Core Insights - StepStone Group has opened a new office in Madrid, marking its ninth office in Europe and demonstrating the firm's commitment to expansion in the region [1][2] - The Madrid office aims to enhance access to high-quality global investment opportunities for clients in Southern Europe, particularly in Spain, Portugal, and Andorra [2] - StepStone Group manages approximately $771 billion in total capital, with $209 billion in assets under management as of September 30, 2025 [4] Company Expansion - The establishment of the Madrid office is part of StepStone's long-term growth strategy in Southern Europe [2] - The office will be led by Guglielmo Russo Walti, focusing on business development and client relations in the Iberian region [2] Client Focus - StepStone Group aims to combine local market understanding with global expertise to help clients capitalize on investment opportunities [2] - The firm serves a diverse client base, including large pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [4] Global Presence - With 31 offices worldwide, StepStone is positioned to meet the rising global demand for investment opportunities that provide attractive risk-adjusted returns [3]

Core Insights - StepStone Group has successfully launched the StepStone Private Equity Strategies Fund (STPEX), raising over $750 million since its inception in September 2025, and it is now available on major custodian platforms [1][7]. Fund Structure and Strategy - STPEX is an evergreen interval fund that invests in private equity assets managed by top-tier sponsors identified by StepStone, aiming for long-term capital appreciation [2][3]. - The fund offers individual investors, financial advisors, and institutions access to a diversified portfolio of private market investments, primarily through secondary purchases and co-investments [2][3]. - STPEX allows for daily capital raising and provides liquidity through semi-annual redemptions, with a current expectation of up to 5% of the Fund's net asset value [4][9]. Investment Approach - The fund's capital is invested alongside StepStone's institutional clients by a global private equity team of over 190 investment professionals, responsible for managing approximately $389 billion of capital as of September 30, 2025 [3][6]. - STPEX was developed in response to feedback from partners in the wealth management channel, focusing on providing a private equity strategy with low minimum investments and daily valuation [3][5]. Accessibility and Investor Requirements - The minimum investment for STPEX is set at $5,000, and it is available to investors in the United States without any accreditation requirements [4][6]. - The fund is structured to offer various share classes tailored for different wealth management platforms, enhancing accessibility for a broader group of investors [4][5].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - StepStone Group reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with a year-on-year sales increase of 35.2% to $282.3 million and a non-GAAP profit of $0.54 per share, surpassing analysts' consensus estimates by 10.6% [1][3][6] Financial Performance - Revenue reached $282.3 million, beating analyst estimates of $265.4 million, reflecting a 35.2% year-on-year growth and a 6.4% beat [6] - Adjusted EPS was $0.54 compared to analyst estimates of $0.49, marking a 10.6% beat [6] - Adjusted Operating Income stood at $112.5 million, exceeding estimates of $108.6 million, with a margin of 39.9% [6] - Operating Margin was reported at -256%, a decline from 24.4% in the same quarter last year [6] - Market Capitalization is currently $4.89 billion [6] Private Wealth Platform - The firm experienced record-breaking subscriptions in its Private Wealth channel, with $2.4 billion in new inflows and over $700 million attracted by the new STPEX private equity interval fund in its first month [7] - Strong institutional fundraising was evident, generating $3.8 billion in managed account additions, with a retention rate above 90% [7] Geographic and Product Expansion - StepStone expanded its global presence by opening offices in the Netherlands, Spain, South Korea, and Saudi Arabia, enhancing its reach across Europe, Asia, and the Middle East [7] Data and Technology Advancements - The launch of Kroll StepStone Private Credit benchmarks and FTSE StepStone Global Private Market Indices was highlighted, providing daily institutional-grade benchmarks and laying the groundwork for future index-based investment products [8] Expense Trends - Operating expenses increased due to higher spending on technology, travel, and expansion projects, with expectations for further cost increases in upcoming quarters related to major industry events and infrastructure investments [8]

Core Insights - StepStone Group Inc. reported a revenue of $282.34 million for the quarter ended September 2025, reflecting a year-over-year increase of 35.2% and surpassing the Zacks Consensus Estimate by 5.44% [1] - The earnings per share (EPS) for the quarter was $0.54, an increase from $0.45 in the same quarter last year, exceeding the consensus EPS estimate of $0.49 by 10.2% [1] Financial Performance Metrics - Fee-Earning AUM (FEAUM) for Focused Commingled Funds reached $54,584 billion, significantly higher than the average estimate of $17,651.97 billion [4] - Total Fee-Earning AUM (FEAUM) was reported at $132,791 billion, compared to the average estimate of $43,654.68 billion [4] - FEAUM for Separately Managed Accounts (SMAs) was $78,207 billion, exceeding the average estimate of $26,002.71 billion [4] - Assets Under Advisement (AUA) totaled $561.56 billion, surpassing the average estimate of $528.57 billion [4] - Assets Under Management (AUM) stood at $209.15 billion, slightly above the average estimate of $208.32 billion [4] Revenue Breakdown - Total revenues from management and advisory fees, net, were $215.49 million, slightly below the average estimate of $217.05 million [4] - Total performance fees amounted to $238.74 million, significantly higher than the average estimate of $79.7 million [4] - Performance fees from carried interest allocations (unrealized) reached $147.81 million, compared to the average estimate of $26.14 million [4] - Total revenues from carried interest allocations were $206.69 million, exceeding the average estimate of $75.29 million [4] - Realized performance fees from carried interest allocations were reported at $58.88 billion, above the average estimate of $49.15 million [4] Stock Performance - Over the past month, StepStone Group's shares have returned -0.5%, while the Zacks S&P 500 composite has increased by 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - StepStone Group reported Q3 CY2025 revenue of $454.2 million, exceeding analyst expectations by 71.1% and achieving a year-on-year growth of 118% [2][5][7] - The company's non-GAAP profit was $0.54 per share, which was 10.6% above the consensus estimates of $0.49 [2][7] - StepStone Group has a market capitalization of $4.92 billion and manages over $100 billion in assets [2] Revenue Growth - Over the last five years, StepStone Group has achieved a compounded annual growth rate of 31.4% in revenue, outperforming the average financials company [3] - The annualized revenue growth over the last two years stands at 42.8%, indicating a recent acceleration in demand [4] Quarterly Performance - The significant revenue growth of 118% in Q3 CY2025 reflects strong demand and effective business strategies [5][7] - The stock price remained stable at $62.24 immediately after the earnings report, suggesting market confidence in the results [7][8]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $366 million, or $4.66 per share, which is significantly larger than prior periods due to the progress of the Private Wealth platform [3][4] - Fee-related earnings were $79 million, up 9% year-over-year, with a core FRE margin of 36% [4][5] - Adjusted net income for the quarter was $66.7 million, or $0.54 per share, an increase from $53.6 million, or $0.45 per share, in the same quarter last year [5][18] Business Line Data and Key Metrics Changes - The Private Wealth platform generated $2.4 billion in new subscriptions, nearly double the previous highest quarter [6][7] - Institutional fundraising saw $3.8 billion in managed account gross additions for the quarter, contributing to over $10 billion for the first half of the fiscal year [8][9] - Commingled funds generated $3.4 billion in gross additions, with notable contributions from the PE co-investment fund and the PE secondaries fund [10][13] Market Data and Key Metrics Changes - Fee-earning AUM increased by more than $5.5 billion in the quarter to nearly $133 billion, reflecting strong fundraising momentum [11][12] - The company generated $29 billion of gross AUM additions over the last 12 months, with $18 billion from separately managed accounts and $11 billion from commingled funds [13] Company Strategy and Development Direction - The company is focusing on enhancing data and technology offerings, including the launch of the Kroll StepStone Private Credit Benchmarks and FTSE StepStone Global Private Market Indices [11][12] - The partnership with Aviva aims to establish a presence in the U.K. defined contribution market, with expectations for material flows starting in 2026 [37] Management's Comments on Operating Environment and Future Outlook - Management believes current low distributions in private markets are temporary, with indicators suggesting improved realizations ahead [17] - The company is committed to monitoring market conditions and providing solutions for clients despite geopolitical and market challenges [17] Other Important Information - The company opened new offices in the Netherlands, Spain, South Korea, and Saudi Arabia, expanding its global footprint [10] - The adjusted cash-based compensation ratio was 46%, in line with expectations, while general and administrative expenses increased due to higher travel and IT costs [19] Q&A Session Summary Question: What drove the strong demand for StepX and any cannibalization risk? - The strong demand for StepX was driven by specific requests from channel partners for PE-exclusive exposure and the availability of a ticker [23] - Some rotation from SPRIME to StepX was expected and has mostly occurred [24] Question: How far along is the company in selling through distribution partners? - The company has room to grow, with many large distribution partners currently focused on two or three funds rather than all five [26][28] Question: What are the expectations for StepX's subscription rate going forward? - Initial subscriptions for StepX were around $750 million, but a pullback is expected in future quarters [31] Question: What drove the increase in G&A expenses? - The increase was primarily due to travel, IT, and general operating costs, with expectations for continued investment in infrastructure [33] Question: Can you discuss the partnership with Aviva and its potential? - The partnership with Aviva is significant in the U.K. defined contribution market, with material flows expected to build over time starting in 2026 [37] Question: How is the company expanding deal-sourcing capabilities? - The company maintains a balanced approach to deal flow, focusing on primary fund commitments to drive market position and data acquisition [43][44] Question: What are the future product strategies in the private wealth channel? - The company plans to focus on existing products while exploring innovative solutions and models for private markets [46][49]

StepStone Group Earnings Presentation SECOND QUARTER FISCAL YEAR 2026 November 6, 2025 1 Today's presenters STEPSTONE GROUP 2 Scott Hart CEO Jason Ment President & Co-COO Mike McCabe Head of Strategy David Park CFO GAAP consolidated statements of income (loss) GAAP net loss was $575.5 million for the quarter and $587.5 million year-to-date. GAAP net loss attributable to StepStone Group Inc. was $366.1 million (or $4.66 per share) for the quarter and $404.6 million (or $5.17 per share) year-to-date. | ($ in ...

Financial Overview - As of September 30, 2025, the company managed approximately $771 billion in total capital, including $209 billion in assets under management (AUM) and $562 billion in assets under advisement (AUA) [214]. - The company generated $125 billion in AUM from separately managed accounts (SMAs) and $68 billion from focused commingled funds as of September 30, 2025 [216]. - Advisory relationships accounted for $562 billion of AUA and $16 billion of AUM as of September 30, 2025 [220]. - The company provided portfolio analytics and reporting on over $829 billion of client commitments through its proprietary SPI Reporting as of September 30, 2025 [220]. - As of September 30, 2025, the company had over $100 billion of performance fee-eligible capital across over 225 programs [251]. - Assets Under Management (AUM) was $209 billion as of September 30, 2025, up from $176 billion as of September 30, 2024 [333]. - Assets related to advisory accounts were $562 billion as of September 30, 2025, compared to $506 billion as of September 30, 2024 [334]. - Fee-Earning AUM (FEAUM) increased approximately $5.6 billion to $132.8 billion as of September 30, 2025, compared to June 30, 2025 [335]. - FEAUM increased by approximately $11.4 billion to $132.8 billion as of September 30, 2025, compared to March 31, 2025 [336]. Exchange and Ownership - The company completed the 2025 Exchange, acquiring approximately 5% of the equity interests of SRA, SRE, and SPD, resulting in ownership of approximately 60% of SRA and SRE, and 59% of SPD [236]. - The aggregate consideration paid in the 2025 Exchange was approximately $10 million in cash, 756,105 shares of Class A common stock, and 2,438,403 Class D units [236]. Employee and Operational Insights - The company has over 1,240 total employees, including 420 investment professionals, as of September 30, 2025 [215]. - The company operates in 31 cities across 19 countries, enhancing client relationships through local staffing and regional insights [215]. Revenue and Income - Total revenues increased by $182.5 million, or 67%, to $454.2 million for the three months ended September 30, 2025, compared to the same period in 2024 [288]. - Management and advisory fees, net rose by $30.7 million, or 17%, to $215.5 million for the three months ended September 30, 2025, driven by new client activity and a 27% growth in average FEAUM [289]. - Realized carried interest allocation revenues surged by $41.2 million, or 234%, to $58.9 million for the three months ended September 30, 2025, reflecting higher realization activity within private equity funds [291]. - Net income (loss) attributable to StepStone Group Inc. was $(366.1) million for the three months ended September 30, 2025, compared to $17.6 million in the same period of 2024 [290]. - Adjusted revenues increased by $89.9 million, or 21%, to $519.8 million for the six months ended September 30, 2025, compared to the same period in 2024 [355]. - Adjusted net income (ANI) increased by $4.4 million, or 4%, to $115.2 million for the six months ended September 30, 2025, compared to the same period in 2024 [356]. Expenses and Compensation - Total expenses increased by $956.3 million, or 433%, to $1,177.0 million for the three months ended September 30, 2025, primarily due to increases in equity-based compensation and performance fee-related compensation [298]. - Equity-based compensation rose by $847.1 million to $884.5 million for the three months ended September 30, 2025, mainly due to increased expenses for liability classified awards related to profits interest [300]. - Total performance fee-related compensation expense increased by $83.2 million, or 228%, to $119.7 million for the three months ended September 30, 2025, reflecting the increase in carried interest allocation revenue [301]. - Cash-based compensation includes salaries, bonuses, employee benefits, and cash-based incentive awards [259]. - Approximately 50% of carried interest allocation revenue is awarded to employees as performance fee-related compensation, fostering alignment of interest with clients and investors [260]. Market and Economic Factors - The company continues to monitor macroeconomic factors, including inflation and geopolitical tensions, which may impact financial markets and its business operations [225]. - The company highlighted that market conditions and investment opportunities may differ from past experiences, potentially impacting future performance [376]. Cash Flow and Debt - The company generated $62.5 million in net cash from operating activities for the six months ended September 30, 2025, compared to $103.9 million for the same period in 2024 [390]. - The company used $21.6 million in net cash for investing activities for the six months ended September 30, 2025, compared to $34.1 million in 2024 [391]. - Financing activities provided $43.4 million in net cash for the six months ended September 30, 2025, compared to a net cash used of $(23.6) million in 2024 [391]. - The company had $269.9 million in debt obligations as of September 30, 2025, net of debt issuance costs [386]. - The weighted-average interest rate for the Revolver as of September 30, 2025, was 6.40% [393]. - The company has a credit agreement with a revolving facility of $300.0 million, maturing in May 2029 [392]. Dividends - The company announced a dividend of $0.28 per share of Class A common stock, payable on December 15, 2025 [410]. - Total dividends paid in FY2025 amounted to $1.08 per share of Class A common stock [411]. - Total dividends paid in FY2026 to date amounted to $0.92 per share of Class A common stock [411].

Financial Performance - Total revenues for the three months ended September 30, 2024, were $271.7 million, a 67% increase compared to the same period last year[7]. - Total performance fees reached $86.9 million for the quarter, representing a 175% increase year-over-year[7]. - Net income for the quarter was $53.1 million, a significant recovery from a net loss of $287.2 million in the same quarter last year[7]. - Total revenues for the three months ended September 30, 2025, were $454.225 million, a 67.2% increase from $271.677 million in the same period of 2024[18]. - Management and advisory fees, net, increased to $215.489 million for the three months ended September 30, 2025, compared to $184.758 million in the same period of 2024, reflecting a growth of 16.6%[18]. - Total carried interest allocations for the three months ended September 30, 2025, reached $206.691 million, significantly up from $69.847 million in the same period of 2024, marking a 195.5% increase[18]. - Total revenues for the six months ended September 30, 2024, were $271,677,000, with adjusted revenues of $208,788,000[27]. - Adjusted net income (ANI) for the six months ended September 30, 2025, was $115.2 million, compared to $110.8 million in the previous year[56]. - Total performance fees for the six months ended September 30, 2025, amounted to $391.9 million, up from $95.3 million in the previous year[52]. Assets Under Management - StepStone Group reported total capital of approximately $771 billion, including $209 billion in assets under management as of September 30, 2025[4]. - Assets under management (AUM) increased to $176.1 billion, reflecting a 19% growth compared to the previous year[7]. - Fee-earning AUM increased to $132.8 million as of September 30, 2025, reflecting a 27% increase year-over-year[61]. - Total assets under management (AUM) increased to $209,147 million by June 30, 2025, marking a 19% growth from the prior quarter[65]. - The company reported a total of $283,034 million in AUA for private equity, an 11% increase from the previous quarter[65]. Dividends - The company declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on December 15, 2025[1]. - The company declared a quarterly dividend of $0.24 per share, consistent with the previous quarter, and a supplemental dividend of $0.40 per share, marking a 167% increase from the prior year[7]. Strategic Focus and Client Base - StepStone focuses on providing customized investment solutions and advisory services across private equity, infrastructure, private debt, and real estate asset classes[4]. - StepStone's clients include large public and private pension funds, sovereign wealth funds, and high-net-worth individuals[4]. - StepStone's strategic focus includes developing private markets portfolios tailored to client objectives[4]. Financial Transparency and Reporting - The financial results are supplemented by non-GAAP measures such as fee revenues and adjusted net income, which are not calculated in accordance with GAAP[6]. - The company is committed to providing detailed financial information and reconciliations for non-GAAP measures to enhance transparency[6]. - The company emphasizes the importance of understanding the risks and uncertainties that could affect future performance, as outlined in their annual report[5]. - StepStone's management anticipates continued growth and successful execution of business strategies, although future results are inherently uncertain[5]. Shareholder Information - The weighted-average diluted shares increased by 13% year-over-year to 69.7 million shares[7]. - The weighted-average shares of Class A common stock for the three months ended September 30, 2025, were 78,561,587, an increase from 68,772,051 in the same period of 2024[18]. - The company reported a basic weighted-average share count of 78.2 million for the three months ended September 30, 2025[56]. Compensation and Expenses - The company reported accrued compensation and benefits of $1.826 billion as of September 30, 2025, compared to $736.695 million as of March 31, 2025[15]. - GAAP cash-based compensation for the six months ended September 30, 2024, was $82,871,000, with adjusted cash-based compensation of $82,586,000[33]. - GAAP general, administrative, and other expenses for the six months ended September 30, 2024, were $50,061,000, with adjusted expenses of $28,161,000[33]. Performance Fees and Earnings - Fee-related earnings (FRE) for the quarter were $72.3 million, with a FRE margin of 39%[7]. - Adjusted revenues for the six months ended September 30, 2024, were $429.9 million, a 35% increase year-over-year[7]. - Gross realized performance fees for the quarter were $23.3 million, a 178% increase compared to the same period last year[7]. - The FRE (Fee-Related Earnings) for the three months ended September 30, 2025, was $78,633, down from $81,246 in the previous quarter, representing a decrease of 3.0%[38]. - Performance fee-related earnings (PRE) for the six months ended September 30, 2025, reached $46.9 million, an increase from $36.3 million in the previous year[52].