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 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.

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 September 30, 2025, our assets under management increased by 2.5% from $36.7 billion to $37.6 billion. During the nine months ended September 30, 2025, our assets under management increased by 3.0% from $36.5 billion to $37.6 billion.

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 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.

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 33.0% partnership interest in Silvercrest L.P. as of September 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 0.34% 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.

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 0.36% for the three months ended September 30, 2025 and 2024, respectively. Our average annual management fee was 0.34% and 0.36% for the nine months ended September 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 nine months ended September 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 and six months ended June 30, 2025 and 2024 are as follows:

Current wording

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

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, $7,775 and $7,222, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2025 and 2024, $21,128 and $21,713, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous 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. From June 30, 2024, there was market appreciation of $2.8 billion, client inflows of $5.7 billion, and client outflows of $5.2 billion. During the six months ended June 30, 2025, from December 31, 2024, there was an increase of $0.4 billion in discretionary assets under management and a decrease of $0.2 billion in non-discretionary assets under management. The increase in assets under management as of June 30, 2025 as compared to December 31, 2024 was primarily due to market appreciation during the period partially offset by net client outflows during the period. Sub-advised fund management revenue decreased to $0.4 million for the six months ended June 30, 2025 from $0.6 million for the six months ended June 30, 2024. Proprietary fund management revenue remained flat at $1.4 million for the six months ended June 30, 2025 and 2024. With respect to our discretionary assets under management, equity assets experienced an increase of 0.7% during the six months ended June 30, 2025 and fixed income assets increased by 4.9% during the same period. For the six months ended June 30, 2025, most of the increase in equity assets came from our focused international value, emerging markets American Depository Receipts and international small cap value strategies with composite returns of 22.5%, 21.7% and 21.0%, 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.

Current wording

Total assets under management increased by $2.5 billion, or 7.1%, to $37.6 billion at September 30, 2025 from $35.1 billion at September 30, 2024. The increase was a result of market appreciation of $2.3 billion, client inflows of $5.6 billion and client outflows of $5.4 billion. During the three months ended September 30, 2025 as compared to June 30, 2025, there was an increase of $0.6 billion in discretionary assets under management and an increase of $0.3 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 September 30, 2025. Sub-advised fund management revenue decreased to $0.2 million for the three months ended September 30, 2025 from $0.3 million for the three months ended September 30, 2024. Proprietary fund management revenue remained flat at $0.7 million for the three months ended September 30, 2025 and September 30, 2024. With respect to our discretionary assets under management, equity assets increased by 3.9% during the three months ended September 30, 2025 and fixed income assets decreased by 1.9% during the same period. For the three months ended September 30, 2025, most of the increase in equity assets came from our small cap growth, emerging markets American Depository Receipts and international value opportunity strategies with composite returns of 12.0%, 11.5% and 11.0%, respectively. As of September 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 $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.

Current wording

Our total revenue increased by $1.7 million, or 1.8%, to $93.4 million for the nine months ended September 30, 2025, from $91.7 million for the nine months ended September 30, 2024. This increase was driven by market appreciation partially offset by net client outflows.

Previous 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.

Current wording

Total assets under management increased by $2.5 billion, or 7.1%, to $37.6 billion at September 30, 2025 from $35.1 billion at September 30, 2024. From September 30, 2024, there was market appreciation of $2.3 billion, client inflows of $5.6 billion, and client outflows of $5.4 billion. During the nine months ended September 30, 2025, from December 31, 2024, there was an increase of $1.0 billion in discretionary assets under management and an increase of $0.1 billion in non-discretionary assets under management. The increase in assets under management as of September 30, 2025 as compared to December 31, 2024 was primarily due to market appreciation during the period partially offset by net client outflows during the period. Sub-advised fund management revenue decreased to $0.6 million for the nine months ended September 30, 2025 from $0.9 million for the nine months ended September 30, 2024. Proprietary fund management revenue remained flat at $2.1 million for the nine months ended September 30, 2025 and 2024. With respect to our discretionary assets under management, equity assets experienced an increase of 4.6% during the nine months ended September 30, 2025 and fixed income assets increased by 2.9% during the same period. For the nine months ended

Previous wording

The following table represents a further breakdown of our assets under management as of six months ended June 30, 2025 and 2024:

Current wording

The following table represents a further breakdown of our assets under management as of nine months ended September 30, 2025 and 2024:

Previous wording

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

Current wording

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

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, $7,775 and $7,222, respectively, of partner incentive payments were included in cash compensation and benefits expense in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2025 and 2024, $21,128 and $21,173, 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 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.

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 nine months ended September 30, 2025 and 2024.

Previous 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.

Current wording

Total expenses increased by $4.0 million, or 15.4%, to $30.0 million for the three months ended September 30, 2025 from $26.0 million for the three months ended September 30, 2024. This increase was attributable to increases in compensation and benefits expense of $3.1 million and general, administrative and other expenses of $0.9 million.

Previous 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.

Current wording

Compensation and benefits expense increased by $3.1 million, or 16.8% to $21.7 million for the three months ended September 30, 2025 from $18.6 million for the three months ended September 30, 2024. The increase was primarily attributable to increases in salaries and benefits of $1.1 million primarily as a result of merit-based increases and newly-hired staff and in the accrual for bonuses of $2.4 million, partially offset by decreases in equity-based compensation of $0.2 million and severance of $0.1 million.

Previous 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.

Current wording

General and administrative expenses increased by $0.9 million, or 11.9%, to $8.2 million for the three months ended September 30, 2025 from $7.4 million for the three months ended September 30, 2024. This was primarily attributable to increases in professional fees of $0.9 million, occupancy and related costs of $0.1 million primarily related to new office space in Singapore and recruiting costs of $0.2 million, partially offset by decreases in shareholder expenses of $0.1 million and trade errors of $0.3 million.

Previous wording

Total expenses increased by $3.1 million, or 6.3%, to $53.2 million for the six months ended June 30, 2025 from $50.1 million for the six months ended June 30, 2024. This increase was attributable to increases in compensation and benefits expense of $1.5 million and general, administrative and other expenses of $1.6 million.

Current wording

Total expenses increased by $7.1 million, or 9.4%, to $83.2 million for the nine months ended September 30, 2025 from $76.0 million for the nine months ended September 30, 2024. This increase was attributable to increases in compensation and benefits expense of $4.6 million and general, administrative and other expenses of $2.5 million.

Previous wording

Compensation and benefits expense increased by $1.5 million, or 4.2% to $37.7 million for the six months ended June 30, 2025 from $36.2 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase in salaries and benefits of $2.7 million primarily as a result of merit-based increases and newly-hired staff, partially offset by decreases in the accrual for bonuses of $1.1 million and severance expense of $0.1 million.

Current wording

Compensation and benefits expense increased by $4.6 million, or 8.5% to $59.4 million for the nine months ended September 30, 2025 from $54.8 million for the nine months ended September 30, 2024. The increase was primarily attributable to increases in salaries and benefits of $3.8 million primarily as a result of merit-based increases and newly-hired staff and in the accrual for bonuses of $1.2 million, partially offset by decreases in equity-based compensation of $0.2 million and severance expense of $0.2 million.

Previous wording

General and administrative expenses increased by $1.6 million, or 11.6%, to $15.5 million for the six months ended June 30, 2025 from $13.9 million for the six months ended June 30, 2024. This was primarily attributable to increases in professional fees of $0.6 million, occupancy and related costs of $0.1 million primarily related to new office space in Singapore, portfolio and systems expense of $0.3 million, shareholder expenses of $0.1 million, marketing and advertising costs of $0.1 million, office expenses of $0.1 million, sub-advisory and referral fees of $0.1 million and travel and entertainment expenses of $0.2 million.

Current wording

General and administrative expenses increased by $2.5 million, or 11.7%, to $23.7 million for the nine months ended September 30, 2025 from $21.3 million for the nine months ended September 30, 2024. This was primarily attributable to increases in professional fees of $1.4 million, occupancy and related costs of $0.3 million primarily related to new office space in Singapore, portfolio and systems expense of $0.3 million, marketing and advertising costs of $0.1 million, office expenses of $0.1 million, sub-advisory and referral fees of $0.1 million, recruiting costs of $0.1 million, travel and entertainment expenses of $0.3 million and depreciation and amortization of $0.1 million, partially offset by a decrease in trade errors of $0.3 million.

Previous 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.

Current wording

Total other income (expense) net decreased to other income of $0.1 million for the three months ended September 30, 2025 from other income of $0.4 million for the three months ended September 30, 2024. Interest income decreased due to lower interest rates and lower balances in interest-bearing accounts.

Previous wording

Total other income (expense) net decreased to other income of $0.4 million for the six months ended June 30, 2025 from other income of $0.6 million for the six 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.

Current wording

Total other income (expense) net decreased to other income of $0.6 million for the nine months ended September 30, 2025 from other income of $0.9 million for the nine months ended September 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 $1.1 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.

Current wording

The provision for income taxes was $0.4 million and $1.1 million for the three months ended September 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 September 30, 2025 and 2024 was 26.4% and 22.7%, respectively.

Previous wording

The provision for income taxes was $2.2 million and $2.5 million for the six 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 six months ended June 30, 2025 and 2024 was 24.0% and 21.1%, respectively.

Current wording

The provision for income taxes was $2.6 million and $3.6 million for the nine months ended September 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 nine months ended September 30, 2025 and 2024 was 24.3% and 21.6%, respectively.

Previous 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.

Current wording

For the three months ended September 30, 2025, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, legal fees of $70 related to our application for licensure in the European Union (the “EU”), legal and other professional fees of $90 related to other international initiatives, a sign-on bonus of $5, rent expense of $24 and the accrual for an earnout bonus of $1,430. For the nine months ended September 30, 2025, represents an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, legal fees of $154 related to our application for licensure in the EU, legal and other professional fees of $90 related to other international initiatives, sign-on bonuses paid to certain employees of $67, rent expense of $36 and the accrual for an earnout bonus of $1,430. For the three months ended September 30, 2024, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, data conversion costs of $14 and software implementation costs of $5. For the nine months ended September 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $144 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, data conversion costs of $14 and software implementation costs of $18.

Previous wording

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

Current wording

Includes 23,426 and 37,109 unvested restricted stock units at September 30, 2025 and 2024, respectively.

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

Amendment) exists, (ii) the revolving credit facility maturity date was extended until June 18, 2026, and (iii) the term loan draw date was extended to June 18, 2026. The fee structure was amended so as to provide for additional annual yearly payments of $33,333.33, subject to the terms of the First Amendment. As of June 30, 2025 and December 31, 2024, we had $0 outstanding under the term loan. We were in compliance with the covenants under the credit facility as of June 30, 2025.

Current wording

June 18, 2030 upon the request of the Credit Parties so long as no Default or Event of Default (each as defined in the First Amendment) exists, (ii) the revolving credit facility maturity date was extended until June 18, 2026, and (iii) the term loan draw date was extended to June 18, 2026. The fee structure was amended so as to provide for additional annual yearly payments of $33,333.33, subject to the terms of the First Amendment. As of September 30, 2025 and December 31, 2024, we had $0 outstanding under the term loan. We were in compliance with the covenants under the credit facility as of September 30, 2025.

Previous 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.

Current wording

The following table sets forth our cash flows for the nine months ended September 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 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.

Current wording

For the nine months ended September 30, 2025 and 2024, operating activities provided $3.7 million and $5.2 million, respectively. This difference is primarily the result of a decrease in net income of $1.1 million, decreased non-cash lease expense of $1.3 million and a decrease in prepaid and other expenses of $0.7 million, partially offset by an increase in accounts payable and accrued expenses of $0.3 million, an increase in receivables and due from Silvercrest funds of $1.7 million, an increase in deferred tax expense of $0.7 million, an increase in accrued compensation of $8.6 million, increased operating lease liabilities of $1.0 million, an increase in equity-based compensation of $0.4 million, an increase in distributions received from investment funds of $1.2 million and an increase in depreciation and amortization of $1.1 million.

Previous 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.

Current wording

For the nine months ended September 30, 2025 and 2024, investing activities used $1.7 million and $1.3 million, respectively. The primary use of cash during the nine months ended September 30, 2025 and 2024 was for the acquisition of furniture and equipment and for leasehold improvements.

Previous 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.

Current wording

For the nine months ended September 30, 2025 and 2024, financing activities used $34.5 million and $16.0 million, respectively. During the nine months ended September 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 nine months ended September 30, 2025 and 2024 were $5.7 million and $6.4 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company paid dividends of $5.4 million and $5.5 million, respectively, to Class A shareholders. During the nine months ended September 30, 2025 and 2024, we made earnout payments of $0 and $0.1 million, respectively. During the nine months ended September 30, 2025 and 2024, we purchased approximately 1,504,000 and 83,000 shares of Class A common stock of Silvercrest Asset Management Group Inc., respectively, at a cost of $23.7 million and $1.4 million, respectively.

Previous wording

As of June 30, 2025 and December 31, 2024, there was nothing outstanding under the term loan with City National Bank.

Current wording

As of September 30, 2025 and December 31, 2024, there was nothing outstanding under the term loan and revolving credit facility with City National Bank.

Previous 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.

Current wording

There have been no changes to our critical accounting policies during the nine months ended September 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 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.

Current wording

The average value of our assets under management for the three and nine months ended September 30, 2025 was approximately $37.2 and $37.1 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 $3.7 and $3.7 billion for the three and nine months ended September 30, 2025, respectively, which would cause an annualized increase or decrease in revenues of approximately $12.5 and $12.5 million, respectively, for the three and nine months ended September 30, 2025, at a weighted average fee rate for the three and nine months ended September 30, 2025 of 0.34% and 0.34%, respectively.