StepStone (US:STEP)2025-02-06 21:07Capital 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].