Stepstone Group Inc. · NASDAQ:STEP
Stepstone — Investor Presentation (October 2026)
12 slides from Stepstone's investor presentation, October 2026
Slide 1: Real estate liquidity insights
Real estate liquidity insights An analysis of fund-level cash flows October 2026
Slide 2: Notes
NOTES This document is for informational purposes and is meant only to provide a broad overview for discussion purposes. Prospective investors should inform themselves and take appropriate advice as to any applicable legal requirements This document does not constitute an offer to sell, a solicitati
Slide 3: Executive summary
Executive summary 2022 interest rate spike led to a drop in property trading prices, systemic overleverage, and funding gaps. Interest rate spike created persistent Market trading volume dropped and mostly recovered. Assets sales by funds fell much further than market trading challenges volume and h
Slide 4: Marks lag trading prices, volume generally recovered
Marks lag trading prices, volume generally recovered Fund valuations should have dropped much further than unlevered asset Limited trading and price discovery no longer justify the valuation gap trading prices because fund assets are levered. In the US, they did not. because volumes are generally ba
Slide 5: Fund distributions well below average since 2022
Fund distributions well below average since 2022 IRR-based funds selling less, accumulating over $800B in assets held for over 5 years Fund-level distribution, TTM vs long-term average1 Global private real estate unrealized NAV by vintage2 $ in billions 200% $350 175% $800B+ NAV unrealized exceeding
Slide 6: Capital calls around long-term averages
Capital calls around long-term averages - Non-core fund managers are actively acquiring new assets in an attractive buying market - Dry powder is declining from the high levels that resulted from peak fundraising years of 2021 and 2022 - Capital calls for pre-correction funds were partly used to fil
Slide 7: Less sales by funds, longer holds, more losses
Less sales by funds, longer holds, more losses Annual asset sale proceeds ($B) fell after 2022 Average age of unrealized assets rising from 3.25 to 4.1 years 90 4.5 4.1 yrs 80 4.0 70 Realized value ($B) 3.5 60 50 3.0 40 2.5 30 -65% 2.0 20 Q2 2021 Q2 2020 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q4 2018 Q4 20
Slide 8: Longer hold periods mean higher losses
Longer hold periods mean higher losses – The average loss ratio for all assets sold since 2006 that had been held 6+ years exceeds 10%. This is double the average loss ratio for assets exited between years 4 and 6 – Assets acquired right before GFC (2004 -08) reported materially higher loss ratios a
Slide 9: Holds are longer in distressed periods
Holds are longer in distressed periods – The median holding period of investments in non-core funds is 3.75 years – Market dislocation significantly extends holding periods. Assets entered right before the GFC had a median holding period of 7 years – Assets entered 2020-2022 are younger than the med
Slide 10: Mega funds lead fundraising recovery, rest still depressed
Mega funds lead fundraising recovery, rest still depressed – Fundraising in 2025 hit long-term normal levels but remained below post COVID peaks. • The lift came from mega funds, those >$5B. Excluding mega funds, fundraising has been flat for 3 years, sitting around 2016 levels – In 2025, funds over
Slide 11: Risks Associated with Investments
Risks Associated with Investments. Identifying attractive investment opportunities and the right underlying fund investments made on behalf, of its advisory clients. managers is difficult and involves a high degree of uncertainty. There is no assurance that the investments will be profitable and the
Slide 12: stepstonegroup.com
stepstonegroup.com
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