StepStone Group Reports Fourth Quarter and Fiscal Year 2025 Results

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 $0.40 per share of Class A common stock, both payable on June 30, 2025, to the holders of record as of the close of business on June 13, 2025. StepStone issued a full detailed presentation of its fourth quarter and full fiscal year ended March 31, 2025 results, which can be accessed by visiting the Company’s website at https://shareholders.stepstonegroup.com. Webcast and Earnings Conference Call 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 website approximately two hours after the conclusion of the event. To join as a live participant in the question and answer portion of the call, participants must register at https://register-conf.media-server.com/register/BI83b497f55a944def8cfadab7f935822b. Upon registering you will receive the dial-in number and a PIN to join the call as well as an email confirmation with the details. About StepStone StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of March 31, 2025, StepStone was responsible for approximately $709 billion of total capital, including $189 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes. Forward-Looking Statements Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, our successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under the “Risk Factors” section of our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 24, 2024, and in our annual report on Form 10-K to be filed with the SEC for the fiscal year ended March 31, 2025, and in our subsequent reports filed with the SEC, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use the following non-GAAP financial measures: fee revenues, adjusted revenues, adjusted net income (on both a pre-tax and after-tax basis), adjusted net income per share, adjusted weighted-average shares, fee-related earnings, fee-related earnings margin, gross realized performance fees and performance fee-related earnings. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures in this earnings release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. For definitions of these non-GAAP measures and reconciliations to applicable GAAP measures, please see the section titled “Non-GAAP Financial Measures: Definitions and Reconciliations.” Financial Highlights and Key Business Drivers/Operating Metrics Three Months Ended Year Ended March 31, Percentage Change(in thousands, except share and per share amounts and where noted)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 vs. FQ4'24vs. FY'24Financial Highlights GAAP Results Management and advisory fees, net$153,410 $178,015 $184,758 $190,840 $213,401 $585,140 $767,014 39%31%Total revenues 356,810 186,401 271,677 339,023 377,729 711,631 1,174,830 6%65%Total performance fees 203,400 8,386 86,919 148,183 164,328 126,491 407,816 (19)%222%Net income (loss) 82,542 48,045 53,138 (287,163) 13,153 167,820 (172,827) (84)%naNet income (loss) per share of Class A common stock: Basic$0.48 $0.20 $0.26 $(2.61)$(0.24) $0.91 $(2.52) nanaDiluted$0.48 $0.20 $0.26 $(2.61)$(0.24) $0.91 $(2.52) nanaWeighted-average shares of Class A common stock: Basic 64,194,859 66,187,754 68,772,051 73,687,289 75,975,770 63,489,135 71,142,916 18%12%Diluted 67,281,567 68,593,761 69,695,315 73,687,289 75,975,770 66,544,038 71,142,916 13%7%Quarterly dividend per share of Class A common stock(1)$0.21 $0.21 $0.24 $0.24 $0.24 $0.83 $0.93 14%12%Supplemental dividend per share of Class A common stock(2)$— $0.15 $— $— $— $0.25 $0.15 na(40)%Accrued carried interest allocations$1,354,051 $1,328,853 $1,381,110 $1,474,543 $1,495,664 10% Non-GAAP Results(3) Fee revenues(4)$153,808 $178,514 $185,481 $191,832 $214,662 $586,379 $770,489 40%31%Adjusted revenues 177,357 221,165 208,788 243,905 295,861 665,060 969,719 67%46%Fee-related earnings (“FRE”) 50,900 71,656 72,349 74,118 94,081 189,793 312,204 85%64%FRE margin(5) 33% 40% 39% 39% 44% 32% 41% Gross realized performance fees 23,549 42,651 23,307 52,073 81,199 78,681 199,230 245%153%Performance fee-related earnings (“PRE”) 12,128 21,803 14,540 26,596 41,543 40,994 104,482 243%155%Adjusted net income (“ANI”) 37,716 57,241 53,569 52,659 80,603 139,393 244,072 114%75%Adjusted weighted-average shares 115,512,301 118,510,499 118,774,233 118,935,179 118,869,111 115,134,473 118,772,442 ANI per share$0.33 $0.48 $0.45 $0.44 $0.68 $1.21 $2.05 106%69% Key Business Drivers/Operating Metrics (in billions) Assets under management (“AUM”)(6)$156.6 $169.3 $176.1 $179.2 $189.4 21% Assets under advisement (“AUA”)(6) 521.1 531.4 505.9 518.7 519.7 — Fee-earning AUM (“FEAUM”) 93.9 100.4 104.4 114.2 121.4 29% Undeployed fee-earning capital (“UFEC”) 22.6 27.6 29.7 21.7 24.6 9% _______________________________(1) Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.(2) The supplemental cash dividend relates to earnings in respect of our full fiscal years 2023 and 2024, respectively.(3) Fee revenues, adjusted revenues, FRE, FRE margin, gross realized performance fees, PRE, ANI, adjusted weighted-average shares and ANI per share are non-GAAP measures. See the definitions of these measures and reconciliations to the respective, most comparable GAAP measures under “Non-GAAP Financial Measures: Definitions and Reconciliations.”(4) Excludes the impact of consolidating the Consolidated Funds. See reconciliation of GAAP measures to adjusted measures that follows.(5) FRE margin is calculated by dividing FRE by fee revenues.(6) AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented. Does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV. StepStone Group Inc.GAAP Consolidated Balance Sheets(in thousands, except share and per share amounts) As of March 31, 2025 2024Assets Cash and cash equivalents$244,791 $143,430Restricted cash 502 718Fees and accounts receivable 80,871 56,769Due from affiliates 92,723 67,531Investments: Investments in funds 183,694 135,043Accrued carried interest allocations 1,495,664 1,354,051Legacy Greenspring investments in funds and accrued carried interest allocations(1) 629,228 631,197Deferred income tax assets 382,886 184,512Lease right-of-use assets, net 91,841 97,763Other assets and receivables 62,869 60,611Intangibles, net 263,872 304,873Goodwill 580,542 580,542Assets of Consolidated Funds: Cash and cash equivalents 44,511 38,164Investments, at fair value 415,011 131,858Other assets 17,688 1,745Total assets$4,586,693 $3,788,807Liabilities and stockholders’ equity Accounts payable, accrued expenses and other liabilities$89,731 $127,417Accrued compensation and benefits 736,695 101,481Accrued carried interest-related compensation 757,968 719,497Legacy Greenspring accrued carried interest-related compensation(1) 495,739 484,154Due to affiliates 331,821 212,918Lease liabilities 113,519 119,739Debt obligations 269,268 148,822Liabilities of Consolidated Funds: Other liabilities 17,580 1,645Total liabilities 2,812,321 1,915,673Redeemable non-controlling interests in Consolidated Funds 377,897 102,623Redeemable non-controlling interests in subsidiaries 6,327 115,920Stockholders’ equity: Class A common stock, $0.001 par value, 650,000,000 authorized; 76,761,399 and 65,614,902 issued and outstanding as of March 31, 2025 and 2024, respectively 77 66Class B common stock, $0.001 par value, 125,000,000 authorized; 39,656,954 and 45,030,959 issued and outstanding as of March 31, 2025 and 2024, respectively 40 45Additional paid-in capital 421,057 310,293Retained earnings (accumulated deficit) (242,546) 13,768Accumulated other comprehensive income 728 304Total StepStone Group Inc. stockholders’ equity 179,356 324,476Non-controlling interests in subsidiaries 1,056,510 974,559Non-controlling interests in legacy Greenspring entities(1) 133,489 147,042Non-controlling interests in the Partnership 20,793 208,514Total stockholders’ equity 1,390,148 1,654,591Total liabilities and stockholders’ equity$4,586,693 $3,788,807 (1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. StepStone Group Inc.GAAP Consolidated Statements of Income (Loss)(in thousands, except share and per share amounts) Three Months Ended March 31, Year Ended March 31, 2025 2024 2025 2024 Revenues Management and advisory fees, net$213,401 $153,410 $767,014 $585,140 Performance fees: Incentive fees 5,910 2,496 32,275 25,339 Carried interest allocations: Realized 75,935 18,054 159,653 49,401 Unrealized 21,177 151,757 141,547 126,908 Total carried interest allocations 97,112 169,811 301,200 176,309 Legacy Greenspring carried interest allocations(1) 61,306 31,093 74,341 (75,157)Total performance fees 164,328 203,400 407,816 126,491 Total revenues 377,729 356,810 1,174,830 711,631 Expenses Compensation and benefits: Cash-based compensation 85,510 74,411 331,808 292,962 Equity-based compensation 126,197 13,937 669,126 42,357 Performance fee-related compensation: Realized 39,656 11,421 94,748 37,687 Unrealized 27,777 84,014 94,272 74,694 Total performance fee-related compensation 67,433 95,435 189,020 112,381 Legacy Greenspring performance fee-related compensation(1) 61,306 31,093 74,341 (75,157)Total compensation and benefits 340,446 214,876 1,264,295 372,543 General, administrative and other 43,152 54,310 177,354 167,317 Total expenses 383,598 269,186 1,441,649 539,860 Other income (expense) Investment income 9,386 3,337 15,096 7,452 Legacy Greenspring investment income (loss)(1) 2,934 (33) (1,185) (9,087)Investment income of Consolidated Funds 34,496 6,115 65,374 28,472 Interest income 3,218 1,429 10,850 3,664 Interest expense (3,191) (2,649) (12,701) (9,331)Other income (loss) (31,024) (1,308) (32,650) 2,455 Total other income 15,819 6,891 44,784 23,625 Income (loss) before income tax 9,950 94,515 (222,035) 195,396 Income tax expense (benefit) (3,203) 11,973 (49,208) 27,576 Net income (loss) 13,153 82,542 (172,827) 167,820 Less: Net income attributable to non-controlling interests in subsidiaries 16,316 4,443 79,282 37,240 Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1) 2,934 (33) (1,185) (9,087)Less: Net income (loss) attributable to non-controlling interests in the Partnership (17,994) 37,279 (125,850) 59,956 Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds 30,630 4,248 53,731 15,838 Less: Net income (loss) attributable to redeemable non-controlling interests in subsidiaries (225) 5,782 758 5,782 Net income (loss) attributable to StepStone Group Inc.$(18,508) $30,823 $(179,563) $58,091 Net income (loss) per share of Class A common stock: Basic$(0.24) $0.48 $(2.52) $0.91 Diluted$(0.24) $0.48 $(2.52) $0.91 Weighted-average shares of Class A common stock: Basic 75,975,770 64,194,859 71,142,916 63,489,135 Diluted 75,975,770 67,281,567 71,142,916 66,544,038 (1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. Non-GAAP Financial Measures: Definitions and Reconciliations Fee Revenues Fee revenues represents management and advisory fees, net, including amounts earned from the Consolidated Funds which are eliminated in consolidation. We believe fee revenues is useful to investors because it presents the net amount of management and advisory fee revenues attributable to us. The table below presents the components of fee revenues. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025Focused commingled funds(1)(2)$80,434$104,798$107,855$105,718$124,604 $296,667$442,975Separately managed accounts 55,945 57,376 61,393 66,245 67,695 223,958 252,709Advisory and other services 16,147 14,769 14,907 17,458 19,927 60,057 67,061Fund reimbursement revenues(1) 1,282 1,571 1,326 2,411 2,436 5,697 7,744Fee revenues$153,808$178,514$185,481$191,832$214,662 $586,379$770,489 _______________________________(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.(2) Includes income-based incentive fees from certain funds: Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025Income-based incentive fees$753$1,113$1,347$2,120$3,377 $1,372$7,956 Adjusted Revenues Adjusted revenues represents the components of revenues used in the determination of ANI and comprise fee revenues, adjusted incentive fees and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues. The table below shows a reconciliation of revenues to adjusted revenues. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 Total revenues$356,810 $186,401$271,677 $339,023 $377,729 $711,631 $1,174,830 Unrealized carried interest allocations (151,757) 25,170 (52,215) (93,325) (21,177) (126,908) (141,547)Deferred incentive fees 1,450 6 2,445 — (513) 2,392 1,938 Legacy Greenspring carried interest allocations (31,093) 9,089 (13,917) (8,207) (61,306) 75,157 (74,341)Management and advisory fee revenues for the Consolidated Funds(1) 398 499 723 992 1,261 1,239 3,475 Incentive fees for the Consolidated Funds(2) 1,549 — 75 5,422 (133) 1,549 5,364 Adjusted revenues$177,357 $221,165$208,788 $243,905 $295,861 $665,060 $969,719 _______________________________(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.(2) Reflects the add back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation. Adjusted Net Income Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to evaluate profitability. ANI represents the after-tax net realized income attributable to us. ANI does not reflect legacy Greenspring carried interest allocation revenues, legacy Greenspring carried interest-related compensation and legacy Greenspring investment income (loss) as none of the economics are attributable to us. The components of revenues used in the determination of ANI (“adjusted revenues”) comprise fee revenues, adjusted incentive fees and realized carried interest allocations. In addition, ANI excludes: (a) unrealized carried interest allocation revenues and related compensation, (b) unrealized investment income (loss), (c) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). ANI is fully taxed at our blended statutory rate. We believe ANI and adjusted revenues are useful to investors because they enable investors to evaluate the performance of our business across reporting periods. Fee-Related Earnings Fee-related earnings, or “FRE,” is a non-GAAP performance measure used to monitor our baseline earnings from recurring management and advisory fees. FRE is a component of ANI and comprises fee revenues less adjusted expenses which are operating expenses other than (a) performance fee-related compensation, (b) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (c) amortization of intangibles, (d) charges associated with acquisitions and corporate transactions, and (e) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). FRE is presented before income taxes. We believe FRE is useful to investors because it provides additional insight into the operating profitability of our business and our ability to cover direct base compensation and operating expenses from total fee revenue. The table below shows a reconciliation of GAAP measures to additional non-GAAP measures. We use the non-GAAP measures presented below as components when calculating FRE and ANI (as defined below). We believe these additional non-GAAP measures are useful to investors in evaluating both the baseline earnings from recurring management and advisory fees, which provide additional insight into the operating profitability of our business, and the after-tax net realized income attributable to us, allowing investors to evaluate the performance of our business. These additional non-GAAP measures remove the impact of Consolidated Funds that we are required to consolidate under GAAP, and certain other items that we believe are not indicative of our core operating performance. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 GAAP management and advisory fees, net$153,410 $178,015 $184,758 $190,840 $213,401 $585,140 $767,014 Management and advisory fee revenues for the Consolidated Funds(1) 398 499 723 992 1,261 1,239 3,475 Fee revenues$153,808 $178,514 $185,481 $191,832 $214,662 $586,379 $770,489 GAAP incentive fees$2,496 $841 $3,155 $22,369 $5,910 $25,339 $32,275 Adjustments(2) 2,999 6 2,520 5,422 (646) 3,941 7,302 Adjusted incentive fees$5,495 $847 $5,675 $27,791 $5,264 $29,280 $39,577 GAAP cash-based compensation$74,411 $78,224 $82,871 $85,203 $85,510 $292,962 $331,808 Adjustments(3) (461) (428) (285) 339 — (2,140) (374)Adjusted cash-based compensation$73,950 $77,796 $82,586 $85,542 $85,510 $290,822 $331,434 GAAP equity-based compensation$13,937 $19,179 $37,332 $486,418 $126,197 $42,357 $669,126 Adjustments(4) (12,210) (16,785) (34,947) (483,958) (123,263) (36,635) (658,953)Adjusted equity-based compensation$1,727 $2,394 $2,385 $2,460 $2,934 $5,722 $10,173 GAAP general, administrative and other$54,310 $41,011 $50,061 $43,130 $43,152 $167,317 $177,354 Adjustments(5) (27,079) (14,343) (21,900) (13,418) (11,015) (67,275) (60,676)Adjusted general, administrative and other$27,231 $26,668 $28,161 $29,712 $32,137 $100,042 $116,678 GAAP interest income$1,429 $2,057 $3,016 $2,559 $3,218 $3,664 $10,850 Interest income earned by the Consolidated Funds(6) (612) (907) (1,363) (887) (1,600) (1,645) (4,757)Adjusted interest income$817 $1,150 $1,653 $1,672 $1,618 $2,019 $6,093 GAAP other income (loss)$(1,308)$(351)$1,177 $(2,452)$(31,024) $2,455 $(32,650)Adjustments(7) 395 (72) (1,082) 1,883 30,606 (3,879) 31,335 Adjusted other income (loss)$(913)$(423)$95 $(569)$(418) $(1,424)$(1,315) ______________________________(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.(2) Reflects the add back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.(3) Reflects the removal of compensation paid to certain employees as part of an acquisition earn-out and unrealized amounts associated with cash-based incentive awards tracked to the performance of a designated investment fund.(4) Reflects the removal of equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.(5) Reflects the removal of lease remeasurement adjustments, accelerated depreciation of leasehold improvements for changes in lease terms, amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation and other non-core operating income and expenses.(6) Reflects the removal of interest income earned by the Consolidated Funds.(7) Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds, gain associated with amounts received as part of negotiations with a third party related to certain corporate matters, loss on sale of subsidiary and the impact of consolidation of the Consolidated Funds. The table below shows a reconciliation of income (loss) before income tax to ANI and FRE. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 Income (loss) before income tax$94,515 54,842 $57,888 $(344,715)$9,950 $195,396 $(222,035)Net income attributable to non-controlling interests in subsidiaries(1) (12,822) (18,951) (17,812) (32,765) (33,369) (49,220) (102,897)Net (income) loss attributable to non-controlling interests in legacy Greenspring entities 33 1,255 4,031 (1,167) (2,934) 9,087 1,185 Unrealized carried interest allocations (151,757) 25,170 (52,215) (93,325) (21,177) (126,908) (141,547)Unrealized performance fee-related compensation 84,014 (10,923) 27,748 49,670 27,777 74,694 94,272 Unrealized investment (income) loss (2,280) (1,180) (430) 656 (6,007) (907) (6,961)Impact of Consolidated Funds (4,138) (7,731) (9,267) (6,892) (35,723) (26,076) (59,613)Deferred incentive fees 1,450 6 2,445 — (513) 2,392 1,938 Equity-based compensation(2) 12,210 16,785 34,947 483,958 123,263 36,635 658,953 Amortization of intangibles 10,423 10,250 10,250 10,250 10,250 42,406 41,000 Tax Receivable Agreements adjustments through earnings 90 — — — (348) 312 (348)Non-core items(3) 16,780 4,137 11,349 2,094 32,474 21,565 50,054 Pre-tax ANI 48,518 73,660 68,934 67,764 103,643 179,376 314,001 Income taxes(4) (10,802) (16,419) (15,365) (15,105) (23,040) (39,983) (69,929)ANI 37,716 57,241 53,569 52,659 80,603 139,393 244,072 Income taxes(4) 10,802 16,419 15,365 15,105 23,040 39,983 69,929 Realized carried interest allocations (18,054) (41,804) (17,632) (24,282) (75,935) (49,401) (159,653)Realized performance fee-related compensation 11,421 20,848 8,767 25,477 39,656 37,687 94,748 Realized investment income (1,057) (1,415) (1,621) (1,720) (3,379) (6,545) (8,135)Adjusted incentive fees(5) (5,495) (847) (5,675) (27,791) (5,264) (29,280) (39,577)Adjusted interest income(5) (817) (1,150) (1,653) (1,672) (1,618) (2,019) (6,093)Interest expense 2,649 2,990 3,512 3,008 3,191 9,331 12,701 Adjusted other (income) loss(5)(6) 913 423 (95) 569 418 1,424 1,315 Net income attributable to non-controlling interests in subsidiaries(1) 12,822 18,951 17,812 32,765 33,369 49,220 102,897 FRE$50,900 $71,656 $72,349 $74,118 $94,081 $189,793 $312,204 _______________________________(1) Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary: Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025FRE attributable to non-controlling interests in subsidiaries and profits interests$11,559$13,308$14,969$21,063$30,451 $42,074$79,791Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests 1,263 5,643 2,843 11,702 2,918 7,146 23,106Net income attributable to non-controlling interests in subsidiaries and profits interests$12,822$18,951$17,812$32,765$33,369 $49,220$102,897 The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025FRE attributable to profits interests issued in the private wealth subsidiary$—$574$2,051$2,956$6,399 $—$11,980Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary — 51 206 11,137 (224) 3,074 11,170Net income attributable to profits interests issued in the private wealth subsidiary$—$625$2,257$14,093$6,175 $3,074$23,150 The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries presented above specifically not attributable to the profits interests issued in the private wealth subsidiary is presented below. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025FRE attributable to non-controlling interests in subsidiaries$11,559$12,734$12,918$18,107$24,052 $42,074$67,811Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries 1,263 5,592 2,637 565 3,142 4,072 11,936Net income attributable to non-controlling interests in subsidiaries$12,822$18,326$15,555$18,672$27,194 $46,146$79,747 (2) Reflects equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.(3) Includes (income) expense related to the following non-core operating income and expenses: Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December31, 2024March 31, 2025 2024 2025Transaction costs$3,985$672$140$12 $179 $4,855 $1,003Lease remeasurement adjustments — — — — — (106) —Accelerated depreciation of leasehold improvements for changes in lease terms — — — — — 1,893 —(Gain) loss on change in fair value for contingent consideration obligation 12,280 2,953 10,888 2,476 (205) 17,217 16,112Compensation paid to certain employees as part of an acquisition earn-out 515 482 321 (394) — 2,194 409Loss on payment made in connection with private wealth fund secondary transaction — — — — 32,500 — 32,500Gain from negotiation of certain corporate matters — — — — — (5,300) —Loss on sale of subsidiary — — — — — 812 —Other non-core items — 30 — — — — 30Total non-core operating income and expenses$16,780$4,137$11,349$2,094 $32,474 $21,565 $50,054 (4) Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI: Three Months Ended Year Ended March 31, March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 Federal statutory rate21.0%21.0%21.0%21.0%21.0% 21.0% 21.0% Combined state, local and foreign rate1.3%1.3%1.3%1.3%1.2% 1.3% 1.3% Blended statutory rate22.3%22.3%22.3%22.3%22.2% 22.3% 22.3% (5) Excludes the impact of consolidating the Consolidated Funds and includes deferred incentive fees which are not included in GAAP revenues.(6) Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($0.3 million for the three months ended March 31, 2025, $(0.1) million for the three months ended March 31, 2024, and $0.3 million and $(0.3) million in fiscal 2025 and fiscal 2024, respectively), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds ($32.5 million for the three months ended March 31, 2025 and in fiscal 2025), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters ($5.3 million in fiscal 2024), and loss on sale of subsidiary ($0.8 million in fiscal 2024). Fee-Related Earnings Margin FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by fee revenues. We believe FRE margin is an important measure of profitability on revenues that are largely recurring by nature. We believe FRE margin is useful to investors because it enables them to better evaluate the operating profitability of our business across periods. The table below shows a reconciliation of FRE to FRE margin. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 FRE$50,900 $71,656 $72,349 $74,118 $94,081 $189,793 $312,204 Fee revenues 153,808 178,514 185,481 191,832 214,662 586,379 770,489 FRE margin 33% 40% 39% 39% 44% 32% 41% Gross Realized Performance Fees Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us. Performance Fee-Related Earnings Performance fee-related earnings, or “PRE,” represents gross realized performance fees less realized performance fee-related compensation. We believe PRE is useful to investors because it presents the performance fees attributable to us, net of amounts paid to employees as performance fee-related compensation. The table below shows a reconciliation of total performance fees to gross realized performance fees and PRE. Three Months Ended Year Ended March 31,(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 Incentive fees$2,496 $841 $3,155 $22,369 $5,910 $25,339 $32,275 Realized carried interest allocations 18,054 41,804 17,632 24,282 75,935 49,401 159,653 Unrealized carried interest allocations 151,757 (25,170) 52,215 93,325 21,177 126,908 141,547 Legacy Greenspring carried interest allocations 31,093 (9,089) 13,917 8,207 61,306 (75,157) 74,341 Total performance fees 203,400 8,386 86,919 148,183 164,328 126,491 407,816 Unrealized carried interest allocations (151,757) 25,170 (52,215) (93,325) (21,177) (126,908) (141,547)Legacy Greenspring carried interest allocations (31,093) 9,089 (13,917) (8,207) (61,306) 75,157 (74,341)Incentive fee revenues for the Consolidated Funds(1) 1,549 — 75 5,422 (133) 1,549 5,364 Deferred incentive fees 1,450 6 2,445 — (513) 2,392 1,938 Gross realized performance fees 23,549 42,651 23,307 52,073 81,199 78,681 199,230 Realized performance fee-related compensation (11,421) (20,848) (8,767) (25,477) (39,656) (37,687) (94,748)PRE$12,128 $21,803 $14,540 $26,596 $41,543 $40,994 $104,482 _______________________________(1) Reflects the add back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation. Adjusted Weighted-Average Shares and Adjusted Net Income Per Share ANI per share measures our per-share earnings assuming all Class B units, Class C units and Class D units in the Partnership were exchanged for Class A common stock in SSG, including the dilutive impact of outstanding equity-based awards. ANI per share is calculated as ANI divided by adjusted weighted-average shares outstanding. We believe adjusted weighted-average shares and ANI per share are useful to investors because they enable investors to better evaluate per-share operating performance across reporting periods. The following table shows a reconciliation of diluted weighted-average shares of Class A common stock outstanding to adjusted weighted-average shares outstanding used in the computation of ANI per share. Three Months Ended Year Ended March 31, March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025ANI$37,716$57,241$53,569$52,659$80,603 $139,393$244,072 Weighted-average shares of Class A common stock outstanding – Basic 64,194,859 66,187,754 68,772,051 73,687,289 75,975,770 63,489,135 71,142,916Assumed vesting of RSUs 512,946 673,854 921,166 491,014 270,492 512,152 590,645Assumed vesting and exchange of Class B2 units 2,573,762 1,732,153 — — — 2,542,751 431,851Assumed purchase under ESPP — — 2,098 — — — 529Exchange of Class B units in the Partnership(1) 46,272,227 45,827,707 45,212,921 41,729,937 40,122,028 46,356,244 43,233,005Exchange of Class C units in the Partnership(1) 1,958,507 1,849,846 1,626,812 1,016,737 965,761 2,234,191 1,365,647Exchange of Class D units in the Partnership(1) — 2,239,185 2,239,185 2,010,202 1,535,060 — 2,007,849Adjusted weighted-average shares 115,512,301 118,510,499 118,774,233 118,935,179 118,869,111 115,134,473 118,772,442 ANI per share$0.33$0.48$0.45$0.44$0.68 $1.21$2.05 _______________________________(1) Assumes the full exchange of Class B units, Class C units or Class D units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement, Class C Exchange Agreement or Class D Exchange Agreement, respectively. Key Operating Metrics We monitor certain operating metrics that are either common to the asset management industry or that we believe provide important data regarding our business. Refer to the Glossary below for a definition of each of these metrics. Fee-Earning AUM Three Months Ended Year Ended March 31, Percentage Change(in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 2024 2025 vs. FQ4'24Separately Managed Accounts Beginning balance$56,660 $58,897 $60,272 $62,121 $69,974 $55,345 $58,897 23%Contributions(1) 2,757 2,085 1,723 9,033 3,874 6,327 16,715 41%Distributions(2) (795) (830) (535) (1,000) (1,225) (4,080) (3,590) 54%Market value, FX and other(3) 275 120 661 (180) 551 1,305 1,152 100%Ending balance$58,897 $60,272 $62,121 $69,974 $73,174 $58,897 $73,174 24% Focused Commingled Funds Beginning balance$32,772 $34,961 $40,084 $42,294 $44,192 $30,086 $34,961 35%Contributions(1) 2,429 5,653 2,122 2,520 3,403 6,115 13,698 40%Distributions(2) (327) (661) (282) (682) (313) (1,841) (1,938) (4)%Market value, FX and other(3) 87 131 370 60 934 601 1,495 974%Ending balance$34,961 $40,084 $42,294 $44,192 $48,216 $34,961 $48,216 38% Total Beginning balance$89,432 $93,858 $100,356 $104,415 $114,166 $85,431 $93,858 28%Contributions(1) 5,186 7,738 3,845 11,553 7,277 12,442 30,413 40%Distributions(2) (1,122) (1,491) (817) (1,682) (1,538) (5,921) (5,528) 37%Market value, FX and other(3) 362 251 1,031 (120) 1,485 1,906 2,647 310%Ending balance$93,858 $100,356 $104,415 $114,166 $121,390 $93,858 $121,390 29% _______________________________(1) Contributions consist of new capital commitments that earn fees on committed capital and capital contributions to funds and accounts that earn fees on net invested capital or NAV.(2) Distributions consist of returns of capital from funds and accounts that pay fees on net invested capital or NAV and reductions in fee-earning AUM from funds that moved from a committed capital to net invested capital fee basis or from funds and accounts that no longer pay fees.(3) Market value, FX and other primarily consist of changes in market value appreciation (depreciation) for funds that pay on NAV and the effect of foreign exchange rate changes on non-U.S. dollar denominated commitments. The three months ended March 31, 2025 and year ended March 31, 2025 include a $0.6 billion secondary transaction within focused commingled funds. Asset Class Summary Three Months Ended Percentage Change(in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025 vs. FQ4'24FEAUM Private equity$49,869$54,855$57,136$62,811$65,007 30%Infrastructure 20,114 20,377 20,986 23,411 23,830 18%Private debt 15,477 16,161 16,975 17,882 19,517 26%Real estate 8,398 8,963 9,318 10,062 13,036 55%Total$93,858$100,356$104,415$114,166$121,390 29% Separately managed accounts$58,897$60,272$62,121$69,974$73,174 24%Focused commingled funds 34,961 40,084 42,294 44,192 48,216 38%Total$93,858$100,356$104,415$114,166$121,390 29% AUM(1) Private equity$81,942$89,329$91,891$93,404$95,937 17%Infrastructure 30,003 32,756 35,392 36,156 37,026 23%Private debt 28,491 30,336 31,854 31,987 37,133 30%Real estate 16,201 16,912 16,996 17,665 19,284 19%Total$156,637$169,333$176,133$179,212$189,380 21% Separately managed accounts$93,938$103,003$107,252$109,305$114,806 22%Focused commingled funds 48,545 51,682 53,870 55,142 59,410 22%Advisory AUM 14,154 14,648 15,011 14,765 15,164 7%Total$156,637$169,333$176,133$179,212$189,380 21% AUA Private equity$270,350$279,909$255,125$263,420$262,884 (3)%Infrastructure 60,339 62,599 62,891 67,100 69,027 14%Private debt 21,976 22,280 19,328 19,325 19,726 (10)%Real estate 168,455 166,659 168,519 168,807 168,047 —%Total$521,120$531,447$505,863$518,652$519,684 —% Total capital responsibility(2)$677,757$700,780$681,996$697,864$709,064 5% _____________________________Note: Amounts may not sum to total due to rounding. AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented, and does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.(1) Allocation of AUM by asset class is presented by underlying investment asset classification.(2) Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA). Contacts Shareholder Relations:Seth Weissshareholders@stepstonegroup.com1-212-351-6106 Media:Brian Ruby / Chris Gillick / Matt Lettiero, ICRStepStonePR@icrinc.com1-203-682-8268 Glossary Assets under advisement, or “AUA,” consists of client assets for which we do not have full discretion to make investment decisions but play a role in advising the client or monitoring their investments. We generally earn revenue for advisory-related services on a contractual fixed fee basis. Advisory-related services include asset allocation, strategic planning, development of investment policies and guidelines, screening and recommending investments, legal negotiations, monitoring and reporting on investments, and investment manager review and due diligence. Advisory fees vary by client based on the scope of services, investment activity and other factors. Most of our advisory fees are fixed, and therefore, increases or decreases in AUA do not necessarily lead to proportionate changes in revenue. We believe AUA is a useful metric for assessing the relative size of our advisory business. Our AUA is calculated as the sum of (i) the NAV of client portfolio assets for which we do not have full discretion and (ii) the unfunded commitments of clients to the underlying investments. Our AUA reflects the investment valuations in respect of the underlying investments of our client accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUA does not include post-period investment valuation or cash activity. AUA as of March 31, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is as of December 31, 2024, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2024. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, such NAVs are adjusted for cash activity following the last available reported NAV. Assets under management, or “AUM,” primarily reflects the assets associated with our separately managed accounts (“SMAs”) and focused commingled funds. We classify assets as AUM if we have full discretion over the investment decisions in an account or have responsibility or custody of assets. Although management fees are based on a variety of factors and are not linearly correlated with AUM, we believe AUM is a useful metric for assessing the relative size and scope of our asset management business. Our AUM is calculated as the sum of (i) the net asset value (“NAV”) of client portfolio assets, including the StepStone Funds and (ii) the unfunded commitments of clients to the underlying investments and the StepStone Funds. Our AUM reflects the investment valuations in respect of the underlying investments of our funds and accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUM does not include post-period investment valuation or cash activity. AUM as of March 31, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is as of December 31, 2024, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2024. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, such NAVs are adjusted for cash activity following the last available reported NAV. Consolidated Funds refer to the StepStone Funds that we are required to consolidate as of the applicable reporting period. We consolidate funds and other entities in which we hold a controlling financial interest. Consolidated VIEs refer to the variable interest entities that we are required to consolidate as of the applicable reporting period. We consolidate VIEs in which we hold a controlling financial interest. Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee revenue (i.e., fee basis) and includes assets in our SMAs, focused commingled funds and assets held directly by our clients for which we have fiduciary oversight and are paid fees as the manager of the assets. Our SMAs and focused commingled funds typically pay management fees based on capital commitments, net invested capital and, in certain cases, NAV, depending on the fee terms. Management fees are only marginally affected by market appreciation or depreciation because substantially all of the StepStone Funds pay management fees based on capital commitments or net invested capital. As a result, management fees and FEAUM are not materially affected by changes in market value. We believe FEAUM is a useful metric in order to assess assets forming the basis of our management fee revenue. Legacy Greenspring entities refers to certain entities for which the Company, indirectly through its subsidiaries, became the sole and/or managing member in connection with the Greenspring acquisition. SSG refers solely to StepStone Group Inc., a Delaware corporation, and not to any of its subsidiaries. StepStone Funds refer to SMAs and focused commingled funds of the Company, including acquired Greenspring funds, for which the Partnership or one of its subsidiaries acts as both investment adviser and general partner or managing member. The Partnership refers solely to StepStone Group LP, a Delaware limited partnership, and not to any of its subsidiaries. Total capital responsibility equals AUM plus AUA. AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets. Undeployed fee-earning capital represents the amount of capital commitments to StepStone Funds that has not yet been invested or considered active but will generate management fee revenue once invested or activated. We believe undeployed fee-earning capital is a useful metric for measuring the amount of capital that we can put to work in the future and thus earn management fee revenue thereon.

StepStone Group Reports Fourth Quarter and Fiscal Year 2025 Results

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