Investment Performance - The company has a strong investment performance track record, outperforming the MSCI ACWI Index with a net IRR of 11.2% compared to the benchmark's 0.9%[49] - The company has over 225 investment programs with the potential to earn performance fees, totaling over $95 billion in committed capital[54] - Approximately 75% of the accrued carried interest allocations of $1,496 million are from StepStone Fund vintages of 2019 or prior[54] Financial Growth - Management and advisory fees increased from $235 million in fiscal 2020 to $767 million in fiscal 2025, reflecting a 27% compounded annual growth rate[51] - As of March 31, 2025, the company had $24.6 billion of committed but undeployed fee-earning capital, expected to generate management fees upon deployment[52] - NAV-based management fees represented approximately 14% of total net management and advisory fees as of March 31, 2025, compared to 9% in 2024[601] Client Relationships - The company has maintained a high client retention rate of approximately 95% since inception[99] - Approximately 34% of the company's clients engage for both asset management and advisory services[99] - The company aims to expand existing client mandates and deploy already raised committed capital to drive growth[57][58] Global Expansion and Strategy - The company is focused on adding new clients globally, leveraging its established local presence and global investment capabilities[60] - The company plans to pursue selective strategic acquisitions to complement its platform and enhance distribution[64] Responsible Investment and Sustainability - The company became a signatory to the United Nations Principles for Responsible Investment (UNPRI) in 2013 and adopted a Responsible Investment policy in 2014, which is reviewed annually[88] - The company has engaged a consultant annually since 2019 to conduct a comprehensive carbon footprint measurement and analysis of its operations[95] - The company has implemented a standalone climate policy and incorporated TCFD-aligned climate considerations within its investment process in 2022[88] - The company has observed a growing focus on impact investing, targeting commercial returns while investing in thematic opportunities such as climate change and the United Nations' Sustainable Development Goals[92] Employee Development and Culture - As of March 31, 2025, the company had approximately 1,130 employees globally, including over 375 investment professionals[137] - The company emphasizes a culture of belonging and continuous improvement, fostering an environment where data and analysis drive decision-making[141] - The company’s investment in employee development includes structured training programs and mentorship opportunities to support professional growth[140] Financial Risks and Compliance - The company is preparing for compliance with the new anti-money laundering and customer identification programs required by the SEC and FinCEN by the end of 2025[124] - The SEC adopted amendments to Regulation S-P in May 2024, mandating notification to clients in the event of privacy breaches[124] - The company is subject to the EU Alternative Investment Fund Managers Directive II (AIFMD II), which entered into force on April 15, 2024, with a two-year implementation period[130] Borrowings and Interest Rates - The company had $175.0 million in borrowings outstanding under its Notes and $100.0 million under its Revolver as of March 31, 2025[605] - Interest expense is estimated to increase by $2.8 million in 2025 and $1.5 million in 2024 due to a 100 basis point increase in interest rates[605] - Interest income is expected to increase by $2.5 million in 2025 and $1.4 million in 2024 with a 100 basis point increase in interest rates[605] Market Sensitivity - A 10% decline in market values of investments held in the company's funds would result in an approximate decrease to annual management fees of $11.2 million in 2025 and $5.8 million in 2024[601] - A 10% decline in fair value of investments in funds would result in a decrease in investment income of $18.4 million in 2025 and $13.5 million in 2024[602] - The company’s carried interest allocation revenue is influenced by market factors, with varying impacts across different funds[602]

StepStone Group Inc. (STEP) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 47.83%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.44, delivering no surprise.Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $18.5 million or $0.24 per share for the fourth quarter [5] - Fee related earnings reached $94.1 million, an increase of 85% from the prior year quarter, with an FRE margin of 44% [5][31] - Adjusted net income for the quarter was $80.6 million or $0.68 per share, up from $37.7 million or $0.33 per share in the same quarter last year [6][31] - The total dividend payout for the fiscal year was $1.36, up from $0.99 the previous year [6][29] Business Line Data and Key Metrics Changes - The company raised over $31 billion in assets under management (AUM) for the fiscal year, with a growth of $27.5 billion in fee earning AUM, marking a 29% growth rate [8][18] - Managed account re-up rates remained above 90%, with average growth of approximately 30% [9] - The private wealth platform saw significant growth, increasing from $3.4 billion to over $8 billion in assets [11] Market Data and Key Metrics Changes - Total gross inflows for the quarter were $9.9 billion, the second highest on record [12] - Fee earning assets under management grew to over $121 billion, up $7.2 billion from the previous quarter [13] - The undeployed fee earning capital (UFEC) increased from approximately $22 billion to $25 billion [22] Company Strategy and Development Direction - The company aims to continue expanding its private wealth offerings and has introduced new products to enhance distribution [11][27] - The strategy includes focusing on scenario planning to assess impacts by asset class, strategy, region, and sector amid a volatile market environment [14] - The company is actively pursuing opportunities in private markets, leveraging its scale and expertise to navigate through cycles [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the operating environment, noting recent progress in trade policy but acknowledging ongoing uncertainty [14] - The company believes that private markets will continue to outperform public markets, emphasizing the importance of a long-term investment approach [15][16] - Management highlighted the importance of maintaining a disciplined investment strategy to capitalize on market dislocations [17] Other Important Information - The company plans to conduct a buy-in of non-controlling interests using $10 million in cash and $161 million in equity [28] - The board declared a supplemental dividend of $0.40 per share, in addition to a base quarterly dividend of $0.24 [29] Q&A Session Summary Question: What were the one-time fees mentioned in the quarter? - The one-time fees were approximately $4 million in advisory fees, which were larger than usual for the quarter [39] Question: How does the pipeline of new business look? - Management expressed a positive outlook on the pipeline, noting strong opportunities in new capital allocations to private markets [44] Question: How do you see the fundraising environment evolving? - Management noted a barbell fundraising trend with strong first and final closes, indicating a healthy fundraising environment [50] Question: What is the outlook for the secondaries marketplace? - Management expects increased selling in the secondaries market due to liquidity constraints among investors, positioning the company as an active buyer [59] Question: How is the private wealth product platform evolving? - The company sees significant growth potential in the private wealth space, particularly in expanding its offerings and distribution in Europe [63]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $18.5 million or $0.24 per share for the fourth quarter [4] - Fee related earnings (FRE) reached $94.1 million, an increase of 85% from the prior year quarter, with an FRE margin of 44% [4][12] - Adjusted net income for the quarter was $80.6 million or $0.68 per share, up from $37.7 million or $0.33 per share in the same quarter last year [5][12] - The total dividend payout for the fiscal year was $1.36, up from $0.99 the previous year [5][28] Business Line Data and Key Metrics Changes - The company raised over $31 billion in assets under management (AUM) for the fiscal year, with a growth of $27.5 billion in fee earning AUM, marking a 29% increase [6][12] - Managed account re-up rates remained above 90%, with an average growth of approximately 30% [6] - The private wealth platform saw AUM increase from $3.4 billion to over $8 billion [10] - Total gross inflows for the quarter were $9.9 billion, with $1.2 billion of evergreen subscriptions, marking the best private wealth quarter ever [11][20] Market Data and Key Metrics Changes - The company experienced strong fundraising and deployment of undeployed fee earning capital, driving fee earning AUM to over $121 billion, an increase of $7.2 billion from the previous quarter [12][22] - The undeployed fee earning capital (UFEC) grew from approximately $22 billion to $25 billion [22] - The blended management fee rate increased to 65 basis points from 59 basis points in the prior fiscal year [22] Company Strategy and Development Direction - The company aims to double its fee related earnings over five years and expand its FRE margin to the mid-30s, achieving a doubling of fee related earnings in just two years [23][24] - The company is focused on scenario planning to assess impacts by asset class, strategy, region, and sector due to market uncertainties [13] - The company is expanding its private wealth offerings and distribution partners, increasing from 300 to nearly 500 unique platforms [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the evolving global trade policy and its impact on market volatility [13] - The company believes that private markets will continue to outperform public markets, emphasizing the importance of a long-term disciplined investment approach [14][15] - Management highlighted the importance of leveraging data and technology to enhance client acquisition and retention [26] Other Important Information - The company plans to conduct a buy-in of non-controlling interests using $10 million in cash and $161 million in equity [27] - The company declared a supplemental dividend of $0.40 per share, in addition to a base quarterly dividend of $0.24 [28] Q&A Session Summary Question: What were the one-time fees in the quarter? - The one-time fees were approximately $4 million in advisory fees, which impacted the FRE margin [38] Question: How does the pipeline of new business look? - The company is optimistic about the pipeline of new opportunities, with a healthy mix of re-ups and new business expected [44] Question: How do you see the secondaries marketplace evolving? - The company anticipates increased selling in the secondaries market and is positioned as an active buyer across various private markets [60] Question: What is the outlook for the private wealth product platform? - The company sees significant growth potential in both the US and European markets, with plans to expand its product offerings [64]

Fiscal Year 2025 Fourth Quarter and Full Year Earnings Presentation May 22, 2025 STEPSTONE GROUP 1 Today's presenters CEO STEPSTONE GROUP 2 Mike McCabe Head of Strategy Scott Hart Jason Ment President & Co-COO David Park CFO GAAP consolidated statements of income (loss) | ($ in thousands, except per share amounts) | | | | Quarter | | | | | Full Year | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Mar '24 | | | Mar '25 | % Fav / Unfav | | Mar '24 | | Mar '25 | % Fav / Unfav | | Re ...

Management will host a webcast and conference call today, Thursday, May 22, 2025 at 5:00 pm ET to discuss the Company's results for the fourth quarter and fiscal year ended March 31, 2025. The webcast will be made available on the Shareholders section of the Company's website at https://shareholders.stepstonegroup.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. A replay will also be available on the Shareholders section of the Company's w ...

NEW YORK, May 22, 2025 (GLOBE NEWSWIRE) -- StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended March 31, 2025. This represents results for the fourth quarter and fiscal year ended March 31, 2025. The Board of Directors of the Company has declared a quarterly cash dividend of $0.24 per share of Class A common stock, and a supplemental cash dividend of $0. ...

Company Overview - StepStone Group has opened a new office in Dublin, Ireland, under its subsidiary StepStone Group Europe Alternative Investment Limited, which is regulated by the Central Bank of Ireland [2] - The firm has been operating in Dublin since 2005 and provides EU-based clients access to private market investment solutions across various asset classes [3] Financial Performance - As of December 31, 2024, StepStone Group Europe Alternative Investment Limited oversees €29.1 billion in assets under management (AUM), a significant increase from €20.6 billion in December 2022, reflecting a growth of approximately 41% [3] Workforce Expansion - The number of employees in StepStone's Dublin office has doubled since 2021, reaching 110 employees, which constitutes about 10% of the firm's global workforce [4] - The new office spans 12,000 square feet and is designed to foster teamwork, brand pride, wellness, and sustainability [4] Market Position - The expansion in Dublin is seen as a positive development for Ireland's financial services sector, reinforcing the country's status as a prime location for global investment firms seeking access to the European market [5][6] - StepStone's growth in Ireland is attributed to the increasing demand for private market solutions among EU-based institutional and private wealth clients [4] Strategic Initiatives - StepStone has recently launched its first European Long-Term Investment Fund (ELTIF) focused on the private debt market and has converted existing RAIF funds into UCI Part II vehicles [6]

The market expects StepStone Group Inc. (STEP) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2025. 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 earnings report, which is expected to be released on May 22, 2025, might help the stock move higher if these key numbers ...

NEW YORK, May 08, 2025 (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, 2025, after the market closes on Thursday, May 22, 2025. Webcast and Earnings Conference Call Management will host a webcast and conference call on Thursday, May 22, 2025, at 5:00 pm ET to discuss the Company’s results for the fourth quarter and fiscal year ended March 31, 2025. The webcast will be made available on th ...