Silvercrest Asset Management Group Inc. Liquidation Value

Silvercrest Asset Management Group Inc. (SAMG) is a registered investment adviser operating as a two-class holding company (Class A public / Class B SLP units). Under a liquidation lens, recovery to Class A equity is structurally impaired by the dominance of intangible and goodwill assets that receive zero recovery credit, compounded by a liability stack that must be settled at face value.

Balance sheet as of December 31, 2025: total assets $166.6M, total liabilities $81.7M, total equity (including NCI) $84.9M. Class A stockholders' equity stands at $50.3M and noncontrolling interest (SLP Class B) at $34.6M. Treasury stock has grown to $50.4M at cost, reflecting an aggressive 2024-2025 buyback program ($30.5M deployed in FY2025 alone per cash flow tags).

Liquidation asset side: Cash of $44.1M recovers at par. Net receivables (AR net $11.8M, unbilled $7.7M, accrued fees $4.3M) recover at 90-95%, yielding roughly $22M. PP&E gross $23.3M less accumulated depreciation $15.6M = $7.7M net book; at 50-60% recovery, ~$4M. Finance lease ROU asset $0.3M and operating lease ROU asset $17.4M are effectively zero in liquidation (counterparty-dependent sublease). Equity method investments $1.0M at partial recovery. Deferred tax asset net $1.1M: zero recovery. Goodwill $63.7M (net of $17.4M accumulated impairment): zero recovery. Intangible assets net $14.5M (client relationships, primarily): zero recovery in forced liquidation. Total realistic liquidation asset pool: approximately $70-72M.

Liability side at face value: Accrued compensation $43.4M (dominant item, consistent with fee-sharing RIA structure), accounts payable and accruals $4.3M, operating lease liability $19.6M (ASC 842 obligation; does not extinguish on windup without lease termination payments), finance lease liability $0.3M, revolving line of credit drawn $4.0M, deferred tax liabilities $11.4M (partially offset by DTA but net DTL adds to recovery drain). Total liabilities $81.7M.

Recovery math: ~$71M assets less $81.7M liabilities = negative equity recovery before any liquidation friction. The MFFAIS CLV/LLV/OLV of $24.1M represents the consolidated entity, consistent with this asymmetry. Key drivers are: (1) $78.1M combined goodwill + intangibles receiving zero haircut on the asset side but fully funded by liabilities, (2) $43.4M accrued compensation that is structural to the business model and does not shrink in wind-down, (3) $19.6M operating lease liability with no offsetting ROU recovery. The FY2025 buyback of ~$30.5M consumed cash that would otherwise have supported liquidation recovery. Filing notes a new $25M 2025 Repurchase Program authorized May 2025, with $8.9M remaining capacity at September 30, 2025. The foreign subsidiary recorded a full $0.6M valuation allowance against its deferred tax asset for NOL carryforwards as it has no operating history; immaterial but signals incremental overseas investment with no near-term balance-sheet benefit. First instance of unrecognized tax benefits ($0.3M) booked in FY2025 against zero in FY2024, recorded in deferred tax and other liabilities. Operating cash flow declined to $18.6M for FY2025 versus $17.6M for FY2024 (per cash flow tag), though the net cash position fell $24.5M primarily due to buyback and distributions.