[StepStone Group Fourth Quarter and Fiscal Year 2024 Results](index=1&type=section&id=StepStone%20Group%20Fourth%20Quarter%20and%20Fiscal%20Year%202024%20Results) This section provides an overview of StepStone Group's financial performance for the fourth quarter and fiscal year ended March 31, 2024 [Report Overview and Dividend Announcement](index=1&type=section&id=Report%20Overview%20and%20Dividend%20Announcement) StepStone Group announced Q4 and FY2024 results, declaring quarterly and supplemental dividends, managing approximately **$678 billion** in total capital Dividend Declaration | Dividend Type | Amount per Share | Payable Date | Record Date | | :--- | :--- | :--- | :--- | | Quarterly Cash Dividend | $0.21 | June 28, 2024 | June 14, 2024 | | Supplemental Dividend | $0.15 | June 28, 2024 | June 14, 2024 | - As of March 31, 2024, StepStone was responsible for approximately **$678 billion** of total capital, which includes **$157 billion** of assets under management (AUM)[4](index=4&type=chunk) [Financial and Operational Highlights](index=3&type=section&id=Financial%20and%20Operational%20Highlights) FY2024 GAAP revenues reached **$711.6 million** with **$167.8 million** net income, while non-GAAP FRE grew **22%** and AUM increased **13%** year-over-year Fiscal Year 2024 vs. 2023 Performance | Metric | Fiscal Year 2024 | Fiscal Year 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Total Revenues | $711.6M | ($67.6M) | N/A | | Net Income (Loss) | $167.8M | ($45.3M) | N/A | | Diluted EPS | $0.91 | ($0.30) | N/A | | **Non-GAAP Results** | | | | | Adjusted Revenues | $665.1M | $642.0M | +4% | | Fee-Related Earnings (FRE) | $189.8M | $156.2M | +22% | | Adjusted Net Income (ANI) | $139.4M | $142.7M | -2% | | ANI per Share | $1.21 | $1.24 | -2% | | **Operating Metrics** | | | | | AUM | $156.6B | $138.4B | +13% | | FEAUM | $93.9B | $85.4B | +10% | Q4 2024 vs. Q4 2023 Performance | Metric | Q4 2024 | Q4 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Total Revenues | $356.8M | $172.4M | +107% | | Net Income | $82.5M | $56.8M | +45% | | **Non-GAAP Results** | | | | | Fee-Related Earnings (FRE) | $50.9M | $37.8M | +35% | | Adjusted Net Income (ANI) | $37.7M | $27.1M | +39% | [GAAP Financial Statements](index=5&type=section&id=GAAP%20Financial%20Statements) This section presents the company's consolidated financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$3.79 billion** as of March 31, 2024, driven by cash and investments, with total liabilities at **$1.92 billion** and equity at **$1.65 billion** Balance Sheet Summary (in thousands) | Account | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,788,807** | **$3,497,403** | | Cash and cash equivalents | $143,430 | $102,565 | | Accrued carried interest allocations | $1,354,051 | $1,227,173 | | **Total Liabilities** | **$1,915,673** | **$1,844,086** | | Accrued carried interest-related compensation | $719,497 | $644,517 | | Debt obligations | $148,822 | $98,351 | | **Total Stockholders' Equity** | **$1,654,591** | **$1,628,787** | [Consolidated Statements of Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) FY2024 total revenues reached **$711.6 million**, a significant turnaround from a **$67.6 million** loss in FY2023, resulting in **$167.8 million** net income Income Statement Summary - Fiscal Year Ended March 31 (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Management and advisory fees, net | $585,140 | $497,179 | | Total performance fees | $126,491 | ($564,753) | | **Total revenues** | **$711,631** | **($67,574)** | | Total compensation and benefits | $372,543 | ($214,236) | | **Total expenses** | **$539,860** | **($67,077)** | | **Net income (loss)** | **$167,820** | **($45,275)** | | Net income (loss) attributable to StepStone Group Inc. | $58,091 | ($18,398) | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles key non-GAAP metrics like Adjusted Revenues, FRE, and ANI, providing insights into the firm's core operating profitability [Adjusted Revenues](index=9&type=section&id=Adjusted%20Revenues) Adjusted revenues, a measure of realized revenues, increased **4%** to **$665.1 million** in FY2024, reconciled from GAAP total revenues by excluding specific non-cash items Reconciliation of Total Revenues to Adjusted Revenues (in thousands) | Line Item | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Total revenues (GAAP) | $711,631 | ($67,574) | | Less: Unrealized carried interest allocations | ($126,908) | $253,342 | | Add: Legacy Greenspring carried interest | $75,157 | $452,163 | | Other adjustments | $4,180 | $3,039 | | **Adjusted revenues (Non-GAAP)** | **$665,060** | **$641,970** | [Fee-Related Earnings (FRE) and Adjusted Net Income (ANI)](index=10&type=section&id=Fee-Related%20Earnings%20%28FRE%29%20and%20Adjusted%20Net%20Income%20%28ANI%29) FY2024 Fee-Related Earnings (FRE) grew **22%** to **$189.8 million** with a **32%** margin, while Adjusted Net Income (ANI) decreased **2%** to **$139.4 million** Reconciliation to FRE and ANI - Fiscal Year Ended March 31 (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Income (loss) before income tax (GAAP) | $195,396 | ($41,454) | | Adjustments (Unrealized carry, equity comp, etc.) | ($15,020) | $225,062 | | **Pre-tax ANI** | **$179,376** | **$183,608** | | Income taxes | ($39,983) | ($40,945) | | **ANI** | **$139,393** | **$142,663** | | Adjustments to derive FRE | $50,400 | ($113,505) | | **FRE** | **$189,793** | **$156,158** | - The FRE margin for fiscal year 2024 was **32%**, calculated by dividing FRE (**$189.8M**) by adjusted management and advisory fees, net (**$586.4M**), an increase from the **31%** margin in fiscal 2023[45](index=45&type=chunk) [Realized Performance Fees](index=17&type=section&id=Realized%20Performance%20Fees) Gross realized performance fees decreased **46%** to **$78.7 million** in FY2024, resulting in **$41.0 million** in net realized performance fees after compensation Realized Performance Fees - Fiscal Year Ended March 31 (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | **Gross realized performance fees** | **$78,681** | **$144,644** | | Less: Realized performance fee-related compensation | ($37,687) | ($79,846) | | **Net realized performance fees** | **$40,994** | **$64,798** | [Adjusted Net Income Per Share](index=18&type=section&id=Adjusted%20Net%20Income%20Per%20Share) Adjusted Net Income (ANI) per share was **$1.21** in FY2024, a slight decrease from **$1.24** in FY2023, based on **$139.4 million** ANI ANI Per Share Calculation - Fiscal Year Ended March 31 | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | ANI (in thousands) | $139,393 | $142,663 | | Adjusted weighted-average shares | 115,134,473 | 114,618,105 | | **ANI per share** | **$1.21** | **$1.24** | [Key Operating Metrics](index=19&type=section&id=Key%20Operating%20Metrics) This section details key business drivers, including Fee-Earning AUM (FEAUM) growth and total capital responsibility across private market asset classes [Fee-Earning AUM (FEAUM)](index=19&type=section&id=Fee-Earning%20AUM%20%28FEAUM%29) Fee-Earning AUM (FEAUM) grew **10%** to **$93.9 billion** by March 31, 2024, driven by contributions, with undeployed fee-earning capital increasing **44%** FEAUM Roll-Forward - Fiscal Year 2024 (in millions) | Line Item | Amount | | :--- | :--- | | Beginning balance (April 1, 2023) | $85,431 | | Contributions | $12,442 | | Distributions | ($5,921) | | Market value, FX and other | $1,906 | | **Ending balance (March 31, 2024)** | **$93,858** | - Undeployed fee-earning capital (UFEC) grew **44%** from **$15.7 billion** at the end of FY23 to **$22.6 billion** at the end of FY24, indicating a strong pipeline for future fee revenue[8](index=8&type=chunk) [Asset Class Summary](index=20&type=section&id=Asset%20Class%20Summary) Total capital responsibility reached **$677.8 billion** by March 31, 2024, with AUM growing **13%** to **$156.6 billion** and AUA increasing **8%** to **$521.1 billion** Capital by Asset Class as of March 31, 2024 (in billions) | Asset Class | AUM | AUA | FEAUM | | :--- | :--- | :--- | :--- | | Private equity | $81.9 | $270.4 | $49.9 | | Infrastructure | $30.0 | $60.3 | $20.1 | | Private debt | $28.5 | $22.0 | $15.5 | | Real estate | $16.2 | $168.5 | $8.4 | | **Total** | **$156.6** | **$521.1** | **$93.9** | - Total capital responsibility, the sum of AUM and AUA, grew **9%** year-over-year to **$677.8 billion**[62](index=62&type=chunk)[63](index=63&type=chunk) [Glossary](index=22&type=section&id=Glossary) This section defines key terms and metrics, clarifying distinctions between client asset types and fee calculation bases used in the report [Key Definitions](index=22&type=section&id=Key%20Definitions) Key definitions include Assets Under Management (AUM), Assets Under Advisement (AUA), Fee-Earning AUM (FEAUM), and Undeployed Fee-Earning Capital, clarifying asset types and fee bases - **Assets under management (AUM):** Assets where the firm has full discretion over investment decisions, calculated as the sum of NAV and unfunded commitments[68](index=68&type=chunk)[69](index=69&type=chunk) - **Assets under advisement (AUA):** Client assets for which the firm provides advisory services but does not have investment discretion, with fees generally fixed and not directly correlated to AUA value[66](index=66&type=chunk) - **Fee-earning AUM (FEAUM):** The specific assets from which the firm earns management fee revenue, typically based on capital commitments or net invested capital rather than market value[71](index=71&type=chunk)[72](index=72&type=chunk) - **Undeployed fee-earning capital:** Capital commitments that have not yet been invested but will generate management fees once activated[75](index=75&type=chunk)

Core Insights - StepStone Group Inc. reported its financial results for the fourth quarter and fiscal year ended March 31, 2024, highlighting significant growth in revenues and net income compared to the previous year [1][16]. Financial Performance - Management and advisory fees, net for the fourth quarter reached $153.41 million, an increase of 16% year-over-year [8]. - Total revenues for the fourth quarter were $356.81 million, up 107% from $172.37 million in the same quarter last year [8]. - Total performance fees surged to $203.40 million, a 411% increase compared to $39.80 million in the prior year [8]. - Net income for the fourth quarter was $82.54 million, representing a 45% increase from $56.82 million in the same quarter of the previous year [8]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.21 per share and a supplemental dividend of $0.15 per share, both payable on June 28, 2024 [1]. Assets Under Management - As of March 31, 2024, StepStone managed approximately $678 billion in total capital, including $157 billion in assets under management [5]. Client Base - StepStone's clients include large public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [5]. Key Business Metrics - Fee-related earnings (FRE) for the fiscal year were $189.79 million, a 22% increase from the previous year [8]. - Adjusted net income (ANI) for the fiscal year was $139.39 million, reflecting a 2% decrease compared to $142.66 million in the prior year [8]. - The FRE margin for the fiscal year was 32%, consistent with the previous year [8].

Core Viewpoint - StepStone Group Inc. (STEP) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on May 23, 2024, with a consensus estimate of quarterly earnings at $0.28 per share, reflecting a year-over-year increase of +16.7% [3]. - Revenues are projected to reach $189.93 million, which is a 10.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 4.95% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for StepStone Group is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.57% [10]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [8]. - StepStone Group currently holds a Zacks Rank of 1, suggesting a high likelihood of exceeding the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, StepStone Group had an expected EPS of $0.25 but delivered $0.37, resulting in a surprise of +48% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Comparison - XP Inc.A, another player in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings of $0.44 per share for the same quarter, indicating a year-over-year change of +51.7% [17]. - However, XP Inc.A has a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00%, making it challenging to predict an earnings beat [18].

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- StepStone Group Inc. (NASDAQ:STEP) today announced that the Company will release its results for the fourth quarter and fiscal year ended March 31, 2024, after the market closes on Thursday, May 23, 2024. Webcast and Earnings Conference Call Management will host a webcast and conference call on Thursday, May 23, 2024, at 5:00 pm ET to discuss the Company's results for the fourth quarter and fiscal year ended March 31, 2024. The webcast will be made available on the ...

StepStone Group Inc. (STEP) shares rallied 5.8% in the last trading session to close at $37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks.StepStone's stock experienced a price rise following a rating upgrade from Neutral to Overweight by JPMorgan, along with a revised price target of $49.00, up from $40.00. Better fundraising prospects and improved Fee-Paying Assets Under ...

StepStone Group Inc. (STEP) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indi ...

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Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $23.4 million, with a net loss attributable to StepStone Group Incorporated of $20.2 million or $0.32 per share [82] - Fee-related earnings (FRE) increased by 19% year-over-year to $50.7 million, with an FRE margin of 33% [83][121] - Adjusted net income for the quarter was $42.1 million or $0.37 per share, up from $31.2 million or $0.27 per share in the same quarter last year [84] Business Line Data and Key Metrics Changes - Management and advisory fees rose by 18% year-over-year to $152 million, driven by growth in fee-earning AUM and $8.6 million in retroactive fees [120] - Gross realized performance fees were $33 million for the quarter, up $14 million from last year and $26 million from the prior quarter [2] - The company generated gross inflows of $6 billion in the quarter, with $4.3 billion coming from separately managed accounts (SMAs) [87] Market Data and Key Metrics Changes - The pool of performance fee eligible capital grew to over $70 billion, diversified across multiple vintage years in over 200 programs [8] - The company experienced $1.7 billion in distributions, including a significant distribution of approximately $1 billion from its infrastructure managed account [106] Company Strategy and Development Direction - The company announced agreements to acquire the remaining stakes in its infrastructure, private debt, and real estate businesses over the coming years, aiming for full ownership [86][96] - The strategy includes a gradual buy-in of non-controlling interests, structured to incentivize teams to grow their asset classes while maintaining alignment of interests [116][118] - The company aims to double fee-related earnings by fiscal 2028, leveraging a combination of separately managed accounts, commingled funds, and private wealth offerings [93] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fundraising momentum, noting strong client relationships and a robust pipeline for future fundraising [88] - The company anticipates continued growth in FRE margins due to operating leverage and strategic cost-saving opportunities [112] - Management highlighted a positive sentiment among limited partners (LPs) regarding private markets, driven by recent public market recoveries [67] Other Important Information - The company sold its non-core subsidiary, Greenspring Back Office Solutions, which is expected to increase fee-related earnings by $2 million annually [114] - The company has launched new products, including the StepStone Private Credit Income Fund (CredEx), focusing on U.S. direct lending and specialty credit [92] Q&A Session Summary Question: Can you clarify the total asset pool migrating into fee-paying AUM over time? - Management indicated that the migration is largely driven by $21 billion of undeployed fee-earning capital, with a deployment period of three to five years [15] Question: What is the cadence of the buyout of the non-controlling interests? - The buyout will occur at a rate of one-tenth per year over the next five years, with potential acceleration after that period [16][17] Question: Can you elaborate on the incentive fee dynamics? - Incentive fees are generally tied to programs that crystallize annually, with expectations for modest fees in the upcoming quarters, particularly in the second and third fiscal quarters [22] Question: How does the minority buy-in impact the FRA margin profile over time? - Management expects margin expansion through operating leverage and efficiencies, but does not anticipate significant changes in margins directly from the buy-in [45] Question: What is the outlook for commingled fundraises? - The company is in the late stages of fundraising for several key funds, with positive sentiment from LPs and a strong pipeline for future fundraising [68]

○ STEPSTONE Third Quarter Fiscal Year 2024 Earnings Presentation STEPSTONE GROUP 2 CEO Scott Hart Jason Ment President & Co-COO GAAP Consolidated Statements of Income (Loss) Fiscal Q3 2024 overview Business Update STEPSTONE GROUP 5 Overview Insight Powerful data that drives better decisions Flexibility Offerings and expertise to design fully custom solutions Reach True global presence, deep local knowledge Opportunity The capital and relationships that unlock growth Growth drivers $510 billion STEPSTONE GRO ...

StepStone Group Inc. (STEP) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 48%. A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.26, delivering a surprise of -7.14%.Over the last four quarters, the compan ...