Core Insights - Cyberhaven has raised $100 million in Series D funding, bringing its total funding to $250 million and achieving a valuation of $1 billion, a sevenfold increase in just one year [1][4]. Company Overview - Cyberhaven is a leader in AI-powered data security, focusing on innovative data tracing and risk detection capabilities [1][5]. - The company’s platform utilizes proprietary data lineage and AI technologies to provide organizations with the ability to detect and mitigate risks to their critical data [1][3]. Technology and Approach - Cyberhaven's approach is centered on data lineage, allowing organizations to trace how data originates, moves, and transforms, providing unmatched scale and precision [3]. - The platform is built on a Large Lineage Model (LLiM), which offers real-time observability of data flows and precise threat detection [3]. Market Context - The rise of AI and cloud technologies has transformed data management, making traditional security tools inadequate for tracking and protecting data that is highly fragmented and constantly moving [2]. - Cyberhaven's Data Detection and Response approach is likened to the paradigm shift seen with Endpoint Detection and Response (EDR) a decade ago, focusing on AI-based behavioral analysis [4]. Future Plans - With the new funding, Cyberhaven aims to expand its platform through mergers and acquisitions as well as organic innovation, and to enhance its market reach with aggressive go-to-market investments [4].

Core Insights - StepStone Group Inc. has appointed 10 new partners and 24 new managing directors, reflecting the firm's strong momentum and talent development [1][2]. Company Overview - StepStone Group Inc. is a global private markets investment firm that provides customized investment solutions, advisory, and data services [5]. - As of December 31, 2024, StepStone managed approximately $698 billion in total capital, including $179 billion in assets under management [5]. - The firm's clientele includes large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [5]. New Appointments - The new managing directors come from various teams, including: - Christopher Bernadino, Global Head of Information Technology and Chief Information Security Officer [4]. - Elizabeth Ferry, Head of Operational Due Diligence [4]. - Anthony Giambrone, member of the Venture Capital and Growth Equity team [4]. - Remo Kämpf, member of the Private Debt team [4]. - Laia Massague and Pooja Patel, both members of the Real Estate team [4]. - Tim Rees, member of the Infrastructure and Real Assets team [4]. - Anja Ritchie, member of the Real Estate team [4]. - Stephen West, member of the Venture Capital and Growth Equity team [4]. - Joey Wong Castillo, Head of Legal, Infrastructure and Real Assets [4]. - Additional new managing directors include professionals in Private Wealth, Fund Accounting, Corporate Finance, Operations, and various Real Estate roles across different locations [4].

Core Viewpoint - StepStone Group Inc. (NASDAQ: STEP) is rated as a Hold for investors focused on long-term capital appreciation, despite its strong performance since its IPO in 2020 [1] Company Overview - StepStone Group has shown stellar performance since its IPO in 2020, indicating a positive trajectory for the company [1] Analyst Background - The analysis is provided by David A. Johnson, founder and principal of Endurance Capital Management, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1]

Core Insights - StepStone Group Inc. has received approval to launch a Private Debt-based European Long-Term Investment Fund (ELTIF), expanding its offerings in the European private wealth market [1][2] - The firm aims to market ELTIFs in Italy, Spain, Germany, France, and the Nordic and Benelux regions, focusing on private credit assets within the European Union [2][3] - StepStone has also converted existing RAIF funds into UCI Part II vehicles, enhancing access for professional and semi-professional investors to private markets [3][4] Company Overview - StepStone Group Inc. is a global private markets investment firm managing approximately $698 billion in total capital, including $179 billion in assets under management as of December 31, 2024 [4] - The firm's client base includes large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [4]

Financial Data and Key Metrics Changes - The company recorded a GAAP net loss of $287 million, with a net loss attributable to StepStone Group of $190 million or $2.61 per share [7][8] - Fee-related earnings were $74.1 million, up 46% from the prior year quarter, with an FRE margin of 39% [9][19] - Adjusted net income was $52.7 million or $0.44 per share, an increase from $42.1 million or $0.37 per share in the same quarter last year [10][40] Business Line Data and Key Metrics Changes - Fee-earning assets under management (AUM) increased by nearly $10 billion, reaching over $114 billion, a 28% increase year-over-year [11][12] - Management and advisory fees totaled $192 million, up 26% year-over-year [18][35] - The private wealth platform grew to over $6 billion, with over $1 billion in new subscriptions, marking the best growth quarter for private wealth [16][24] Market Data and Key Metrics Changes - The company generated over $27 billion in gross AUM inflows over the last twelve months, with $18 billion from separately managed accounts and over $9 billion from focused commingled funds [21][22] - The infrastructure co-investment fund closed at approximately $1.2 billion, marking a significant milestone for a first-time fund [15][22] Company Strategy and Development Direction - The company emphasizes a diversified strategy across asset classes and geographic reach, which has proven resilient during periods of fundraising pressure in the private market [14] - The focus on infrastructure and private wealth management is expected to drive future growth, with significant capital deployment opportunities identified [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in private wealth and infrastructure, highlighting strong fundraising and deployment activities [11][12] - The company anticipates continued growth in fee-related earnings and margins, supported by a robust pipeline of investment opportunities [19][38] Other Important Information - The company noted that GAAP accounting requires presenting changes in fair value related to potential future buy-ins, which impacted the net loss reported [43] - Net accrued carry finished the quarter at $744 million, indicating potential future performance fees [44] Q&A Session Summary Question: Highlights of wealth management build-out - Management highlighted the addition of 450 platforms globally, with 40% selling multiple funds, indicating strong cross-selling capabilities [50] Question: Market for secondaries - Management noted a very active year in the secondaries market, with average market pricing slightly increasing [55] Question: Drivers of non-private wealth NCI - The largest driver was retroactive fees associated with the real estate secondaries fund, with general growth from other asset classes [64] Question: Infrastructure business focus - Key areas of investment include power and renewables, transportation, and communications, including data centers [68] Question: Deployment activity drivers - Deployment was broad-based across asset classes, with significant activity in private equity co-investments and real estate [75] Question: GreenSpring earn-out details - The GreenSpring earn-out target of $75 million is fully accrued and will be payable 100% in cash [81]

Group 1: Earnings Performance - StepStone Group Inc. reported quarterly earnings of $0.44 per share, matching the Zacks Consensus Estimate, and an increase from $0.37 per share a year ago [1] - The company posted revenues of $243.91 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3.25%, compared to revenues of -$14.61 million in the same quarter last year [2] - Over the last four quarters, StepStone Group has surpassed consensus EPS estimates three times [1][2] Group 2: Stock Performance and Outlook - StepStone Group shares have increased approximately 12% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.45 on revenues of $233.1 million, and for the current fiscal year, it is $1.82 on revenues of $898.43 million [7] Group 3: Industry Context - The Financial - Miscellaneous Services industry, to which StepStone Group belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact StepStone Group's stock performance [5]

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2024, StepStone was responsible for approximately $698 billion of total capital, including $179 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as ...

StepStone (STEP) Q3 2025 Earnings Call February 06, 2025 05:00 PM ET Company Participants Seth Weiss - Managing Director of Corporate Investor RelationsScott Hart - CEOMichael McCabe - Head of StrategyDavid Park - Partner & CFOJason Ment - President & Co-Chief Operating OfficerBenjamin Budish - DirectorAlexander Blostein - Managing DirectorMichael Cyprys - Managing DirectorChris Kotowski - Managing Director Conference Call Participants Kenneth Worthington - Financial Analyst Operator Good day and thank you ...

Capital Management - As of December 31, 2024, the company managed approximately $698 billion in total capital, including $179 billion in assets under management (AUM) and $519 billion in assets under advisement (AUA)[213]. - The company generated $109 billion in AUM from separately managed accounts (SMAs) and $55 billion from focused commingled funds as of December 31, 2024[215]. - Advisory relationships accounted for $519 billion in AUA and $15 billion in AUM as of December 31, 2024[219]. - The company tracked detailed information on over $755 billion of client commitments through its proprietary performance monitoring software, SPI Reporting, as of December 31, 2024[219]. - As of December 31, 2024, the company had over $90 billion of performance fee-eligible capital across over 200 programs[248]. - As of December 31, 2024, the company had $21.7 billion of undeployed fee-earning capital, which will generate management fee revenue once invested[340]. - The total fee-earning assets under management (FEAUM) reached $114.166 billion as of December 31, 2024, up from $93.858 billion a year earlier[338]. Financial Performance - Total revenues increased by $353.6 million, or 125%, to $339.0 million for the three months ended December 31, 2024, compared to the same period in 2023[287]. - Management and advisory fees, net increased by $39.3 million, or 26%, to $190.8 million for the three months ended December 31, 2024, driven by new client activity and a 24% growth in average FEAUM[288]. - Incentive fees increased by $4.5 million, or 25%, to $22.4 million for the three months ended December 31, 2024, largely due to higher fees from StepStone's Private Venture and Growth Fund[289]. - Realized carried interest allocation revenues increased by $9.0 million, or 59%, to $24.3 million for the three months ended December 31, 2024, reflecting higher realization activity[290]. - Net income (loss) attributable to StepStone Group Inc. was $(192.0) million for the three months ended December 31, 2024, compared to $(20.2) million for the same period in 2023[287]. - The company reported a net income of $293.0 million for the nine months ended December 31, 2024, up from $189.0 million in the same period in 2023[387]. Expenses and Compensation - Total expenses increased by $679.0 million to $698.1 million for the three months ended December 31, 2024, driven by increases in equity-based compensation and performance fee-related compensation[297]. - Cash-based compensation increased by $11.6 million, or 16%, to $85.2 million for the three months ended December 31, 2024, due to increased staffing and compensation levels[298]. - Equity-based compensation increased by $472.4 million to $486.4 million for the three months ended December 31, 2024, primarily due to increased expenses for liability classified awards[299]. - Total performance fee-related compensation expense increased by $121.9 million to $75.1 million for the three months ended December 31, 2024, reflecting the increase in carried interest allocation revenue[300]. - General, administrative and other expenses decreased by $4.9 million, or 10%, to $43.1 million for the three months ended December 31, 2024, primarily due to lower expenses for change in fair value of contingent consideration obligations[302]. Shareholder Equity and Dividends - The company announced a dividend of $0.24 per share of Class A common stock, payable on March 14, 2025[408]. - Total dividends paid in FY2024 amounted to $1.08 per share of Class A common stock[408]. - Total dividends paid in FY2025 to date amounted to $0.84 per share of Class A common stock[408]. - The company may issue additional equity or debt to increase available capital in the future[407]. Debt and Liquidity - The company issued $175 million in 5.52% Series A senior notes due October 22, 2029, with interest payable semi-annually starting April 22, 2025[225][226]. - The company’s liquidity sources include management and advisory fees, performance fees, and distributions from investments in StepStone Funds[381]. - The company’s revolving credit facility was increased to $300.0 million, with no amounts outstanding as of December 31, 2024[388]. - The company had $1,647.3 million in investments, including $1,474.5 million in accrued carried interest allocations, against $168.9 million in debt obligations[382]. - The company was in compliance with all covenants under its various debt agreements as of December 31, 2024[402]. Investment Performance - The company’s investment performance across various asset classes showed a net IRR of 14.7% for private equity primaries as of September 30, 2024[374]. - Investment income is influenced by net realized and unrealized gains (losses) on underlying investments held by the StepStone Funds[260]. - Legacy Greenspring investment income is based on earnings from certain legacy Greenspring funds, driven by net realized and unrealized gains (losses)[262].

Financial Performance - StepStone Group reported net management and advisory fees of $190.84 million for Q3 FY2025, a 26% increase compared to the same quarter last year[8]. - Total revenues for the quarter reached $339.02 million, reflecting a 125% increase year-over-year[8]. - The company experienced a net loss of $287.16 million in Q3 FY2025, compared to a net income of $82.54 million in the same quarter last year[8]. - Adjusted net income for the quarter was $52.66 million, a 25% increase compared to the previous year[8]. - Total revenues for the three months ended December 31, 2024, were $339.023 million, a decrease of 14.6% compared to $354.821 million in the same period of 2023[16]. - Net income (loss) attributable to StepStone Group Inc. for the three months ended December 31, 2024, was $(192.015) million, compared to $(20.226) million in the same period of 2023[16]. - Basic net income (loss) per share of Class A common stock for the three months ended December 31, 2024, was $(2.61), compared to $(0.32) in the same period of 2023[16]. - The company reported a net income loss before income tax of $24,142,000 for the three months ended December 31, 2023, compared to a net income of $100,881,000 for the same period last year[35]. - For the nine months ended December 31, 2024, the Adjusted Net Income (ANI) increased to $163.469 million, up from $101.677 million in the previous year, representing a growth of 60.8%[53]. Assets Under Management (AUM) - Assets under management (AUM) increased to $179.2 billion, representing a 20% growth year-over-year[8]. - The company had approximately $698 billion in total capital as of December 31, 2024, including $179 billion in assets under management[4]. - Fee-Earning Assets Under Management (AUM) reached $114.166 billion as of December 31, 2024, marking a 28% increase compared to the previous year[57]. - Contributions to Fee-Earning AUM saw a significant rise, totaling $23.136 billion for the nine months ended December 31, 2024, compared to $7.256 billion in the prior year, an increase of 284%[57]. - The ending balance for Separately Managed Accounts increased by 23% to $69.974 billion, up from $56.660 billion year-over-year[59]. - Private equity AUM grew by 30% to $62.811 billion, while Infrastructure AUM increased by 18% to $23.411 billion as of December 31, 2024[59]. - The company reported a 1% increase in Advisory AUM, reaching $14.765 billion, indicating stable advisory revenue despite fluctuations in AUA[59]. - Total capital responsibility, which includes both AUM and Assets Under Advisement (AUA), was reported at $697.864 billion, a 6% increase year-over-year[59]. Fees and Earnings - Fee-related earnings (FRE) for the quarter were $74.12 million, with a FRE margin of 39%[8]. - Gross realized performance fees amounted to $52.07 million, a 57% increase compared to the previous quarter[8]. - Total performance fees for the three months ended December 31, 2024, were $148.183 million, compared to a loss of $166.104 million in the same period of 2023[16]. - Adjusted management and advisory fees, net, for the nine months ended December 31, 2024, were $555.827 million, an increase from $432.571 million in the same period of 2023[19]. - Total carried interest allocations for the three months ended December 31, 2024, were $117.607 million, compared to $(114.295) million in the same period of 2023[16]. - FRE (Fee-Related Earnings) for the three months ended December 31, 2023, was $50,664,000, with a nine-month total of $138,893,000[35]. - The FRE margin for the nine months ended December 31, 2024, was 39%, consistent with the margin reported for the same period in 2023, demonstrating stable profitability[42]. - Net realized performance fees for the nine months ended December 31, 2024, reached $62,939,000, compared to $28,866,000 for the same period in 2023, showing a substantial increase[49]. - Gross realized performance fees for the nine months ended December 31, 2024, totaled $118,031,000, up from $55,132,000 in the previous year, reflecting strong performance in fee generation[49]. Expenses and Costs - Total expenses for the three months ended December 31, 2024, were $698.105 million, an increase of 19.2% compared to $578.952 million in the same period of 2023[16]. - Cash-based compensation for the three months ended December 31, 2024, was $85.203 million, up from $73.619 million in the same period of 2023, reflecting a growth of 15.5%[16]. - The company incurred transaction costs of $3,985,000 for the three months ended March 31, 2024, compared to $670,000 for the same period in 2023, indicating higher costs associated with transactions[38]. - Total non-core operating expenses for the nine months ended December 31, 2024, amounted to $17,580,000, up from $4,785,000 in the previous year, indicating increased costs associated with non-core activities[38]. Strategic Focus and Future Outlook - The company anticipates continued growth in management and advisory fees, with projections indicating a rise in adjusted management fees to $555,827,000 for the nine months ending December 31, 2024[29]. - The company is focusing on expanding its market presence and enhancing its product offerings, as indicated by the increase in both management and incentive fees[29]. - The company plans to continue expanding its market presence and enhancing its product offerings to drive future growth[56]. - The company is actively monitoring key operating metrics to assess business performance and make informed strategic decisions[56].