Company Overview - StepStone Group is a global private markets investment firm with approximately $709 billion in total capital as of March 31, 2025, including $189 billion in assets under management [2] - The firm serves a diverse client base, including large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [2] Partnership with Goji - StepStone Group is leveraging Goji's technology to enhance access to its European private market evergreen funds, aiming to simplify the investor journey [1] - Goji provides a technology-enabled investment platform that offers a secure, scalable, and customizable solution for asset managers and investors [3] - The collaboration is expected to deliver a streamlined and efficient investment experience, supported by Euroclear's digital infrastructure and regulatory expertise [1] Fund Performance - StepStone Private Markets (Luxembourg) ("SPRIM Lux") has $351 million in assets under management and a total net return of 43.81% since its inception in September 2022 [4] - StepStone Private Venture and Growth (Luxembourg) ("SPRING Lux") has $427 million in assets under management with a total net return of 70.65% since its inception in November 2022 [4] - StepStone Private Infrastructure (Luxembourg) ("STRUCTURE Lux") has $89.9 million in assets under management and a total net return of 32.24% since its inception in September 2023 [4] - StepStone Private Credit Europe ELTIF ("SCRED Europe") launched in February 2025 with over €250 million in seed capital, focusing on a diversified European private credit strategy [4]

Core Insights - StepStone Real Estate (SRE) has been awarded the 2025 IPE Real Estate Global Awards' Investment Consultancy of the Year, marking its fourth consecutive year receiving this recognition [1][2]. Group 1: Award Recognition - The Investment Consultancy of the Year Award highlights SRE's effective advisory approach for institutional clients and investors in real estate investment programs [2]. - The firm's competitive advantages include global reach, an experienced team, strong relationships with general partners, extensive market coverage, and proprietary technology for market intelligence [2]. Group 2: Performance Metrics - In 2024, SRE conducted approximately 1,000 manager meetings and approved $14 billion in real estate capital commitments across 47 funds [2]. - As of March 31, 2025, StepStone Group managed approximately $709 billion in total capital, with $189 billion in assets under management [3]. Group 3: Company Strategy - SRE differentiates itself through hands-on experience in secondaries, recapitalizations, and co-investments, along with deep manager, fund, and market research capabilities [3]. - The company aims to provide tailor-made solutions to a diverse and growing client base [3].

Summary of StepStone Group Conference Call Company Overview - **Company**: StepStone Group - **Industry**: Private Markets Investment and Advisory - **Assets Under Management**: Approximately $190 billion, overseeing nearly $500 billion in private market allocations [3][4] Key Points and Arguments Business Model and Market Position - StepStone operates as a solution provider, differentiating itself from traditional General Partners (GPs) like Blackstone and KKR by allocating capital on behalf of clients to funds managed by GPs while also managing direct strategies [4][5] - The private markets have grown from approximately $2 trillion in assets under management (AUM) in 2007 to over $15 trillion today, indicating a significant market opportunity for solution providers [7][8] - StepStone's strategies include primary fund investments, co-investments, and secondary interests across four asset classes: private equity, venture capital, real estate, and private credit [6] Fundraising Success - Fiscal year 2025 was a record year for StepStone with total inflows of $30 billion, including $20 billion from separate accounts and $10 billion from commingled funds [10][11] - The company achieved a 90% re-up rate for managed accounts, with clients increasing their investments by an average of 30% upon re-upping [14][15] - The commingled fund side saw significant success, with over $3 billion raised across three different funds, marking the largest fundraising year for commingled funds since inception [12][13] Global Footprint and Client Base - Over 60% of StepStone's business comes from outside the U.S., allowing the firm to tap into growing allocations in emerging markets [11][24] - The firm aims to work with a diverse range of clients, from large sovereign wealth funds to individual investors, reflecting a solutions-oriented approach [9] Partnership with FTSE Russell - StepStone announced a partnership with FTSE Russell to develop private asset indices and analytics products, aiming to address the challenge of measuring performance across liquid and illiquid assets [17][20] - The partnership will initially focus on benchmarking solutions, with potential for investable products like index funds in the future [18][19] Macro Environment and Market Dynamics - The macroeconomic environment has been volatile, impacting fundraising and investment activity; however, StepStone's diversification across asset classes and geographies has mitigated some risks [22][24] - The secondary market has seen significant growth, with total secondary volume reaching approximately $160 billion in 2024, more than doubling in the last five to six years [33][34] Opportunities in Private Wealth and Institutional Markets - Private wealth management has seen substantial growth, with assets on the platform exceeding $8 billion, driven by a strong performance and efficient capital structures [40][42] - There is a growing interest in private credit and infrastructure as newer asset classes, with many institutional investors beginning to allocate to these areas [30][29] Future Outlook - StepStone is focused on expanding its international operations and product offerings, particularly in the private wealth channel and retirement markets [48][54] - The firm is exploring opportunities in public-private partnerships and the retirement channel, recognizing the potential for significant asset growth in these areas [50][53] Additional Important Insights - The firm has developed a comprehensive product suite for private wealth, catering to a wide range of investors and emphasizing a solutions-oriented approach [44][45] - The secondary market is expected to continue growing, driven by liquidity challenges faced by limited partners (LPs) and the increasing importance of secondary transactions [31][33] This summary encapsulates the key insights and developments discussed during the conference call, highlighting StepStone Group's strategic positioning, fundraising success, and future opportunities in the private markets landscape.

New office deepens partnership with the National Pension Service and strengthens presence in KoreaJEONJU, South Korea, June 04, 2025 (GLOBE NEWSWIRE) -- StepStone Group (Nasdaq: STEP), a global private markets solutions provider, has opened an office in Jeonju, North Jeolla Province, South Korea. The new office marks a continued expansion of StepStone’s long-standing relationship with the National Pension Service (NPS), one of the world’s largest institutional investors. This is StepStone’s second office in ...

27 May 2025 | 9:55PM EDT anthony.corbin@gs.com Goldman Sachs & Co. LLC Michael Vinci +1(212)357-8239 | michael.vinci@gs.com Goldman Sachs & Co. LLC Luke Bianculli +1(212)357-4319 | luke.bianculli@gs.com Goldman Sachs & Co. LLC Aditya Sharma, CFA +1(212)934-9869 | aditya.x.sharma@gs.com Goldman Sachs India SPL StepStone Group (STEP): Fundraising momentum drives visibility into FY26, with healthy FRE operating leverage STEP reported FY4Q25 EPS of $0.68, up sharply from $0.44 in FY3Q25 and well ahead of our es ...

Company Overview - StepStone Group Inc. is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to clients [2] - As of March 31, 2025, StepStone was responsible for approximately $709 billion of total capital, including $189 billion of assets under management [2] - The firm's clients include large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [2] Upcoming Events - Scott Hart, CEO, and Mike McCabe, Head of Strategy, are scheduled to present at the Morgan Stanley US Financials Conference on June 10, 2025, at 2:30 pm ET [1] - A live webcast and replay of the presentation will be accessible through the StepStone website [1]

Investment Performance - The company has a strong investment performance track record, outperforming the MSCI ACWI Index with a net IRR of 11.2% compared to the benchmark's 0.9%[49] - The company has over 225 investment programs with the potential to earn performance fees, totaling over $95 billion in committed capital[54] - Approximately 75% of the accrued carried interest allocations of $1,496 million are from StepStone Fund vintages of 2019 or prior[54] Financial Growth - Management and advisory fees increased from $235 million in fiscal 2020 to $767 million in fiscal 2025, reflecting a 27% compounded annual growth rate[51] - As of March 31, 2025, the company had $24.6 billion of committed but undeployed fee-earning capital, expected to generate management fees upon deployment[52] - NAV-based management fees represented approximately 14% of total net management and advisory fees as of March 31, 2025, compared to 9% in 2024[601] Client Relationships - The company has maintained a high client retention rate of approximately 95% since inception[99] - Approximately 34% of the company's clients engage for both asset management and advisory services[99] - The company aims to expand existing client mandates and deploy already raised committed capital to drive growth[57][58] Global Expansion and Strategy - The company is focused on adding new clients globally, leveraging its established local presence and global investment capabilities[60] - The company plans to pursue selective strategic acquisitions to complement its platform and enhance distribution[64] Responsible Investment and Sustainability - The company became a signatory to the United Nations Principles for Responsible Investment (UNPRI) in 2013 and adopted a Responsible Investment policy in 2014, which is reviewed annually[88] - The company has engaged a consultant annually since 2019 to conduct a comprehensive carbon footprint measurement and analysis of its operations[95] - The company has implemented a standalone climate policy and incorporated TCFD-aligned climate considerations within its investment process in 2022[88] - The company has observed a growing focus on impact investing, targeting commercial returns while investing in thematic opportunities such as climate change and the United Nations' Sustainable Development Goals[92] Employee Development and Culture - As of March 31, 2025, the company had approximately 1,130 employees globally, including over 375 investment professionals[137] - The company emphasizes a culture of belonging and continuous improvement, fostering an environment where data and analysis drive decision-making[141] - The company’s investment in employee development includes structured training programs and mentorship opportunities to support professional growth[140] Financial Risks and Compliance - The company is preparing for compliance with the new anti-money laundering and customer identification programs required by the SEC and FinCEN by the end of 2025[124] - The SEC adopted amendments to Regulation S-P in May 2024, mandating notification to clients in the event of privacy breaches[124] - The company is subject to the EU Alternative Investment Fund Managers Directive II (AIFMD II), which entered into force on April 15, 2024, with a two-year implementation period[130] Borrowings and Interest Rates - The company had $175.0 million in borrowings outstanding under its Notes and $100.0 million under its Revolver as of March 31, 2025[605] - Interest expense is estimated to increase by $2.8 million in 2025 and $1.5 million in 2024 due to a 100 basis point increase in interest rates[605] - Interest income is expected to increase by $2.5 million in 2025 and $1.4 million in 2024 with a 100 basis point increase in interest rates[605] Market Sensitivity - A 10% decline in market values of investments held in the company's funds would result in an approximate decrease to annual management fees of $11.2 million in 2025 and $5.8 million in 2024[601] - A 10% decline in fair value of investments in funds would result in a decrease in investment income of $18.4 million in 2025 and $13.5 million in 2024[602] - The company’s carried interest allocation revenue is influenced by market factors, with varying impacts across different funds[602]

StepStone Group Inc. (STEP) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 47.83%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.44, delivering no surprise.Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $18.5 million or $0.24 per share for the fourth quarter [5] - Fee related earnings reached $94.1 million, an increase of 85% from the prior year quarter, with an FRE margin of 44% [5][31] - Adjusted net income for the quarter was $80.6 million or $0.68 per share, up from $37.7 million or $0.33 per share in the same quarter last year [6][31] - The total dividend payout for the fiscal year was $1.36, up from $0.99 the previous year [6][29] Business Line Data and Key Metrics Changes - The company raised over $31 billion in assets under management (AUM) for the fiscal year, with a growth of $27.5 billion in fee earning AUM, marking a 29% growth rate [8][18] - Managed account re-up rates remained above 90%, with average growth of approximately 30% [9] - The private wealth platform saw significant growth, increasing from $3.4 billion to over $8 billion in assets [11] Market Data and Key Metrics Changes - Total gross inflows for the quarter were $9.9 billion, the second highest on record [12] - Fee earning assets under management grew to over $121 billion, up $7.2 billion from the previous quarter [13] - The undeployed fee earning capital (UFEC) increased from approximately $22 billion to $25 billion [22] Company Strategy and Development Direction - The company aims to continue expanding its private wealth offerings and has introduced new products to enhance distribution [11][27] - The strategy includes focusing on scenario planning to assess impacts by asset class, strategy, region, and sector amid a volatile market environment [14] - The company is actively pursuing opportunities in private markets, leveraging its scale and expertise to navigate through cycles [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting recent progress in trade policy but acknowledging ongoing uncertainty [14] - The company believes that private markets will continue to outperform public markets, emphasizing the importance of a long-term investment approach [15][16] - Management highlighted the importance of maintaining a disciplined investment strategy to capitalize on market dislocations [17] Other Important Information - The company plans to conduct a buy-in of non-controlling interests using $10 million in cash and $161 million in equity [28] - The board declared a supplemental dividend of $0.40 per share, in addition to a base quarterly dividend of $0.24 [29] Q&A Session Summary Question: What were the one-time fees mentioned in the quarter? - The one-time fees were approximately $4 million in advisory fees, which were larger than usual for the quarter [39] Question: How does the pipeline of new business look? - Management expressed a positive outlook on the pipeline, noting strong opportunities in new capital allocations to private markets [44] Question: How do you see the fundraising environment evolving? - Management noted a barbell fundraising trend with strong first and final closes, indicating a healthy fundraising environment [50] Question: What is the outlook for the secondaries marketplace? - Management expects increased selling in the secondaries market due to liquidity constraints among investors, positioning the company as an active buyer [59] Question: How is the private wealth product platform evolving? - The company sees significant growth potential in the private wealth space, particularly in expanding its offerings and distribution in Europe [63]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $18.5 million or $0.24 per share for the fourth quarter [4] - Fee related earnings (FRE) reached $94.1 million, an increase of 85% from the prior year quarter, with an FRE margin of 44% [4][12] - Adjusted net income for the quarter was $80.6 million or $0.68 per share, up from $37.7 million or $0.33 per share in the same quarter last year [5][12] - The total dividend payout for the fiscal year was $1.36, up from $0.99 the previous year [5][28] Business Line Data and Key Metrics Changes - The company raised over $31 billion in assets under management (AUM) for the fiscal year, with a growth of $27.5 billion in fee earning AUM, marking a 29% increase [6][12] - Managed account re-up rates remained above 90%, with an average growth of approximately 30% [6] - The private wealth platform saw AUM increase from $3.4 billion to over $8 billion [10] - Total gross inflows for the quarter were $9.9 billion, with $1.2 billion of evergreen subscriptions, marking the best private wealth quarter ever [11][20] Market Data and Key Metrics Changes - The company experienced strong fundraising and deployment of undeployed fee earning capital, driving fee earning AUM to over $121 billion, an increase of $7.2 billion from the previous quarter [12][22] - The undeployed fee earning capital (UFEC) grew from approximately $22 billion to $25 billion [22] - The blended management fee rate increased to 65 basis points from 59 basis points in the prior fiscal year [22] Company Strategy and Development Direction - The company aims to double its fee related earnings over five years and expand its FRE margin to the mid-30s, achieving a doubling of fee related earnings in just two years [23][24] - The company is focused on scenario planning to assess impacts by asset class, strategy, region, and sector due to market uncertainties [13] - The company is expanding its private wealth offerings and distribution partners, increasing from 300 to nearly 500 unique platforms [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the evolving global trade policy and its impact on market volatility [13] - The company believes that private markets will continue to outperform public markets, emphasizing the importance of a long-term disciplined investment approach [14][15] - Management highlighted the importance of leveraging data and technology to enhance client acquisition and retention [26] Other Important Information - The company plans to conduct a buy-in of non-controlling interests using $10 million in cash and $161 million in equity [27] - The company declared a supplemental dividend of $0.40 per share, in addition to a base quarterly dividend of $0.24 [28] Q&A Session Summary Question: What were the one-time fees in the quarter? - The one-time fees were approximately $4 million in advisory fees, which impacted the FRE margin [38] Question: How does the pipeline of new business look? - The company is optimistic about the pipeline of new opportunities, with a healthy mix of re-ups and new business expected [44] Question: How do you see the secondaries marketplace evolving? - The company anticipates increased selling in the secondaries market and is positioned as an active buyer across various private markets [60] Question: What is the outlook for the private wealth product platform? - The company sees significant growth potential in both the US and European markets, with plans to expand its product offerings [64]