Silvercrest Asset Management Group Inc.

Previous wording

We are a full-service wealth management firm focused on providing financial advisory and related family office services to ultra-high net worth individuals and institutional investors. 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 three months ended March 31, 2025, our assets under management decreased by 3.3% from $36.5 billion to $35.3 billion.

Current wording

We are a full-service wealth management firm focused on providing financial advisory and related family office services to ultra-high net worth individuals and institutional investors. 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 three months ended June 30, 2025, our assets under management increased by 4.0% from $35.3 billion to $36.7 billion. During the six months ended June 30, 2025, our assets under management increased by 0.5% from $36.5 billion to $36.7 billion.

Previous wording

The business includes the management of funds of funds, and other investment funds, collectively referred to as the “Silvercrest Funds.” As of March 31, 2025, 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. Net profits and net losses of Silvercrest L.P. will be allocated, and distributions from Silvercrest L.P. will be made, to its current partners pro rata in accordance with their respective partnership units (and assuming the Class B units underlying all restricted stock units are outstanding).

Current wording

The business includes the management of funds of funds, and other investment funds, collectively referred to as the “Silvercrest Funds.” As of June 30, 2025, Silvercrest L.P. has issued Restricted Stock Units exercisable for 137,100 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. Net profits and net losses of Silvercrest L.P. will be allocated, and distributions from Silvercrest L.P. will be made, to its current partners pro rata in accordance with their respective partnership units (and assuming the Class B units underlying all restricted stock units are outstanding).

Previous wording

The historical results of operations discussed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations include those of Silvercrest L.P. and its subsidiaries. As the general partner of Silvercrest L.P., we control its business and affairs and, therefore, consolidate its financial results with ours. The interests of the limited partners’ collective 29.9% partnership interest in Silvercrest L.P. as of March 31, 2025 are reflected in non-controlling interests in our Condensed Consolidated Financial Statements.

Current wording

The historical results of operations discussed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations include those of Silvercrest L.P. and its subsidiaries. As the general partner of Silvercrest L.P., we control its business and affairs and, therefore, consolidate its financial results with ours. The interests of the limited partners’ collective 31.3% partnership interest in Silvercrest L.P. as of June 30, 2025 are reflected in non-controlling interests in our Condensed Consolidated Financial Statements.

Previous wording

Average annual management fee is calculated by dividing our actual annualized 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 annual management fee was 0.35% and 0.36% for the three months ended March 31, 2025 and 2024, respectively. Changes in our total average management fee rates are typically the result of changes in the mix of our assets under management and the concentration in our equities strategies whose fee rates are higher than those of other investment strategies. Management and 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 three months ended March 31, 2025 and 2024. Silvercrest L.P. has authority to take fees directly from external custodian accounts of its separately managed accounts.

Current wording

Average annual management fee is calculated by dividing our actual annualized 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 annual management fee was 0.34% and 0.37% for the three months ended June 30, 2025 and 2024, respectively. Our average annual management fee was 0.34% and 0.37% for the six months ended June 30, 2025 and 2024, respectively. Changes in our total average management fee rates are typically the result of changes in the mix of our assets under management and the concentration in our equities strategies whose fee rates are higher than those of other investment strategies. Management and 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 three and six months ended June 30, 2025 and 2024. Silvercrest L.P. has authority to take fees directly from external custodian accounts of its separately managed accounts.

Previous wording

The components of our compensation expense for the three months ended March 31, 2025 and 2024 are as follows:

Current wording

The components of our compensation expense for the three and six months ended June 30, 2025 and 2024 are as follows:

Previous wording

For the three months ended March 31, 2025 and 2024, $6,527 and $6,977, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations.

Current wording

For the three months ended June 30, 2025 and 2024, $6,826 and $7,514, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2025 and 2024, $13,353 and $14,491, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations.

Previous wording

On December 13, 2018, we executed an Asset Purchase Agreement (the “Neosho Asset Purchase Agreement”) by and among the Company, Silvercrest L.P. (“SLP”), Silvercrest Asset Management Group LLC (“SAMG LLC”) and Neosho Capital LLC (“Neosho” or the “Seller”), and Christopher K. Richey, Alphonse I. Chan, Robert K. Choi and Vincent G. 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”.

Current wording

On December 13, 2018, we executed an Asset Purchase Agreement (the “Neosho Asset Purchase Agreement”) by and among the Company, Silvercrest L.P. (“SLP”), Silvercrest Asset Management Group LLC (“SAMG LLC”) and Neosho Capital LLC (“Neosho” or the “Seller”), and Christopher K. Richey, Alphonse I. Chan, Robert K. Choi and Vincent G. Pandes, each such individual a principal of Neosho, to acquire certain assets of Neosho.

Previous wording

Our revenues for the three months ended March 31, 2025 and 2024 are set forth below:

Current wording

Our revenues for the three and six months ended June 30, 2025 and 2024 are set forth below:

Previous wording

The growth in our assets under management during the three months ended March 31, 2025 and 2024 is described below:

Current wording

The growth in our assets under management during the three and six months ended June 30, 2025 and 2024 is described below:

Previous wording

Total assets under management increased by $0.8 billion, or 2.3%, to $35.3 billion at March 31, 2025 from $34.5 billion at March 31, 2024. The increase was a result of market appreciation of $0.8 billion, client inflows of $5.4 billion and client outflows of $5.4 billion. During the three months ended March 31, 2025 as compared to December 31, 2024, there was a decrease of $0.6 billion in discretionary assets under management and a decrease of $0.6 billion in non-discretionary assets under management. The decrease in assets under management was primarily due to market depreciation, partially offset by net client inflows during the quarter ended

Current wording

Total assets under management increased by $3.3 billion, or 9.9%, to $36.7 billion at June 30, 2025 from $33.4 billion at June 30, 2024. The increase was a result of market appreciation of $2.8 billion, client inflows of $5.7 billion and client outflows of

Previous wording

March 31, 2025. Sub-advised fund management revenue decreased to $0.2 million for the three months ended March 31, 2025 from $0.3 million for the three months ended March 31, 2024. Proprietary fund management revenue remained flat at $0.7 million for the three months ended March 31, 2025 and March 31, 2024. With respect to our discretionary assets under management, equity assets decreased by 6.2% during the three months ended March 31, 2025 and fixed income assets increased by 6.8% during the same period. For the three months ended March 31, 2025, most of the decrease in equity assets came from our small cap growth, focused opportunity and SMID growth strategies with composite returns of (15.1%), (13.9%) and (13.8%), respectively. As of March 31, 2025, 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.

Current wording

$5.2 billion. During the three months ended June 30, 2025 as compared to March 31, 2025, there was an increase of $1.0 billion in discretionary assets under management and an increase of $0.4 billion in non-discretionary assets under management. The increase in assets under management was primarily due to market appreciation, partially offset by net client outflows during the quarter ended June 30, 2025. Sub-advised fund management revenue decreased to $0.2 million for the three months ended June 30, 2025 from $0.3 million for the three months ended June 30, 2024. Proprietary fund management revenue remained flat at $0.7 million for the three months ended June 30, 2025 and June 30, 2024. With respect to our discretionary assets under management, equity assets increased by 7.3% during the three months ended June 30, 2025 and fixed income assets decreased by 1.8% during the same period. For the three months ended June 30, 2025, most of the increase in equity assets came from our large cap growth, SMID growth and international small cap value strategies with composite returns of 16.8%, 15.7% and 15.1%, respectively. As of June 30, 2025, the composition of our assets under management was 65% in discretionary assets, which includes both separately managed accounts and proprietary and sub-advised funds, and 35% in non-discretionary assets which represent assets on which we provide portfolio reporting but do not have investment discretion.

Previous wording

Our total revenue increased by $1.1 million, or 3.7%, to $31.4 million for the three months ended March 31, 2025 from $30.3 million for the three months ended March 31, 2024. This increase was driven by market appreciation during the twelve month period.

Current wording

Our total revenue increased by $0.8 million, or 1.3%, to $62.1 million for the six months ended June 30, 2025, from $61.3 million for the six months ended June 30, 2024. This increase was driven by market appreciation partially offset by net client outflows.

Previous wording

Our expenses for the three months ended March 31, 2025 and 2024 are set forth below:

Current wording

Our expenses for the three and six months ended June 30, 2025 and 2024 are set forth below:

Previous wording

For the three months ended March 31, 2025 and 2024, $6,527 and $6,977, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations.

Current wording

For the three months ended June 30, 2025 and 2024, $6,826 and $7,514, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations. For the six months ended June 30, 2025 and 2024, $13,353 and $14,491, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations.

Previous wording

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 months ended March 31, 2025 and 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 Condensed Consolidated Statements of Operations.

Current wording

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 and six months ended June 30, 2025 and 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 Condensed Consolidated Statements of Operations.

Previous wording

Total expenses increased by $2.2 million, or 9.0%, to $26.6 million for the three months ended March 31, 2025 from $24.4 million for the three months ended March 31, 2024. This increase was attributable to increases in compensation and benefits expense of $1.2 million and general, administrative and other expenses of $1.0 million.

Current wording

Total expenses increased by $0.9 million, or 3.7%, to $26.6 million for the three months ended June 30, 2025 from $25.7 million for the three months ended June 30, 2024. This increase was attributable to increases in compensation and benefits expense of $0.3 million and general, administrative and other expenses of $0.6 million.

Previous wording

Compensation and benefits expense increased by $1.2 million, or 6.9% to $18.9 million for the three months ended March 31, 2025 from $17.7 million for the three months ended March 31, 2024. The increase was primarily attributable to increases in equity-based compensation of $0.1 million and salaries and benefits of $1.5 million primarily as a result of merit-based increases, partially offset by decreases in the accrual for bonuses of $0.3 million and severance expense of $0.1 million.

Current wording

Compensation and benefits expense increased by $0.3 million, or 1.7% to $18.8 million for the three months ended June 30, 2025 from $18.5 million for the three months ended June 30, 2024. The increase was primarily attributable to an increase in salaries and benefits of $1.2 million primarily as a result of merit-based increases and newly-hired staff, partially offset by decreases in the accrual for bonuses of $0.8 million and equity-based compensation of $0.1 million.

Previous wording

General and administrative expenses increased by $1.0 million, or 14.6%, to $7.7 million for the three months ended March 31, 2025 from $6.7 million for the three months ended March 31, 2024. This was primarily attributable to increases in professional fees of $0.3 million, portfolio and systems expense of $0.3 million, recruiting costs of $0.1 million, marketing and advertising costs of $0.1 million, office expenses of $0.1 million and travel and entertainment expenses of $0.1 million.

Current wording

General and administrative expenses increased by $0.6 million, or 8.8%, to $7.8 million for the three months ended June 30, 2025 from $7.2 million for the three months ended June 30, 2024. This was primarily attributable to increases in professional fees of $0.2 million, occupancy and related costs of $0.1 million primarily related to new office space in Singapore, marketing and advertising costs of $0.1 million, shareholder expenses of $0.1 million and travel and entertainment expenses of $0.1 million.

Previous wording

Total other income (expense) net remained flat at other income of $0.3 million for the three months ended March 31, 2025 and the three months ended March 31, 2024. Interest income decreased due to lower interest rates and lower balances in interest-bearing accounts. Interest expense decreased because of the maturity and satisfaction of our term loan under our credit facility during 2024.

Current wording

Total other income (expense) net decreased to other income of $0.2 million for the three months ended June 30, 2025 from other income of $0.3 million for the three months ended June 30, 2024. Interest income decreased due to lower interest rates and lower balances in interest-bearing accounts. Interest expense decreased because of the maturity and satisfaction of our term loan under our credit facility during 2024.

Previous wording

The provision for income taxes was $1.2 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The change was primarily related to decreased profitability during the current period as compared to the prior year. Our provision for income taxes as a percentage of income before provision for income taxes for the three months ended March 31, 2025 and 2024 was 23.0% and 20.8%, respectively.

Current wording

The provision for income taxes was $1.1 million and $1.2 million for the three months ended June 30, 2025 and 2024, respectively. The change was primarily related to decreased profitability during the current period as compared to the prior year. Our provision for income taxes as a percentage of income before provision for income taxes for the three months ended June 30, 2025 and 2024 was 25.2% and 21.4%, respectively.

Previous wording

For the three months ended March 31, 2025, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives and sign-on bonuses of $62. For the three months ended March 31, 2024, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives and software implementation costs of $10.

Current wording

For the three months ended June 30, 2025, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, legal fees of $84 related to our application for licensure in the European Union (the “EU”) and rent expense of $12. For the six months ended June 30, 2025, represents an ASC 842 rent adjustment of $96 related to the amortization of property lease incentives, legal fees of $84 related to our application for licensure in the EU, sign-on bonuses paid to certain employees of $62 and rent expense of $12. For the three months ended June 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, sign on bonuses paid to certain employees of $188, professional fees of $26 related to a transfer pricing project, legal fees of $46 and software implementation costs of $3. For the six months ended June 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $96 related to the amortization of property lease incentives, sign on bonuses paid to certain employees of $188, professional fees of $26 related to a transfer pricing project, legal fees of $46 and software implementation costs of $13.

Previous wording

Includes 37,109 and 35,554 unvested restricted stock units at March 31, 2025 and 2024, respectively.

Current wording

Includes 23,426 and 38,936 unvested restricted stock units at June 30, 2025 and 2024, respectively.

Previous wording

Includes 205,079 and 240,998 unvested restricted stock units at March 31, 2025 and 2024, respectively, and 366,293 and 147,506 unvested non-qualified options at March 31, 2025 and 2024, respectively.

Current wording

Includes 137,100 and 228,118 unvested restricted stock units at June 30, 2025 and 2024, respectively, and 366,293 unvested non-qualified options at June 30, 2025 and 2024.

Previous wording

On June 24, 2013, the subsidiaries of Silvercrest L.P. entered into a $15.0 million credit facility with City National Bank. The subsidiaries of Silvercrest L.P. are the borrowers under such facility and Silvercrest L.P. guarantees the obligations of its subsidiaries under the credit facility. The credit facility is secured by certain assets of Silvercrest L.P. and its subsidiaries. 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. 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. 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. 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 credit facility contains restrictions on, among other things, (i) incurrence of additional debt, (ii) creating liens on certain assets, (iii) making certain investments, (iv) consolidating, merging or otherwise disposing of substantially all of our assets, (v) the sale of certain assets, and (vi) entering into transactions with affiliates. In addition, the credit facility contains certain financial covenants including a test on discretionary assets under management, maximum debt to EBITDA and a fixed charge coverage ratio. 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. On June 18, 2024, the subsidiaries of Silvercrest L.P. and City National Bank entered into an Amendment and Restatement Agreement, which amends and restates the credit facility (as so amended and restated, the “A&R Credit Agreement”) whereby, among other items, (i) the term loan maturity date was extended until June 18, 2027, (ii) the term loan draw date was extended to June 18, 2025, (iii) the term loan commitment was decreased from $25.5 million to $10.0 million as a result of the repayment in full of the existing term loans previously borrowed under the Credit Agreement, and (iv) the $10.0 million revolving credit facility maturity date was extended until June …

Excerpt shortened here; the source contains the full paragraph.

Current wording

On June 24, 2013, the subsidiaries of Silvercrest L.P. entered into a $15.0 million credit facility with City National Bank. The subsidiaries of Silvercrest L.P. are the borrowers under such facility and Silvercrest L.P. guarantees the obligations of its subsidiaries under the credit facility. The credit facility is secured by certain assets of Silvercrest L.P. and its subsidiaries. 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. 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. 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. 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 credit facility contains restrictions on, among other things, (i) incurrence of additional debt, (ii) creating liens on certain assets, (iii) making certain investments, (iv) consolidating, merging or otherwise disposing of substantially all of our assets, (v) the sale of certain assets, and (vi) entering into transactions with affiliates. In addition, the credit facility contains certain financial covenants including a test on discretionary assets under management, maximum debt to EBITDA and a fixed charge coverage ratio. 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. On June 18, 2024, the subsidiaries of Silvercrest L.P. and City National Bank entered into an Amendment and Restatement Agreement, which amends and restates the credit facility (as so amended and restated, the “A&R Credit Agreement”) whereby, among other items, (i) the term loan maturity date was extended until June 18, 2027, (ii) the term loan draw date was extended to June 18, 2025, (iii) the term loan commitment was decreased from $25.5 million to $10.0 million as a result of the repayment in full of the existing term loans previously borrowed under the Credit Agreement, and (iv) the $10.0 million revolving credit facility maturity date was extended until June …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The actual increase in tax basis, as well as the amount and timing of any payments under the tax receivable agreement, will vary depending upon a number of factors, including the timing of exchanges, the price of shares of our Class A common stock at the time of the exchange, the extent to which such exchanges are taxable, the amount and timing of our income and the tax rates then applicable. Nevertheless, we expect that as a result of the size of the increases in the tax basis of our tangible and intangible assets, the payments that we may make under the tax receivable agreement likely will be substantial. 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 $9.1 million. Future payments to current principals of Silvercrest L.P. and future holders of Class B units in respect of subsequent exchanges would be in addition to these amounts and are expected to be substantial. We intend to fund required payments pursuant to the tax receivable agreement from the distributions received from Silvercrest L.P.

Current wording

The actual increase in tax basis, as well as the amount and timing of any payments under the tax receivable agreement, will vary depending upon a number of factors, including the timing of exchanges, the price of shares of our Class A common stock at the time of the exchange, the extent to which such exchanges are taxable, the amount and timing of our income and the tax rates then applicable. Nevertheless, we expect that as a result of the size of the increases in the tax basis of our tangible and intangible assets, the payments that we may make under the tax receivable agreement likely will be substantial. 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 $10.2 million. Future payments to current principals of Silvercrest L.P. and future holders of Class B units in respect of subsequent exchanges would be in addition to these amounts and are expected to be substantial. We intend to fund required payments pursuant to the tax receivable agreement from the distributions received from Silvercrest L.P.

Previous wording

The following table sets forth our cash flows for the three months ended March 31, 2025 and 2024. Operating activities consist of net income subject to adjustments for changes in operating assets and liabilities, depreciation, and equity-based compensation expense. Investing activities consist primarily of acquiring and selling property and equipment, and cash paid as part of business acquisitions. Financing activities consist primarily of contributions from partners, distributions to partners, dividends paid on Class A common stock, the issuance and payments on partner notes, other financings, and earnout payments related to business acquisitions.

Current wording

The following table sets forth our cash flows for the six months ended June 30, 2025 and 2024. Operating activities consist of net income subject to adjustments for changes in operating assets and liabilities, depreciation, and equity-based compensation expense. Investing activities consist primarily of acquiring and selling property and equipment, and cash paid as part of business acquisitions. Financing activities consist primarily of contributions from partners, distributions to partners, dividends paid on Class A common stock, the issuance and payments on partner notes, other financings, and earnout payments related to business acquisitions.

Previous wording

For the three months ended March 31, 2025 and 2024, operating activities used $24.7 million and $24.1 million, respectively. This difference is primarily the result of decreases in net income of $1.0 million, accounts payable and accrued expenses of $0.4 million, accrued compensation of $2.5 million and prepaid and other expenses of $0.1 million, partially offset by increases in equity-based compensation of $0.1 million, deferred tax expense of $0.1 million, distributions received from investment funds of $0.3 million and receivables and due from Silvercrest funds of $2.9 million.

Current wording

For the six months ended June 30, 2025 and 2024, operating activities used $10.9 million and $8.1 million, respectively. This difference is primarily the result of decreases in net income of $2.2 million, accrued compensation of $2.9 million, prepaid and other expenses of $0.6 million and non-cash lease expense of 1.3 million, partially offset by increases in distributions received from investment funds of $1.2 million, operating lease liabilities of $1.2 million, deferred tax expense of $0.1 million, accounts payable and accrued expenses of $0.3 million and receivables and due from Silvercrest funds of $1.4 million.

Previous wording

For the three months ended March 31, 2025 and 2024, investing activities used $0.4 million and $0.6 million, respectively. The primary use of cash during the three months ended March 31, 2025 and 2024 was for the acquisition of furniture and equipment and for leasehold improvements.

Current wording

For the six months ended June 30, 2025 and 2024, investing activities used $0.9 million and $1.0 million, respectively. The primary use of cash during the six months ended June 30, 2025 and 2024 was for the acquisition of furniture and equipment and for leasehold improvements.

Previous wording

For the three months ended March 31, 2025 and 2024, financing activities used $7.2 million and $5.9 million, respectively. During the three months ended March 31, 2024, the Company repaid $0.9 million of principal on the term loan with City National Bank. Distributions to partners during the three months ended March 31, 2025 and 2024 were $1.5 million and $3.3 million, respectively. During the three months ended March 31, 2025 and 2024, the Company paid dividends of $1.9 million and $1.8 million, respectively, to Class A shareholders. During the three months ended March 31, 2025 and 2024, we received payments from partners on notes receivable of $0.1 million and $0.1 million, respectively. During the three months ended March 31, 2025, we purchased approximately 217,000 shares of Class A common stock of Silvercrest Asset Management Group Inc. at a cost of $3.9 million.

Current wording

For the six months ended June 30, 2025 and 2024, financing activities used $26.8 million and $11.3 million, respectively. During the six months ended June 30, 2025 and 2024, the Company repaid $0 and $2.7 million, respectively, of principal on the term loan with City National Bank. Distributions to partners during the six months ended June 30, 2025 and 2024 were $4.2 million and $4.9 million, respectively. During the six months ended June 30, 2025 and 2024, the Company paid dividends of $3.7 million and $3.6 million, respectively, to Class A shareholders. During the six months ended June 30, 2025 and 2024, we received payments from partners on notes receivable of $0.1 million and $0.1 million, respectively. During the six months ended June 30, 2025 and 2024, we made earnout payments of $0 and $0.1 million, respectively. During the six months ended June 30, 2025 and 2024, we purchased approximately 1,226,000 and 262,000 shares of Class A common stock of Silvercrest Asset Management Group Inc., respectively, at a cost of $19.1 million and $5.0 million, respectively.

Previous wording

There have been no changes to our critical accounting policies during the three months ended March 31, 2025 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 6, 2025.

Current wording

There have been no changes to our critical accounting policies during the six months ended June 30, 2025 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 6, 2025.

Previous wording

The average value of our assets under management for the three months ended March 31, 2025 was approximately $35.9 billion. 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 $3.6 billion for the three months ended March 31, 2025, which would cause an annualized increase or decrease in revenues of approximately $12.6 million for the three months ended March 31, 2025, at a weighted average fee rate for the three months ended March 31, 2025 of 0.35%.

Current wording

The average value of our assets under management for the three and six months ended June 30, 2025 was approximately $36.0 and $36.6 billion, 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 $3.6 and $3.7 billion for the three and six months ended June 30, 2025, respectively, which would cause an annualized increase or decrease in revenues of approximately $12.3 and $12.4 million, respectively, for the three and six months ended June 30, 2025, at a weighted average fee rate for the three and six months ended June 30, 2025 of 0.34% and 0.34%, respectively.