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 March 31, June 30, September December March 31, vs.
and where noted) 2024 2024 30, 2024 31, 2024 2025 2024 2025 FQ4'24 vs. FY'24
Financial
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)% na
Net income (loss)
per share of
Class A common
stock:
Basic $ 0.48 $ 0.20 $ 0.26 $ (2.61) $ (0.24) $ 0.91 $ (2.52) na na
Diluted $ 0.48 $ 0.20 $ 0.26 $ (2.61) $ (0.24) $ 0.91 $ (2.52) na na
Weighted-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 2024
--------- ---------
Assets
Cash and cash equivalents $ 244,791 $ 143,430
Restricted cash 502 718
Fees and accounts receivable 80,871 56,769
Due from affiliates 92,723 67,531
Investments:
Investments in funds 183,694 135,043
Accrued carried interest allocations 1,495,664 1,354,051
Legacy Greenspring investments in funds
and accrued carried interest
allocations(1) 629,228 631,197
Deferred income tax assets 382,886 184,512
Lease right-of-use assets, net 91,841 97,763
Other assets and receivables 62,869 60,611
Intangibles, net 263,872 304,873
Goodwill 580,542 580,542
Assets of Consolidated Funds:
Cash and cash equivalents 44,511 38,164
Investments, at fair value 415,011 131,858
Other assets 17,688 1,745
--------- ---------
Total assets $4,586,693 $3,788,807
========= =========
Liabilities and stockholders' equity
Accounts payable, accrued expenses and other
liabilities $ 89,731 $ 127,417
Accrued compensation and benefits 736,695 101,481
Accrued carried interest-related compensation 757,968 719,497
Legacy Greenspring accrued carried
interest-related compensation(1) 495,739 484,154
Due to affiliates 331,821 212,918
Lease liabilities 113,519 119,739
Debt obligations 269,268 148,822
Liabilities of Consolidated Funds:
Other liabilities 17,580 1,645
--------- ---------
Total liabilities 2,812,321 1,915,673
Redeemable non-controlling interests in
Consolidated Funds 377,897 102,623
Redeemable non-controlling interests in
subsidiaries 6,327 115,920
Stockholders' 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 66
Class 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 45
Additional paid-in capital 421,057 310,293
Retained earnings (accumulated deficit) (242,546) 13,768
Accumulated other comprehensive income 728 304
--------- ---------
Total StepStone Group Inc. stockholders'
equity 179,356 324,476
Non-controlling interests in subsidiaries 1,056,510 974,559
Non-controlling interests in legacy
Greenspring entities(1) 133,489 147,042
Non-controlling interests in the Partnership 20,793 208,514
--------- ---------
Total stockholders' equity 1,390,148 1,654,591
--------- ---------
Total 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.
Year Ended March
Three Months Ended 31,
--------------------------------------------------- ------------------
March December March
31, June 30, September 31, 31,
(in thousands) 2024 2024 30, 2024 2024 2025 2024 2025
Focused
commingled
funds(1)(2) $ 80,434 $104,798 $ 107,855 $105,718 $124,604 $296,667 $442,975
Separately
managed
accounts 55,945 57,376 61,393 66,245 67,695 223,958 252,709
Advisory and
other
services 16,147 14,769 14,907 17,458 19,927 60,057 67,061
Fund
reimbursement
revenues(1) 1,282 1,571 1,326 2,411 2,436 5,697 7,744
------- ------- ------- ------- ------- ------- -------
Fee
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:
Year Ended
Three Months Ended March 31,
---------------------------------------------- --------------
March June December March
31, 30, September 31, 31,
(in thousands) 2024 2024 30, 2024 2024 2025 2024 2025
Income-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,
----------------------------------------------------- -------------------------
March 31, June 30, September December March
(in thousands) 2024 2024 30, 2024 31, 2024 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,
------------------------------------------------------- -----------------------
March 31, June 30, September December March 31,
(in thousands) 2024 2024 30, 2024 31, 2024 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 $ $(569.SI)$ $ (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,
------------------------------------------------------- ------------------------
March 31, June 30, September December March 31,
(in thousands) 2024 2024 30, 2024 31, 2024 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:
Year Ended March
Three Months Ended 31,
------------------------------------------------ -----------------
March June December March
31, 30, September 31, 31,
(in thousands) 2024 2024 30, 2024 2024 2025 2024 2025
FRE attributable
to
non-controlling
interests in
subsidiaries
and profits
interests $11,559 $13,308 $ 14,969 $ 21,063 $30,451 $42,074 $ 79,791
Performance
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 23,106
------ ------ ------- ------- ------ ------ -------
Net 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.
Year Ended
Three Months Ended March 31,
------------------------------------------------- ---------------
June December March
March 31, 30, September 31, 31,
(in thousands) 2024 2024 30, 2024 2024 2025 2024 2025
FRE
attributable
to profits
interests
issued in
the private
wealth
subsidiary $ -- $ 574 $ 2,051 $ 2,956 $6,399 $ -- $11,980
Performance
related earnings
/ other income
(loss)
attributable to
profits
interests issued
in the private
wealth
subsidiary -- 51 206 11,137 (224) 3,074 11,170
----- ---- ------- ------- ----- ----- ------
Net 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.
Year Ended March
Three Months Ended 31,
------------------------------------------------ ----------------
March June December March
31, 30, September 31, 31,
(in thousands) 2024 2024 30, 2024 2024 2025 2024 2025
FRE attributable
to
non-controlling
interests in
subsidiaries $11,559 $12,734 $ 12,918 $ 18,107 $24,052 $42,074 $67,811
Performance
related
earnings /
other income
(loss)
attributable to
non-controlling
interests in
subsidiaries 1,263 5,592 2,637 565 3,142 4,072 11,936
------ ------ ------- ------- ------ ------ ------
Net 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:
Year Ended March
Three Months Ended 31,
-------------------------------------------------- -----------------
March June March
31, 30, September December 31,
(in thousands) 2024 2024 30, 2024 31, 2024 2025 2024 2025
Transaction
costs $ 3,985 $ 672 $ 140 $ 12 $ 179 $ 4,855 $ 1,003
Lease
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 16,112
Compensation
paid to
certain
employees as
part of an
acquisition
earn-out 515 482 321 (394) -- 2,194 409
Loss on
payment made
in connection
with private
wealth fund
secondary
transaction -- -- -- -- 32,500 -- 32,500
Gain from
negotiation
of certain
corporate
matters -- -- -- -- -- (5,300) --
Loss on sale
of subsidiary -- -- -- -- -- 812 --
Other non-core
items -- 30 -- -- -- -- 30
------ ----- ------- ----- ------ ------ ------
Total 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:
Year Ended
Three Months Ended March 31,
------------------------------------------- ---------------
March June December March
31, 30, September 31, 31,
2024 2024 30, 2024 2024 2025 2024 2025
Federal
statutory
rate 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
Combined
state,
local and
foreign
rate 1.3% 1.3% 1.3% 1.3% 1.2% 1.3% 1.3%
------ ------ --------- -------- ------ ----- ------
Blended
statutory
rate 22.3% 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,
-------------------------------------------------------------------- --------------------------
March 31, June 30, September December March 31,
(in thousands) 2024 2024 30, 2024 31, 2024 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,
------------------------------------------------------ ------------------------
March 31, June 30, September December March 31,
(in thousands) 2024 2024 30, 2024 31, 2024 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, June 30, September December March 31,
2024 2024 30, 2024 31, 2024 2025 2024 2025
ANI $ 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 71,142,916
Assumed vesting
of RSUs 512,946 673,854 921,166 491,014 270,492 512,152 590,645
Assumed vesting
and exchange
of Class B2
units 2,573,762 1,732,153 -- -- -- 2,542,751 431,851
Assumed
purchase under
ESPP -- -- 2,098 -- -- -- 529
Exchange 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 43,233,005
Exchange 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 1,365,647
Exchange of
Class D units
in the
Partnership(1) -- 2,239,185 2,239,185 2,010,202 1,535,060 -- 2,007,849
----------- ----------- ----------- ----------- ----------- ----------- -----------
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
=========== =========== =========== =========== =========== =========== ===========
_______________________________
(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
Year Ended March Percentage
Three Months Ended 31, Change
---------------------------------------------------- ------------------- ----------
March
31, June 30, September December March 31,
(in millions) 2024 2024 30, 2024 31, 2024 2025 2024 2025 vs. FQ4'24
Separately 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
Percentage
Three Months Ended Change
--------------------------------------------------- ----------
March December March
31, June 30, September 31, 31,
(in millions) 2024 2024 30, 2024 2024 2025 vs. FQ4'24
FEAUM
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 $(AUA.AU)$.
Contacts
Shareholder Relations:
Seth Weiss
shareholders@stepstonegroup.com
1-212-351-6106
Media:
Brian Ruby / Chris Gillick / Matt Lettiero, ICR
StepStonePR@icrinc.com
1-203-682-8268
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.
(END) Dow Jones Newswires
May 22, 2025 16:05 ET (20:05 GMT)
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