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StepStone Group Inc. Stock Price: Quote, Forecast, Splits & News (STEP)

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Company Profile

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StepStone Group Inc. Price & Performance (STEP)

Stock Performance

Updated Mar 27, 8:00 PM UTC

STEP:NASDAQ

$53.96USD

2.48% · $1.37

Open

$55.05

High

$55.05

Low

$53.72

Market Cap

$6.44B

P/E Ratio

-29.3

Volume

299.85K

Year High

$70.38

Year Low

$33.92

Dividend Yield

2.00%

News & Market Insights

Summit Global Investments Increases Holdings in StepStone Group
Mar 25, 2025
Summit Global Investments has acquired 9,444 shares of StepStone Group, signaling confidence in the firm's potential. Analysts have mixed views, with some upgrading price targets to as high as $85. The stock has seen a 5% rise recently, but insider selling raises questions about long-term sentiment.12
StepStone Group Faces Revenue Growth Challenges
Mar 23, 2025
Despite strong past revenue growth, analysts project a 12% revenue contraction for StepStone Group in the coming year. Investors remain cautiously optimistic, reflected in the stock's current price-to-sales ratio. However, concerns linger over whether the company can sustain its growth trajectory amid industry expectations.34
Insider Transactions at StepStone Draw Attention
Mar 27, 2025
Recent insider sales at StepStone Group have raised eyebrows, with the CEO and CAO collectively selling significant shares. These moves come as the stock hovers near its 52-week high of $70.38, prompting questions about insider confidence in the company's future performance.56

What's Happening

Peers

Earnings

Report Date

Feb 6, 2025

Reported Revenue

339M

Avg 1d Change

5.88%

Report Period

Q3 2025

Reported EPS

0.44

Implied Move 1d

Transcript

10m 59s

Today's presentation contains references to non GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, our presentation and our filings with the SEC. [indiscernible] Turning to our financial results for the third quarter of fiscal twenty twenty five. Beginning with Slide three, we reported a GAAP net loss of $287,000,000 The GAAP net loss attributable to Stepstone Group Incorporated was $192,000,000 or $2.61 per share. GAAP earnings were impacted by the change in fair value related to our potential future buy in of the Stepstone Private Wealth profits interests. David will speak to the GAAP accounting dynamics in more detail in his section. Moving to Slide five, we generated fee related earnings of $74,100,000 up 46% from the prior year quarter. And we generated an FRE margin up 39%. The quarter reflected retroactive fees primarily from our special situations real estate secondaries fund, our infrastructure co investment fund, and our multi strategy growth equity fund. Retroactive fees contributed $9,700,000 to revenue which compares to retroactive fees of $8,600,000 in the third quarter of fiscal twenty twenty four. Finally, we earned $52,700,000 in adjusted net income for the quarter or $0.44 per share.

12m 30s

This is up from $42,100,000 or $0.37 per share in the third quarter of last fiscal year. Driven by higher fee related earnings and higher net realized performance fees. I'll now hand the call over to Scott.

12m 46s

Thank you, Seth, and good evening.

12m 47s

This was a standout quarter for both fee related earnings and fee related asset growth. We generated fee related earnings of $74,000,000 our highest level ever and increased our fee earning assets under management by nearly $10,000,000,000 which is the strongest quarter of organic growth in Stepstones history. We now manage over $114,000,000,000 of fee earning 28% from a year ago. We are very proud of this result, which in large part is a function of our strong fundraising over the last year. And activating over $6,500,000,000 of capital from our UFET balance We tend to look at our growth over a longer period than just one or two quarters in order to reflect cumulative efforts of fundraising, investing, and relationship building that span cycles, Measuring our progress since the fall of twenty twenty one, or just after we closed on the Greenspring acquisition, we've increased our fee earning AUM by or a compounded annual rate of 18% with all this growth generated organically. This success came during a period where many private market managers experienced fundraising pressure as private capital commitments across the industry fell each year from 2021 through 2024. Our results for both the quarter and the last several years are a validation of our strategy and business model.

14m 26s

Which we deliberately constructed to be flexible by commercial structure and strategy, broad and geographic reach, and diversified across asset class. While certain investment approaches may be in or out of fashion in any given period, the diversification of our offerings provides a complete array of solutions for our clients and provides a balance for consistent growth for our shareholders. Highlighting a couple of specific milestones from our fiscal third quarter, First, we closed on our inaugural infrastructure co investment fund, with a total fund size of approximately $1,200,000,000 This is a tremendous result for a first time fund in as a testament to the strength of the team and demand for real assets Infrastructure is quickly becoming an integral component of LP's portfolios due to its benefits of diversification, inflation protection and income generation. While Cummingled Funds may be a new offering from our infrastructure platform, Stepson is a very experienced team StepStone tracker built through managed accounts. We have over $100,000,000,000 of total capital responsibility in making us one of, if not the, largest infrastructure solutions providers in the world. Second, we grew our private wealth platform to over $6,000,000,000 and raised over $1,000,000,000 of new subscriptions. This is our best private wealth growth quarter ever our first quarter raising more than $1,000,000,000 of private wealth subscriptions.

15m 54s

Encouragingly, even as we layered on new products such as structs, our infrastructure fund and CredX, our private credit fund, continue to grow subscriptions in S Prime, our all private markets fund and Spring, our Venture Capital and Growth Equity Fund. Both VESCE Prime and Spring had their strongest subscription quarters to date. As of the January, we have increased the private wealth platform included a more than $600,000,000 secondary transaction by CredX of a high quality private credit portfolio, which occurred at the beginning of the year. The purchase was executed through issuance of Crednex shares to the sellers. We believe this investment by KredX should enhance the returns of the fund, offer greater loan diversification, lower expenses for investors through scale economies and amplify the fund's marketability to additional platforms. Shifting to our financial results, we generated $192,000,000 in management and advisory fees and $74,000,000 in fee related earnings, which are up 2646% year over year respectively. This is our strongest fee related revenue and fee related earnings period on record even as retroactive fees have moderated over the last couple of quarters. Excluding the impact of retroactive fees, our fee related revenue and fee related earnings increased 2753% year on year respectively.

17m 16s

Driven by robust growth in our Fearing AUM across structures. Our FRE margin was 39% for the quarter, If you were to exclude the impact of retroactive fees, our FRE margin was 36% for the quarter and 35% for trailing twelve months. Our best quarterly and twelve month core margin levels on record. I'll now turn the call over to Mike to speak to fundraising and asset growth in more detail. Thanks, Scott. Turning to Slide eight, we generated over $27,000,000,000 of gross AUM inflows during the last twelve months. Dollars 18,000,000,000 of these inflows came from our separately managed accounts And over $9,000,000,000 came from our focused commingle funds, In the quarter, we generated over $2,000,000,000 of co mingled [indiscernible] Notable commingled fund additions included about $600,000,000 in our real estate secondaries fund, and about $200,000,000 for the final close of our debut infrastructure co investment fund. Our infrastructure commingled offering finished with a fund size of approximately $1,200,000,000 which is our largest ever first time fund. Our real estate secondaries fund has raised $2,400,000,000 December, already exceeding the prior vintage of $1,400,000,000 We anticipate executing final closes on our real estate secondaries fund and in our multi strategy growth equity fund within the next couple of quarters.

18m 46s

We remain in market with [indiscernible] our corporate direct lending fund, and our opportunistic lending fund We have also recently launched the Next Vintages of our multi strategy global venture capital fund our private equity co investment fund, which outside of our Evergreen products we anticipate will be the biggest contributors to our Comengel Fund inflows over the next year. Turning to private wealth, As Scott mentioned, we generated over $1,000,000,000 of subscriptions in our Evergreen Funds. Growing the platform to $6,300,000,000 as of the end of the calendar year. Most of these subscriptions came from S Prime and Spring. We are continuing to make progress in structs and CredX, as we build momentum with our current distribution partners and add new distributors to our syndicate. Pivoting to managed accounts, we generated just under $1,000,000,000 of gross additions for the quarter. This is a relatively lighter quarter for managed account gross inflows compared to recent period but it was a record quarter for managed account fee earning AUM growth. Which was up $8,000,000,000 as we activated over $6,500,000,000 of cap We also deployed nearly $2,000,000,000 from our SMAs which is our largest level of deployment out of our managed accounts in more than two years.

20m 9s

The timing and magnitude of our managed account fundraising and fee earning growth can be lumpy. So as Scott mentioned, we believe it is more appropriate to measure our progress over longer periods of time rather than quarter to quarter. Looking forward, the pipeline for new SMAs remains strong. Slide nine shows our fee earning AUM by structure and asset class the quarter, we grew Fearing assets by almost $10,000,000,000 our best period of organic growth ever. Our EUFEC moderated from nearly $30,000,000,000 last quarter to about $22,000,000,000 this quarter given the strong level of activation and deployment. As you can see on the slide, we are sitting with a similar level of U. S. Today as we had at the end of the fiscal year 2024. Following the activations this quarter, the overwhelming majority of our U. S. E. F. E. C. Balance represents undeployed as opposed to not yet activated capital. We anticipate drawing on the remaining UTHEC balance as we deploy these funds over a normal three to five year cycle. The combination of fee earning assets plus Youfec grew to almost $136,000,000,000 or 23% from a year ago. Slide 10 shows the evolution of our management and advisory fees.

21m 30s

We generated a blended management fee rate of 64 basis points for the last twelve months higher than the 59 basis points from the prior fiscal year as we benefited from retroactive fees, and positive mix shift from a higher fee rate associated with our private wealth offerings. Before turning the call over to David, I I would like to highlight an exciting milestone for our venture capital business. As you recall, when we acquired GreenSpring in September of twenty twenty one, part of the purchase price included an earn out that was contingent on achieving certain revenue targets. We are pleased to report that our venture capital team exceeded these targets. And this is notable considering the challenges the technology industry went through in 2022 and 2023, which included a 36% peak to trough drop in the NASDAQ Composite Index. The success of our venture team in raising capital during this period a validation of the team's superior track record and relationship with our clients. To put the GreenSpring deal into perspective, since announcing the acquisition in July of twenty twenty one, we've more than doubled the venture capital fee earning AUM. This includes fund raises in coming on funds, managed accounts and Spring.

22m 46s

This result would have been impossible for GreenSpring or Stepstone to achieve alone. But the combination is very powerful. Our use of earn outs and shared equity among the teams has proven to be an effective incentive tool across the asset classes and is demonstrating to be a very effective tool within private wealth where results are surpassing our expectations. David will speak more to this in a moment. And with that, I'll turn the call over to David. Thanks, Mike. I'd like to turn your attention to Slide 12 to touch on our financial highlights. For the quarter, we earned management and advisory fees of $192,000,000 up 26% from the prior year quarter. The increase was driven by strong growth in fee earning AUM across commercial structures and a higher blended average fee rate. Fee related earnings were $74,000,000 up 46% from a year ago. FRE margin was 39% for the quarter, up more than 500 basis points versus the prior year quarter. Normalizing for retroactive fees, core FRE margins were 36%, expanding more than 600 basis points versus the prior year period. The quarter benefited from roughly $2,000,000 in advisory fees that may not necessarily recur. As well as favorability on timing of expenses.

24m 9s

We tend to look at our margin on a trailing twelve month basis which smooths some of the quarterly fluctuations. Our twelve month margin has consistently risen since our IPO in 2020 and we would expect our margin to continue to grow over time. Looking at expenses in more detail, cash based compensation was $86,000,000 up 4% from last quarter General and administrative expenses were $30,000,000 up roughly $2,000,000 sequentially and up about $3,000,000 from a year ago. As a reminder, we will be hosting our annual venture Capital Conference this month, so you should expect to see a slight uptick in G and A expenses next quarter. Gross realized performance fees were $52,000,000 for the and $27,000,000 net of related compensation expense This reflects $24,000,000 of gross realized carry in our managed account and drawdown funds, and $28,000,000 of incentive fees, Our fiscal third quarter is our strongest seasonal period for incentive fees, due to the annual crystallization of spring in this period. While the $24,000,000 of realized carry is up relative to a year ago, this still represents mostly partial realizations We are optimistic that a broader pickup in M and A and capital market activity will support improvement in realizations But the timing is difficult to predict.

25m 40s

Adjusted net income per share was $0.44 up 19% from a year ago driven by growth in fee related revenues FRE margin expansion, and higher net performance fees. Non controlling interests were relatively higher this quarter due to growth in our infrastructure, real estate and private debt asset classes, retroactive fees and real estate, and very strong growth in private wealth. Particularly strong were private wealth incentive fees. Which drove the outsized growth in performance fee related NCI in the quarter. We are excited to see strong growth across our businesses. Which will increasingly benefit StepSense StepStone line as we buy back a portion of the infrastructure real estate and private debt businesses each year. We will also have an opportunity to call the interest of the private wealth business beginning in 2027 and the private wealth team will have the opportunity to put their interest to Stepstone beginning in 2026. [indiscernible] The book call price is structured to be at a discount to the prevailing step multiple. As Mike mentioned, the progress of our wealth management platform has been even stronger than we anticipated. GAAP accounting requires us to present a change in fair value of the potential buying of the Stepstone Private Wealth's StepStone interest through our income statement, which has meaningfully increased with our higher expectation of Private Wells results.

27m 7s

This is why you see a GAAP net loss this quarter The accounting treatment of the potential future buy in is similar in this regard to the treatment of the 13. Net accrued carry finished the quarter at $744,000,000 up 6% from last quarter and up 31% over the last twelve months. We view our net accrued carry as potential future performance fees that will convert to cash as realizations start to pick up. Our net accrued carry is relatively mature with over 80% tied to programs that are older than five years which means that these programs are ready to harvest And of this amount, over 50% is sourced from vehicles with deal by deal waterfalls meaning realized carry may be payable at the time of investment exit. [indiscernible] Our own investment portfolio ended the quarter at $266,000,000 and we had unfunded commitments to our own [indiscernible] This concludes our prepared remarks. I'll now turn it back over to the operator to open the line for any Thank you.

28m 58s

Our first question will come from the line of Ken Worthington from JPMorgan. Your line is open.

29m 5s

Hi, good evening. Thanks for taking the questions. So, always good to hear about the build out of wealth management. So as we think about sort of accomplishments this quarter, what are you what would you highlight in terms of building out the well footprint, particularly distribution this quarter?

29m 25s

And what I'd really like to hear is as we're in the new calendar year, what gets you most excited about the wealth management business and opportunities as you look out over the next twelve months.

29m 38s

Thanks, Ken. Jason here. We are Really proud of the work that we did this past quarter in continuing to build out the syndicate for the newer funds. Cross sell remained high as we add platforms We crossed about four fifty platforms globally in the quarter. And 40% of them are selling two or more funds. So really building the brand in the platforms and those in this channel are looking at StepStone the same way that institutional investors are which is once they understand the story in one asset class, it's easier for them to understand the same story in additional asset classes and solutions. So that's something that we're very happy with. Second, the progress with the ticker eligible funds, so that's S Prime U. S. That's CredX and that is struct U. S. The flows coming from ticker tick up upon intended, I apologize.

30m 51s

What was about 60% coming through ticker last quarter now nearly 70% coming through ticker. So sanding off that rough edge has proven to be a strategic advantage for us and ultimately accruing to the benefit of the FAs and the clients that are filling these things out. As we look forward in our prepared remarks, we we spoke about the CredX secondary transaction, so that added over $600,000,000 of NAV to the fund in January. So we are very excited about that fund scaling up and now being of relevant size for more platforms that will make cross sell and new platforms a bit easier For sure, And continue to look to innovate within the product suite and think about how we can be better partners to our distribution partners.

31m 52s

Okay. That was excellent. This may be a little esoteric. I'm going to try it anyway. Can you talk a bit about the market for secondaries what are you seeing in terms of sort of activity levels and interest in the market in particular the discounts that are applied to these transactions how are those discounts sort of looking today? Versus how they may have looked I don't know, six, twelve months ago.

32m 19s

Yes. No, so I think it's a good question. It's clearly been a very active year in the secondaries market. 2024, set another new record really across LP and GP led secondaries. You have seen your average market pricing tick up slightly. So in the buyout space, that's probably somewhere in the low to mid-90s. As a percentage of NAV in areas like venture capital is going to be a much larger discount think 70% to 80% of NAV. But clearly part of the trend that we have talked about over the years is just the expansion of the secondaries market to also include GP led secondaries to also include secondary transactions across asset classes. And just to help put things into perspective a bit here, if you rewind the clock just across the industry to 02/2008, We were at a level where there was about $1,000,000,000,000 of dry powder in the private equity market and there was about $1,000,000,000,000 of NAV in the private equity space. When you fast forward, that has obviously grown dramatically and specifically the dry powder has increased about 2.5 times call it $2,500,000,000,000 or so of dry powder today. Whereas we've seen a much more significant level of growth in unrealized net asset value to record levels of over $8,000,000,000,000 And so when I look at those balances, to me, that's streams or secondary's opportunity, whether in the form of LP secondaries, GP secondaries or even sponsor to sponsor where we'd have the ability to participate through co investments as well.

34m 4s

So a lot of excitement as we look at the secondary space coming off really a record year across the Stepstone as well.

34m 14s

Okay, excellent. Thank you very much.

34m 18s

One moment for our next question. Our next question comes from the line of Ben Budish Barclays.

34m 28s

Hi, good evening and thanks for taking the question. I wanted to a nitty little modeling question, but your NCI not attributable to SPW stepped up quite a bit sequentially in the quarter.

34m 40s

In the prepared remarks, you talked a little bit about VC, the legacy Greenspring asset sort of exceeding some of their targets. I'm just curious, was that the big piece of the driver or anything else contributing there? And should that number look maybe in the next couple of quarters sort of based on the way things are trending right now? That would be helpful. Thank you. Yes.

35m

Sure. This is David. The largest driver this quarter of the non private wealth NCI was the retroactive fees associated with our real estate secondaries fund that closed this quarter. So absent that, generally, you would see just a natural growth from just the growth of all the other asset classes.

35m 23s

And just specifically on the venture capital related question, as a reminder, we acquired 100% of that business We did not acquire the legacy carried interest. But on as it relates to fee related revenue, fee related earnings, 100% of the business and would not see that flowing through NCI. Got it. Helpful. And then maybe just a high level question. Scott, in your prepared remarks, you talked a bit about infrastructure. It's been coming up on the calls of a lot of your peers that are sort of really digging into the data center opportunity and obviously with the DeepSeq news people are sort of revisiting that thesis. Can you maybe just talk high level your infrastructure business, what What are the sort of key areas of investment, just to kind of help us understand where you guys are focused there? Yes. I mean, look, I think as you know, across our entire business and across each of our asset classes, very well diversified really across any metrics you might look at, whether that's industry, whether that's underlying manager, certainly underlying portfolio company. And so so we like others, obviously closely tracking the deep seek news there given our position not only in infrastructure but real estate and GPs and portfolio companies over the last several weeks.

36m 40s

But just to come back to your specific question in infrastructure, if I were to look for example at the three largest industry categories across our most recent co investment fund. They're going to be in power and renewables, transportation and communications, which would include data centers there. So again, very well diversified though of infrastructure spectrum. I think similar you would make similar comments had the question been about our real estate and or venture exposure as it relates to data centers. Or large language models.

37m 17s

All right. Understood. Thank you very much. Thank you. One moment for our next question. Our next question comes from the line of Alex Blostein from Goldman Sachs.

37m 32s

Your line is open.

37m 34s

Hey, good evening. Thank you for the question as well.

37m 37s

You guys talked about quite an of an active deployment quarter last quarter shows up obviously in the results as well. Was there anything specific that drove that? Was there Or is it or the activity was across multiple sectors, multiple industries? And guess as you look out, is that likely to continue? How are your pipelines for deployment shaking out so far for the next few quarters?

38m 5s

Yes. So was definitely broad based. I mean, if I think about some of the figures that Mike touched on as it related to the conversion of UFEC into Fearing AUM, the outlier there was really the activations not the deployment. The deployment which was over $2,000,000,000 we mentioned was our most active quarter over the last two years would have been diversified across asset class strategy etcetera. But if I were even to step back, as a reminder, that $2,000,000,000 is only going to capture accounts that pound invested capital and are therefore converting into Fearing AUM. I step back and look across our business, despite what's gone on in the broader market, it was a very active calendar 2024 for us. As I just mentioned earlier, it was our most active year in secondaries really across asset classes. If I look at our private equity co investment business, where driven by the increase in some of the size of the transactions that we invested in as well as the quality of some of the deals that we were seeing and that really played out in our approval ratio. We ended up having about our second most active year in private equity co investments in 2024.

39m 18s

We have seen a pickup in activity, not only in infrastructure that I was just talking about, but private credit as well. And then if I look at real estate, with our real estate secondaries fund that's currently in market, We have started to really see some interesting opportunities there. Now have eight or so seed assets in that fund. So it has been broad based really across asset class and strategy here.

39m 41s

Great. And just in terms of the outlook, in terms of the pipelines, how are you kind of thinking about it calendar twenty five?

39m 48s

Yes. I mean, look, I would expect that to continue really just driven by where we source deal flow from. I mean, if I step back, and really think about it, obviously, there's a bit of an optimistic view that Perhaps with less regulation, we see an increase in M and A activity, capital markets activity. I would say right now, we're having to see some of the pipelines rebuild as we kind of went through the year end transition and certain things wrapped up by calendar. Q4, we're now in the process of rebuilding some of those pipelines. But given the diversified nature of our business and again our ability to source through a variety different channels and through different GPs, I would really expect that to Perfect.

40m 31s

Then my second question, just a little bit of a modeling dynamic. I know you mentioned the earn out [indiscernible] the Green Spring acquisition, which is obviously a high class problem, as that deal was done obviously very nicely. Can you just remind us how that will show up in your financial statements? Is it cash? Is it NCI? Is it stock? So when that's supposed to hit and in what form? [indiscernible] and there is a target of $75,000,000 We hit that target. Fully accrued as of December 31.

41m 8s

Will be payable 100% in cash.

41m 12s

Great.

41m 13s

Thanks so much.

41m 22s

Our next question comes from the line of Michael Cyprys from Morgan Stanley.

41m 29s

Hey, good evening. Thanks for the question. Just wanted to ask about how you're thinking about opportunities around blending public and private assets into a portfolio. If you could talk a little bit about the opportunity set that you see there what extent could that make sense maybe to partner with others maybe in the context of target date strategy? And then I'll ask the follow-up here as well, it's related, just broadly if you could update us on how you're thinking about retirement space.

41m 56s

The new administration. Just curious your expectations around that and how that might play out?

42m 3s

Mike, Jason here. Thanks for the question. John's plural. So public private convergence whether joint product model portfolios etcetera something we're having very many more conversations about today than we would have been last year or the year before without doubt. Clearly given our focus that's a partnering opportunity because we don't cover the public market aspects. And so we are definitely in conversations with people all the time about what that might look like where we can add value, where they can add value. And client demand is and what such a product or solution is actually seeking to solve. Because we do want to look at it through that lens and really ensure that we're trying to solve a problem rather than pushing a product that isn't needed into the market. We do think there's opportunities there and we definitely think that the higher up in the asset owner organization you go, think CIO or Chief Risk Officer, they do want a total portfolio view. And they do want products that [indiscernible] these exposures. So yes, lots of conversations, nothing near term to report on.

43m 32s

As it relates to what channels that type of opportunity flows into, think you're right to highlight that there are multiple different ways where such a thing could be consumed. It could be in the retirement space. It could be in model portfolios sold to retail. It could be in the insurance space or other institutional asset owner space. Particularly smaller end, you might think. In terms of an update on the retirement market, broadly, I think as we've said on these calls over the last couple of quarters, we do not believe that any regulatory or legislative action is required for private markets to succeed within The U. S. Retirement space. That said, action by Congress or the Department of Labor would certainly be welcome. And the more full throated the endorsement is, with that endorsement in essence being please look at the net returns.

44m 37s

I think the more [indiscernible] both planned sponsors at corporate employers and at the asset managers meaning the target date fund managers, and at the defined contribution aggregators who are focused on the advisor managed accounts are all going to be about including private markets inside of these portfolios. Those conversations have been active for a couple of years now and certainly post the election I think those conversations have taken on a Somewhat greater degree of urgency as we work through what the exact solutions are that each of the different strata within the retirement space are really looking for.

45m 28s

Great. Thank you so much.

45m 32s

Thank you. One moment for our next question. Our next question will come from the line of Chris Kotowski from Oppenheimer. Your line is open.

45m 42s

Yes, good evening and thank you. Was wondering if you could give us a little bit more color on that $600,000,000 credits transaction. And I guess I'm wondering specifically was this like a one shot deal to to try to create some critical mass for that fund? Or is this a potential fundraising route on a more regular basis going forward.

46m 11s

Thanks, Chris. Jason here. The secondary it was an opportunistic situation. These things do come up in the market from time to time. This is not the first transaction we've done overall. We did a deal in In S Prime back a year or so. A couple of years ago. [indiscernible] [indiscernible] So I wouldn't view it as a path towards fundraising per se. In the CredX fund in particular, it was an opportunity to grow the scale, which has the benefit of a couple of things. It decreases the expense ratio for existing investors, It increases the diversification, which in credit is extremely important. And because of the increased size, will make us a bit more relevant to additional platforms or eligible on additional platforms, which should speed fundraising in the future. In terms of looking at these, as they come up, we're going to evaluate each deal on a case by case basis. And if they make sense for the fund and their investors, then it's something that we're happy to get after.

47m 31s

Okay. Yes, no, it struck me as interesting because it's more than three times the size of the fund. So they somebody who must know you trust you very well.

47m 41s

So thank you. I'm not showing any further questions at this time. I would now like to turn it back over to Scott Hart for any closing remarks.

47m 55s

Great. Well, as usual, thanks everyone for your time and interest in StepStone Story. We look forward to connecting with you again next quarter.

48m 4s

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

Key Insights

StepStone reported a GAAP net loss of $287 million for Q3 FY2025, primarily due to changes in fair value related to potential future buy-ins of StepStone Private Wealth profits interests. Adjusted net income was $52.7 million or $0.44 per share, up from $0.37 per share in the prior year quarter.
Fee-related earnings (FRE) reached a record $74.1 million, up 46% year-over-year, with an FRE margin of 39%. Fee-earning assets under management (AUM) grew by nearly $10 billion during the quarter, bringing total fee-earning AUM to over $114 billion, a 28% increase from the prior year.
The company closed its inaugural infrastructure co-investment fund at $1.2 billion and grew its private wealth platform to over $6 billion, raising over $1 billion in new subscriptions during the quarter. This included a $600 million secondary transaction in its private credit fund, CredX.
Gross AUM inflows totaled over $27 billion in the last 12 months, with $18 billion from separately managed accounts and $9 billion from commingled funds. The real estate secondaries fund raised $2.4 billion, exceeding its prior vintage, and the infrastructure co-investment fund achieved its largest-ever first-time fund size.
Management and advisory fees increased 26% year-over-year to $192 million, driven by strong growth in fee-earning AUM and a higher blended average fee rate. The company anticipates continued growth in fee-related earnings and margin expansion over time, supported by robust fundraising pipelines and diversified investment strategies.

Recent Transcripts

STEP Energy Services reported a challenging 2024 with operational highlights and cautious optimism for 2025.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$447M	$788M	$1.4B	-$68M	$712M
Cost of Revenue	$240M	$403M	$789M	$214M	$373M
Gross Profit	$206M	$385M	$577M	-$282M	$339M
Gross Profit %	46%	49%	42%	417%	48%
R&D Expenses	$0.33	$0.42	$0.37	$0.8	$0

2020

2021

2022

2023

2024

Revenue

$447M

$788M

$1.4B

-$68M

$712M

Cost of Revenue

$240M

$403M

$789M

$214M

$373M

Gross Profit

$206M

$385M

$577M

-$282M

$339M

Gross Profit %

46%

49%

42%

417%

48%

R&D Expenses

$0.33

$0.42

$0.37

$0.8

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$145M	$315M	$484M	-$45M	$58M
Dep. & Amort.	$7.1M	$5.5M	$27M	$47M	$48M
Def. Tax	-$165M	$16M	$6.2M	-$13M	$9.2M
Stock Comp.	$1.9M	$7.9M	$14M	$25M	$75M
Chg. in WC	$76M	$31M	-$8.6M	-$33M	$19M

2020

2021

2022

2023

2024

Net Income

$145M

$315M

$484M

-$45M

$58M

Dep. & Amort.

$7.1M

$5.5M

$27M

$47M

$48M

Def. Tax

-$165M

$16M

$6.2M

-$13M

$9.2M

Stock Comp.

$1.9M

$7.9M

$14M

$25M

$75M

Chg. in WC

$76M

$31M

-$8.6M

-$33M

$19M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$90M	$180M	$116M	$129M	$182M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$90M	$180M	$116M	$129M	$182M
Receivables	$486M	$929M	$1.5B	$1.3B	$1.5B
Inventory	$1	$1	$1	$229M	$0

2020

2021

2022

2023

2024

Cash

$90M

$180M

$116M

$129M

$182M

ST Investments

Cash & ST Inv.

$90M

$180M

$116M

$129M

$182M

Receivables

$486M

$929M

$1.5B

$1.3B

$1.5B

Inventory

$229M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

OverviewOverview
News & Market InsightsNews & Market Insights
EarningsEarnings
Income StatementIncome Statement
Cash FlowCash Flow
Balance SheetBalance Sheet
RelatedRelated

Earnings

Report Date

Feb 6, 2025

Reported Revenue

339M

Avg 1d Change

5.88%

Report Period

Q3 2025

Reported EPS

0.44

Implied Move 1d

Transcript

10m 59s

12m 30s

12m 46s

Thank you, Seth, and good evening.

12m 47s

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17m 16s

18m 46s

20m 9s

21m 30s

22m 46s

24m 9s

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27m 7s

28m 58s

Our first question will come from the line of Ken Worthington from JPMorgan. Your line is open.

29m 5s

29m 25s

And what I'd really like to hear is as we're in the new calendar year, what gets you most excited about the wealth management business and opportunities as you look out over the next twelve months.

29m 38s

30m 51s

31m 52s

32m 19s

34m 4s

So a lot of excitement as we look at the secondary space coming off really a record year across the Stepstone as well.

34m 14s

Okay, excellent. Thank you very much.

34m 18s

One moment for our next question. Our next question comes from the line of Ben Budish Barclays.

34m 28s

Hi, good evening and thanks for taking the question. I wanted to a nitty little modeling question, but your NCI not attributable to SPW stepped up quite a bit sequentially in the quarter.

34m 40s

35m

35m 23s

36m 40s

37m 17s

All right. Understood. Thank you very much. Thank you. One moment for our next question. Our next question comes from the line of Alex Blostein from Goldman Sachs.

37m 32s

Your line is open.

37m 34s

Hey, good evening. Thank you for the question as well.

37m 37s

38m 5s

39m 18s

39m 41s

Great. And just in terms of the outlook, in terms of the pipelines, how are you kind of thinking about it calendar twenty five?

39m 48s

40m 31s

41m 8s

Will be payable 100% in cash.

41m 12s

Great.

41m 13s

Thanks so much.

41m 22s

Our next question comes from the line of Michael Cyprys from Morgan Stanley.

41m 29s

41m 56s

The new administration. Just curious your expectations around that and how that might play out?

42m 3s

43m 32s

44m 37s

45m 28s

Great. Thank you so much.

45m 32s

Thank you. One moment for our next question. Our next question will come from the line of Chris Kotowski from Oppenheimer. Your line is open.

45m 42s

46m 11s

47m 31s

Okay. Yes, no, it struck me as interesting because it's more than three times the size of the fund. So they somebody who must know you trust you very well.

47m 41s

So thank you. I'm not showing any further questions at this time. I would now like to turn it back over to Scott Hart for any closing remarks.

47m 55s

Great. Well, as usual, thanks everyone for your time and interest in StepStone Story. We look forward to connecting with you again next quarter.

48m 4s

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

Key Insights

StepStone reported a GAAP net loss of $287 million for Q3 FY2025, primarily due to changes in fair value related to potential future buy-ins of StepStone Private Wealth profits interests. Adjusted net income was $52.7 million or $0.44 per share, up from $0.37 per share in the prior year quarter.
Fee-related earnings (FRE) reached a record $74.1 million, up 46% year-over-year, with an FRE margin of 39%. Fee-earning assets under management (AUM) grew by nearly $10 billion during the quarter, bringing total fee-earning AUM to over $114 billion, a 28% increase from the prior year.
The company closed its inaugural infrastructure co-investment fund at $1.2 billion and grew its private wealth platform to over $6 billion, raising over $1 billion in new subscriptions during the quarter. This included a $600 million secondary transaction in its private credit fund, CredX.
Gross AUM inflows totaled over $27 billion in the last 12 months, with $18 billion from separately managed accounts and $9 billion from commingled funds. The real estate secondaries fund raised $2.4 billion, exceeding its prior vintage, and the infrastructure co-investment fund achieved its largest-ever first-time fund size.
Management and advisory fees increased 26% year-over-year to $192 million, driven by strong growth in fee-earning AUM and a higher blended average fee rate. The company anticipates continued growth in fee-related earnings and margin expansion over time, supported by robust fundraising pipelines and diversified investment strategies.

StepStone Group Inc. Price & Performance (STEP)

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