Silvercrest Asset Management Announces Initial Seed Investment With Australia's Construction and Building Unions Superannuation Fund

Rhea-AI Summary

Silvercrest Asset Management Group (NASDAQ:SAMG) has secured a significant $1.3 billion USD seed investment from Australia's Construction and Building Unions Superannuation Fund (CBUS) to launch its Global Value Opportunity Equity Strategy. The investment marks a major milestone for Silvercrest's international expansion and follows the recent hiring of Rehan Chaudhri and his team to lead the strategy.

CBUS, managing over $94 billion for 920,000+ members, represents Australia's construction and building workers. Silvercrest, with $35.1 billion in assets under management as of September 30, 2024, operates from multiple locations across the United States, providing investment advisory and family office services to wealthy families and institutional investors.

Positive

• Secured substantial $1.3 billion USD seed investment from CBUS
• Strategic expansion into global markets with new equity strategy
• Partnership with major institutional investor validates company's capabilities
• Potential for follow-on investments to drive further growth

Negative

• None.

Insights

Financial Analyst

The $1.3 billion seed investment from CBUS represents a significant milestone for Silvercrest, effectively increasing their AUM by approximately 3.7%. This strategic partnership with one of Australia's largest super funds ($94 billion AUM) not only provides immediate revenue growth but also opens doors to the lucrative Australian institutional market. The Global Value Opportunity Equity Strategy launch, backed by such a substantial commitment, signals strong institutional confidence in Silvercrest's capabilities. For a company with a market cap of $169 million, securing a mandate of this size is transformative and could lead to multiple expansion as the market reprices the stock to reflect enhanced growth prospects and institutional credibility.

Market Research Analyst

This deal marks a strategic expansion into the Australian market, where superannuation funds collectively manage over $3.4 trillion. CBUS's seed investment could create a domino effect, attracting other Australian super funds looking for global value opportunities. The timing is particularly advantageous as Australian pension funds are increasingly seeking international diversification. Silvercrest's relatively small market cap compared to the size of this mandate demonstrates their ability to compete with larger asset managers for institutional mandates. The partnership validates their global expansion strategy and could lead to increased institutional inflows, potentially transforming their historically high-net-worth focused business model.

NEW YORK, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) is pleased to announce an initial seed investment of $1.3 billion USD ($2.0 billion AUD) by Australia’s Construction and Building Unions Superannuation Fund (CBUS). The seed investment will formally launch Silvercrest’s Global Value Opportunity Equity Strategy. Silvercrest previously announced the development of the strategy and the hiring of the strategy’s lead portfolio manager, Rehan Chaudhri and his team.

Richard Hough, Chairman and Chief Executive Officer of Silvercrest, remarked, “Silvercrest is grateful to CBUS for its substantial investment to launch our new Global Equity Strategy. We are excited and proud to partner with such a premier and sophisticated institutional investor. CBUS’s confidence underscores Silvercrest’s international reputation, robust infrastructure, and deep intellectual capital. We are confident that Silvercrest will attract follow-on investments, further enhancing growth, and fueling our global aspirations.”

Silvercrest’s Global Value Opportunity Equity investment team brings significant investment expertise, a proven track record, and experience managing equity mandates on behalf of large institutions and families around the world. The strategy’s approach uniquely combines relative and deep value opportunities across global equity markets. The equity capability further deepens Silvercrest’s intellectual capital in the International and Global space and complements Silvercrest’s existing International team and capabilities.

About CBUS

CBUS is the leading Industry Super Fund representing those that help build and maintain Australia, construction and building workers. As one of Australia’s largest super funds, CBUS manages more than $94 billion for over 920,000 members (as of June 30, 2024).

About Silvercrest Asset Management

Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, Atlanta, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors. As of September 30, 2024, the firm reported assets under management of $35.1 billion.

Contact: Richard R. Hough III
212-649-0601
rhough@silvercrestgroup.com

FAQ

How much is CBUS investing in Silvercrest Asset Management (SAMG)?

CBUS is making an initial seed investment of $1.3 billion USD ($2.0 billion AUD) in Silvercrest's Global Value Opportunity Equity Strategy.

What is Silvercrest's (SAMG) total AUM as of September 2024?

Silvercrest reported assets under management of $35.1 billion as of September 30, 2024.

What is the purpose of CBUS's investment in SAMG?

The investment will formally launch Silvercrest's Global Value Opportunity Equity Strategy, expanding their global market presence.

Who will lead SAMG's new Global Value Opportunity Equity Strategy?

Rehan Chaudhri and his team will lead the new Global Value Opportunity Equity Strategy at Silvercrest.

How large is CBUS, Silvercrest's new investment partner?

CBUS manages more than $94 billion for over 920,000 members as of June 30, 2024.