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Updated on Friday, September 3, 2021
Silvercrest Asset Management Group, LLC provides financial planning, investment management and family office services primarily to ultra wealthy individuals and families, as well as certain institutional investors. The team is headquartered in New York, and there are seven additional offices across the country. The firm is nationally recognized and registered to do business in 36 states, plus the District of Columbia.
The bottom line: Silvercrest Asset Management Group is an asset management and financial planning firm based in New York that targets ultra-high net worth investors.
- Aims to cater to those with at least $10 million to invest
- Offers private funds in which to invest
- May charge performance-based fees for private funds
|Assets under management: $27,818,588,520|
|Minimum investment: Not specified, but firm notes it targets investors with at least $10 million|
|Individual investor to advisor ratio: 19:1|
|Fee structure: A percentage of AUM, fixed fees, performance-based fees|
|Headquarters: 1330 Avenue of the Americas, 38th Floor|
New York, NY 10019
All information included in this profile is accurate as of August 25, 2021. For more information, please consult Silvercrest Asset Management’s website.
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Overview of Silvercrest Asset Management
Silvercrest Asset Management Group, LLC, was established in 2001 (and officially began to do business in 2002) as an employee-owned registered investment advisor. The firm is a wholly owned subsidiary of Silvercrest LP, whose general partner is Silvercrest Asset Management Group, Inc., a company that trades on the Nasdaq. All Class B Common shares of SAMG are owned by Silvercrest employees.
The team of close to 150 employees includes nearly 60 who are in advisory roles. Clients of the firm are mainly ultra-high net worth investors who can take advantage of the firm’s asset management and family office services.
Silvercrest Asset Management’s pros
- Independent: The firm is not affiliated with any bank, broker, custodian or other financial services firm that ties clients to using that firm for specific services or products. Clients can choose the custodians and brokers they prefer.
- Family office services: Silvercrest offers ultra-wealthy families more than simply portfolio management. They can find assistance with bill paying, payroll management, medical insurance administration, accounting services, trust, estate and tax planning and other services necessary to handle vast wealth.
- National recognition: The firm placed fifth, seventh and ninth, respectively, in the 2018, 2019 and 2020 lists of the top registered investment advisory firms by the publication Barron’s, which ranks firms based on assets, revenue and quality of practice.
- Clean disciplinary record: The firm discloses no legal or disciplinary issues. See more below.
Silvercrest Asset Management’s cons
- Limited to the ultra wealthy: The firm caters to ultra-high net worth individuals and families with at least $10 million to invest, as well as institutional investors. Thus, investors without eight-figure accounts should look elsewhere.
- Potentially high fees: In some cases, clients potentially face what is known as layered fees, where clients pay multiple underlying management fees. Together, the fees and expenses will be higher than what investors would have to pay if they directly invested in the underlying funds. If clients invest in Silvercrest’s private funds, some of which may invest in other managed funds, the underlying manager fees may add on an additional 1% to 3% percent management fee and another 10 to 30% performance-based fee, on top of perhaps a fee already being paid to Silvercrest. Performance-based fees also could motivate managers to allocate limited investment opportunities to funds that charge these fees, although the firm says it has policies in place to make sure opportunities are allocated equally.
- Pays for referrals: The firm may use solicitors or other third parties to introduce clients to Silvercrest. Some of those solicitors receive payments from Silvercrest, often in the form of a percentage of the fees the referred client pays to Silvercrest. If you get a referral to Silvercrest from another party, just be sure to know why you are being referred.
What types of clients does Silvercrest Asset Management serve?
Silvercrest Asset Management seeks out ultra wealthy individuals and families with at least $10 million or more to invest. The firm’s assets are often spread across multiple generations and among varying individual, retirement, trust and estate planning vehicles.
The firm does not have any individual clients who do not meet the definition of a high net worth individual, which the SEC defines as someone with at least $750,000 in assets under management or a net worth of at least $1 million.
Services offered by Silvercrest Asset Management
Ultra-wealthy clients can enlist Silvercrest Asset Management to help manage their investments, as well as their overall wealth. Clients generally opt for advisors to manage their portfolios under a discretionary relationship, meaning clients do not sign off on every trading decision. Some clients do seek advice and guidance from advisors but choose to retain control over the final trading and investment decisions, known as non-discretionary management.
The team can also address issues around estate, tax and retirement planning, business successions, family foundations, diversifying from concentrated stock or private assets and more. Family office services, such as paying bills, tax planning and preparation, accounting, financial planning and consolidated reporting, are also offered.
For institutional clients, the team provides portfolio advisory support, due diligence, risk analytics and other services. The team also offers outsourced chief investment services, and also advises many private funds.
Here is a list of services offered by Silvercrest:
- Portfolio management
- Financial planning/Family office services
- Estate and wealth planning
- Charitable planning
- Business planning
- Tax planning
- Personal accounting services
- Bill paying
- Consolidated reporting
- Collaboration with clients’ lawyers, accountants, etc.
How Silvercrest Asset Management invests your money
At Silvercrest Asset Management, advisors first help clients define their goals for their wealth and investments. Next, they create and implement a custom plan to achieve those goals, based on each family’s unique situation. The firm stresses that it does not subscribe to “cookie cutter” portfolio strategies. Clients who are personally opposed to certain types of investments can restrict the types of investments in their account.
Client money can be allocated across Silvercrest’s equity and fixed-income strategies. Clients can also invest in Silvercrest’s private funds and with third-party portfolio managers, both of which can provide exposure to alternative investments, such as hedge funds, private equity and real estate, as well as exchange-traded funds (ETFs) and mutual funds.
When looking for companies in which to invest, Silvercrest’s portfolio managers use a value-oriented approach. They look for companies that are attractively valued, understandable, transparent about their financials and headed by proven management teams with a lot of their own money at stake. The team says its stock portfolios “tend to underperform slightly in bull markets but outperform significantly in bear markets.” When looking for outside managers, the team looks for consistent returns, tax-efficiency and managers with significant equity at stake to align the interest of the managers and investors.
Fees Silvercrest Asset Management charges for its services
For portfolio management, clients typically pay an annual fee calculated as a percentage of assets under management. The rate varies based on the type of investment, as well as the amount invested. Advisory fees are negotiable in certain situations, such as when clients have invested large amounts.
|Silvercrest Asset Management Annual Fee Schedule for Separately Managed Accounts|
|Managed Equity or Balanced Portfolios||1% on the first $10 million, then 0.60%|
|Managed Fixed Income-Only Portfolios||0.40% on the first $10 million, then 0.30%|
|Managed Cash-Only Portfolios||0.20%|
|Silvercrest Municipal Value Strategy||0.65%|
|Managed Growth Equity Portfolios||1% on the first $25 million, 0.90% on the next $50 million, then 0.80%|
Clients may also owe additional management fees and expenses when they invest with outside third-party managers or in private funds advised by Silvercrest. In the case of a private fund of funds, they’d owe even higher fees for the underlying managers those funds invest in.
Clients may also owe certain performance-based fees, ranging from 10% to 30% of net income or capital appreciation, when investing with third-party funds or private funds advised by Silvercrest. The fee schedule is typically shared with clients in writing prior to beginning a relationship.
In addition to those management fees, clients can expect to owe brokerage and custodian fees, as well as any internal mutual fund, ETF or other investment product fees. Fees are typically paid quarterly and in advance, although this may vary.
Clients pay separately for family office services such as bill paying, tax planning and financial planning. The fees depend on the services requested, and are worked out prior to the start of the relationship.
Silvercrest Asset Management disciplinary disclosures
Silvercrest Asset Management does not disclose any legal, regulatory or other disciplinary items, and thus has a clean record. The Securities and Exchange Commission (SEC) requires all registered investment advisors to disclose on their Form ADV any legal or disciplinary actions against the company or an employee or affiliate in the last 10 years that would be material to clients’ evaluation of the firm or the integrity of the management team.
For more information on Silvercrest Asset Management, go to the firm’s IAPD page.
Silvercrest Asset Management onboarding process
Those interested in learning more about Silvercrest Asset Management can reach out by:
- Emailing the firm at [email protected]
- Reaching out directly via email to one of the eight offices listed on the contact tab of the firm’s website
As for communication once a relationship begins, clients with separately managed accounts receive written monthly or quarterly reports (per their preference) from Silvercrest, summarizing their holdings, account activity and investment returns, in addition to the reports that clients receive from their custodian. Clients in the private funds also receive written monthly or quarterly reports with the investment values and returns. The firm also offers a client portal for regular review.
Where Silvercrest Asset Management is located
Silvercrest Asset Management has eight offices in total. Its offices are located in the following cities:
- New York
- San Diego
- Bedminster, New Jersey
- Princeton, New Jersey
- Charlottesville, Virginia
- Richmond, Virginia
Is Silvercrest Asset Management right for you?
Individuals and families with at least $10 million to invest who are also looking for additional help in managing and simplifying their vast wealth may want to consider Silvercrest Asset Management, particularly if they live near one of their firm’s offices. Clients may find it attractive that the firm is independent and not affiliated with any big banks or brokerage firms.
That said, it’s obviously a limited number of investors with the ultra wealth necessary to work with the firm — everyone else will need to look elsewhere. Before you make your decision, be sure to research multiple firms to ensure you find the right advisor for you.
The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.