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StepStone Group Reports Third Quarter Fiscal Year 2025 Results

1. StepStone Group declared a quarterly dividend of $0.24 per share. 2. Total capital under management increased to approximately $698 billion. 3. Net income per share decreased significantly to $(2.61).

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The drastic drop in net income per share indicates financial strain. Such losses, though not uncommon, raise concerns about sustainability and investor sentiment.

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Earnings disclosures and dividend announcements are pivotal in influencing stock prices; however, losses offset bullish sentiment.

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NEW YORK, Feb. 06, 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 December 31, 2024. This represents results for the third quarter of the fiscal year ending 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, payable on March 14, 2025, to the holders of record as of the close of business on February 28, 2025. StepStone issued a full detailed presentation of its third quarter fiscal 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, February 6, 2025, at 5:00 pm ET to discuss the Company’s results for the third quarter of the fiscal year ending 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.vevent.com/register/BI4d11263234d648c092cf5d1e8339df8d. 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 December 31, 2024, StepStone was responsible for approximately $698 billion of total capital, including $179 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 on May 24, 2024, 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: adjusted management and advisory fees, net, 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 net realized performance fees. 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 Nine Months Ended December 31, Percentage Change(in thousands, except share and per share amounts and where noted)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024  vs. FQ3'24vs. FQ3'24 YTDFinancial Highlights           GAAP Results           Management and advisory fees, net$151,492 $153,410 $178,015 $184,758 $190,840  $431,730 $553,613  26%28%Total revenues (14,612) 356,810  186,401  271,677  339,023   354,821  797,101  na125%Total performance fees (166,104) 203,400  8,386  86,919  148,183   (76,909) 243,488  nanaNet income (loss) (23,419) 82,542  48,045  53,138  (287,163)  85,278  (185,980) nanaNet income (loss) per share of Class A common stock:           Basic$(0.32)$0.48 $0.20 $0.26 $(2.61) $0.43 $(2.32) (725)%naDiluted$(0.32)$0.48 $0.20 $0.26 $(2.61) $0.43 $(2.32) (725)%naWeighted-average shares of Class A common stock:           Basic 64,068,952  64,194,859  66,187,754  68,772,051  73,687,289   63,255,604  69,561,254  15%10%Diluted 64,068,952  67,281,567  68,593,761  69,695,315  73,687,289   66,299,982  69,561,254  15%5%Quarterly dividend per share of Class A common stock(1)$0.21 $0.21 $0.21 $0.24 $0.24  $0.62 $0.69  14%11%Supplemental dividend per share of Class A common stock(2)$— $— $0.15 $— $—  $0.25 $0.15  na(40)%Accrued carried interest allocations 1,203,847  1,354,051  1,328,853  1,381,110  1,474,543     22%             Non-GAAP Results(3)           Adjusted management and advisory fees, net(4)$151,943 $153,808 $178,514 $185,481 $191,832  $432,571 $555,827  26%28%Adjusted revenues 185,123  177,357  221,165  208,788  243,905   487,703  673,858  32%38%Fee-related earnings (“FRE”) 50,664  50,900  71,656  72,349  74,118   138,893  218,123  46%57%FRE margin(5) 33% 33% 40% 39% 39%  32% 39%   Gross realized performance fees 33,180  23,549  42,651  23,307  52,073   55,132  118,031  57%114%Adjusted net income (“ANI”) 42,116  37,716  57,241  53,569  52,659   101,677  163,469  25%61%Adjusted weighted-average shares 115,232,927  115,512,301  118,510,499  118,774,233  118,935,179   115,009,445  118,740,805  3%3%ANI per share$0.37 $0.33 $0.48 $0.45 $0.44  $0.88 $1.38  19%57%            Key Business Drivers/Operating Metrics (in billions)           Assets under management (“AUM”)(6)$149.0 $156.6 $169.3 $176.1 $179.2     20% Assets under advisement (“AUA”)(6) 510.5  521.1  531.4  505.9  518.7     2% Fee-earning AUM (“FEAUM”) 89.4  93.9  100.4  104.4  114.2     28% Undeployed fee-earning capital (“UFEC”) 21.4  22.6  27.6  29.7  21.7     1%  _______________________________(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)      Adjusted management and advisory fees, net, adjusted revenues, FRE, FRE margin, gross realized performance fees, 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 adjusted management and advisory fees, net.(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 Condensed Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share amounts)   As of December 31, 2024 March 31, 2024Assets   Cash and cash equivalents$223,103  $143,430Restricted cash 720   718Fees and accounts receivable 63,521   56,769Due from affiliates 96,590   67,531Investments:   Investments in funds 172,748   135,043Accrued carried interest allocations 1,474,543   1,354,051Legacy Greenspring investments in funds and accrued carried interest allocations(1) 572,459   631,197Deferred income tax assets 356,122   184,512Lease right-of-use assets, net 90,567   97,763Other assets and receivables 66,114   60,611Intangibles, net 274,122   304,873Goodwill 580,542   580,542Assets of Consolidated Funds:   Cash and cash equivalents 55,681   38,164Investments, at fair value 320,482   131,858Other assets 2,333   1,745Total assets$4,349,647  $3,788,807Liabilities and stockholders’ equity   Accounts payable, accrued expenses and other liabilities$139,068  $127,417Accrued compensation and benefits 690,321   101,481Accrued carried interest-related compensation 730,218   719,497Legacy Greenspring accrued carried interest-related compensation(1) 439,898   484,154Due to affiliates 315,739   212,918Lease liabilities 112,175   119,739Debt obligations 168,942   148,822Liabilities of Consolidated Funds:   Other liabilities 9,860   1,645Total liabilities 2,606,221   1,915,673Redeemable non-controlling interests in Consolidated Funds 286,822   102,623Redeemable non-controlling interests in subsidiaries 6,552   115,920Stockholders’ equity:   Class A common stock, $0.001 par value, 650,000,000 authorized; 75,841,118 and 65,614,902 issued and outstanding as of December 31, 2024 and March 31, 2024, respectively 76   66Class B common stock, $0.001 par value, 125,000,000 authorized; 40,127,254 and 45,030,959 issued and outstanding as of December 31, 2024 and March 31, 2024, respectively 40   45Additional paid-in capital 415,059   310,293Retained earnings (accumulated deficit) (205,674)  13,768Accumulated other comprehensive income 341   304Total StepStone Group Inc. stockholders’ equity 209,842   324,476Non-controlling interests in subsidiaries 1,051,919   974,559Non-controlling interests in legacy Greenspring entities(1) 132,561   147,042Non-controlling interests in the Partnership 55,730   208,514Total stockholders’ equity 1,450,052   1,654,591Total liabilities and stockholders’ equity$4,349,647  $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 Condensed Consolidated Statements of Income (Loss) (Unaudited)(in thousands, except share and per share amounts)     Three Months Ended December 31, Nine Months Ended December 31,  2024   2023   2024   2023 Revenues       Management and advisory fees, net$190,840  $151,492  $553,613  $431,730 Performance fees:       Incentive fees 22,369   17,891   26,365   22,843 Carried interest allocations:       Realized 24,282   15,289   83,718   31,347 Unrealized 93,325   (129,584)  120,370   (24,849)Total carried interest allocations 117,607   (114,295)  204,088   6,498 Legacy Greenspring carried interest allocations(1) 8,207   (69,700)  13,035   (106,250)Total performance fees 148,183   (166,104)  243,488   (76,909)Total revenues 339,023   (14,612)  797,101   354,821 Expenses       Compensation and benefits:       Cash-based compensation 85,203   73,619   246,298   218,551 Equity-based compensation 486,418   14,032   542,929   28,420 Performance fee-related compensation:       Realized 25,477   15,444   55,092   26,266 Unrealized 49,670   (62,243)  66,495   (9,320)Total performance fee-related compensation 75,147   (46,799)  121,587   16,946 Legacy Greenspring performance fee-related compensation(1) 8,207   (69,700)  13,035   (106,250)Total compensation and benefits 654,975   (28,848)  923,849   157,667 General, administrative and other 43,130   48,001   134,202   113,007 Total expenses 698,105   19,153   1,058,051   270,674 Other income (expense)       Investment income (loss) 1,064   (2,051)  5,710   4,115 Legacy Greenspring investment income (loss)(1) 1,167   (2,222)  (4,119)  (9,054)Investment income of Consolidated Funds 15,037   11,223   30,878   22,357 Interest income 2,559   827   7,632   2,235 Interest expense (3,008)  (2,562)  (9,510)  (6,682)Other income (loss) (2,452)  4,408   (1,626)  3,763 Total other income 14,367   9,623   28,965   16,734 Income (loss) before income tax (344,715)  (24,142)  (231,985)  100,881 Income tax expense (benefit) (57,552)  (723)  (46,005)  15,603 Net income (loss) (287,163)  (23,419)  (185,980)  85,278 Less: Net income attributable to non-controlling interests in subsidiaries 27,226   13,552   62,966   32,797 Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1) 1,167   (2,222)  (4,119)  (9,054)Less: Net income (loss) attributable to non-controlling interests in the Partnership (134,760)  (20,111)  (107,856)  22,677 Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds 10,905   5,588   23,101   11,590 Less: Net income attributable to redeemable non-controlling interests in subsidiaries 314   —   983   — Net income (loss) attributable to StepStone Group Inc.$(192,015) $(20,226) $(161,055) $27,268 Net income (loss) per share of Class A common stock:       Basic$(2.61) $(0.32) $(2.32) $0.43 Diluted$(2.61) $(0.32) $(2.32) $0.43 Weighted-average shares of Class A common stock:       Basic 73,687,289   64,068,952   69,561,254   63,255,604 Diluted 73,687,289   64,068,952   69,561,254   66,299,982  (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 Adjusted Management and Advisory Fees, Net The following table presents the components of adjusted management and advisory fees, net. We believe adjusted management and advisory fees, net is useful to investors because it removes the impact of consolidating the Consolidated Funds which we are required to consolidate under GAAP.  Three Months Ended Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024Focused commingled funds(1)(2)$78,633$80,434$104,798$107,855$105,718 $216,233$318,371Separately managed accounts 55,838 55,945 57,376 61,393 66,245  168,013 185,014Advisory and other services 16,069 16,147 14,769 14,907 17,458  43,910 47,134Fund reimbursement revenues(1) 1,403 1,282 1,571 1,326 2,411  4,415 5,308Adjusted management and advisory fees, net$151,943$153,808$178,514$185,481$191,832 $432,571$555,827 _______________________________(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 of $2.1 million for the three months ended December 31, 2024, $1.3 million for the three months ended September 30, 2024, $1.1 million for the three months ended June 30, 2024, $0.8 million for the three months ended March 31, 2024, $0.6 million for the three months ended December 31, 2023, and $4.6 million and $0.6 million for the nine months ended December 31, 2024 and 2023, respectively, from certain funds. Adjusted Revenues Adjusted revenues represents the components of revenues used in the determination of ANI and comprise adjusted management and advisory fees, net, adjusted incentive fees (including the deferred portion) and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues. The table below shows a reconciliation of revenues to adjusted revenues.  Three Months Ended Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024 Total revenues$(14,612)$356,810 $186,401$271,677 $339,023  $354,821$797,101 Unrealized carried interest allocations 129,584  (151,757) 25,170 (52,215) (93,325)  24,849 (120,370)Deferred incentive fees —  1,450  6 2,445  —   942 2,451 Legacy Greenspring carried interest allocations 69,700  (31,093) 9,089 (13,917) (8,207)  106,250 (13,035)Management and advisory fee revenues for the Consolidated Funds(1) 451  398  499 723  992   841 2,214 Incentive fees for the Consolidated Funds(2) —  1,549  — 75  5,422   — 5,497 Adjusted revenues$185,123 $177,357 $221,165$208,788 $243,905  $487,703$673,858  _______________________________(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 adjusted management and advisory fees, net, adjusted incentive fees (including the deferred portion) 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 adjusted management and advisory fees, net, 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 Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024 GAAP management and advisory fees, net$151,492 $153,410 $178,015 $184,758 $190,840  $431,730 $553,613 Management and advisory fee revenues for the Consolidated Funds(1) 451  398  499  723  992   841  2,214 Adjusted management and advisory fees, net$151,943 $153,808 $178,514 $185,481 $191,832  $432,571 $555,827          GAAP incentive fees$17,891 $2,496 $841 $3,155 $22,369  $22,843 $26,365 Incentive fee revenues for the Consolidated Funds(2) —  1,549  —  75  5,422   —  5,497 Adjusted incentive fees$17,891 $4,045 $841 $3,230 $27,791  $22,843 $31,862          GAAP cash-based compensation$73,619 $74,411 $78,224 $82,871 $85,203  $218,551 $246,298 Adjustments(3) (574) (461) (428) (285) 339   (1,679) (374)Adjusted cash-based compensation$73,045 $73,950 $77,796 $82,586 $85,542  $216,872 $245,924          GAAP equity-based compensation$14,032 $13,937 $19,179 $37,332 $486,418  $28,420 $542,929 Adjustments(4) (12,610) (12,210) (16,785) (34,947) (483,958)  (24,425) (535,690)Adjusted equity-based compensation$1,422 $1,727 $2,394 $2,385 $2,460  $3,995 $7,239          GAAP general, administrative and other$48,001 $54,310 $41,011 $50,061 $43,130  $113,007 $134,202 Adjustments(5) (21,189) (27,079) (14,343) (21,900) (13,418)  (40,196) (49,661)Adjusted general, administrative and other$26,812 $27,231 $26,668 $28,161 $29,712  $72,811 $84,541          GAAP interest income$827 $1,429 $2,057 $3,016 $2,559  $2,235 $7,632 Interest income earned by the Consolidated Funds(6) (540) (612) (907) (1,363) (887)  (1,033) (3,157)Adjusted interest income$287 $817 $1,150 $1,653 $1,672  $1,202 $4,475          GAAP other income (loss)$4,408 $(1,308)$(351)$1,177 $(2,452) $3,763 $(1,626)Adjustments(7) (4,301) 395  (72) (1,082) 1,883   (4,274) 729 Adjusted other income (loss)$107 $(913)$(423)$95 $(569) $(511)$(897) ______________________________(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.(3)      Reflects the removal of compensation paid to certain employees as part of an acquisition earn-out.(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 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), 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 Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024 Income (loss) before income tax$(24,142) 94,515 $54,842 $57,888 $(344,715) $100,881 $(231,985)Net income attributable to non-controlling interests in subsidiaries(1) (15,537) (12,822) (18,951) (17,812) (32,765)  (36,398) (69,528)Net (income) loss attributable to non-controlling interests in legacy Greenspring entities 2,222  33  1,255  4,031  (1,167)  9,054  4,119 Unrealized carried interest allocations 129,584  (151,757) 25,170  (52,215) (93,325)  24,849  (120,370)Unrealized performance fee-related compensation (62,243) 84,014  (10,923) 27,748  49,670   (9,320) 66,495 Unrealized investment (income) loss 5,559  (2,280) (1,180) (430) 656   1,373  (954)Impact of Consolidated Funds (11,068) (4,138) (7,731) (9,267) (6,892)  (21,938) (23,890)Deferred incentive fees —  1,450  6  2,445  —   942  2,451 Equity-based compensation(2) 12,610  12,210  16,785  34,947  483,958   24,425  535,690 Amortization of intangibles 10,661  10,423  10,250  10,250  10,250   31,983  30,750 Tax Receivable Agreements adjustments through earnings 222  90  —  —  —   222  — Non-core items(3) 6,335  16,780  4,137  11,349  2,094   4,785  17,580 Pre-tax ANI 54,203  48,518  73,660  68,934  67,764   130,858  210,358 Income taxes(4) (12,087) (10,802) (16,419) (15,365) (15,105)  (29,181) (46,889)ANI 42,116  37,716  57,241  53,569  52,659   101,677  163,469 Income taxes(4) 12,087  10,802  16,419  15,365  15,105   29,181  46,889 Realized carried interest allocations (15,289) (18,054) (41,804) (17,632) (24,282)  (31,347) (83,718)Realized performance fee-related compensation(5) 15,444  11,421  20,848  8,767  25,477   26,266  55,092 Realized investment income (3,508) (1,057) (1,415) (1,621) (1,720)  (5,488) (4,756)Adjusted incentive fees(6) (17,891) (4,045) (841) (3,230) (27,791)  (22,843) (31,862)Deferred incentive fees —  (1,450) (6) (2,445) —   (942) (2,451)Adjusted interest income(6) (287) (817) (1,150) (1,653) (1,672)  (1,202) (4,475)Interest expense 2,562  2,649  2,990  3,512  3,008   6,682  9,510 Adjusted other (income) loss(6)(7) (107) 913  423  (95) 569   511  897 Net income attributable to non-controlling interests in subsidiaries(1) 15,537  12,822  18,951  17,812  32,765   36,398  69,528 FRE$50,664 $50,900 $71,656 $72,349 $74,118  $138,893 $218,123  _______________________________(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 Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024FRE attributable to non-controlling interests in subsidiaries and profits interests$10,518$11,559$13,308$14,969$21,063 $30,515$49,340Performance related earnings / other (income) loss attributable to non-controlling interests in subsidiaries and profits interests 5,019 1,263 5,643 2,843 11,702  5,883 20,188Net income attributable to non-controlling interests in subsidiaries$15,537$12,822$18,951$17,812$32,765 $36,398$69,528 The contribution to total FRE attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other (income) loss attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.  Three Months Ended Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024FRE attributable to profits interests issued in the private wealth subsidiary$—$—$574$2,051$2,956 $—$5,581Performance related earnings / other (income) loss attributable to profits interests issued in the private wealth subsidiary 3,074 — 51 206 11,137  3,074 11,394Amounts attributable to profits interests issued in the private wealth subsidiary$3,074$—$625$2,257$14,093 $3,074$16,975 (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 Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024Transaction costs$670 $3,985$672$140$12  $870 $824Lease remeasurement adjustments (106) — — — —   (106) —Accelerated depreciation of leasehold improvements for changes in lease terms 631  — — — —   1,893  —Loss on change in fair value for contingent consideration obligation 9,054  12,280 2,953 10,888 2,476   4,937  16,317Compensation paid to certain employees as part of an acquisition earn-out 574  515 482 321 (394)  1,679  409Gain from negotiation of certain corporate matters (5,300) — — — —   (5,300) —Loss on sale of subsidiary 812  — — — —   812  —Other non-core items —  — 30 — —   —  30Total non-core operating income and expenses$6,335 $16,780$4,137$11,349$2,094  $4,785 $17,580 (4)      Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:  Three Months Ended Nine Months Ended December 31, December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024 2023 2024 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%1.3% 1.3%1.3%Blended statutory rate22.3%22.3%22.3%22.3%22.3% 22.3%22.3% (5)      Includes carried interest-related compensation expense related to the portion of net carried interest allocation revenue attributable to equity holders of the Company’s consolidated subsidiaries that are not 100% owned:  Three Months Ended Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024Realized carried interest-related compensation$660$910$—$—$— $2,849$— (6)      Excludes the impact of consolidating the Consolidated Funds.(7)      Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($(0.1) million for the three months ended March 31, 2024 and $(0.2) million for the three and nine months ended December 31, 2023), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters ($5.3 million for the three and nine months ended December 31, 2023), and loss on sale of subsidiary ($0.8 million for the three and nine months ended December 31, 2023). Fee-Related Earnings Margin FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by adjusted management and advisory fees, net. 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 Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024 FRE$50,664 $50,900 $71,656 $72,349 $74,118  $138,893 $218,123 Adjusted management and advisory fees, net 151,943  153,808  178,514  185,481  191,832   432,571  555,827 FRE margin 33% 33% 40% 39% 39%  32% 39% Gross Realized Performance Fees Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees, including the deferred portion. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us. Net Realized Performance Fees Net realized performance fees represents gross realized performance fees, less realized performance fee-related compensation. We believe net realized performance fees 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 and net realized performance fees.  Three Months Ended Nine Months Ended December 31,(in thousands)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024 Incentive fees$17,891 $2,496 $841 $3,155 $22,369  $22,843 $26,365 Realized carried interest allocations 15,289  18,054  41,804  17,632  24,282   31,347  83,718 Unrealized carried interest allocations (129,584) 151,757  (25,170) 52,215  93,325   (24,849) 120,370 Legacy Greenspring carried interest allocations (69,700) 31,093  (9,089) 13,917  8,207   (106,250) 13,035 Total performance fees (166,104) 203,400  8,386  86,919  148,183   (76,909) 243,488 Unrealized carried interest allocations 129,584  (151,757) 25,170  (52,215) (93,325)  24,849  (120,370)Legacy Greenspring carried interest allocations 69,700  (31,093) 9,089  (13,917) (8,207)  106,250  (13,035)Incentive fee revenues for the Consolidated Funds(1) —  1,549  —  75  5,422   —  5,497 Deferred incentive fees —  1,450  6  2,445  —   942  2,451 Gross realized performance fees 33,180  23,549  42,651  23,307  52,073   55,132  118,031 Realized performance fee-related compensation (15,444) (11,421) (20,848) (8,767) (25,477)  (26,266) (55,092)Net realized performance fees$17,736 $12,128 $21,803 $14,540 $26,596  $28,866 $62,939  ______________________________(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 Nine Months Ended December 31, December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023 2024ANI$42,116$37,716$57,241$53,569$52,659 $101,677$163,469         Weighted-average shares of Class A common stock outstanding – Basic 64,068,952 64,194,859 66,187,754 68,772,051 73,687,289  63,255,604 69,561,254Assumed vesting of RSUs 333,402 512,946 673,854 921,166 491,014  511,889 695,423Assumed vesting and exchange of Class B2 units 2,553,899 2,573,762 1,732,153 — —  2,532,489 573,185Assumed purchase under ESPP — — — 2,098 —  — 702Exchange of Class B units in the Partnership(1) 46,314,543 46,272,227 45,827,707 45,212,921 41,729,937  46,384,046 44,251,143Exchange of Class C units in the Partnership(1) 1,962,131 1,958,507 1,849,846 1,626,812 1,016,737  2,325,417 1,496,518Exchange of Class D units in the Partnership(1) — — 2,239,185 2,239,185 2,010,202  — 2,162,580Adjusted weighted-average shares 115,232,927 115,512,301 118,510,499 118,774,233 118,935,179  115,009,445 118,740,805         ANI per share$0.37$0.33$0.48$0.45$0.44 $0.88$1.38 _______________________________(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 Nine Months Ended December 31, Percentage Change(in millions)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024  2023  2024  vs. FQ3'24Separately Managed Accounts          Beginning balance$56,380 $56,660 $58,897 $60,272 $62,121  $55,345 $58,897  10%Contributions(1) 1,109  2,757  2,085  1,723  9,033   3,570  12,841  715%Distributions(2) (1,397) (795) (830) (535) (1,000)  (3,285) (2,365) (28)%Market value, FX and other(3) 568  275  120  661  (180)  1,030  601  naEnding balance$56,660 $58,897 $60,272 $62,121 $69,974  $56,660 $69,974  23%           Focused Commingled Funds          Beginning balance$30,905 $32,772 $34,961 $40,084 $42,294  $30,086 $34,961  37%Contributions(1) 1,898  2,429  5,653  2,122  2,520   3,686  10,295  33%Distributions(2) (274) (327) (661) (282) (682)  (1,514) (1,625) 149%Market value, FX and other(3) 243  87  131  370  60   514  561  (75)%Ending balance$32,772 $34,961 $40,084 $42,294 $44,192  $32,772 $44,192  35%           Total          Beginning balance$87,285 $89,432 $93,858 $100,356 $104,415  $85,431 $93,858  20%Contributions(1) 3,007  5,186  7,738  3,845  11,553   7,256  23,136  284%Distributions(2) (1,671) (1,122) (1,491) (817) (1,682)  (4,799) (3,990) 1%Market value, FX and other(3) 811  362  251  1,031  (120)  1,544  1,162  naEnding balance$89,432 $93,858 $100,356 $104,415 $114,166  $89,432 $114,166  28% _______________________________(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. Asset Class Summary  Three Months Ended Percentage Change(in millions)December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024 vs. FQ3'24FEAUM       Private equity$48,258$49,869$54,855$57,136$62,811 30%Infrastructure 19,789 20,114 20,377 20,986 23,411 18%Private debt 15,460 15,477 16,161 16,975 17,882 16%Real estate 5,925 8,398 8,963 9,318 10,062 70%Total$89,432$93,858$100,356$104,415$114,166 28%        Separately managed accounts$56,660$58,897$60,272$62,121$69,974 23%Focused commingled funds 32,772 34,961 40,084 42,294 44,192 35%Total$89,432$93,858$100,356$104,415$114,166 28%        AUM(1)       Private equity$78,221$81,942$89,329$91,891$93,404 19%Infrastructure 28,307 30,003 32,756 35,392 36,156 28%Private debt 27,782 28,491 30,336 31,854 31,987 15%Real estate 14,646 16,201 16,912 16,996 17,665 21%Total$148,956$156,637$169,333$176,133$179,212 20%        Separately managed accounts$88,890$93,938$103,003$107,252$109,305 23%Focused commingled funds 45,508 48,545 51,682 53,870 55,142 21%Advisory AUM 14,558 14,154 14,648 15,011 14,765 1%Total$148,956$156,637$169,333$176,133$179,212 20%        AUA       Private equity$266,246$270,350$279,909$255,125$263,420 (1)%Infrastructure 57,528 60,339 62,599 62,891 67,100 17%Private debt 17,916 21,976 22,280 19,328 19,325 8%Real estate 168,802 168,455 166,659 168,519 168,807 —%Total$510,492$521,120$531,447$505,863$518,652 2%        Total capital responsibility(2)$659,448$677,757$700,780$681,996$697,864 6% _____________________________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 December 31, 2024 reflects final data for the prior period (September 30, 2024), adjusted for net new client account activity through December 31, 2024. NAV data for underlying investments is as of September 30, 2024, as reported by underlying managers up to the business day occurring on or after 100 days following September 30, 2024. When NAV data is not available by the business day occurring on or after 100 days following September 30, 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 December 31, 2024 reflects final data for the prior period (September 30, 2024), adjusted for net new client account activity through December 31, 2024. NAV data for underlying investments is as of September 30, 2024, as reported by underlying managers up to the business day occurring on or after 100 days following September 30, 2024. When NAV data is not available by the business day occurring on or after 100 days following September 30, 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.

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