UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 Securities registered pursuant to Section 12(b) of the Act: | | Trading | | | ...

The market expects StepStone Group Inc. (STEP) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be ...

NEW YORK, Feb. 01, 2024 (GLOBE NEWSWIRE) -- StepStone Group Inc. (NASDAQ:STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, has named 8 new partners and 18 new managing directors. Partner and CEO Scott Hart said, "We are proud to celebrate these senior leaders of our firm, each of whom exemplify StepStone's commitment to helping our clients build and manage exceptional private markets portfolios. Congratulations to all." 2024 ...

NEW YORK, Jan. 25, 2024 (GLOBE NEWSWIRE) -- StepStone Group Inc. (Nasdaq: STEP) today announced that the Company will release its results for the quarter ended December 31, 2023 after the market closes on Thursday, February 8, 2024. This represents results for the third quarter of the fiscal year ending March 31, 2024. Webcast and Earnings Conference Call Management will host a webcast and conference call on Thursday, February 8, 2024, at 5:00 pm ET to discuss the Company’s results for the third quarter of ...

NEW YORK, Jan. 25, 2024 (GLOBE NEWSWIRE) -- StepStone Group Inc. (NASDAQ:STEP) today announced that the Company will release its results for the quarter ended December 31, 2023 after the market closes on Thursday, February 8, 2024. This represents results for the third quarter of the fiscal year ending March 31, 2024. Webcast and Earnings Conference Call Management will host a webcast and conference call on Thursday, February 8, 2024, at 5:00 pm ET to discuss the Company's results for the third quarter of t ...

StepStone Group LP (NASDAQ:STEP) Q2 2024 Earnings Conference Call November 6, 2023 5:00 PM ET Company Participants Seth Weiss - Head, IR Scott Hart - CEO Mike McCabe - Head, Strategy Johnny Randel - CFO Jason Ment - President & Co-Chief Operating Officer Conference Call Participants Ben Budish - Barclays Ken Worthington - JPMorgan Adam Beatty - UBS Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley Operator Good day, and welcome to the StepStone Group Second Quarter Fiscal Year 2024 Earnings Conf ...

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended September 30, 2023, along with market risk disclosures and controls [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents StepStone Group Inc.'s unaudited condensed consolidated financial statements for the quarter ended September 30, 2023, including balance sheets, income statements, cash flows, and explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$3.61 billion**, driven by accrued carried interest and investments, with liabilities at **$1.91 billion** and stockholders' equity slightly up | Financial Metric | September 30, 2023 ($ thousands) | March 31, 2023 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **3,608,363** | **3,497,403** | **+3.2%** | | Cash and cash equivalents | 117,484 | 102,565 | +14.5% | | Accrued carried interest allocations | 1,331,778 | 1,227,173 | +8.5% | | **Total Liabilities** | **1,910,680** | **1,844,086** | **+3.6%** | | Accrued compensation and benefits | 110,413 | 66,614 | +65.7% | | Debt obligations | 123,586 | 98,351 | +25.6% | | **Total Stockholders' Equity** | **1,638,411** | **1,628,787** | **+0.6%** | [Condensed Consolidated Statements of Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Net income for the quarter was **$59.3 million**, a turnaround from prior-year loss, driven by positive carried interest allocations, resulting in diluted EPS of **$0.42** | Metric ($ thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **191,422** | **(158,495)** | **369,433** | **(235,713)** | | Management and advisory fees, net | 142,123 | 119,121 | 280,238 | 235,853 | | Total carried interest allocations | 56,956 | (154,309) | 120,793 | (194,652) | | **Total Expenses** | **130,325** | **(104,151)** | **251,521** | **(172,569)** | | **Net Income (Loss)** | **59,251** | **(67,065)** | **108,697** | **(88,536)** | | **Net Income (Loss) attributable to StepStone Group Inc.** | **26,225** | **(29,221)** | **47,494** | **(40,261)** | | **Diluted EPS** | **$0.42** | **($0.48)** | **$0.75** | **($0.66)** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$128.7 million**, investing activities used **$27.4 million**, and financing activities used **$53.4 million**, a significant decrease from prior year | Cash Flow Activity ($ thousands) | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 128,717 | 145,714 | | Net cash used in investing activities | (27,405) | (17,312) | | Net cash used in financing activities | (53,434) | (102,849) | | **Net increase in cash, cash equivalents and restricted cash** | **47,285** | **27,034** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details significant accounting policies, covering basis of presentation, VIE consolidation, revenue recognition, fair value measurements, debt, equity, and related party transactions - The company accounts for its investments in StepStone Funds on a three-month lag, using the June 30, 2023 unaudited financial statements for the September 30, 2023 report[59](index=59&type=chunk) - Carried interest allocations are accounted for under the equity method and are not within the scope of ASC 606, with revenue recognized based on the amount due if the fund were liquidated at current fair value[87](index=87&type=chunk)[89](index=89&type=chunk) - The company consolidates certain Variable Interest Entities (VIEs) where it is the primary beneficiary, including legacy Greenspring general partner entities, whose assets are restricted to settle their own obligations[49](index=49&type=chunk)[50](index=50&type=chunk)[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results for the three and six months ended September 30, 2023, including business overview, key trends, operating metrics, non-GAAP measures, and liquidity [Business Overview](index=44&type=section&id=Business%20Overview) StepStone is a global private markets investment firm managing **$659 billion** in total capital, with **$146 billion AUM** and **$513 billion AUA**, across diverse strategies | Metric | Amount (as of Sep 30, 2023) | | :--- | :--- | | Total Capital Responsibility | ~$659 billion | | Assets Under Management (AUM) | $146 billion | | Assets Under Advisement (AUA) | $513 billion | - The company's primary commercial structures are Separately Managed Accounts (SMAs), focused commingled funds, and advisory services, which together comprised **$146 billion of AUM** and **$513 billion of AUA**[179](index=179&type=chunk)[183](index=183&type=chunk) [Consolidated Results of Operations](index=55&type=section&id=Consolidated%20Results%20of%20Operations) Total revenues for the quarter increased to **$191.4 million**, driven by positive carried interest and **19% growth** in management fees, with total expenses rising to **$130.3 million** - Total revenues for Q2 FY2024 increased by **$349.9 million** year-over-year, driven by positive carried interest allocations compared to a reversal in the prior year[242](index=242&type=chunk) - Net management and advisory fees grew **19% to $142.1 million** for the quarter, supported by new client activity and **10% growth in average FEAUM**[243](index=243&type=chunk) - Total expenses for the quarter increased by **$234.5 million** year-over-year, mainly due to a lower reversal of legacy Greenspring performance fee-related compensation and higher current period performance fee-related compensation[252](index=252&type=chunk) [Key Operating Metrics Analysis](index=62&type=section&id=Key%20Operating%20Metrics) AUM reached **$146 billion**, AUA grew to **$513 billion**, and FEAUM increased to **$87.3 billion**, with **$18.1 billion** in undeployed fee-earning capital | Metric | Sep 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | AUM | $146 billion | $138 billion | $135 billion | | AUA | $513 billion | $482 billion | $467 billion | | FEAUM | $87.3 billion | $85.4 billion | $80.1 billion | - As of September 30, 2023, the company had **$18.1 billion** of undeployed fee-earning capital, which will generate management fees once invested or activated[294](index=294&type=chunk) [Non-GAAP Financial Measures](index=64&type=section&id=Non-GAAP%20Financial%20Measures) Fee-Related Earnings (FRE) increased **12% to $43.8 million**, while Adjusted Net Income (ANI) decreased **19% to $30.2 million** (or **$0.26 per share**), due to lower realized performance fees | Non-GAAP Metric ($ thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Change | | :--- | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | 43,827 | 39,044 | +12% | | Adjusted Net Income (ANI) | 30,173 | 37,261 | -19% | | ANI per share | $0.26 | $0.33 | -21% | - The decrease in ANI for the quarter was primarily driven by lower net realized performance fee-related earnings, higher interest expense, and lower realized investment income[304](index=304&type=chunk) [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$118.2 million** in cash, with **$123.6 million** outstanding on its revolving credit facility, generated **$128.7 million** from operations, and declared a **$0.21 per share** dividend - As of September 30, 2023, the company had **$118.2 million** in cash, cash equivalents, and restricted cash (excluding Consolidated Funds)[329](index=329&type=chunk) - The company had **$123.6 million** outstanding on its **$225.0 million** revolving credit facility as of September 30, 2023, with a weighted-average interest rate of **7.48%**[334](index=334&type=chunk)[336](index=336&type=chunk) - On November 6, 2023, the company declared a quarterly cash dividend of **$0.21 per share** of Class A common stock[343](index=343&type=chunk) [Qualitative and Quantitative Disclosures about Market Risk](index=77&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risk) Primary market risk relates to fund investment fair values affecting performance fees and investment income, alongside interest rate exposure on variable-rate debt and cash balances - A hypothetical **10% decline** in the market value of fund investments as of September 30, 2023, would decrease annual management fees by approximately **$4.2 million** and investment income by **$13.0 million**[357](index=357&type=chunk)[358](index=358&type=chunk) - A **100 basis point increase** in interest rates would increase annualized interest expense by an estimated **$1.3 million** and increase annualized interest income by an estimated **$1.2 million**, based on September 30, 2023 balances[361](index=361&type=chunk) - As of September 30, 2023, the maximum amount of carried interest allocations subject to contingent repayment (clawback) was estimated at **$271.9 million**, net of tax, assuming a remote scenario where the fair value of all investments dropped to zero[358](index=358&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the end of the period, the company's disclosure controls and procedures are effective to provide reasonable assurance that required information is recorded, processed, and reported in a timely manner[365](index=365&type=chunk) - No changes occurred during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[366](index=366&type=chunk) [PART II - OTHER INFORMATION](index=79&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial statements - The company does not expect any potential liability from current legal proceedings to materially affect its condensed consolidated financial statements as of September 30, 2023[166](index=166&type=chunk)[368](index=368&type=chunk) [Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2023 - No material changes from the risk factors disclosed in the Form 10-K for the fiscal year ended March 31, 2023, have been reported[370](index=370&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported for the period[371](index=371&type=chunk) [Other Information](index=79&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the reporting period[375](index=375&type=chunk) [Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data - Exhibits filed include CEO and CFO certifications under Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, as well as XBRL data files[377](index=377&type=chunk)

[PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended June 30, 2023, highlighting a significant increase in total revenues and a turnaround to net income [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed consolidated financial statements show **$3.53 billion** total assets, **$49.4 million** net income, and **$57.6 million** operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,530,782** | **$3,497,403** | | Cash and cash equivalents | $91,733 | $102,565 | | Accrued carried interest allocations | $1,277,783 | $1,227,173 | | Goodwill | $580,542 | $580,542 | | **Total Liabilities** | **$1,860,621** | **$1,844,086** | | Accrued carried interest-related compensation | $668,704 | $644,517 | | Debt obligations | $98,468 | $98,351 | | **Total Stockholders' Equity** | **$1,628,543** | **$1,628,787** | Condensed Consolidated Statement of Income (Loss) Highlights (in thousands) | Account | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Management and advisory fees, net | $138,115 | $116,732 | | Total carried interest allocations | $63,837 | $(40,343) | | **Total Revenues** | **$178,011** | **$(77,218)** | | Total Expenses | $121,196 | $(68,418) | | **Net Income (Loss)** | **$49,446** | **$(21,471)** | | Net Income (Loss) attributable to StepStone Group Inc. | $21,269 | $(11,040) | | **Basic EPS (Class A)** | **$0.34** | **$(0.18)** | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $57,587 | $57,482 | | Net cash used in investing activities | $(14,486) | $(7,601) | | Net cash used in financing activities | $(43,973) | $(60,718) | | **Net decrease in cash, cash equivalents and restricted cash** | **$(1,588)** | **$(10,117)** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, debt, commitments, and subsequent events, including a declared dividend - The company accounts for its investments in StepStone Funds on a three-month lag, using March 31, 2023, unaudited financial statements for the June 30, 2023, report[57](index=57&type=chunk) Revenues by Product Offering (in thousands) | Revenue Source | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Management and Advisory Fees, Net** | | | | Focused commingled funds | $67,006 | $52,742 | | SMAs | $55,744 | $50,460 | | Advisory and other services | $14,101 | $12,984 | | **Total Management and Advisory Fees, Net** | **$138,115** | **$116,732** | | **Carried Interest Allocations** | **$63,837** | **$(40,343)** | - The company has a **$225.0 million** multicurrency revolving credit facility, with **$98.5 million** outstanding as of June 30, 2023, at a weighted-average interest rate of **7.23%**[131](index=131&type=chunk)[132](index=132&type=chunk) - As of June 30, 2023, the company had unfunded capital commitments of **$95.0 million**, with a maximum potential contingent repayment (clawback) for carried interest estimated at **$271.2 million**, net of tax, assuming a remote scenario where all investment fair values drop to zero[165](index=165&type=chunk)[166](index=166&type=chunk) - Subsequent to the quarter end, on August 3, 2023, the company declared a quarterly cash dividend of **$0.21** per share of Class A common stock[168](index=168&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, operating results, key metrics, and liquidity, highlighting **$640 billion** total capital and **21%** FRE growth [Business Overview and Trends](index=43&type=section&id=Business%20Overview%20and%20Trends) StepStone is a global private markets investment firm managing **$640 billion** in total capital, influenced by macroeconomic trends - As of June 30, 2023, StepStone was responsible for approximately **$640 billion** of total capital, including **$143 billion** of Assets Under Management (AUM) and **$497 billion** of Assets Under Advisement (AUA)[172](index=172&type=chunk) - The company's growth is dependent on key trends, including increasing client allocations to private markets, demand from private wealth clients, and the ability to source investments with attractive risk-adjusted returns[179](index=179&type=chunk)[182](index=182&type=chunk) - Management acknowledges that market volatility, rising interest rates, and inflation have adversely affected fundraising and capital deployment, potentially leading to delayed or decreased management and performance fees[182](index=182&type=chunk) [Consolidated Results of Operations](index=55&type=section&id=Consolidated%20Results%20of%20Operations) Total revenues increased to **$178.0 million** due to positive unrealized carried interest and **18%** management fee growth, despite **80%** decrease in realized carried interest - Total revenues increased by **$255.2 million** year-over-year, driven by positive unrealized carried interest allocations compared to negative allocations in the prior year, and an **18%** increase in net management and advisory fees[234](index=234&type=chunk) - Net management and advisory fees grew by **$21.4 million** (**18%**) to **$138.1 million**, supported by **12%** growth in average Fee-Earning AUM (FEAUM)[235](index=235&type=chunk) - Realized carried interest allocation revenues decreased by **$59.1 million** (**80%**) to **$14.5 million**, reflecting lower realization activity in private equity funds[237](index=237&type=chunk) - Cash-based compensation increased by **$10.0 million** (**17%**) to **$70.1 million**, primarily due to an **18%** increase in average full-time headcount[240](index=240&type=chunk) [Operating Metrics](index=59&type=section&id=Operating%20Metrics) Key operating metrics show growth, with AUM at **$143 billion**, AUA at **$497 billion**, and FEAUM at **$87.4 billion** Key Operating Metrics (in billions) | Metric | June 30, 2023 | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | :--- | | Assets Under Management (AUM) | $143 | $138 | $137 | | Assets Under Advisement (AUA) | $497 | $482 | $452 | | Fee-Earning AUM (FEAUM) | $87.4 | $85.4 | $78.6 | FEAUM Roll-Forward (in millions) | Description | Three Months Ended June 30, 2023 | | :--- | :--- | | Beginning balance (Mar 31, 2023) | $85,431 | | Contributions | $2,221 | | Distributions | $(681) | | Market value, FX and other | $436 | | **Ending balance (June 30, 2023)** | **$87,407** | - As of June 30, 2023, the company had **$16.9 billion** of undeployed fee-earning capital, which will generate management fees once invested or activated[266](index=266&type=chunk) [Non-GAAP Financial Measures](index=60&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show FRE increased **21%** to **$44.4 million**, while ANI decreased **38%** to **$29.4 million** Non-GAAP Performance Summary (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :--- | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | $44.4 | $36.6 | +21% | | Adjusted Net Income (ANI) | $29.4 | $47.1 | -38% | | Adjusted Revenues | $152.8 | $190.3 | -20% | - The **21%** increase in Fee-Related Earnings (FRE) was primarily driven by higher net management and advisory fees[274](index=274&type=chunk) - The **38%** decrease in Adjusted Net Income (ANI) was mainly due to lower net realized performance fee-related earnings[276](index=276&type=chunk) Adjusted Net Income Per Share | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | Adjusted Net Income (in thousands) | $29,388 | $47,134 | | Adjusted weighted-average shares | 114,673,696 | 114,466,962 | | **Adjusted Net Income Per Share** | **$0.26** | **$0.41** | [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$92.4 million** cash and **$57.6 million** operating cash flow, continuing its dividend policy - As of June 30, 2023, the company had **$92.4 million** of cash, cash equivalents, and restricted cash (excluding Consolidated Funds) and **$98.5 million** in debt obligations, net of issuance costs[299](index=299&type=chunk) - Net cash provided by operating activities was **$57.6 million** for the quarter, consistent with the prior year, while financing activities used **$44.0 million**, primarily for distributions to non-controlling interests (**$25.7 million**) and dividends to common stockholders (**$28.3 million**)[302](index=302&type=chunk)[305](index=305&type=chunk) - On August 3, 2023, the company announced a quarterly dividend of **$0.21** per share of Class A common stock[312](index=312&type=chunk) [Item 3. Qualitative and Quantitative Disclosures about Market Risk](index=71&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risk) The company faces market risk, with a **10%** investment decline potentially reducing annual management fees by **$3.7 million** and investment income by **$12.2 million** - A hypothetical **10%** decline in the market value of investments would result in an estimated **$3.7 million** decrease in annual management fees and a **$12.2 million** decrease in investment income[325](index=325&type=chunk)[326](index=326&type=chunk) - The maximum potential clawback of carried interest subject to contingent repayment was estimated at **$271.2 million** (net of tax) as of June 30, 2023, assuming a remote scenario where all investment fair values drop to zero[326](index=326&type=chunk) - With **$100.0 million** in borrowings outstanding under the variable-rate Revolver, a **100 basis point** increase in interest rates would increase annual interest expense by an estimated **$1.0 million**[329](index=329&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2023, the company's disclosure controls and procedures were effective at a reasonable assurance level[333](index=333&type=chunk) - No changes occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[334](index=334&type=chunk) [PART II - OTHER INFORMATION](index=73&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any current legal proceedings expected to materially affect its financial statements - The company states that it does not expect any potential liability from current legal proceedings to materially affect its condensed consolidated financial statements as of June 30, 2023[160](index=160&type=chunk)[336](index=336&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Form 10-K for the fiscal year ended March 31, 2023 - No material changes from the risk factors disclosed in the Form 10-K for the fiscal year ended March 31, 2023, have been reported[338](index=338&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[339](index=339&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the reporting period[343](index=343&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data files - The exhibits filed with this report include certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act and financial statements formatted in Inline XBRL[345](index=345&type=chunk)

StepStone Group Inc. (NASDAQ:STEP) Q1 2024 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Seth Weiss - Head, Investor Relations Scott Hart - Chief Executive Officer Mike McCabe - Head, Strategy Johnny Randel - Chief Financial Officer Jason Ment - President & Co-Chief Operating Officer Conference Call Participants Ben Budish - Barclays Ken Worthington - JPMorgan Adam Beatty - UBS Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley John Dunn - Evercore ISI Operator Good afte ...

Lease right-of-use assets, net 72,134 101,130 100,531 Other assets and receivables 35,374 44,060 44,889 Intangibles, net 387,255 354,645 343,983 Goodw ill 580,542 580,542 580,542 Investments, at fair value - 30,595 39,188 $108 $107 $139 $147 $154 FQ1'23 FQ2'23 FQ3'23 FQ4'23 FQ1'24 INVESTMENTS ($M)3 NET UNREALIZED CARRY AS OF 6/30/2023 BY VINTAGE AND TYPE Private Equity 93% Infrastructure 4% Real Estate 3% 2013 & Prior 16% 2015 11% 2016 18% 2017 15% 2018 18% Post 2018 22% 78% from 2018 or prior vintages • Gr ...