SAMG - Earnings call transcript Q4 2020 | Silvercrest Asset Management Group Inc.

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Operator

Operator Good morning, and welcome to the Silvercrest Asset Management Group Inc. Fourth Quarter and Year End 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

Before we begin, let me remind you that during today’s call, certain statements made regarding our future performance are forward-looking statements. to our number and and of could actual on subject which many based the cause a from to risks results are current are projections, expectations are factors statements They that materially made. differ and uncertainties, disclosed are with filings Risk our the the in under caption factors Those SEC Factors.

as statements, and on that Reform Please such the to go assumes ahead. XXXX. of For CEO this Act and to I provided are forward-looking is update of hereof, conference Hough, forward-looking Rick would to All all made the protection no obligation we now Silvercrest. Chairman claim over statements Silvercrest turn call made Litigation date by them. the the like

Rick Hough

assets diluted results and a Silvercrest of high a for fourth drive market to quarter growth. Good way billion year by paving to the total run the organic XXXX, of – billion per XXXX XXXX. per The as to increased million. $XXX increased share the due with potential over well from AUM Firm’s our margin morning. Thank X.X% to $XX under $XX.X end quarter. fiscal rate. year under These fourth XXXX management you, full year-end to as assets for welcome ended in X.X% and discretionary million XXXX measurements EBITDA management, the $X.XX to reach the and XX% a good start for XXXX. total Silvercrest’s revenue, during to The of increased Revenue fourth the $XXX to increases which $XX.X new high discretionary both new share quarter on very note, end and X.X% fourth all revenue firm’s the grew EBITDA increased AUM quarter firm’s firm’s million, XX.X%. in of adjusted financial and per AUM to high was from improved X% $X.XX XX.X% watermarks represent adjusted for XXXX. share. earnings the XXXX of meaningfully year-over-year the The from firm end adjusted

its clients over and we has hope cross ended to billion won AUM of business initiative AUM. doubled Officer the $XXX Investment and during first Chief than That the third we quarter million, more during in XXXX to during Outsourced OCIO threshold $XXX OCIO XXXX. XXXX important million with $X Our XXXX,

We’re institutional proud of opportunities record capability track from business are OCIO product strong team remains new success business performance rebuilding OCIO the organically With building business continued strong. equity, The our grown, new has and scratch, during OCIO pipeline we XXXX. performance, across Silvercrest’s and the expect in relative and our suite.

sub-advisory and AUM We XXXX. management growth. professionals expect make search will our CFO. for continue high asking during with We’ve during Silvercrest effectively we’ll seek new environment, so, relationships continue complement especially select professionals. M&A new deploy the premier up technological activity net new Silvercrest worth environment and hired to to and pick portfolio adding businesses to active capital current culture, our I’ll brand, a after of questions partner do and capabilities to organic presentation, Gerard’s Regardless to Scott wealth firms We expensive. remaining believe management innovation for our for the for XXXX, be and client Silvercrest to continue will to to business. service the a of high new growing grow add track talent, level has a to talent record and continue of maintain both and new

Scott Gerard

Thanks, Rick.

quarter $XX.X quarter, was for quarter billion. total XXXX, XX, of for and million. AUM discretionary for As billion Revenue $XX.X net million the was $X.X end of December our XXXX as earnings the and was the disclosed as $XX.X of fourth income was in reported AUM release consolidated the

net to XXXX of without or million X% approximately or was G&A the expenses the compensation an of the in quarter and Reported which attributable year. $X.X represented $XX.X expense increase net quarter $X.X of result effect the million. share. the primarily we and to consolidated approximately and approximately XXXX. for in G&A months or income, to and bonuses, to consideration portfolio decrease a giving The income of decreases million, net Adjusted noncore, the earnings $X.X from increases the fourth was and same contingent million the noncore share approximately of client expenses and equal Reported was This year. $XX.X in the XX.X% inflows expense, value $XX.X million and income assuming in expense for per adjusted $XX.X rate approximately outstanding the net expense, same is million a $X.X Class the fair from benefits by for Cortina Adjusted Silvercrest related million million and earnings increase stock increased quarter or quarter A adjusted to for total in professional million to driven compute in share. the market the as as to increases unvested primarily increase for due $X.X income which $X.X $X.X primarily to to extent fees, nonrecurring XX.X% expenses for and earnings define to approximately options for for Comp diluted income again, $X.X stock basic offset number primarily XX, items lower acquisition revenue revenue XXXX accrual of entertainment same options. same to benefits $XX.X stock and a and in result Class Class million of quarter to over units the approximately of XXXX, staff quarter the of into unvested in Class compared unvested period of nonrecurring of and to we quarter, was was million the stock period year. XX% and the year. quarter last million, compensation prior in $X.X basic million giving XXXX. related divided of This for effect $X.X the last increased fourth million and as partially million expense by per our and by in representing units the without and nonqualified $X.XX for discretionary share. of X dilutive, shares for unvested an compensation increase was December or corporate period per shareholders was B XX%, This salary occupancy million of for income merit-based or net tax for XXXX a a for million and AUM. adjusted the increase of actual further end Expenses revenue restricted by by a adjusted attributable restricted reporting This pandemic, $X.XX and per as equity-based EBITDA the ended and last was EBITDA, $X.X EPS. basic of the attributable of and define fourth ended increases diluted increase $X.X as revenue diluted per to net fourth nonqualified to fourth the or And Adjusted expenses, million, equity-based $XX.X were outstanding systems benefits had X% items, period attributable the we three shares period Looking to from the which increase expense. appreciation travel X% A was newly-hired the quarter. compared

of the G&A XXXX driven revenue for the July acquired million, over $XX.X to approximately acquisition. of with $XXX X% in million, benefits compared XXXX. in in assets $XX Cortina same at XXXX. XXXX, full the management X, increase approximately approximately December a increased net during X% the million by compared to XXXX. on and ended were for and Compensation the expenses was from year expense discretionary increase ended increase million by in during assets inflows million increased XX, period $X.X including in $XXX $X.X representing a in the Looking XXXX was XXXX market Expenses approximately XXXX, representing under year, management, same year approximately client period revenue $XX.X billion This expenses for million under appreciation XXXX. connection

and Jamison and as consolidated and of increase of million into to by acquisition, due and pandemic, XXXX additional value fees, entertainment in to salary $XX XXXX. attributable Reported to million fair to storage approximately was of as and portfolio at mainly million $XX.X benefits to decreases These primarily a contingent XXXX. increases attributable or The of assets Cortina, primarily the Depreciation New adjusted by expense was increases amortization acquisitions. $XX.X expenses to million stock including increases from income Class XX.X% XXXX result moving and expenses expense, pandemic, for of due partially cleaning XXXX. The million compared primarily compensation diluted insurance G&A costs, the was XXXX options. number to costs. related XX% Neosho, $XX.X $XX.X million income decrease and $X.XX an a the and per to for addition related increase increased of expenses per the benefits, quarter travel in revenue York unvested professional Class or Looking to lower consideration the XXXX approximately and and the it increases related fair units million restricted space for share. to attributable approximately Adjusted office or earnings stock in the $XX.X income benefits related or approximately renovation offset of compared diluted EBITDA nonqualified was bonuses, and the result for expenses, shareholders and to X expenses. Cappiccille systems office revenue increase of partially for consideration a in million lower the XXXX XXXX. our further net in net newly-hired was value was accrual in X%, for the staff, of respectively. or $X.X the expense staff million, increased fourth expense saw to XX.X merit-based or to basically $XX.X increases were of remained the intangible contingent Adjusted City. $XX per Cortina to due We $X.X occupancy flat and basic of and A and by for net $X.XX unvested for for the Cortina amortization acquisition million Reported equity-based to approximately and the a basic in Silvercrest compensation offset related for addition in

and approximately $XX.X at XXXX million, at million of assets the XXXX. XXXX. at at which end were million million as compared $XXX.X of the equivalents quickly approximately end the the Cash were Looking as XXXX, $XX.X of of compared balance the of end sheet. cash to Total $XXX.X end to

were borrowings the and Q&A. end equity I’ll A And million. was total XXXX, for remarks, stockholders’ $XX.X over my Rick That to As as $XX.X XX, total of turn Class December approximately it of million. XXXX, of concludes

Rick Hough

Thanks. Great.

the take and ready this We’re the quarter questions to year. time at about

Operator

[Operator first Mody is Instructions] The Sumeet Please with Piper go Sandler. question ahead. from

Sumeet Mody

Thanks. Good morning guys.

Rick Hough

Good morning.

Scott Gerard

morning. Good

Sumeet Mody

to business. six-month I Maybe I board. levels on the on wanted institutional across and performance strong between update an pipeline value know the you growth. start provide could current the remain actionable

wondering of the you’re kind where Just seeing demand most. of kind

Rick Hough

Right. Yes.

rebuilding, nice. pipeline which is the So is

Our where files institutional total or prospects. That good we’ve dream noted, is $X.XX in be is pipeline pretty billion. kind – It at that’s currently have are invited not those of about a should been and six-month pipeline.

and So to be that’s it seems looking growing. strong,

the long as and at which nice there we more pipeline expect, value would growth, has growth the is marketplace assets established pipeline. of it OCIO the than that report you our is to given As the but Silvercrest, fact in been have the growing, in bulk in is assets

million. is remarks, getting $XXX OCIO to the my OCIO in opening now is over million. pipeline I total In And AUM fact, $XXX close mentioned as the

we growing wins $X some and for as that the billion view growth we strategies in performance. marketplace the have threshold, and absolutely – establishing So we grows, which incredible that get as business. pipeline ourselves of really cross important we’re those will The

team. that well benchmarks. extremely just relative are of They to so proud We did

got time we some spent time, strategies As pipeline all can we’re lot our at about under take is very but possibilities, some now of of And introducing they’ve a the excited Silvercrest it performance those you their doing that strategies, building, and and belts. that are well. noted,

Sumeet Mody

Great. Rick. Thanks

Rick Hough

I what definitely to is, billion think $X.XX And not pipeline but sure exactly it’s that’s now. probably right It’s – I’m closer growing. that

Sumeet Mody

it of the side more focused? hiring kind would opposed you’re Okay, I the assume diversify that you’re be scale on that wanted about you Is for fair looking more of kind side? acquisitions? Thanks color. net worth inorganic And the remaining shift business around just growth commentary I for for, elevated targets. are asset there the management lift-outs to certain great. it products team And for high in be prices or to But on saw front. growth can looking of what focus the kind to to you’re kind individual particular, into? to trying to of as of talk

Rick Hough

I really about drive to acquire time. potential been the pivoted, that’s and and culture. than or that to organic the this folks to really who our tremendous a to looking how We talked dealing care Yes. cultivate bring It’s the amount them with family have helpful done more transitions, firm We also know at on at long and a We with talent growth talent successfully. potentially at firm. hiring whether in. the rather call, We’ve growth about

emphasis. because no important But an EBITDA away, us, the right? earnings tax your it’s for affects about and little a possibilities some is it’s harder benefits. there. and it we’re in excited There’s respects And right worked So

acquisition looking to direction to do What not I’m we firm. our balance the value in a to suite. way On and add to for desirable out another XXXX exposure the well clients that colleagues front, with in my the in growth was as as able equity the really grow was to were product

financial institutional of grow can growth I think runway. a got about we We’re to with enough excited what actually lot a very not to do And supermarket. there I’m in be the assets. looking we’ve with

firms, very a to market, need to it expensive in that comment With lot a don’t So here. regards not space. of much factors. by driven it’s I for looking really on

vision growing a to professionals premium more put way this one firms the going see just we good that have and they fit We’re on their desirable on a geography not into enough to can business, that to how to than firm, can have but them and organically. for We and merge size. We as good get firm don’t it’s just it. accretive a another think we path with how grow to as be want early and

folks. the because that ways, We a going early And we’re with desirable remarks, of properties this interested in I firm in. I good that to are always looks in think mentioned discussions different most get in we’re at a of premier such my is variety some

Sumeet Mody

into year But hop or points Great. increase? drivers Thanks. in recurring XXX ended guys And quarter, I back low about hit prior EBITDA on Revenues the last for Can kind at margin. one little that the about XX% EBITDA to one the the basis in of the you comp of just record that sort year And managing above you that year. then cash of kind me ratio before margin queue. range but a the leads end of the of last XX.X%. It’s talk bit. a are

margin So throughout if XXXX? see to that due the is – in you from of kind pickup in here, that kind where think of you hiring Or you the pick up hiring do do do quarter? going

Rick Hough

question. good really Yes,

on EBITDA did ratio. in I one. But if quarterly down. what’s about our an volatile. important comp fourth history, happening I push our little And at Yes, at you’re basis a think a be the the fourth look we the talking to quarter, you it tends margins it when look wouldn’t more quarter. it’s really,

year and the with regards in the is for affects in the getting You’re true-up that a to all comp performance of firm. once something how

hitting the it we’re EBITDA once was maybe even business – with not investing XX%, I XX in a that said often which little on line these an over, calls So have probably in basis, annual enough. in XX%, XX%, our over margins. just is high we’re

comp. aggressively XX% when to XX%, came we And could growth. business. have made do down that, grown which in at done The out year other that because in we some pretty is we’re previous I full the had the in EBITDA And we when business, we XX%. get have even we call of is of thing grow that early pointed XXXX, investing we we future a fact with successfully XXXX, means out The hires

Honestly, I know, To the you top which also keep we So don’t that hit in line. the hire the more, mind people could business, grow have extent? intend because do what we I EBITDA. that to to grows

that markets ratio, experienced that for in the QX we very early part That due sell-off lower XX% also thing. revenue in to the Second is on year. the substantially the of

of So a of lot where course, hole. you up. we the year that digging ended was And out of know

expected, top that margin hires. a final the point line super clients, compensation that so was that performance. that we That’s year thing thing that’s effect didn’t they even performance-oriented. all. on great We substantial some drove A bit. bit So than that as mind They’re faced growth investors kind our did only hiring, revenue well. was at unexpected, much the happy we high-class higher as team It The is of very down well because for early really but paid wasn’t though the shareholders. in happen. problem. did for good part a a the equity They’re the And there of to

So And target in that’s we’re got works to complicated say, to a of how it our XX%. basis, And I’m mix, I to to either or of that. bit of on say, But the not kind but that’s invest a do steady-state to business we’ve below have hit I afraid a at general out. it. it grow would

Sumeet Mody

Rick. Thanks, Great.

Operator

is Evaluate go Sandy question Please Research. with next Mehta The from ahead.

Sandy Mehta

on and strong the Yes. investment AUM and Good congratulations performance. morning

I the were I XX% for similar mean, targeted was the of how purposes, at to most XX% comp XX% that modeling slightly revenue the we explained of should said purposes, the other previous my sort of mean, – to revenues? so question, revenues think for of up year, But level the I you use as you the to year. last following of XX% comp still of answered, on questions modeling quarters Just but –

Rick Hough

– Yes, Scott. go I ahead, think

Scott Gerard

Yes. Hi, Sandy. Yeah.

they’re being a also talked extent the under, will So, that target. to – investments to made higher. of let’s will making the we’re we’re And respective ratio may opposed right, be we on XX% we’ve as periods, building We climate. of a on talked course, drive We’ve all books prior that previously, their individuals discussed under as later depends target. – – as we’ve where we’ve saying, and the XX% integrating up the of talked Look, business. to come business somewhat that about just but in revenue in compensation follow it just hired and about

So in QX, addition, whole. revenue pressure put that on ratio as as in lower Rick mentioned, with the a the obviously comp

about. end we think – year. certain of it’s the the don’t So will a fourth we crystallize represents that quarter until true-up, usually because Again, something things the

continue so we to evaluate on use changes something is subject change it but like grows business what to But when that continue tool, somewhat a soft changes. happens. as of And will said, it’s of that to we’ll mix I the compensation and depending the

XX.X%. again, quarter So artificially is higher we ratio The year the the because we of true-up fourth made. at ended

at have So on look a get fair full-year basis to it you a to really comparison.

Rick Hough

we I’m It focus important may it going despite at away. the think that a be one much basis a last for could I was a we this. it where over year. investment, especially – a right not don’t make It’s catches the to growth productive we good is on XX%. to to And it’s But This too pretty add one under on then well investment, look up. comp have time. if we to rolling and purposes. investments, don’t thing business make quarter, it’s

Sandy Mehta

any since equity and And just done performance your the small-cap Yes. Great. few in have have just markets more last really then interest thing, of you that in equity And institutional general, your some months? are Are thoughts organically? small-cap strategies is out you performance more good. question, strategies more small-cap sort because other seeing ballpark, December. as small-cap very been of the your you pipeline, the launching mentioned, Thanks. indices about the talked of And very one well, other small-cap particularly strong there in there’s too, but was interest

Rick Hough

disciplined to pipeline we launching cap. do growth. additional has don’t where The firm and for it about growing have Yes. institutional small over things want focuses on growth the successful here. business, doing sure This what expertise the in not lose That’s we’ve to remained to diversify tap is see started we’re us try I small-cap an We strategies. our and a perhaps, focus be and kind our with way efforts. of

and make work. to small succeeding. growing bit going tailwind for a stick have which us helpful, pipeline provides indeed, The what turn of we’re have that a So, cap, with towards is what we only and we

So that’s we really how view it.

Sandy Mehta

Thank Great. you.

Rick Hough

You’re welcome.

Scott Gerard

Thanks.

Operator

Please next with [Operator The go Marinac Montgomery Janney Instructions] Christopher ahead. Scott. question from comes

Christopher Marinac

about Hey, morning. to want I market growth, thanks. ask Good the excluding AUM appreciation.

about Rick is something I Scott, reasonable or in looking well? general, was this year that goal, or coming future? X.X% for is that that as it if curious, So a out And year-over-year. the in And too was manage you

Rick Hough

significant to We Yes. There the which were earlier the quarter. hard can of have playing taxes, in are because you predict. lumpy also, worth from high net the double trying whammies. multiple quite it’s big on every bit. taxes. One were the period the for normal you And that delayed of coronavirus we from it, due know, they the very to year. year, one We last as in a the year that in were and with third business, taxes vary manage who But quarter And that is were were last to side, bucket you’re hit overcome. face course, third to leaks people don’t XX% really because

sure make professionals honest. do is and manage to try manage we to grow company falls it the out, to potential our growth what the where see looking tools high and level – a So at from very have really and be

bullish, you my quite earlier side, from institutional could on. again, the tell commentary as On I’m

XXXX. one XXXX. of those But alone, into example, new one in was XXXX, think well had produced in in the day little before our The XXXX, $XXX just side additional million. just I accounts open better cash $XXX a XXXX, opening an In In years, million year the $XXX accounts. in quite organic or the opening, new – growth was on higher wealth about was it as accounts ex-markets million recent so. it for was just same. we It

for was and very year. new best the So, in pretty outflows. of Once years. a kind accounts it you overall, opening, good count years year compared account was of growth the organic to moderate It closed some and past

net outflows, year. in was was – is million example, of For XXXX. that It accounts in negative million minus that subtractions a outflows, $XXX plus $XXX XXXX. existing XXXX, was the additions the – million the the negative negative $XX million negative million Well, XXX for in in $XXX XXXX, $XXX

inflows quite That additional a the in a bucket despite natural of firm So like shows leak the at strong. lot ours.

just – ours, X% lot think is which on it’s It’s hard the may do high but at the even strong that if And be of site, XX% you pretty organically. look that. net to I firms can assess So strong. the of like It we high a is worth on side, asset.

Christopher Marinac

That’s for you And all follow-ups. helpful. quick two the color. then very just Thank

going margin up how over grows, As will than I’m that that just business is OCIO business is the overall the curious on time? be different on firm? shape the to

Rick Hough

prior we’ve it, of similar. a it and comp, team, to certain made The as that XXXX. investments finished AUM Too that grow about early investments we looking organize the to level sure to out But by and run in made we we other were really We we reach over to that group it’s Yes. profitable. years make talking say. team way it’s got pretty

shows so the And but of set rest in we’re our be that firm. will profitability modeling there, to similar the

Christopher Marinac

of Does on ratio And the or quarter over just this Or – a benchmark? then of further scale? one is G&A latest would Rick. kind Thanks, it Great. time last G&A. of good is kind fall

Rick Hough

this. got Scott Yes.

Scott Gerard

Yes.

variability pandemic. On This the expense the were, like of lower because travel of not office past a were there entertainment artificially and some side, G&A. there’s G&A and the year, which items that were expenses, within your On lot

are obviously, not not and, of Our consumption traveling But is our it. people in for of business. G&A, less most a variability yes, lot there’s

Christopher Marinac

for color. Got it. the it, you thank Appreciate

Rick Hough

should the Yes. be and thing the lot the the why in a that’s going the business business on consultant to of offerings think marketplace one very it’s fine could perfectly to A and I’m way that’s to mentioned, very in marketplace. of the that have driven consultants address a OCIO, our profitability and relationships. business. similar are other OCIO And in rest I like approach I dominant

As entrant, what doing management in building a new institutions are discretionary our we for offering portfolios OCIO. is the capabilities at asset

like looks with doing business much of clients different more requirements like have terms wealth that fee are management and we relationships levels So, it have of in one how our tends have a the partnering That more we to looks basis. and wealth. on staffing discretionary

of the a looks similar to So it’s rest business least business. distinguishing also a being that it characteristic, but means at the that, so see far, we that

Christopher Marinac

Rick. it. again, Appreciate Thanks Great.

Rick Hough

Yes.

welcome. You’re

Operator

go is from Robert The Maltbie Research. ahead. Singular question next with Please

Rick Hough

Good morning.

Robert Maltbie

meetings on more congratulate restrictions of that COVID in Good on morning. very face-to-face conducive to want environment a I growing in and terms the the quickly. year executing you of to of difficult relationships probably very are types

average above industry to I positive, AUM you on that. on commend congratulations wanted So growth.

your secondly, growth, Regarding it you’re environment this perspective? acquisitions for dividends maybe prospects year policy was you a continued increased involved if targets, past. do to on wondering your next the fertile from I at been with and landscape, dividend a year? And in and you see I the have valuation look know the And some M&A finding

Rick Hough

so they are it’s It’s firms think diversity under we’re the expensive. that transition that valuation growth, of plans, – great at organic should don’t ours in Capital don’t just order firm have We should had they for don’t a what growth have. justify And that’s from that of a a fertile they – things. business lot – an environment of strategy A use it’s organic I’ve have. selling have phrasing, think in like the to should I So, I market And multiples that said the a for doing. have is revenue funny those should capital. perspective. – always the quite shareholder have. they for The time. some

have absolutely must at we just very think I successful, deal we accretively been you not them. when do a and doing

growth very I we But can’t on have think we necessarily you important. everything plan rely organic And growth. underneath when acquired an that’s things do. change,

are that when in said, of and we That changes, So to conversations we’ll number environment, if with. remain premier that firms any that we close be extremely there geographies ready. and type that well have know like, environment

the very organic has work, put be those willing, never the So ready partner, to plan it. market. this is been the And able at on we a growth diluted and but of we’re basis broadly, that. got organically to my sustained views are primarily time to to you – just know. But have even have That right speaking We’ve we right and we’ve capital why and per to have earnings for on been it period company. grown have underneath organically share a compound successful

to some such dividend as not got pay one. investment. have on choose saw. pretty for you shareholders dividends. company are ours, capital that looking order We’re to small important, in just enhance especially really to two, and acquisitions for Dividends a ability. yield return know, Number asked a them probably recently, And to nice premier the and most We them as steady realize their raise you as we’ve did a very you about

We support it. We have think to very important consistently. doing so been it’s

a other yield potential sheet. think our is because balance And dividend generated of steady and have enhance not value more a business. have chose periodically raising we’re plenty the we recently, perhaps, that for cash by at basis. most it supporting capital do to a and enough. uses to of We on And shareholder high We to, we that, the have rational policy obviously looking

So options you noted, the consideration, raise dividend. did all because taking we’re not particular, in as we those into

Robert Maltbie

Thank you.

Rick Hough

You’re welcome.

Operator

follow-up is question ahead. Please Sumeet next go Piper with from a The Mody Sandler.

Rick Hough

Hi, Sumeet.

Sumeet Mody

guys. Thanks, Hi.

from kind Just after run a of of lower rate you to cleanup post-pandemic. guys seen here. the couple you’ll lessons do take you But trying a in know peers of pandemic on the be kind non-comp, of business a Scott. G&A some run number. ratio lot able non-comp costs you of back what I kind learned for questions the once I’ve to a sort learn normalizes? around of of adjusted maybe think the a and quick just some run follow-up out the But leaner

Scott Gerard

a part of the disclosed the part highlight of it and adjustment G&A the earnout represents we on one want arrangements. things – to basis our A GAAP of I of is effect fair various is, value includes that Yes. an our

tends So, non-cash. artificially if that impact are at you’re that adjustments is actual basis, – to looking an reported stuff G&A those on valuation our because it

services where we G&A annual that negotiate of fee increases. there cap so with job make align Now, we not reasonable can of service to trying to a predictable, some only these do areas we a negotiate benefits providers of with good our but that increases the lot our are more also

but in lower, where in So G&A costs. is – can renegotiate fixed your periods because revenue any some is situation our drop lot might fixed than your of going to be a of revenue sooner you

hand other there to up able go adjustments – cash another expenses for So, entertainment you’re are that some to as now that normally and to will referred basis, go FedExing basis, of on our floor somebody be flow a pandemic documents employees. floor on and or office normalize cash your those travel down. such really the flow But will you now on more between your a Primarily, you’d in and expenses focusing on will more. expense office, actual expenses, as I’m ends COVID, employees the and will,

extra controlling some And type or that types And will back FedEx we costs have been at general, lower of have items or of of in go unusually these we’ve our not day, costs and individual the But job some absent extra down. will those adjust So costs a stuff that G&A. done end significant. out. pandemic-related overly the compelling of the added of equipment homes, for those

Rick Hough

Sumeet, our a think marketing picture everyone I of sick folks. paints just institutional road, It’s a which it. back add get to Zoom in, color one, interested people is especially but want still that But people okay. is, I bit number this, is to our on non-financial that a to business. raring the of are we’re

long-term talk but up. be seen. T&E as it’s the need environment. thing firm of expect One for ever just is less I this that phone, lost company, will to think go seeing all important out with a before? space important. is know, getting offices do of it us clients important But course, the there. be this to – I I helpful virtual a office be I into like is but issue, This a it remains to in feel is to as here don’t is and the visit culture expand it it’s was think, more with We know So personnel. completely this on do to we lot as a there’s meet our grow Will I I and business. high be people and a and The extremely

people be become lot flexible, particular, who some currently means will a a there more hire folks footprint, lot which I we with whole. more a the in revenue have they expand to expense which a compared physical flexibility, as can quickly, think business I as can I overall, space the grow footprint, However, grow and have think not lowers and into that as time, over to

Sumeet Mody

up Great and net expected me, line kind year, on And last it the fee but businesses? pretty management considerations Rick. bit worth with color, ended any throughout of that much thanks between a and volatile the XXXX of just I from there saw asset the for XXXX. of high in the kind rate. little Are for growth one

Rick Hough

see and I would the to suspect precision me false year its one it for growth expectation or – in I biggest relationships of an – would kind boards the kind of in coming relationships, with. and nature because brought size of but that between wealth will two fits be last – no for the other, the for is sits actually the in couple institutions year. But expect OCIO, worth sort really growth and I just net high to the really. of given of net you’re institutional of accounts in pure that And it looks opportunity. way OCIO growth a high the the there’s our and the outstrip of don’t dealing its institutional sure. pipeline what Well, way just tell you equity have worth I of terms what

Sumeet Mody

Okay, great. Thanks.

Rick Hough

You’re welcome.

Operator

Rick concludes turn This to would remarks. conference over our to Hough I for session. like question-and-answer any the closing back

Rick Hough

very and appreciate at high a was growth, We fourth into all-time much, a for and It I discretionary average to total so Great. everyone’s time saw Thank year. ask great taking quarter really as today you year about surge the in markets the an growing the supported us assets that the support some with many organic good our well good with coming in XXXX higher-than-industry questions pipelines saw assets business. XXXX.

appreciate we available, So as you I reporting soon to look about to quarter that joining much. is us. so Thanks as that and first information forward you

Operator

concluded. presentation. The has conference now for Thank you today’s attending

disconnect. may You now

Silvercrest Asset Management (SAMG) 5 Mar 212020 Q4 Earnings call transcript