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Stepstone Group Inc
StepStone Group Reports First Quarter Fiscal Year 2026 Results
Business
Aug 7 2025
38 min read

StepStone Group Reports First Quarter Fiscal Year 2026 Results

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NEW YORK, Aug. 07, 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 June 30, 2025. This represents results for the first quarter of the fiscal year ending March 31, 2026. The Board of Directors of the Company has declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on September 15, 2025, to the holders of record as of the close of business on August 29, 2025.

StepStone issued a full detailed presentation of its first quarter fiscal 2026 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, August 7, 2025, at 5:00 pm ET to discuss the Company’s results for the first quarter of the fiscal year ending March 31, 2026. 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/BIe72f22835f61484f8ca1c98088b52c3a. 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 June 30, 2025, StepStone was responsible for approximately $723 billion of total capital, including $199 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 23, 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

 

Percentage
Change

(in thousands, except share and per share amounts and where noted)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

 

vs. FQ1'25

Financial Highlights

 

 

 

 

 

 

 

 

GAAP Results

 

 

 

 

 

 

 

 

Management and advisory fees, net

 

$

178,015

 

$

184,758

 

$

190,840

 

$

213,401

 

$

211,173

 

 

19

%

Total revenues

 

 

186,401

 

 

271,677

 

 

339,023

 

 

377,729

 

 

364,287

 

 

95

%

Total performance fees

 

 

8,386

 

 

86,919

 

 

148,183

 

 

164,328

 

 

153,114

 

 

na

Net income (loss)

 

 

48,045

 

 

53,138

 

 

(287,163

)

 

13,153

 

 

(12,011

)

 

na

Net income (loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

$

0.26

 

$

(2.61

)

$

(0.24

)

$

(0.49

)

 

na

Diluted

 

$

0.20

 

$

0.26

 

$

(2.61

)

$

(0.24

)

$

(0.49

)

 

na

Weighted-average shares of Class A common stock:

 

 

 

 

 

 

 

 

Basic

 

 

66,187,754

 

 

68,772,051

 

 

73,687,289

 

 

75,975,770

 

 

77,846,710

 

 

18

%

Diluted

 

 

68,593,761

 

 

69,695,315

 

 

73,687,289

 

 

75,975,770

 

 

77,846,710

 

 

13

%

Quarterly dividend per share of Class A common stock(1)

 

$

0.21

 

$

0.24

 

$

0.24

 

$

0.24

 

$

0.24

 

 

14

%

Supplemental dividend per share of Class A common stock(2)

 

$

0.15

 

$

—

 

$

—

 

$

—

 

$

0.40

 

 

167

%

Accrued carried interest allocations

 

 

1,328,853

 

 

1,381,110

 

 

1,474,543

 

 

1,495,664

 

 

1,585,209

 

 

19

%

 

 

 

 

 

 

 

 

 

Non-GAAP Results(3)

 

 

 

 

 

 

 

 

Fee revenues(4)

 

$

178,514

 

$

185,481

 

$

191,832

 

$

214,662

 

$

212,740

 

 

19

%

Adjusted revenues

 

 

221,165

 

 

208,788

 

 

243,905

 

 

295,861

 

 

237,467

 

 

7

%

Fee-related earnings (“FRE”)

 

 

71,656

 

 

72,349

 

 

74,118

 

 

94,081

 

 

81,246

 

 

13

%

FRE margin(5)

 

 

40

%

 

39

%

 

39

%

 

44

%

 

38

%

 

 

Gross realized performance fees

 

 

42,651

 

 

23,307

 

 

52,073

 

 

81,199

 

 

24,727

 

 

(42

)%

Performance fee-related earnings (“PRE”)

 

 

21,803

 

 

14,540

 

 

26,596

 

 

41,543

 

 

13,022

 

 

(40

)%

Adjusted net income (“ANI”)

 

 

57,241

 

 

53,569

 

 

52,659

 

 

80,603

 

 

48,534

 

 

(15

)%

Adjusted weighted-average shares

 

 

118,510,499

 

 

118,774,233

 

 

118,935,179

 

 

118,869,111

 

 

122,292,943

 

 

3

%

ANI per share

 

$

0.48

 

$

0.45

 

$

0.44

 

$

0.68

 

$

0.40

 

 

(17

)%

 

 

 

 

 

 

 

 

 

Key Business Drivers/Operating Metrics (in billions)

 

 

 

 

 

 

 

 

Assets under management (“AUM”)(6)

 

$

169.3

 

$

176.1

 

$

179.2

 

$

189.4

 

$

199.3

 

 

18

%

Assets under advisement (“AUA”)(6)

 

 

531.4

 

 

505.9

 

 

518.7

 

 

519.7

 

 

524.2

 

 

(1

)%

Fee-earning AUM (“FEAUM”)

 

 

100.4

 

 

104.4

 

 

114.2

 

 

121.4

 

 

127.2

 

 

27

%

Undeployed fee-earning capital (“UFEC”)

 

 

27.6

 

 

29.7

 

 

21.7

 

 

24.6

 

 

28.7

 

 

4

%

_______________________________
(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 2024 and 2025, 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 Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)

 

 

As of

 

 

June 30, 2025

 

March 31, 2025

Assets

 

 

 

 

Cash and cash equivalents

 

$

191,469

 

 

$

244,791

 

Restricted cash

 

 

524

 

 

 

502

 

Fees and accounts receivable

 

 

90,508

 

 

 

80,871

 

Due from affiliates

 

 

105,217

 

 

 

92,723

 

Investments:

 

 

 

 

Investments in funds

 

 

202,679

 

 

 

183,694

 

Accrued carried interest allocations

 

 

1,585,209

 

 

 

1,495,664

 

Legacy Greenspring investments in funds and accrued carried interest allocations(1)

 

 

663,580

 

 

 

629,228

 

Deferred income tax assets

 

 

403,321

 

 

 

382,886

 

Lease right-of-use assets, net

 

 

89,092

 

 

 

91,841

 

Other assets and receivables

 

 

68,209

 

 

 

62,869

 

Intangibles, net

 

 

253,665

 

 

 

263,872

 

Goodwill

 

 

580,542

 

 

 

580,542

 

Assets of Consolidated Funds:

 

 

 

 

Cash and cash equivalents

 

 

52,662

 

 

 

44,511

 

Investments, at fair value

 

 

493,506

 

 

 

415,011

 

Other assets

 

 

2,228

 

 

 

17,688

 

Total assets

 

$

4,782,411

 

 

$

4,586,693

 

Liabilities and stockholders’ equity

 

 

 

 

Accounts payable, accrued expenses and other liabilities

 

$

84,035

 

 

$

89,731

 

Accrued compensation and benefits

 

 

943,007

 

 

 

736,695

 

Accrued carried interest-related compensation

 

 

802,308

 

 

 

757,968

 

Legacy Greenspring accrued carried interest-related compensation(1)

 

 

529,248

 

 

 

495,739

 

Due to affiliates

 

 

341,813

 

 

 

331,821

 

Lease liabilities

 

 

112,484

 

 

 

113,519

 

Debt obligations

 

 

269,594

 

 

 

269,268

 

Liabilities of Consolidated Funds:

 

 

 

 

Other liabilities

 

 

2,510

 

 

 

17,580

 

Total liabilities

 

 

3,084,999

 

 

 

2,812,321

 

Redeemable non-controlling interests in Consolidated Funds

 

 

459,927

 

 

 

377,897

 

Redeemable non-controlling interests in subsidiaries

 

 

6,906

 

 

 

6,327

 

Stockholders’ equity:

 

 

 

 

Class A common stock, $0.001 par value, 650,000,000 authorized; 78,552,912 and 76,761,399 issued and outstanding as of June 30, 2025 and March 31, 2025, respectively

 

 

79

 

 

 

77

 

Class B common stock, $0.001 par value, 125,000,000 authorized; 39,504,186 and 39,656,954 issued and outstanding as of June 30, 2025 and March 31, 2025, respectively

 

 

40

 

 

 

40

 

Additional paid-in capital

 

 

484,859

 

 

 

421,057

 

Accumulated deficit

 

 

(331,990

)

 

 

(242,546

)

Accumulated other comprehensive income

 

 

944

 

 

 

728

 

Total StepStone Group Inc. stockholders’ equity

 

 

153,932

 

 

 

179,356

 

Non-controlling interests in subsidiaries

 

 

946,033

 

 

 

1,056,510

 

Non-controlling interests in legacy Greenspring entities(1)

 

 

134,332

 

 

 

133,489

 

Non-controlling interests in the Partnership

 

 

(3,718

)

 

 

20,793

 

Total stockholders’ equity

 

 

1,230,579

 

 

 

1,390,148

 

Total liabilities and stockholders’ equity

 

$

4,782,411

 

 

$

4,586,693

 


(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 June 30,

 

 

 

2025

 

 

 

2024

 

Revenues

 

 

 

 

Management and advisory fees, net

 

$

211,173

 

 

$

178,015

 

Performance fees:

 

 

 

 

Incentive fees

 

 

190

 

 

 

841

 

Carried interest allocations:

 

 

 

 

Realized

 

 

24,404

 

 

 

41,804

 

Unrealized

 

 

88,883

 

 

 

(25,170

)

Total carried interest allocations

 

 

113,287

 

 

 

16,634

 

Legacy Greenspring carried interest allocations(1)

 

 

39,637

 

 

 

(9,089

)

Total performance fees

 

 

153,114

 

 

 

8,386

 

Total revenues

 

 

364,287

 

 

 

186,401

 

Expenses

 

 

 

 

Compensation and benefits:

 

 

 

 

Cash-based compensation

 

 

95,985

 

 

 

78,224

 

Equity-based compensation

 

 

188,718

 

 

 

19,179

 

Performance fee-related compensation:

 

 

 

 

Realized

 

 

11,705

 

 

 

20,848

 

Unrealized

 

 

44,357

 

 

 

(10,923

)

Total performance fee-related compensation

 

 

56,062

 

 

 

9,925

 

Legacy Greenspring performance fee-related compensation(1)

 

 

39,637

 

 

 

(9,089

)

Total compensation and benefits

 

 

380,402

 

 

 

98,239

 

General, administrative and other

 

 

42,914

 

 

 

41,011

 

Total expenses

 

 

423,316

 

 

 

139,250

 

Other income (expense)

 

 

 

 

Investment income

 

 

10,512

 

 

 

2,595

 

Legacy Greenspring investment income (loss)(1)

 

 

3,382

 

 

 

(1,255

)

Investment income of Consolidated Funds

 

 

21,671

 

 

 

7,635

 

Interest income

 

 

2,496

 

 

 

2,057

 

Interest expense

 

 

(4,534

)

 

 

(2,990

)

Other income (loss)

 

 

5,152

 

 

 

(351

)

Total other income

 

 

38,679

 

 

 

7,691

 

Income (loss) before income tax

 

 

(20,350

)

 

 

54,842

 

Income tax expense (benefit)

 

 

(8,339

)

 

 

6,797

 

Net income (loss)

 

 

(12,011

)

 

 

48,045

 

Less: Net income attributable to non-controlling interests in subsidiaries

 

 

28,617

 

 

 

16,615

 

Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)

 

 

3,382

 

 

 

(1,255

)

Less: Net income (loss) attributable to non-controlling interests in the Partnership

 

 

(27,122

)

 

 

13,324

 

Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds

 

 

20,957

 

 

 

5,671

 

Less: Net income attributable to redeemable non-controlling interests in subsidiaries

 

 

579

 

 

 

362

 

Net income (loss) attributable to StepStone Group Inc.

 

$

(38,424

)

 

$

13,328

 

Net income (loss) per share of Class A common stock:

 

 

 

 

Basic

 

$

(0.49

)

 

$

0.20

 

Diluted

 

$

(0.49

)

 

$

0.20

 

Weighted-average shares of Class A common stock:

 

 

 

 

Basic

 

 

77,846,710

 

 

 

66,187,754

 

Diluted

 

 

77,846,710

 

 

 

68,593,761

 


(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.


Non-GAAP Financial Measures: Definitions and Reconciliations

Fee Revenues

Fee revenues represents management and advisory fees, net, including amounts earned from the Consolidated Funds which are eliminated in consolidation. We believe fee revenues is useful to investors because it presents the net amount of management and advisory fee revenues attributable to us.

The table below presents the components of fee revenues.

 

 

Three Months Ended

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Focused commingled funds(1)(2)

 

$

104,798

 

$

107,855

 

$

105,718

 

$

124,604

 

$

120,036

 

Separately managed accounts

 

 

57,376

 

 

61,393

 

 

66,245

 

 

67,695

 

 

70,379

 

Advisory and other services

 

 

14,769

 

 

14,907

 

 

17,458

 

 

19,927

 

 

19,939

 

Fund reimbursement revenues(1)

 

 

1,571

 

 

1,326

 

 

2,411

 

 

2,436

 

 

2,386

 

Fee revenues

 

$

178,514

 

$

185,481

 

$

191,832

 

$

214,662

 

$

212,740

 

_______________________________
(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2) Includes income-based incentive fees from certain funds:


 

 

Three Months Ended

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Income-based incentive fees

 

$

1,113

 

$

1,347

 

$

2,120

 

$

3,377

 

$

4,408

 


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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Total revenues

 

$

186,401

 

$

271,677

 

$

339,023

 

$

377,729

 

$

364,287

 

Unrealized carried interest allocations

 

 

25,170

 

 

(52,215

)

 

(93,325

)

 

(21,177

)

 

(88,883

)

Deferred incentive fees

 

 

6

 

 

2,445

 

 

—

 

 

(513

)

 

—

 

Legacy Greenspring carried interest allocations

 

 

9,089

 

 

(13,917

)

 

(8,207

)

 

(61,306

)

 

(39,637

)

Management and advisory fee revenues for the Consolidated Funds(1)

 

 

499

 

 

723

 

 

992

 

 

1,261

 

 

1,567

 

Incentive fees for the Consolidated Funds(2)

 

 

—

 

 

75

 

 

5,422

 

 

(133

)

 

133

 

Adjusted revenues

 

$

221,165

 

$

208,788

 

$

243,905

 

$

295,861

 

$

237,467

 

_______________________________
(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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

GAAP management and advisory fees, net

 

$

178,015

 

$

184,758

 

$

190,840

 

$

213,401

 

$

211,173

 

Management and advisory fee revenues for the Consolidated Funds(1)

 

 

499

 

 

723

 

 

992

 

 

1,261

 

 

1,567

 

Fee revenues

 

$

178,514

 

$

185,481

 

$

191,832

 

$

214,662

 

$

212,740

 

 

 

 

 

 

 

 

GAAP incentive fees

 

$

841

 

$

3,155

 

$

22,369

 

$

5,910

 

$

190

 

Adjustments(2)

 

 

6

 

 

2,520

 

 

5,422

 

 

(646

)

 

133

 

Adjusted incentive fees

 

$

847

 

$

5,675

 

$

27,791

 

$

5,264

 

$

323

 

 

 

 

 

 

 

 

GAAP cash-based compensation

 

$

78,224

 

$

82,871

 

$

85,203

 

$

85,510

 

$

95,985

 

Adjustments(3)

 

 

(428

)

 

(285

)

 

339

 

 

—

 

 

(17

)

Adjusted cash-based compensation

 

$

77,796

 

$

82,586

 

$

85,542

 

$

85,510

 

$

95,968

 

 

 

 

 

 

 

 

GAAP equity-based compensation

 

$

19,179

 

$

37,332

 

$

486,418

 

$

126,197

 

$

188,718

 

Adjustments(4)

 

 

(16,785

)

 

(34,947

)

 

(483,958

)

 

(123,263

)

 

(184,509

)

Adjusted equity-based compensation

 

$

2,394

 

$

2,385

 

$

2,460

 

$

2,934

 

$

4,209

 

 

 

 

 

 

 

 

GAAP general, administrative and other

 

$

41,011

 

$

50,061

 

$

43,130

 

$

43,152

 

$

42,914

 

Adjustments(5)

 

 

(14,343

)

 

(21,900

)

 

(13,418

)

 

(11,015

)

 

(11,597

)

Adjusted general, administrative and other

 

$

26,668

 

$

28,161

 

$

29,712

 

$

32,137

 

$

31,317

 

 

 

 

 

 

 

 

GAAP interest income

 

$

2,057

 

$

3,016

 

$

2,559

 

$

3,218

 

$

2,496

 

Interest income earned by the Consolidated Funds(6)

 

 

(907

)

 

(1,363

)

 

(887

)

 

(1,600

)

 

(998

)

Adjusted interest income

 

$

1,150

 

$

1,653

 

$

1,672

 

$

1,618

 

$

1,498

 

 

 

 

 

 

 

 

GAAP other income (loss)

 

$

(351

)

$

1,177

 

$

(2,452

)

$

(31,024

)

$

5,152

 

Adjustments(7)

 

 

(72

)

 

(1,082

)

 

1,883

 

 

30,606

 

 

(4,159

)

Adjusted other income (loss)

 

$

(423

)

$

95

 

$

(569

)

$

(418

)

$

993

 

______________________________
(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 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 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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Income (loss) before income tax

 

$

54,842

 

$

57,888

 

$

(344,715

)

$

9,950

 

$

(20,350

)

Net income attributable to non-controlling interests in subsidiaries(1)

 

 

(18,951

)

 

(17,812

)

 

(32,765

)

 

(33,369

)

 

(30,725

)

Net (income) loss attributable to non-controlling interests in legacy Greenspring entities

 

 

1,255

 

 

4,031

 

 

(1,167

)

 

(2,934

)

 

(3,382

)

Unrealized carried interest allocations

 

 

25,170

 

 

(52,215

)

 

(93,325

)

 

(21,177

)

 

(88,883

)

Unrealized performance fee-related compensation

 

 

(10,923

)

 

27,748

 

 

49,670

 

 

27,777

 

 

44,357

 

Unrealized investment (income) loss

 

 

(1,180

)

 

(430

)

 

656

 

 

(6,007

)

 

(9,572

)

Impact of Consolidated Funds

 

 

(7,731

)

 

(9,267

)

 

(6,892

)

 

(35,723

)

 

(24,407

)

Deferred incentive fees

 

 

6

 

 

2,445

 

 

—

 

 

(513

)

 

—

 

Equity-based compensation(2)

 

 

16,785

 

 

34,947

 

 

483,958

 

 

123,263

 

 

184,509

 

Amortization of intangibles

 

 

10,250

 

 

10,250

 

 

10,250

 

 

10,250

 

 

10,207

 

Tax Receivable Agreements adjustments through earnings

 

 

—

 

 

—

 

 

—

 

 

(348

)

 

—

 

Non-core items(3)

 

 

4,137

 

 

11,349

 

 

2,094

 

 

32,474

 

 

686

 

Pre-tax ANI

 

 

73,660

 

 

68,934

 

 

67,764

 

 

103,643

 

 

62,440

 

Income taxes(4)

 

 

(16,419

)

 

(15,365

)

 

(15,105

)

 

(23,040

)

 

(13,906

)

ANI

 

 

57,241

 

 

53,569

 

 

52,659

 

 

80,603

 

 

48,534

 

Income taxes(4)

 

 

16,419

 

 

15,365

 

 

15,105

 

 

23,040

 

 

13,906

 

Realized carried interest allocations

 

 

(41,804

)

 

(17,632

)

 

(24,282

)

 

(75,935

)

 

(24,404

)

Realized performance fee-related compensation

 

 

20,848

 

 

8,767

 

 

25,477

 

 

39,656

 

 

11,705

 

Realized investment income

 

 

(1,415

)

 

(1,621

)

 

(1,720

)

 

(3,379

)

 

(940

)

Adjusted incentive fees(5)

 

 

(847

)

 

(5,675

)

 

(27,791

)

 

(5,264

)

 

(323

)

Adjusted interest income(6)

 

 

(1,150

)

 

(1,653

)

 

(1,672

)

 

(1,618

)

 

(1,498

)

Interest expense

 

 

2,990

 

 

3,512

 

 

3,008

 

 

3,191

 

 

4,534

 

Adjusted other (income) loss(7)

 

 

423

 

 

(95

)

 

569

 

 

418

 

 

(993

)

Net income attributable to non-controlling interests in subsidiaries(1)

 

 

18,951

 

 

17,812

 

 

32,765

 

 

33,369

 

 

30,725

 

FRE

 

$

71,656

 

$

72,349

 

$

74,118

 

$

94,081

 

$

81,246

 

_______________________________
(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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

FRE attributable to non-controlling interests in subsidiaries and profits interests

 

$

13,308

 

$

14,969

 

$

21,063

 

$

30,451

 

$

26,672

 

Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests

 

 

5,643

 

 

2,843

 

 

11,702

 

 

2,918

 

 

4,053

 

Net income attributable to non-controlling interests in subsidiaries and profits interests

 

$

18,951

 

$

17,812

 

$

32,765

 

$

33,369

 

$

30,725

 


The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.

 

 

Three Months Ended

(in thousands)

 

June 30,
2024

September 30,
2024

December
31, 2024

March 31,
2025

June 30,
2025

FRE attributable to profits interests issued in the private wealth subsidiary

 

$

574

 

$

2,051

 

$

2,956

 

$

6,399

 

$

8,469

 

Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary

 

 

51

 

 

206

 

 

11,137

 

 

(224

)

 

(14

)

Net income attributable to profits interests issued in the private wealth subsidiary

 

$

625

 

$

2,257

 

$

14,093

 

$

6,175

 

$

8,455

 


The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries presented above specifically not attributable to the profits interests issued in the private wealth subsidiary is presented below.

 

 

Three Months Ended

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

FRE attributable to non-controlling interests in subsidiaries

 

$

12,734

 

$

12,918

 

$

18,107

 

$

24,052

 

$

18,203

 

Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries

 

 

5,592

 

 

2,637

 

 

565

 

 

3,142

 

 

4,067

 

Net income attributable to non-controlling interests in subsidiaries

 

$

18,326

 

$

15,555

 

$

18,672

 

$

27,194

 

$

22,270

 


(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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Transaction costs

 

$

672

 

$

140

 

$

12

 

$

179

 

$

605

 

(Gain) loss on change in fair value for contingent consideration obligation

 

 

2,953

 

 

10,888

 

 

2,476

 

 

(205

)

 

64

 

Compensation paid to certain employees as part of an acquisition earn-out

 

 

482

 

 

321

 

 

(394

)

 

—

 

 

—

 

Unrealized amounts associated with cash-based incentive awards tracked to investment funds

 

 

—

 

 

—

 

 

—

 

 

—

 

 

17

 

Loss on payment made in connection with private wealth fund secondary transaction

 

 

—

 

 

—

 

 

—

 

 

32,500

 

 

—

 

Other non-core items

 

 

30

 

 

—

 

 

—

 

 

—

 

 

—

 

Total non-core operating income and expenses

 

$

4,137

 

$

11,349

 

$

2,094

 

$

32,474

 

$

686

 


(4) Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

 

 

Three Months Ended

 

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Federal statutory rate

 

21.0

%

21.0

%

21.0

%

21.0

%

21.0

%

Combined state, local and foreign rate

 

1.3

%

1.3

%

1.3

%

1.2

%

1.3

%

Blended statutory rate

 

22.3

%

22.3

%

22.3

%

22.2

%

22.3

%


(5) 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.
(6) Reflects the removal of interest income earned by the Consolidated Funds.
(7) Reflects the removal of Tax Receivable Agreements adjustments recognized as other income (loss) ($0.3 million for the three months ended March 31, 2025), 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 the impact of consolidation of the Consolidated Funds.

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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

FRE

 

$

71,656

 

$

72,349

 

$

74,118

 

$

94,081

 

$

81,246

 

Fee revenues

 

 

178,514

 

 

185,481

 

 

191,832

 

 

214,662

 

 

212,740

 

FRE margin

 

 

40

%

 

39

%

 

39

%

 

44

%

 

38

%


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

(in thousands)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

Incentive fees

 

$

841

 

$

3,155

 

$

22,369

 

$

5,910

 

$

190

 

Realized carried interest allocations

 

 

41,804

 

 

17,632

 

 

24,282

 

 

75,935

 

 

24,404

 

Unrealized carried interest allocations

 

 

(25,170

)

 

52,215

 

 

93,325

 

 

21,177

 

 

88,883

 

Legacy Greenspring carried interest allocations

 

 

(9,089

)

 

13,917

 

 

8,207

 

 

61,306

 

 

39,637

 

Total performance fees

 

 

8,386

 

 

86,919

 

 

148,183

 

 

164,328

 

 

153,114

 

Unrealized carried interest allocations

 

 

25,170

 

 

(52,215

)

 

(93,325

)

 

(21,177

)

 

(88,883

)

Legacy Greenspring carried interest allocations

 

 

9,089

 

 

(13,917

)

 

(8,207

)

 

(61,306

)

 

(39,637

)

Incentive fee revenues for the Consolidated Funds(1)

 

 

—

 

 

75

 

 

5,422

 

 

(133

)

 

133

 

Deferred incentive fees

 

 

6

 

 

2,445

 

 

—

 

 

(513

)

 

—

 

Gross realized performance fees

 

 

42,651

 

 

23,307

 

 

52,073

 

 

81,199

 

 

24,727

 

Realized performance fee-related compensation

 

 

(20,848

)

 

(8,767

)

 

(25,477

)

 

(39,656

)

 

(11,705

)

PRE

 

$

21,803

 

$

14,540

 

$

26,596

 

$

41,543

 

$

13,022

 

______________________________
(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

 

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

ANI

 

$

57,241

 

$

53,569

 

$

52,659

 

$

80,603

 

$

48,534

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding –

 

 

66,187,754

 

 

68,772,051

 

 

73,687,289

 

 

75,975,770

 

 

77,846,710

 

Assumed vesting of RSUs

 

 

673,854

 

 

921,166

 

 

491,014

 

 

270,492

 

 

347,813

 

Assumed vesting and exchange of Class B2 units(1)

 

 

1,732,153

 

 

—

 

 

—

 

 

—

 

 

—

 

Assumed purchase under ESPP

 

 

—

 

 

2,098

 

 

—

 

 

—

 

 

—

 

Exchange of Class B units in the Partnership(2)

 

 

45,827,707

 

 

45,212,921

 

 

41,729,937

 

 

40,122,028

 

 

39,608,270

 

Exchange of Class C units in the Partnership(2)

 

 

1,849,846

 

 

1,626,812

 

 

1,016,737

 

 

965,761

 

 

960,025

 

Exchange of Class D units in the Partnership(2)

 

 

2,239,185

 

 

2,239,185

 

 

2,010,202

 

 

1,535,060

 

 

3,530,125

 

Adjusted weighted-average shares

 

 

118,510,499

 

 

118,774,233

 

 

118,935,179

 

 

118,869,111

 

 

122,292,943

 

 

 

 

 

 

 

 

ANI per share

 

$

0.48

 

$

0.45

 

$

0.44

 

$

0.68

 

$

0.40

 

_______________________________
(1) The Class B2 units fully vested in June 2024.
(2) 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

 

Percentage
Change

(in millions)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

 

vs. FQ1'25

Separately Managed Accounts

 

 

 

 

 

 

 

 

Beginning balance

 

$

58,897

 

$

60,272

 

$

62,121

 

$

69,974

 

$

73,174

 

 

24

%

Contributions(1)

 

 

2,085

 

 

1,723

 

 

9,033

 

 

3,874

 

 

3,013

 

 

45

%

Distributions(2)

 

 

(830

)

 

(535

)

 

(1,000

)

 

(1,225

)

 

(1,010

)

 

22

%

Market value, FX and other(3)

 

 

120

 

 

661

 

 

(180

)

 

551

 

 

1,531

 

 

na

Ending balance

 

$

60,272

 

$

62,121

 

$

69,974

 

$

73,174

 

$

76,708

 

 

27

%

 

 

 

 

 

 

 

 

 

Focused Commingled Funds

 

 

 

 

 

 

 

 

Beginning balance

 

$

34,961

 

$

40,084

 

$

42,294

 

$

44,192

 

$

48,216

 

 

38

%

Contributions(1)

 

 

5,653

 

 

2,122

 

 

2,520

 

 

3,403

 

 

2,022

 

 

(64

)%

Distributions(2)

 

 

(661

)

 

(282

)

 

(682

)

 

(313

)

 

(392

)

 

(41

)%

Market value, FX and other(3)

 

 

131

 

 

370

 

 

60

 

 

934

 

 

665

 

 

408

%

Ending balance

 

$

40,084

 

$

42,294

 

$

44,192

 

$

48,216

 

$

50,511

 

 

26

%

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

Beginning balance

 

$

93,858

 

$

100,356

 

$

104,415

 

$

114,166

 

$

121,390

 

 

29

%

Contributions(1)

 

 

7,738

 

 

3,845

 

 

11,553

 

 

7,277

 

 

5,035

 

 

(35

)%

Distributions(2)

 

 

(1,491

)

 

(817

)

 

(1,682

)

 

(1,538

)

 

(1,402

)

 

(6

)%

Market value, FX and other(3)

 

 

251

 

 

1,031

 

 

(120

)

 

1,485

 

 

2,196

 

 

775

%

Ending balance

 

$

100,356

 

$

104,415

 

$

114,166

 

$

121,390

 

$

127,219

 

 

27

%

_______________________________
(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 include a $0.6 billion secondary transaction within focused commingled funds.


Asset Class Summary

 

 

Three Months Ended

 

Percentage
Change

(in millions)

 

June 30,
2024

September
30, 2024

December
31, 2024

March 31,
2025

June 30,
2025

 

vs. FQ1'25

FEAUM

 

 

 

 

 

 

 

 

Private equity

 

$

54,855

 

$

57,136

 

$

62,811

 

$

65,007

 

$

66,428

 

 

21

%

Infrastructure

 

 

20,377

 

 

20,986

 

 

23,411

 

 

23,830

 

 

26,090

 

 

28

%

Private debt

 

 

16,161

 

 

16,975

 

 

17,882

 

 

19,517

 

 

21,435

 

 

33

%

Real estate

 

 

8,963

 

 

9,318

 

 

10,062

 

 

13,036

 

 

13,266

 

 

48

%

Total

 

$

100,356

 

$

104,415

 

$

114,166

 

$

121,390

 

$

127,219

 

 

27

%

 

 

 

 

 

 

 

 

 

Separately managed accounts

 

$

60,272

 

$

62,121

 

$

69,974

 

$

73,174

 

$

76,708

 

 

27

%

Focused commingled funds

 

 

40,084

 

 

42,294

 

 

44,192

 

 

48,216

 

 

50,511

 

 

26

%

Total

 

$

100,356

 

$

104,415

 

$

114,166

 

$

121,390

 

$

127,219

 

 

27

%

 

 

 

 

 

 

 

 

 

AUM(1)

 

 

 

 

 

 

 

 

Private equity

 

$

89,329

 

$

91,891

 

$

93,404

 

$

95,937

 

$

100,540

 

 

13

%

Infrastructure

 

 

32,756

 

 

35,392

 

 

36,156

 

 

37,026

 

 

40,087

 

 

22

%

Private debt

 

 

30,336

 

 

31,854

 

 

31,987

 

 

37,133

 

 

39,242

 

 

29

%

Real estate

 

 

16,912

 

 

16,996

 

 

17,665

 

 

19,284

 

 

19,445

 

 

15

%

Total

 

$

169,333

 

$

176,133

 

$

179,212

 

$

189,380

 

$

199,314

 

 

18

%

 

 

 

 

 

 

 

 

 

Separately managed accounts

 

$

103,003

 

$

107,252

 

$

109,305

 

$

114,806

 

$

120,649

 

 

17

%

Focused commingled funds

 

 

51,682

 

 

53,870

 

 

55,142

 

 

59,410

 

 

62,672

 

 

21

%

Advisory AUM

 

 

14,648

 

 

15,011

 

 

14,765

 

 

15,164

 

 

15,993

 

 

9

%

Total

 

$

169,333

 

$

176,133

 

$

179,212

 

$

189,380

 

$

199,314

 

 

18

%

 

 

 

 

 

 

 

 

 

AUA

 

 

 

 

 

 

 

 

Private equity

 

$

279,909

 

$

255,125

 

$

263,420

 

$

262,884

 

$

262,472

 

 

(6

)%

Infrastructure

 

 

62,599

 

 

62,891

 

 

67,100

 

 

69,027

 

 

71,126

 

 

14

%

Private debt

 

 

22,280

 

 

19,328

 

 

19,325

 

 

19,726

 

 

20,874

 

 

(6

)%

Real estate

 

 

166,659

 

 

168,519

 

 

168,807

 

 

168,047

 

 

169,679

 

 

2

%

Total

 

$

531,447

 

$

505,863

 

$

518,652

 

$

519,684

 

$

524,151

 

 

(1

)%

 

 

 

 

 

 

 

 

 

Total capital responsibility(2)

 

$

700,780

 

$

681,996

 

$

697,864

 

$

709,064

 

$

723,465

 

 

3

%

_____________________________
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 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 June 30, 2025 reflects final data for the prior period (March 31, 2025), adjusted for net new client account activity through June 30, 2025. NAV data for underlying investments is as of March 31, 2025, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2025. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2025, 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 June 30, 2025 reflects final data for the prior period (March 31, 2025), adjusted for net new client account activity through June 30, 2025. NAV data for underlying investments is as of March 31, 2025, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2025. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2025, 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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