Stepstone Group Inc. · NASDAQ:STEP
Stepstone — Q4 2025 Earnings Presentation
46 slides from Stepstone's earnings presentation, May 22, 2025
Slide 1: Fiscal Year 2025 Fourth Quarter and Full Year Earnings Presentation
Fiscal Year 2025 Fourth Quarter and Full Year Earnings Presentation May 22, 2025 STEPSTONE GROUP 1
Slide 2: Today's presenters
Today’s Scott Hart CEO Jason Ment President & Co-COO presenters Mike McCabe David Park Head of Strategy CFO STEPSTONE GROUP 2
Slide 3: GAAP consolidated statements of income (loss)
GAAP consolidated statements of income (loss) ($ in thousands, except per share amounts) Quarter Full Year Mar '24 Mar '25 % Fav / Unfav Mar '24 Mar '25 % Fav / Unfav Revenues Management and advisory fees, net $ 153,410 $ 213,401 39% $ 585,140 $ 767,014 31% Performance fees: Incentive fees 2,496 5,9
Slide 4: Non-GAAP financial results
Non-GAAP financial results1 ($ in thousands, unless otherwise mentioned) Quarter Full Year Mar '24 Mar '25 % Fav / Unfav Mar '24 Mar '25 % Fav / Unfav Fee revenues (2) $ 153,808 $ 214,662 40% $ 586,379 $ 770,489 31% Less: Adjusted cash-based compensation 73,950 85,510 -16% 290,822 331,434 -14% Adjus
Slide 5: Fiscal Q4 and full year 2025 overview
Fiscal Q4 and full year 2025 overview FQ4’25 FQ4’24 vs. FQ4’24 FQ3’25 vs. FQ3’25 Assets under management (“AUM”) $189.4 B $156.6 B 21% $179.2 B 6% Fee-earning AUM (“FEAUM”) $121.4 B $93.9 B 29% $114.2 B 6% Key Business Drivers Undeployed fee-earning capital $24.6 B $22.6 B 9% $21.7 B 13% Gross accru
Slide 6: Overview
Overview STEPSTONE GROUP 6
Slide 7: Scale that delivers
Scale that delivers Opportunity Assets under management $189 The capital and relationships that unlock growth BILLION Total capital Reach Assets under advisement $520 responsibility True global presence, deep local knowledge BILLION $709 Flexibility Average annual private markets allocations $70+ BI
Slide 8: Growth drivers
Growth drivers AUM & AUA Separately Managed Accounts Focused Commingled Funds Advisory $115 billion $59 billion $520 billion 22% growth from the prior year 22% growth from the prior year • ~$15 billion of AUA relates to advisory accounts for which we have discretion $21 billion of new capital additi
Slide 9: Evolution of fee-earning AUM
Evolution of fee-earning AUM 35% clients with exposure to more than one asset class FEE-EARNING AUM BY COMMERCIAL STRUCTURE ($B) Total AUM $67 $86 $134 $138 $157 $189 $121.4 Organic CAGR1: 22% $85.4 $93.9 Focused $75.2 48.2 FEAUM + UNDEPLOYED FEE-EARNING CAPITAL ($B) $52.0 30.1 35.0 commingled 25.6
Slide 10: Trend in fee revenues
Trend in fee revenues FEE REVENUES ($M)1 Advisory fees $763 Focused commingled funds 67 FY’20 FY’21 FY’22 FY’23 FY’24 FY’25 Blended management fee rates3 Separately managed accounts Overall 0.51% 0.52% 0.52% 0.54% 0.59% 0.65% $581 By Type: 60 SMAs 0.39% 0.39% 0.40% 0.40% 0.39% 0.39% $494 Commingled
Slide 11: Ahead of pace to achieve FY '28 target to at least double FRE
Ahead of pace to achieve FY ‘28 target to at least double FRE FY 2023 (Investor Day) FY 2025 % Change Fee-earning AUM $85.4B $121.4B +42% Undeployed fee-earning capital (“UFEC”) $15.7B $24.6B +57% Total of fee-earning AUM and UFEC $101.1B $146.0B +44% Fee-related earnings $156M $312M +100% Fee-relat
Slide 12: Financial update
Financial update STEPSTONE GROUP 12
Slide 13: Financial highlights
Financial highlights • Fee revenues increased 40% for the quarter and 31% for the full year, driven by FEAUM growth and higher retroactive fees • Fee-related earnings increased 85% for the quarter and 64% for the full year, driven by growth in fee revenues and expansion of FRE margin • ANI per share
Slide 14: Accrued carry and fund investments
Accrued carry and fund investments1 NET ACCRUED CARRY ($M)2 NET UNREALIZED CARRY AS OF 3/31/2025 BY VINTAGE AND TYPE 2015 & Prior Post 2019 19% Private Equity $744 $738 25% 82% $701 $677 $635 2016 Infrastructure 18% 12% 2019 16% Real Estate FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 6% 2018 2017 75% from 20
Slide 15: Appendix
Appendix STEPSTONE GROUP 15
Slide 16: Consolidated balance sheets
Consolidated balance sheets ($ in thousands) Mar '24 Dec '24 Mar '25 Assets Cash and cash equivalents $ 143,430 $ 223,103 $ 244,791 Restricted cash 718 720 502 Fees and accounts receivable 56,769 63,521 80,871 Due from affiliates 67,531 96,590 92,723 Investments: Investments in funds (1) 135,043 172
Slide 17: FEAUM overview
FEAUM overview Fav / Unfav Change ($B, unless noted) FQ4'25 FQ4'24 $ % Walk from AUM to FEAUM $B Total AUM as of 3/31/25 $ 189.4 SMAs Less: Non-fee earning AUM 17.5 Beginning balance $ 70.0 $ 56.7 $ 13.3 23% Less: Market appreciation included in AUM 25.9 Contributions 1 3.9 2.8 1.1 41% Less: Undeplo
Slide 18: Adjusted revenues
Adjusted revenues ($M, except per share amounts) FEE REVENUES Management fees increased 34% for the full year driven by +31% $770 $586 $770 growth in FEAUM and a higher level of retroactive fees $235 Advisory fees increased 12% for the full year Mar-24 Mar-25 Mar-20 Mar-25 Year Long-Term Growth GROS
Slide 19: Profitability
Profitability ($M, except per share amounts) FEE-RELATED EARNINGS • Fee-related earnings growth driven primarily by growth in fee $312 revenues and margin expansion • FRE margin was 41% for the full year as compared with 32% in +64% $312 the prior year and 26% four fiscal years ago $190 $62 Mar-24 M
Slide 20: StepStone occupies an important position within the GP & LP ecosystem
StepStone occupies an important position within the GP & LP ecosystem A strategic partner to our clients and managers, we listen deeply, share generously, and search diligently for new ways to address each challenge. CLIENTS A self-reinforcing Corporations growth cycle of STEPSTONE clients, capital,
Slide 21: Our global reach powers possibility
Our global reach powers possibility Local teams with valuable regional insights collaborate across 28 cities, 16 countries and 5 continents. London Dublin Frankfurt Toronto Luxembourg Zurich San Francisco Milan Rome Chicago New York Seoul Palo Alto Cleveland Baltimore Beijing Dallas Charlotte Jeonju
Slide 22: Comprehensive private markets solutions
Comprehensive private markets solutions StepStone’s flexible business model helps clients access opportunities across all asset classes: ASSET MANAGEMENT ADVISORY RESEARCH Separately managed accounts Focused commingled funds Advisory & data services Portfolio analytics & reporting • Owned by one cli
Slide 23: Offering a full-service model to clients seeking a customized solution
348 34% Offering a full-service model to clients seeking a bespoke SMAs + focused commingled funds of advisory clients with an AUM relationship customized solution to private markets investing Industry-transforming technology capabilities create a virtuous cycle of client engagement and provide a si
Slide 24: Uncommon insights
Uncommon insights Our view is both panoramic and precise, framed by a powerful combination of proprietary data and technology that empowers clients to act with uncommon clarity and conviction. Investment selection Portfolio planning StepStone’s consolidated due diligence library contains qualitative
Slide 25: Investment expertise across all private markets asset classes
Investment expertise across all private markets asset classes As of March 31, 2025 BY AUM BY AUA 49% / $350B Private Debt combined AUM/AUA Private Debt $20B / 4% in RE / INFRA / PD $37B / 20% Infrastructure $69B / 13% Private Equity $96B / 51% $189 $520 BILLION Private Equity BILLION Infrastructure
Slide 26: Performance fee-related earnings
Performance fee-related earnings QUARTERLY PERFORMANCE FEE-RELATED EARNINGS ($M) LTM PERFORMANCE FEE-RELATED EARNINGS ($M) $122 $42 $123 $107 $110 $104 $33 $33 $32 $91 $85 $29 $28 $27 $75 $68 $65 $66 $22 $57 $18 $18 $16 $14 $43 $41 $12 $31 $38 $36 $12 $23$25$24 $26 $8 $8 $7 $6 $5 $6 $1 Note: Perform
Slide 27: Fee revenues
Fee revenues FULL YEAR MAR ’24 FULL YEAR MAR ’25 SMAs 38% SMAs 33% Advisory and Advisory and other services other services 10% 9% Focused Fund Fund reimbursement Focused commingled reimbursement revenues commingled funds revenues 1% funds 51% 1% 57% ($ in thousands) Quarter Full Year Mar '24 Mar '25
Slide 28: Blue-chip, sophisticated, global clientele
Blue-chip, sophisticated, global clientele As of March 31, 2025 BY TYPE BY GEOGRAPHY LTM management and advisory fees (%) LTM management and advisory fees (%) Pension Funds 3% 3% North America 5% Insurance Companies 6% Asia/Australia 31% Private Wealth/ 14% 12% Europe Defined Contribution Plans Sove
Slide 29: Our diversified platform spans private markets solutions
Our diversified platform spans private markets solutions Private Equity Real Estate Infrastructure Private Debt • Total AUM: $96B • Total AUM: $19B • Total AUM: $37B • Total AUM: $37B - SMA AUM: $51B - SMA AUM: $9B - SMA AUM: $33B - SMA AUM: $22B - FCF AUM: $45B - FCF AUM: $7B - FCF AUM: $2B - FCF A
Slide 30: Notable StepStone focused commingled funds
Notable StepStone focused commingled funds Vintage Fund Size Fund Name Description Year ($M) PRIVATE EQUITY Current drawdown funds in market include: StepStone VC Asia Fund I Multi-strategy Asia venture capital 2020 $ 251 StepStone Capital Partners V Private equity co-investments 2021 2,364 • Privat
Slide 31: Reconciliation of GAAP income (loss) before income tax to ANI and FRE
Reconciliation of GAAP income (loss) before income tax to ANI and FRE ($ in thousands) Quarter Full Year Full Year Mar '24 Mar '25 Mar '24 Mar '25 Mar '20 Income (loss) before income tax $ 94,515 $ 9,950 $ 195,396 $ (222,035) $ 148,740 Net income attributable to non-controlling interests in subsidia
Slide 32: Reconciliation of GAAP measures to adjusted measures
Reconciliation of GAAP measures to adjusted measures ($ in thousands) Quarter Full Year Full Year Mar '24 Mar '25 Mar '24 Mar '25 Mar '20 Total revenues $ 356,810 $ 377,729 $ 711,631 $ 1,174,830 $ 446,611 Unrealized carried interest allocations (151,757) (21,177) (126,908) (141,547) (161,819) Deferr
Slide 33: Calculation and reconciliation of adjusted net income per share
Calculation and reconciliation of adjusted net income per share ($ in thousands, except share and per share amounts) Quarter Full Year Full Year Mar '24 Mar '25 Mar '24 Mar '25 Mar '20 ANI $ 37,716 $ 80,603 $ 139,393 $ 244,072 $ 50,143 Weighted-average shares of Class A common stock outstanding – Ba
Slide 34: Reconciliation of total performance fees to gross realized performance fees and PRE
Reconciliation of total performance fees to gross realized performance fees and PRE ($ in millions) Quarter FQ4'20 FQ1'21 FQ2'21 FQ3'21 FQ4'21 FQ1'22 FQ2'22 FQ3'22 FQ4'22 FQ1'23 FQ2'23 FQ3'23 FQ4'23 FQ1'24 FQ2'24 FQ3'24 FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Incentive fees $ 0.8 $ 3.6 $ 1.2 $ 0.3 $ 0.4
Slide 35: Definitions
Definitions Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present Assets under advisement, or “AUA,” consists of client assets for which we do not have full before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to discretion to make investment d
Slide 36: Definitions (continued)
Definitions (continued) Assets under management, or “AUM,” primarily reflects the assets associated with our Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee separately managed accounts (“SMAs”) and focused commingled funds. We classify revenue (i.e., fee basis) and
Slide 37: Definitions (continued)
Definitions (continued) Fund size refers to total capital commitments to a StepStone Fund, including Performance fee-related earnings represent gross realized performance fees, less realized commitments from the Company as the general partner. performance fee-related compensation. We believe perform
Slide 38: Footnotes
Footnotes GAAP consolidated statements of income (loss) (slide 3) 1 Reflects amounts attributable to consolidated VIEs for which we did not acquire any direct economic interests. Such amounts are attributable to employees and therefore have been reflected as legacy Greenspring performance fee-relate
Slide 39: Footnotes (continued)
Footnotes (continued) Evolution of fee-earning AUM (slide 9) 1 Organic CAGR excludes $11.4B of FEAUM and $0.5B of undeployed fee-earning capital acquired as part of Greenspring as of 9/20/21. Trend in fee revenues (slide 10) 1 Excludes fund reimbursement revenues. 2 The acquisition of Greenspring co
Slide 40: Footnotes (continued)
Footnotes (continued) Consolidated balance sheets (slide 16) 1 The Company’s investments in funds were $276 million as of March 31, 2025, $266 million as of December 31, 2024 and $205 million as of March 31, 2024. The consolidation of the Consolidated Funds results in the elimination of the Company’
Slide 41: Footnotes (continued)
Footnotes (continued) Our diversified platform spans private markets solutions (slide 29) 1 Investment returns reflect NAV data for underlying investments 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. Fo
Slide 42: Footnotes (continued)
Footnotes (continued) Our diversified platform spans private markets solutions (continued) (slide 29) 4 Investments of former clients are included in performance summary past the client termination date until such time as StepStone stops receiving current investment data (quarterly valuations and ca
Slide 43: Footnotes (continued)
Footnotes (continued) Reconciliation of GAAP income (loss) before income tax to ANI and FRE (continued) (slide 31) 3 Includes (income) expense related to compensation paid to certain equity holders as part of an acquisition earn-out ($1.4 million in fiscal 2020), transaction costs ($0.2 million and
Slide 44: Footnotes (continued)
Footnotes (continued) Reconciliation of GAAP measures to adjusted measures (slide 32) 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,
Slide 45: Disclosure
Disclosure Some of the statements in this presentation may constitute “forward-looking statements” The non-GAAP financial measures contained in this presentation (including, without limitation, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the adjusted revenues, adj
Slide 46: stepstonegroup.com
stepstonegroup.com STEPSTONE GROUP 46