( 2 ) adjusted ebitda margin , a non-gaap measure of earnings , is calculated by dividing adjusted ebitda by total revenue . ( 3 ) we have computed average assets under management by averaging assets under management at the beginning of the applicable period and assets under management at the end of the applicable period . 38 revenue we generate revenue from management and advisory fees , performance fees and family office services fees . our management and advisory fees are generated by managing assets on behalf of separate accounts and acting as investment adviser for various investment funds . our performance fees relate to assets managed in external investment strategies in which we have a revenue sharing arrangement and in funds in which we have no partnership interest . our management and advisory fees and family office services fees income is recognized through the course of the period in which these services are provided . income from performance fees is recorded at the conclusion of the contractual performance period when all contingencies are resolved . in certain arrangements , we are only entitled to receive performance fees and allocations when the return on assets under management exceeds certain benchmark returns or other performance targets . the discretionary investment management agreements for our separately managed accounts do not have a specified term . rather , each agreement may be terminated by either party at any time , unless otherwise agreed with the client , upon written notice of termination to the other party . the investment management agreements for our private funds are generally in effect from year to year , and may be terminated at the end of any year ( or , in certain cases , on the anniversary of execution of the agreement ) ( i ) by us upon 30 or 90 days ' prior written notice and ( ii ) after receiving the affirmative vote of a specified percentage of the investors in the private funds that are not affiliated with us , by the private fund on 60 or 90 days ' prior written notice . the investment management agreements for our private funds may also generally be terminated effective immediately by either party where the non-terminating party ( i ) commits a material breach of the terms subject , in certain cases , to a cure period , ( ii ) is found to have committed fraud , gross negligence or willful misconduct or ( iii ) becomes bankrupt , becomes insolvent or dissolves . each of our investment management agreements contains customary indemnification obligations from us to our clients . the tables below set forth the amount of assets under management , the percentage of management and advisory fees revenues , the amount of revenue recognized , and the average assets under management for discretionary managed accounts and for private funds for each period presented . discretionary managed accounts replace_table_token_4_th private funds replace_table_token_5_th our management and advisory fees are primarily driven by the level of our assets under management . our assets under management increase or decrease based on the net inflows or outflows of funds into our various investment strategies and the investment performance of our clients ' accounts . in order to increase our assets under management and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients and provide attractive returns over the long term . our ability to continue to attract clients will depend on a variety of factors including , among others : our ability to educate our target clients about our classic value investment strategies and provide them with exceptional client service ; the relative investment performance of our investment strategies , as compared to competing products and market indices ; competitive conditions in the investment management and broader financial services sectors ; investor sentiment and confidence ; and our decision to close strategies when we deem it to be in the best interests of our clients . 39 the majority of management and advisory fees that we earn on separately managed accounts are based on the value of assets under management on the last day of each calendar quarter . most of our management and advisory fees are billed quarterly in advance on the first day of each calendar quarter . our basic annual fee schedule for management of clients ' assets in separately managed accounts is : ( i ) for managed equity or balanced portfolios , 1 % of the first $ 10 million and 0.60 % on the balance , ( ii ) for managed fixed income only portfolios , 0.40 % on the first $ 10 million and 0.30 % on the balance , ( iii ) for the municipal value strategy , 0.65 % , ( iv ) for cortina equity po rtfolios , 1.0 % on the first $ 25 million , 0.90 % on the next $ 25 million and 0.80 % on the balance and ( v ) for outsourced chief investment officer portfolios , 0.40 % on the first $ 50 million , 0.32 % on the next $ 50 million and 0.24 % on the balance . our fee for monitoring non-discretionary assets can range from 0.05 % to 0.01 % , but can also be incorporated into an agreed-upon fixed family office service fee . the majority of our client relationships pay a blended fee rate since they are invested in multiple strateg ies . management fees earned on investment funds that we advise are calculated primarily based on the net assets of the funds . some funds calculate investment fees based on the net assets of the funds as of the last business day of each calendar quarter , whereas other funds calculate investment fees based on the value of net assets on the first business day of the month . story_separator_special_tag year ended december 31 , 2018 versus year ended december 31 , 2017 our total revenue increased by $ 7.3 million , or 8.0 % , to $ 98.7 million for year ended december 31 , 2018 , from $ 91.4 million for year ended december 31 , 2017. this increase was driven primarily by growth in our management and advisory fees as a result of an increase in average management fees partially offset by a decrease in performance fees . 44 assets under management declined by $ 2.3 billion , or 10.8 % , to $ 19.0 billion at december 31 , 201 8 from $ 21.3 billion at december 31 , 201 7 . our decline in assets under management for the year ended decem ber 31 , 201 8 was attributable to a decline in discretionary assets under management of $ 1.8 billion and a decline of $ 0.5 billion in non-discretionary assets under management . the decline in our discretionary assets under management was driven by market de preciation and net client out flows . with respect to our discretionary assets under management , equity assets declined by 13.5 % during the year ended december 31 , 201 8 and fixed income assets declined by 5.8 % during the same period . with respect to our dis cretionary assets under management , most of our decline came from our small cap value , smid cap value , small cap concentrated and multi cap value strategies with composite negative returns of -15.7 % , -12.4 % , -12.2 % and -10.6 % , respectively , for the year ended december 31 , 201 8 . compared to the year ended december 31 , 201 7 , there was an increase of $ 1.0 billion of client inflows , an increase of $ 2.8 billion in client outflows , and an increase of $ 3.2 billion in market de preciation . our market de preciation during the year ended december 31 , 201 8 constituted a 5.8 % rate of de crease in our total assets under management compared to december 31 , 201 7 , as compared to our market appreciation during the year ended december 31 , 201 7 which constituted a 9.9 % rate of increase in our total assets under management compared to december 31 , 201 6 . sub-advised fund management revenue increased by $ 0.4 million for the year ended december 31 , 201 8 as compared to the prior year . proprietary fund management revenue remained f lat for the year ended december 31 , 201 8 as compared to the prior year . as of december 31 , 201 8 , the composition of our assets under management was 75 % in discretionary assets , which includes both separately managed accounts and proprietary and sub-advise d funds , and 25 % in non-discretionary assets which represent assets on which we provide portfolio reporting but do not have investment discretion . family office services revenue remained flat at $ 4.0 million for the years ended december 31 , 2018 and 2017. performance fee revenue decreased by $ 0.8 million to $ 25 thousand for the year ended december 31 , 2018 from $ 0.8 million for the year ended december 31 , 2017. these performance fees are primarily related to external investment strategies in which we have a revenue sharing arrangement . the following table represents a further breakdown of our assets under management for the years ended december 31 , 2019 , 2018 and 2017 : replace_table_token_11_th ( 1 ) represents new account flows from both new and existing client relationships ( 2 ) represents closed accounts of existing client relationships and those that terminated ( 3 ) represents periodic cash flows related to existing accounts ( 4 ) represents client assets that converted to discretionary aum from non-discretionary aum ( 5 ) represents the net change to non-discretionary aum 45 expenses our expenses for the years ended december 31 , 2019 , 2018 and 2017 are set forth below : replace_table_token_12_th replace_table_token_13_th ( 1 ) for the years ended december 31 , 2019 and 2018 , $ 27,229 and $ 27,197 , respectively , of partner incentive payments was included in compensation and benefits expense . 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 years ended december 31 , 2019. 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 consolidated statement of operations . year ended december 31 , 2019 versus year ended december 31 , 2018 total expenses increased by $ 5.8 million , or 7.4 % , to $ 83.3 million for the year ended december 31 , 2019 from $ 77.5 million for the year ended december 31 , 2018. this increase was primarily attributable to increases in compensation and benefits expense of $ 2.1 million and an increase in general and administrative expenses of $ 3.7 million . compensation and benefits expense increased by $ 2.1 million , or 3.6 % , to $ 60.0 million for the year ended december 31 , 2019 from $ 57.9 million for the year ended december 31 , 2018. the increase was primarily attributable to an increase in salaries and benefits expenses of $ 2.5 million primarily as a result of merit-based increases and newly-hired staff , including the addition of cortina staff , and an increase in the accrual for bonuses of $ 0.6 million partially offset by a decrease in equity based compensation expense of $ 1.0 million due to a decrease in the number of unvested restricted stock units and unvested non-qualified stock options outstanding . general and administrative expenses increased by $ 3.6 million , or 18.7 % , to $ 23.2 million

cash flows the following table sets forth our cash flows for the years ended december 31 , 2019 , 2018 and 2017. 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 , distributions received from investments in investment funds , and cash paid as part of business acquisitions . financing activities consist primarily of contributions from partners , distributions to partners , the issuance and payments on partner notes , other financings , and earnout payments related to business acquisitions . replace_table_token_19_th operating activities year ended december 31 , 2019 versus year ended december 31 , 2018 operating activities provided $ 18.8 million and $ 28.9 million for the years ended december 31 , 2019 and 2018 , respectively . this difference is primarily the result of a reduction in net income of $ 2.0 million , a decrease in accrued compensation of $ 2.4 million , an increase in equity income from investments related to performance fees of $ 0.3 million , a change in the fair value adjustment to the tax receivable agreement of $ 0.2 million , a decrease in equity based compensation of $ 1.0 million due to a decrease in the number of unvested restricted stock units and unvested non-qualified stock options outstanding , a decrease in deferred rent of $ 3.8 million as a result of adopting asc 842 , and an increase in accounts receivable and due from silvercrest funds of $ 4.9 million due to the timing of collections .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows the following table sets forth our cash flows for the years ended december 31 , 2019 , 2018 and 2017. 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 , distributions received from investments in investment funds , and cash paid as part of business acquisitions . financing activities consist primarily of contributions from partners , distributions to partners , the issuance and payments on partner notes , other financings , and earnout payments related to business acquisitions . replace_table_token_19_th operating activities year ended december 31 , 2019 versus year ended december 31 , 2018 operating activities provided $ 18.8 million and $ 28.9 million for the years ended december 31 , 2019 and 2018 , respectively . this difference is primarily the result of a reduction in net income of $ 2.0 million , a decrease in accrued compensation of $ 2.4 million , an increase in equity income from investments related to performance fees of $ 0.3 million , a change in the fair value adjustment to the tax receivable agreement of $ 0.2 million , a decrease in equity based compensation of $ 1.0 million due to a decrease in the number of unvested restricted stock units and unvested non-qualified stock options outstanding , a decrease in deferred rent of $ 3.8 million as a result of adopting asc 842 , and an increase in accounts receivable and due from silvercrest funds of $ 4.9 million due to the timing of collections .
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 Suspicious Activity Report : ( 2 ) adjusted ebitda margin , a non-gaap measure of earnings , is calculated by dividing adjusted ebitda by total revenue . ( 3 ) we have computed average assets under management by averaging assets under management at the beginning of the applicable period and assets under management at the end of the applicable period . 38 revenue we generate revenue from management and advisory fees , performance fees and family office services fees . our management and advisory fees are generated by managing assets on behalf of separate accounts and acting as investment adviser for various investment funds . our performance fees relate to assets managed in external investment strategies in which we have a revenue sharing arrangement and in funds in which we have no partnership interest . our management and advisory fees and family office services fees income is recognized through the course of the period in which these services are provided . income from performance fees is recorded at the conclusion of the contractual performance period when all contingencies are resolved . in certain arrangements , we are only entitled to receive performance fees and allocations when the return on assets under management exceeds certain benchmark returns or other performance targets . the discretionary investment management agreements for our separately managed accounts do not have a specified term . rather , each agreement may be terminated by either party at any time , unless otherwise agreed with the client , upon written notice of termination to the other party . the investment management agreements for our private funds are generally in effect from year to year , and may be terminated at the end of any year ( or , in certain cases , on the anniversary of execution of the agreement ) ( i ) by us upon 30 or 90 days ' prior written notice and ( ii ) after receiving the affirmative vote of a specified percentage of the investors in the private funds that are not affiliated with us , by the private fund on 60 or 90 days ' prior written notice . the investment management agreements for our private funds may also generally be terminated effective immediately by either party where the non-terminating party ( i ) commits a material breach of the terms subject , in certain cases , to a cure period , ( ii ) is found to have committed fraud , gross negligence or willful misconduct or ( iii ) becomes bankrupt , becomes insolvent or dissolves . each of our investment management agreements contains customary indemnification obligations from us to our clients . the tables below set forth the amount of assets under management , the percentage of management and advisory fees revenues , the amount of revenue recognized , and the average assets under management for discretionary managed accounts and for private funds for each period presented . discretionary managed accounts replace_table_token_4_th private funds replace_table_token_5_th our management and advisory fees are primarily driven by the level of our assets under management . our assets under management increase or decrease based on the net inflows or outflows of funds into our various investment strategies and the investment performance of our clients ' accounts . in order to increase our assets under management and expand our business , we must develop and market investment strategies that suit the investment needs of our target clients and provide attractive returns over the long term . our ability to continue to attract clients will depend on a variety of factors including , among others : our ability to educate our target clients about our classic value investment strategies and provide them with exceptional client service ; the relative investment performance of our investment strategies , as compared to competing products and market indices ; competitive conditions in the investment management and broader financial services sectors ; investor sentiment and confidence ; and our decision to close strategies when we deem it to be in the best interests of our clients . 39 the majority of management and advisory fees that we earn on separately managed accounts are based on the value of assets under management on the last day of each calendar quarter . most of our management and advisory fees are billed quarterly in advance on the first day of each calendar quarter . our basic annual fee schedule for management of clients ' assets in separately managed accounts is : ( i ) for managed equity or balanced portfolios , 1 % of the first $ 10 million and 0.60 % on the balance , ( ii ) for managed fixed income only portfolios , 0.40 % on the first $ 10 million and 0.30 % on the balance , ( iii ) for the municipal value strategy , 0.65 % , ( iv ) for cortina equity po rtfolios , 1.0 % on the first $ 25 million , 0.90 % on the next $ 25 million and 0.80 % on the balance and ( v ) for outsourced chief investment officer portfolios , 0.40 % on the first $ 50 million , 0.32 % on the next $ 50 million and 0.24 % on the balance . our fee for monitoring non-discretionary assets can range from 0.05 % to 0.01 % , but can also be incorporated into an agreed-upon fixed family office service fee . the majority of our client relationships pay a blended fee rate since they are invested in multiple strateg ies . management fees earned on investment funds that we advise are calculated primarily based on the net assets of the funds . some funds calculate investment fees based on the net assets of the funds as of the last business day of each calendar quarter , whereas other funds calculate investment fees based on the value of net assets on the first business day of the month . story_separator_special_tag year ended december 31 , 2018 versus year ended december 31 , 2017 our total revenue increased by $ 7.3 million , or 8.0 % , to $ 98.7 million for year ended december 31 , 2018 , from $ 91.4 million for year ended december 31 , 2017. this increase was driven primarily by growth in our management and advisory fees as a result of an increase in average management fees partially offset by a decrease in performance fees . 44 assets under management declined by $ 2.3 billion , or 10.8 % , to $ 19.0 billion at december 31 , 201 8 from $ 21.3 billion at december 31 , 201 7 . our decline in assets under management for the year ended decem ber 31 , 201 8 was attributable to a decline in discretionary assets under management of $ 1.8 billion and a decline of $ 0.5 billion in non-discretionary assets under management . the decline in our discretionary assets under management was driven by market de preciation and net client out flows . with respect to our discretionary assets under management , equity assets declined by 13.5 % during the year ended december 31 , 201 8 and fixed income assets declined by 5.8 % during the same period . with respect to our dis cretionary assets under management , most of our decline came from our small cap value , smid cap value , small cap concentrated and multi cap value strategies with composite negative returns of -15.7 % , -12.4 % , -12.2 % and -10.6 % , respectively , for the year ended december 31 , 201 8 . compared to the year ended december 31 , 201 7 , there was an increase of $ 1.0 billion of client inflows , an increase of $ 2.8 billion in client outflows , and an increase of $ 3.2 billion in market de preciation . our market de preciation during the year ended december 31 , 201 8 constituted a 5.8 % rate of de crease in our total assets under management compared to december 31 , 201 7 , as compared to our market appreciation during the year ended december 31 , 201 7 which constituted a 9.9 % rate of increase in our total assets under management compared to december 31 , 201 6 . sub-advised fund management revenue increased by $ 0.4 million for the year ended december 31 , 201 8 as compared to the prior year . proprietary fund management revenue remained f lat for the year ended december 31 , 201 8 as compared to the prior year . as of december 31 , 201 8 , the composition of our assets under management was 75 % in discretionary assets , which includes both separately managed accounts and proprietary and sub-advise d funds , and 25 % in non-discretionary assets which represent assets on which we provide portfolio reporting but do not have investment discretion . family office services revenue remained flat at $ 4.0 million for the years ended december 31 , 2018 and 2017. performance fee revenue decreased by $ 0.8 million to $ 25 thousand for the year ended december 31 , 2018 from $ 0.8 million for the year ended december 31 , 2017. these performance fees are primarily related to external investment strategies in which we have a revenue sharing arrangement . the following table represents a further breakdown of our assets under management for the years ended december 31 , 2019 , 2018 and 2017 : replace_table_token_11_th ( 1 ) represents new account flows from both new and existing client relationships ( 2 ) represents closed accounts of existing client relationships and those that terminated ( 3 ) represents periodic cash flows related to existing accounts ( 4 ) represents client assets that converted to discretionary aum from non-discretionary aum ( 5 ) represents the net change to non-discretionary aum 45 expenses our expenses for the years ended december 31 , 2019 , 2018 and 2017 are set forth below : replace_table_token_12_th replace_table_token_13_th ( 1 ) for the years ended december 31 , 2019 and 2018 , $ 27,229 and $ 27,197 , respectively , of partner incentive payments was included in compensation and benefits expense . 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 years ended december 31 , 2019. 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 consolidated statement of operations . year ended december 31 , 2019 versus year ended december 31 , 2018 total expenses increased by $ 5.8 million , or 7.4 % , to $ 83.3 million for the year ended december 31 , 2019 from $ 77.5 million for the year ended december 31 , 2018. this increase was primarily attributable to increases in compensation and benefits expense of $ 2.1 million and an increase in general and administrative expenses of $ 3.7 million . compensation and benefits expense increased by $ 2.1 million , or 3.6 % , to $ 60.0 million for the year ended december 31 , 2019 from $ 57.9 million for the year ended december 31 , 2018. the increase was primarily attributable to an increase in salaries and benefits expenses of $ 2.5 million primarily as a result of merit-based increases and newly-hired staff , including the addition of cortina staff , and an increase in the accrual for bonuses of $ 0.6 million partially offset by a decrease in equity based compensation expense of $ 1.0 million due to a decrease in the number of unvested restricted stock units and unvested non-qualified stock options outstanding . general and administrative expenses increased by $ 3.6 million , or 18.7 % , to $ 23.2 million

