Ended December 31, 2023 For the years ended December 31, 2024 and 2023, financing activities used $21.5 million and $24.2 million, respectively.
Year Ended December 31, 2022 versus Year Ended December 31, 2021 For the years ended December 31, 2022 and 2021, financing activities used $30.7 million and $20.1 million, respectively. Dividends of $6.8 million and $6.4 million were paid during 2022 and 2021, respectively, to Class A shareholders.
Year Ended December 31, 2023 versus Year Ended December 31, 2022 For the years ended December 31, 2023 and 2022, financing activities used $24.2 million and $30.7 million, respectively. Dividends of $7.0 million and $6.8 million were paid during 2023 and 2022, respectively, to Class A shareholders.
Our Class B common stock is not listed on The Nasdaq Global Market and there is no established trading market for such shares. Issuer Purchases of Equity Securities No purchases of our Class A common stock were made during the quarter ended December 31, 2023.
Our Class B common stock is not listed on The Nasdaq Global Market and there is no established trading market for such shares. Issuer Purchases of Equity Securities The following table presents information with respect to purchases of our Class A common stock made during the quarter ended December 31, 2024.
Equity-Based Compensation Restricted Stock Units and Stock Options On November 2, 2012, our board of directors adopted the 2012 Equity Incentive Plan. Information regarding restricted stock units and stock options can be found in Note 16. “Equity-Based Compensation” in the “Notes to Consolidated Financial Statements” in “Item 8. Financial Statements and Supplementary Data” of this filing.
Equity-Based Compensation Restricted Stock Units and Stock Options On November 2, 2012, our board of directors adopted the 2012 Equity Incentive Plan. Information regarding restricted stock units and stock options can be found in Note 16. “Equity-Based Compensation” in the accompanying consolidated financial statements.
Adjusted EBITDA Year Ended December 31, 2023 2022 2021 Reconciliation of non-GAAP financial measure: Net income $ 15,183 $ 30,793 $ 24,946 GAAP Provision for income taxes 4,310 7,606 6,923 Delaware Franchise Tax 200 200 200 Interest expense 421 416 383 Interest income (946 ) (24 ) (7 ) Depreciation and amortization 4,014 3,883 3,923 Equity-based compensation 1,627 1,149 1,126 Other adjustments (A) 2,069 (12,002 ) 5,947 Adjusted EBITDA $ 26,878 $ 32,021 $ 43,441 Adjusted EBITDA Margin 22.9 % 26.0 % 33.0 % Adjusted Net Income and Adjusted Earnings Per Share Reconciliation of non-GAAP financial measure: Net income $ 15,183 $ 30,793 $ 24,946 GAAP Provision for income taxes 4,310 7,606 6,923 Delaware Franchise Tax 200 200 200 Other adjustments (A) 2,069 (12,002 ) 5,947 Adjusted earnings before provision for income taxes 21,762 26,597 38,016 Adjusted provision for income taxes: Adjusted provision for income taxes (26% assumed tax rate) (5,658 ) (6,915 ) (9,884 ) Adjusted net income $ 16,104 $ 19,682 $ 28,132 GAAP net income per share (B): Basic and diluted $ 0.96 $ 1.92 $ 1.52 Adjusted earnings per share/unit (B): Basic $ 1.16 $ 1.40 $ 1.95 Diluted $ 1.12 $ 1.35 $ 1.89 Shares/units outstanding: Basic Class A shares outstanding 9,479 9,560 9,869 Basic Class B shares/units outstanding 4,431 4,545 4,594 Total basic shares/units outstanding 13,910 14,105 14,463 Diluted Class A shares outstanding (C) 9,515 9,592 9,891 Diluted Class B shares/units outstanding (D) 4,820 5,011 5,017 Total diluted shares/units outstanding 14,335 14,603 14,908 (A) Other adjustments consist of the following: Year Ended December 31, 2023 2022 2021 Acquisition costs (a) $ 5 $ 37 $ 363 Severance 71 13 10 Other (b) 1,993 (12,052 ) 5,574 Total other adjustments $ 2,069 $ (12,002 ) $ 5,947 (a) In 2023, represents professional fees of $5 related to the acquisition of Cortina.
Adjusted EBITDA Year Ended December 31, 2024 2023 2022 Reconciliation of non-GAAP financial measure: Net income $ 15,709 $ 15,183 $ 30,793 GAAP Provision for income taxes 4,563 4,310 7,606 Delaware Franchise Tax 200 200 200 Interest expense 144 421 416 Interest income (1,432 ) (946 ) (24 ) Depreciation and amortization 4,146 4,014 3,883 Equity-based compensation 1,916 1,627 1,149 Other adjustments (A) 855 2,069 (12,002 ) Adjusted EBITDA $ 26,101 $ 26,878 $ 32,021 Adjusted EBITDA Margin 21.1 % 22.9 % 26.0 % Adjusted Net Income and Adjusted Earnings Per Share Reconciliation of non-GAAP financial measure: Net income $ 15,709 $ 15,183 $ 30,793 GAAP Provision for income taxes 4,563 4,310 7,606 Delaware Franchise Tax 200 200 200 Other adjustments (A) 855 2,069 (12,002 ) Adjusted earnings before provision for income taxes 21,327 21,762 26,597 Adjusted provision for income taxes: Adjusted provision for income taxes (26% assumed tax rate) (5,545 ) (5,658 ) (6,915 ) Adjusted net income $ 15,782 $ 16,104 $ 19,682 GAAP net income per share (B): Basic $ 1.00 $ 0.96 $ 1.92 Diluted $ 1.00 $ 0.96 $ 1.92 Adjusted earnings per share/unit (B): Basic $ 1.15 $ 1.16 $ 1.40 Diluted $ 1.10 $ 1.12 $ 1.35 Shares/units outstanding: Basic Class A shares outstanding 9,376 9,479 9,560 Basic Class B shares/units outstanding 4,373 4,431 4,545 Total basic shares/units outstanding 13,750 13,910 14,105 Diluted Class A shares outstanding (C) 9,413 9,515 9,592 Diluted Class B shares/units outstanding (D) 4,945 4,820 5,011 Total diluted shares/units outstanding 14,358 14,335 14,603 (A) Other adjustments consist of the following: Year Ended December 31, 2024 2023 2022 Acquisition costs (a) $ — $ 5 $ 37 Severance 393 71 13 Other (b) 462 1,993 (12,052 ) Total other adjustments $ 855 $ 2,069 $ (12,002 ) 52 (a) In 2023, represents professional fees of $5 related to the acquisition of Cortina.
Years Ended December 31, (in thousands) 2023 2022 2021 Net cash provided by operating activities $ 20,975 $ 23,383 $ 44,278 Net cash used in investing activities (3,878 ) (956 ) (908 ) Net cash used in financing activities (24,216 ) (30,739 ) (20,124 ) Net change in cash $ (7,119 ) $ (8,312 ) $ 23,246 Operating Activities Year Ended December 31, 2023 versus Year Ended December 31, 2022 Operating activities provided $21.0 million and $23.4 million for the years ended December 31, 2023 and 2022, respectively.
Years Ended December 31, (in thousands) 2024 2023 2022 Net cash provided by operating activities $ 21,590 $ 20,975 $ 23,383 Net cash used in investing activities (1,700 ) (3,878 ) (956 ) Net cash used in financing activities (21,549 ) (24,216 ) (30,739 ) Net change in cash $ (1,659 ) $ (7,119 ) $ (8,312 ) Operating Activities Year Ended December 31, 2024 versus Year Ended December 31, 2023 Operating activities provided $21.6 million and $21.0 million for the years ended December 31, 2024 and 2023, respectively.
During 2023 and 2022, approximately 300 thousand and 476 thousand shares of Class A common stock of Silvercrest Asset Management Group Inc. were purchased at a cost of $5.8 million and $8.8 million, respectively.
During 2024 and 2023, approximately 266 thousand and 300 thousand shares of Class A common stock of Silvercrest Asset Management Group Inc. were purchased at a cost of $4.6 million and $5.7 million, respectively.
As of December 31, 2023 and 2022, we had $2.7 million and $6.3 million outstanding under the term loan. We were in compliance with the covenants under the credit facility as of December 31, 2023 and 2022. Our ongoing sources of cash will primarily consist of management fees and family office services fees, which are principally collected quarterly.
We were in compliance with the covenants under the credit facility as of December 31, 2024 and 2023. 53 Our ongoing sources of cash will primarily consist of management fees and family office services fees, which are principally collected quarterly.
The average value of our assets under management for the year ended December 31, 2022 was approximately $30.6 billion.
The average value of our assets under management for the year ended December 31, 2024 was approximately $34.9 billion.
These performance fees are primarily related to external investment strategies in which we have a revenue sharing arrangement. 46 The following table represents a further breakdown of our assets under management for the years ended December 31, 2023, 2022 and 2021: For the Years Ended December 31, (in billions) 2023 2022 2021 Total AUM as of January 1, $ 28.9 $ 32.3 $ 27.8 Discretionary AUM: Total Discretionary AUM as of January 1, 20.9 25.1 20.6 New client accounts/assets 0.3 0.5 0.5 (1) Closed accounts (0.2 ) (0.1 ) (0.4 ) (2) Net cash (outflow)/inflow (1.3 ) (1.8 ) 0.1 (3) Non-discretionary to Discretionary AUM — — — (4) Market appreciation/(depreciation) 2.2 (2.8 ) 4.3 Change to Discretionary AUM 1.0 (4.2 ) 4.5 Total Discretionary AUM at December 31, 21.9 20.9 25.1 Change to Non-Discretionary AUM 3.4 0.8 — (5) Total AUM as of December 31, $ 33.3 $ 28.9 $ 32.3 (1) Represents new account flows from both new and existing client relationships (2) Represents closed accounts of existing client relationships and those that terminated (3) Represents periodic cash flows related to existing accounts (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM (5) Represents the net change to Non-Discretionary AUM Expenses Our expenses for the years ended December 31, 2023, 2022 and 2021, are set forth below: For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Compensation and benefits (1) $ 72,619 $ 71,610 $ 1,009 1.4 % General and administrative 25,972 13,045 12,927 99.1 % Total expenses $ 98,591 $ 84,655 $ 13,936 16.5 % For the Years Ended December 31, (in thousands) 2022 2021 2022 vs. 2021 ($) 2022 vs. 2021 (%) Compensation and benefits (1) $ 71,610 $ 72,564 $ (954 ) (1.3 )% General and administrative 13,045 28,518 (15,473 ) (54.3 )% Total expenses $ 84,655 $ 101,082 $ (16,427 ) (16.3 )% (1) For the years ended December 31, 2023 and 2022, $31,289 and $32,262, respectively, of partner incentive payments was included in compensation and benefits expense.
The following table represents a further breakdown of our assets under management for the years ended December 31, 2024, 2023 and 2022: For the Years Ended December 31, (in billions) 2024 2023 2022 Total AUM as of January 1, $ 33.3 $ 28.9 $ 32.3 Discretionary AUM: Total Discretionary AUM as of January 1, 21.9 20.9 25.1 New client accounts/assets 1.5 0.3 0.5 (1) Closed accounts (0.5 ) (0.2 ) (0.1 ) (2) Net cash (outflow)/inflow (1.7 ) (1.3 ) (1.8 ) (3) Non-discretionary to Discretionary AUM — — — (4) Market appreciation/(depreciation) 2.1 2.2 (2.8 ) Change to Discretionary AUM 1.4 1.0 (4.2 ) Total Discretionary AUM at December 31, 23.3 21.9 20.9 Change to Non-Discretionary AUM 1.8 3.4 0.8 (5) Total AUM as of December 31, $ 36.5 $ 33.3 $ 28.9 (1) Represents new account flows from both new and existing client relationships (2) Represents closed accounts of existing client relationships and those that terminated (3) Represents periodic cash flows related to existing accounts (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM (5) Represents the net change to Non-Discretionary AUM 47 Expenses Our expenses for the years ended December 31, 2024, 2023 and 2022, are set forth below: For the Years Ended December 31, (in thousands) 2024 2023 2024 vs. 2023 ($) 2024 vs. 2023 (%) Compensation and benefits (1) $ 76,663 $ 72,619 $ 4,044 5.6 % General and administrative 29,361 25,972 3,389 13.0 % Total expenses $ 106,024 $ 98,591 $ 7,433 7.5 % For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Compensation and benefits (1) $ 72,619 $ 71,610 $ 1,009 1.4 % General and administrative 25,972 13,045 12,927 99.1 % Total expenses $ 98,591 $ 84,655 $ 13,936 16.5 % (1) For the years ended December 31, 2024 and 2023, $31,140 and $31,289, respectively, of partner incentive payments was included in compensation and benefits expense.
On February 15, 2022, the credit facility was amended and restated to reflect changes to various definitions and related clauses with respect to the Company’s subsidiaries. On June 15, 2023, the revolving credit facility was further amended to extend the maturity date to June 18, 2024.
On February 15, 2022, the credit facility was amended and restated to reflect changes to various definitions and related clauses with respect to the Company’s subsidiaries. On February 15, 2022, the credit facility was amended to reflect changes to various definitions and related clauses with respect to the Company’s subsidiaries.
The COVID-19 pandemic affected our operations in each of the quarters during the period April 1, 2020 through December 31, 2023 and may continue to do so indefinitely thereafter. 39 Key Performance Indicators When we review our performance, we focus on the indicators described below: For the Year Ended December 31, (in thousands except as indicated) 2023 2022 2021 Revenue $ 117,410 $ 123,217 $ 131,603 Income before other income (expense), net $ 18,819 $ 38,562 $ 30,521 Net income $ 15,183 $ 30,793 $ 24,946 Net income margin 12.9 % 25.0 % 19.0 % Net income attributable to Silvercrest $ 9,094 $ 18,828 $ 14,693 Adjusted EBITDA (1) $ 26,878 $ 32,021 $ 43,441 Adjusted EBITDA margin (2) 22.9 % 26.0 % 33.0 % Assets under management at period end (billions) $ 33.3 $ 28.9 $ 32.3 Average assets under management (billions) (3) $ 31.1 $ 30.6 $ 30.1 (1) EBITDA, a non-GAAP measure of earnings, represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
Key Performance Indicators When we review our performance, we focus on the indicators described below: For the Year Ended December 31, (in thousands except as indicated) 2024 2023 2022 Revenue $ 123,651 $ 117,410 $ 123,217 Income before other income (expense), net $ 17,627 $ 18,819 $ 38,562 Net income $ 15,709 $ 15,183 $ 30,793 Net income margin 12.7 % 12.9 % 25.0 % Net income attributable to Silvercrest $ 9,535 $ 9,094 $ 18,828 Adjusted EBITDA (1) $ 26,101 $ 26,878 $ 32,021 Adjusted EBITDA margin (2) 21.1 % 22.9 % 26.0 % Assets under management at period end (billions) $ 36.5 $ 33.3 $ 28.9 Average assets under management (billions) (3) $ 34.9 $ 31.1 $ 30.6 40 (1) EBITDA, a non-GAAP measure of earnings, represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
Please see our discussion of market risks in “—Critical Accounting Policies and Estimates—Revenue Recognition” which is part of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” It em 8. Financial Statements and Supplementary Data. See “Index to Consolidated Financial Statements” which appears on page F-1 of this report.
Please see our discussion of market risks in “—Critical Accounting Policies and Estimates—Revenue Recognition” which is part of Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” It em 8. Financial Statements and Supplementary Data. The financial statements required to be filed pursuant to this Item 8 are appended to this Annual Report on Form 10-K.
Compared to the year ended December 31, 2021, there was an increase of $0.2 billion of client inflows, an increase of $7.8 billion in market depreciation and an increase of $0.3 billion in client outflows.
Compared to the year ended December 31, 2023, there was a decrease of $0.3 billion of client inflows and an increase of $0.9 billion in client outflows.
The credit facility is secured by certain assets of Silvercrest L.P. and its subsidiaries. The credit facility consists of a $7.5 million delayed draw term loan that matures on June 24, 2025 and a $7.5 million revolving credit facility that was scheduled to mature on June 21, 2019.
The credit facility consisted of a $7.5 million delayed draw term loan that was scheduled to mature on June 24, 2025, and a $7.5 million revolving credit facility that was scheduled to mature on June 21, 2019.
Our market depreciation during the year ended December 31, 2022 constituted a 12.1% rate of decrease in our total assets under management compared to December 31, 2021, as compared to our market appreciation during the year ended December 31, 2021 which constituted a 13.3% rate of increase in our total assets under management compared to December 31, 2020.
Our market appreciation during the year ended December 31, 2024 constituted a 10.4% rate of increase in our total assets under management compared to December 31, 2023, as compared to our market appreciation during the year ended December 31, 2023 which constituted a 11.4% rate of increase in our total assets under management compared to December 31, 2022.
Equity income from investments decreased by $1.6 million in 2022 as compared with the same period in the prior year as a result of decreased performance fee allocations. Interest expense increased for the year ended December 31, 2022 as compared to the prior year as a result of higher interest rates owed on borrowings under the credit facility.
Equity income from investments increased by $1.1 million in 2024 as compared with the same period in the prior year as a result of increased performance fee allocations. Interest expense for the year ended December 31, 2024 decreased by $0.3 million as compared to the prior year due to the repayment of outstanding debt.
This decrease was attributable to a decrease in compensation and benefits expense of $1.0 million and a decrease in general and administrative expenses of $15.4 million. Compensation and benefits expense decreased by $1.0 million, or 1.3%, to $71.6 million for the year ended December 31, 2022 from $72.6 million for the year ended December 31, 2021.
This increase was attributable to an increase in general and administrative expenses of $3.4 million and an increase in compensation and benefits expense of $4.0 million. Compensation and benefits expense increased by $4.0 million, or 5.6%, to $76.7 million for the year ended December 31, 2024 from $72.6 million for the year ended December 31, 2023.
Other Income (Expense), Net For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Other income (expense), net $ 76 $ 260 $ (184 ) -70.8 % Interest income 946 24 922 NM Interest expense (421 ) (416 ) (5 ) 1.2 % Equity income from investments 73 (31 ) 104 NM Total other income (expense), net $ 674 $ (163 ) $ 837 NM 48 For the Years Ended December 31, (in thousands) 2022 2021 2022 vs. 2021 ($) 2022 vs. 2021 (%) Other income (expense), net $ 260 $ 190 $ 70 36.8 % Interest income 24 7 17 242.9 % Interest expense (416 ) (383 ) (33 ) 8.6 % Equity income from investments (31 ) 1,534 (1,565 ) -102.0 % Total other income (expense), net $ (163 ) $ 1,348 $ (1,511 ) -112.1 % NM = Not Meaningful Year Ended December 31, 2023 versus Year Ended December 31, 2022 Other income (expense), net increased by $0.8 million to $0.7 million for the year ended December 31, 2023 from ($0.2) million for the year ended December 31, 2022.
Other Income (Expense), Net For the Years Ended December 31, (in thousands) 2024 2023 2024 vs. 2023 ($) 2024 vs. 2023 (%) Other income (expense), net $ 203 $ 76 $ 127 167.1 % Interest income 1,432 946 486 51.4 % Interest expense (144 ) (421 ) 277 -65.8 % Equity income from investments 1,154 73 1,081 NM Total other income (expense), net $ 2,645 $ 674 $ 1,971 292.4 % For the Years Ended December 31, (in thousands) 2023 2022 2023 vs. 2022 ($) 2023 vs. 2022 (%) Other income (expense), net $ 76 $ 260 $ (184 ) -70.8 % Interest income 946 24 922 NM Interest expense (421 ) (416 ) (5 ) 1.2 % Equity income from investments 73 (31 ) 104 NM Total other income (expense), net $ 674 $ (163 ) $ 837 NM NM = Not Meaningful Year Ended December 31, 2024 versus Year Ended December 31, 2023 Other income (expense), net increased by $1.9 million to $2.6 million for the year ended December 31, 2024 from $0.7 million for the year ended December 31, 2023.
On July 1, 2019, the credit facility was amended to increase the term loan by $18.0 million to $25.5 million, extend the draw date on the term loan facility to July 1, 2024, extend the maturity date of the term loan to July 1, 2026 and increase the revolving credit facility by $2.5 million to $10.0 million.
Effective July 1, 2019, the credit facility was increased and consisted of a $25.5 million delayed draw term loan that was to mature on July 1, 2026, and a $10.0 million revolving credit facility with a stated maturity date of June 18, 2024 and a stated term loan draw date of July 1, 2024.
The credit facility contains customary events of default, including the occurrence of a change in control which includes a person or group of persons acting together acquiring more than 30% of the total voting securities of Silvercrest. Any undrawn amounts under this facility would be available to fund future acquisitions or for working capital purposes, if needed.
The credit facility contains customary events of default, including the occurrence of a change in control which includes a person or group of persons acting together acquiring more than 30% of the total voting securities of Silvercrest.
Pandes, each such individual a principal of Neosho, to acquire certain assets of Neosho. The transaction contemplated by the Neosho Asset Purchase Agreement closed on January 15, 2019 and is referred to herein as the “Neosho Acquisition”. Information regarding the Cortina and Neosho Acquisitions can be found in Note 3.
The transaction contemplated by the Neosho Asset Purchase Agreement closed on January 15, 2019 and is referred to herein as the “Neosho Acquisition”. Information regarding the Neosho Acquisition can be found in Note 3. “Acquisitions” in the accompanying consolidated financial statements.
Year Ended December 31, 2022 versus Year Ended December 31, 2021 Our total revenue decreased by $8.4 million, or 6.4%, to $123.2 million for year ended December 31, 2022, from $131.6 million for year ended December 31, 2021. This decrease was driven by market depreciation and net client outflows in discretionary assets under management.
Year Ended December 31, 2024 versus Year Ended December 31, 2023 Our total revenue increased by $6.2 million, or 5.3%, to $123.7 million for year ended December 31, 2024, from $117.4 million for year ended December 31, 2023. This increase was driven by market appreciation in discretionary assets under management partially offset by net client outflows.

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