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].

Core Insights - StepStone Group Inc. reported its second quarter fiscal 2026 results, highlighting a quarterly cash dividend of $0.28 per share of Class A common stock, payable on December 15, 2025 [1][2] Financial Performance - Total revenues for the quarter ended September 30, 2025, reached $454.225 million, a 67% increase compared to the same quarter in the previous year [6][17] - Management and advisory fees, net, amounted to $215.489 million, reflecting an 18% increase year-over-year [6][17] - Total performance fees surged to $238.736 million, marking a 175% increase compared to the same quarter last year [6][17] - Net income for the quarter was reported at a loss of $575.490 million, compared to a profit of $53.138 million in the same quarter of the previous year [6][17] Key Metrics - As of September 30, 2025, StepStone managed approximately $771 billion in total capital, including $209 billion in assets under management (AUM) [4] - The company’s fee-related earnings (FRE) for the quarter were $78.633 million, with a FRE margin of 36% [6][17] - Adjusted net income (ANI) for the quarter was $66.709 million, with ANI per share of $0.54 [6][17] Dividend Information - The Board of Directors declared a quarterly cash dividend of $0.28 per share, an increase from the previous quarter's dividend of $0.24 [1][8] Company Overview - StepStone Group Inc. is a global private markets investment firm that provides customized investment solutions and advisory services, serving a diverse client base including pension funds, sovereign wealth funds, and high-net-worth individuals [4]

Core Insights - STEP Energy Services Ltd. reported a consolidated revenue of $227.2 million for Q3 2025, a decrease of 11% from $256.0 million in Q3 2024, but consistent with $228.0 million in Q2 2025 [5][26]. - The company achieved a net income of $6.8 million in Q3 2025, compared to a net loss of $5.5 million in Q3 2024, and an increase from $5.9 million in Q2 2025 [12][5]. - Adjusted EBITDA for Q3 2025 was $45.2 million, representing 20% of revenue, down from $49.4 million (19% of revenue) in Q3 2024 but up from $34.8 million (15% of revenue) in Q2 2025 [11][8]. - Free Cash Flow for Q3 2025 was $23.3 million, lower than $28.4 million in Q3 2024 but higher than $17.3 million in Q2 2025 [13][8]. Financial Review - Consolidated revenue for the nine months ended September 30, 2025, was $762.9 million, down 6% from $807.5 million in the same period of 2024 [26]. - The company reported total operating expenses of $194.6 million for Q3 2025, a decrease from $229.5 million in Q3 2024 [25]. - The net debt decreased to $36.3 million as of September 30, 2025, from $52.7 million at the end of 2024 [13][8]. Operational Review - Fracturing operating days decreased to 345 in Q3 2025 from 360 in Q3 2024, with proppant pumped down to 524,000 tonnes from 594,000 tonnes in the same period [4][10]. - Coiled tubing operating days were 1,260 in Q3 2025, down from 1,340 in Q3 2024 [4][10]. - The company operated six fracturing crews in Q3 2025, down from seven in the same period last year [27]. Market Outlook - The fourth quarter of 2025 is expected to start strong, with high utilization anticipated in the first half before slowing down due to annual capital program wind-downs [20]. - The long-term outlook for oilfield services remains positive, with expected growth in LNG export capacity in North America [23].

Core Points - STEP Energy Services Ltd. has initiated the process of sending its management information circular for a special meeting of shareholders to approve a plan of arrangement involving ARC Energy Fund 8 and 2659160 Alberta Ltd. [1] - Shareholders will receive $5.50 in cash per share, representing a significant premium over recent trading prices [2][4][10]. Arrangement Details - The cash consideration of $5.50 per share reflects a premium of approximately 29.11% to the closing price of $4.26 on September 24, 2025, the last trading day before the announcement [4][10]. - The premium also includes 27.61% to the 10-day volume-weighted average price and 28.81% to the 30-day volume-weighted average price as of the same date [5][10]. - The arrangement is supported by a special committee of independent directors who unanimously recommend that minority shareholders vote in favor of the arrangement [9][12]. Shareholder Support - Voting support agreements have been secured from shareholders holding approximately 68.11% of the shares held by minority shareholders, ensuring sufficient votes for the arrangement [11][12]. - Overall, approximately 87.33% of shares are represented in support of the arrangement, indicating strong backing from shareholders [12]. Meeting and Voting Information - The special meeting will be held virtually on December 12, 2025, with a proxy deadline of December 11, 2025 [23][27]. - Shareholders are encouraged to vote in advance and can access meeting materials electronically due to potential delays from the Canada Post disruption [3][6]. Valuation and Fairness - Ernst & Young LLP provided a formal valuation indicating the fair market value of the shares is between $4.80 and $5.70, positioning the offered consideration favorably [15]. - The fairness opinion concluded that the arrangement is fair from a financial perspective for minority shareholders [15]. Strategic Considerations - The arrangement is viewed as more favorable than maintaining the status quo, given the controlling stake of ARC Funds and limited strategic alternatives available to STEP [17][18]. - The arrangement is the result of arm's-length negotiations, ensuring that the terms are reasonable and customary [19][20].

Core Insights - FTSE Russell and StepStone Group have launched the FTSE StepStone Global Private Market Indices, marking a significant advancement in private market benchmarking [1][6] - The new indices provide daily data, addressing the need for timely and accurate private market performance metrics, which have historically suffered from reporting lags [2][4] Company Overview - FTSE Russell is a global leader in index provision, calculating thousands of indices that benchmark markets and asset classes in over 70 countries, covering 98% of the investable market globally [5][8] - StepStone Group is a global private markets investment firm managing approximately $723 billion in total capital, including $199 billion in assets under management as of June 30, 2025 [14] Product Features - The FTSE StepStone Global Private Market Indices utilize StepStone's proprietary data combined with FTSE Russell's indexing expertise to deliver a daily index series for private markets [6][4] - The indices include Daily Cash-Adjusted Indices and Daily Market Indices, providing a more granular and timely reflection of private market performance [7][6] Market Demand - There is a growing demand from investors for clear, daily benchmarks in private markets to enhance monitoring capabilities and integrate private market insights into total portfolio views [2][4] - The collaboration between FTSE Russell and StepStone aims to set a new standard for benchmarking, valuation, and modeling capabilities in private markets [4][3]

Core Insights - StepStone Group has opened a new office in Riyadh, Saudi Arabia, reinforcing its commitment to clients in the region [1][2] - The new office aims to deepen relationships with investors and expand access to private market opportunities, supporting Saudi Arabia's Vision 2030 [2][3] - StepStone's presence in Riyadh is its first physical location in the Middle East, reflecting a focus on long-term partnerships and local market opportunities [3][4] Company Overview - As of June 30, 2025, StepStone Group manages approximately $723 billion in total capital, including $199 billion in assets under management [5] - The firm provides customized investment solutions and advisory services to a diverse client base, including pension funds, sovereign wealth funds, and high-net-worth individuals [5] - StepStone operates 31 offices across 19 countries, indicating a strong global presence [4]

Core Viewpoint - StepStone Group Inc. is set to release its financial results for the second quarter of the fiscal year ending March 31, 2026, on November 6, 2025, after market close [1]. Group 1: Financial Results Announcement - The financial results will be for the quarter ended September 30, 2025 [1]. - A webcast and conference call will be held on the same day at 5:00 pm ET to discuss these results [2]. - The webcast will be accessible on the Shareholders section of the Company's website, with a replay available approximately two hours after the event [2]. Group 2: Company Overview - StepStone Group Inc. is a global private markets investment firm, focusing on customized investment solutions and advisory services [4]. - As of June 30, 2025, the Company managed approximately $723 billion in total capital, including $199 billion in assets under management [4]. - The client base includes large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [4].

Core Viewpoint - Stepstone Group (NASDAQ:STEP) is positioned in a competitive market, with a new price target set by Morgan Stanley indicating potential growth in stock value [1][4]. Group 1: Stock Performance - STEP's current stock price is $63.15, reflecting a 3.64% increase from its previous value [2][4]. - The stock has shown significant volatility over the past year, with a high of $70.38 and a low of $40.07 [2][4]. - Today's trading range for STEP has been between $60.77 and $63.58 [2]. Group 2: Market Metrics - The market capitalization of STEP is approximately $7.82 billion, indicating its size and market presence [3]. - The trading volume for STEP is 231,874 shares, which highlights the stock's liquidity and investor interest [3]. Group 3: Analyst Insights - Michael Cyprys from Morgan Stanley has set a new price target of $66 for STEP, suggesting a potential increase of 5.35% from its current price [1][4].

Core Viewpoint - STEP Energy Services Ltd. has entered into a definitive arrangement agreement with ARC Financial Corp. and its associated entities, following a non-binding offer received earlier [1] Group 1 - The arrangement involves 2659160 Alberta Ltd. and limited partnerships from ARC Energy Fund 8, which is a private equity fund advised by ARC Financial Corp. [1]