StepStone (STEP)2025-02-06 21:07Capital Management - As of December 31, 2024, the company managed approximately 179 billion in assets under management (AUM) and 109 billion in AUM from separately managed accounts (SMAs) and 519 billion in AUA and 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 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 93.858 billion a year earlier[338]. Financial Performance - Total revenues increased by 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 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 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 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 (20.2) million for the same period in 2023[287]. - The company reported a net income of 189.0 million in the same period in 2023[387]. Expenses and Compensation - Total expenses increased by 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 85.2 million for the three months ended December 31, 2024, due to increased staffing and compensation levels[298]. - Equity-based compensation increased by 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 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 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 1.08 per share of Class A common stock[408]. - Total dividends paid in FY2025 to date amounted to 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 1,647.3 million in investments, including 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].