Stepstone Group Inc. · NASDAQ:STEP
Stepstone — Merger or Acquisition (July 2021)
14 slides from Stepstone's merger presentation, July 2021
Slide 1: Acquisition of Greenspring Associates
Acquisition of Greenspring Associates JULY 2021
Slide 2: Disclosure
Disclosure Acquisition of Greenspring StepStone Group Inc. (Nasdaq: STEP) (“StepStone” or the “Company”) cautions you that the information contained in this presentation is summary information that is intended to be considered in the context of the Company’s filings with the Securities and Exchange
Slide 3: Disclosure: Cautionary Language Regarding Forward-Looking Statements
Disclosure Cautionary Language Regarding Forward-Looking Statements Certain statements in this presentation 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 Litigatio
Slide 4: Today’s Presenters
Today’s Presenters Scott Hart Jason Ment Mike McCabe Johnny Randel Co-CEO President & Co-COO Head of Strategy Chief Financial Officer STEPSTONE GROUP 4
Slide 5: The Venture Capital and Growth Equity Market Opportunity
The Venture Capital and Growth Equity Market Opportunity • Venture capital and growth equity has been among the fastest growing and best performing sectors in all markets • A dynamic ecosystem of large platform fund managers and smaller, specialized managers are providing startup and expansion capit
Slide 6: Overview of Greenspring Associates
Overview of Greenspring Associates • Greenspring is a dedicated venture and growth equity platform that manages assets across strategies covering all stages of the venture capital life cycle • As of March 31, 2021, Greenspring currently manages $17 billion of total AUM, and $9 billion of fee-earning
Slide 7: Shared Capabilities, Strategies, and Values
Shared Capabilities, Strategies, and Values We believe the combination of StepStone and Greenspring creates the clear market leader in venture capital and growth equity solutions SHARED CAPABILITIES & STRATEGIES COMMON VALUES EXPERIENCED & SPECIALIZED TEAM SOLUTIONS ORIENTED APPROACH INTEGRITY Deep
Slide 8: Broad Geographic Presence (as adjusted, including Greenspring locations)
Broad Geographic Presence (as adjusted, including Greenspring locations) EXISTING STEPSTONE OFFICE GREENSPRING OFFICE COMBINED PRESENCE $155B AUM/AUA EMEA DUBLIN LONDON 5 Cities $231B LUXEMBOURG 70+ Investment AUM/AUA TORONTO ZURICH Professionals SAN FRANCISCO NEW YORK ROME TOKYO CLEVELAND PALO ALTO
Slide 9: Transaction Summary
Transaction Summary PURCHASE PRICE STRUCTURE: • $185 million in cash • $540 million in Class A common stock at price of approximately $34.27 per share and Class C partnership units convertible into Class A common stock. Results in the addition of 15.8 million adjusted shares1, representing 14% of th
Slide 10: As Adjusted Financial Impact
As Adjusted Financial Impact AS OF OR FOR THE TWELVE MONTHS ENDED MARCH 31, 2021 STEPSTONE GREENSPRING1 COMBINED2 ASSETS UNDER MANAGEMENT ($s in billions) $86.4 $17.43 $103.8 FEE-EARNING AUM ($s in billions) $52.0 $9.1 $61.1 MANAGEMENT & ADVISORY FEES ($s in millions)4 $285.5 $70.4 $355.9 MANAGEMENT
Slide 11: Strategic Merits of the Deal
Strategic Merits of the Deal The combination of StepStone and COMBINED PE METRICS AS OF 3/31/21 Greenspring will strengthen both firms’ $ $ private equity and venture capital capabilities 130+ PE Investment 60B PE 28B Annual deployed professionals AUM PE capital1 STEPSTONE GREENSPRING • Creates the
Slide 12: Reconciliation of GAAP to Non-GAAP – StepStone
Reconciliation of GAAP to Non-GAAP – StepStone Year Ended ($ in thousands) March 31, 2021 Income before income tax $ 337,849 Net income attributable to non-controlling interests in subsidiaries (1) (23,952) Unrealized carried interest allocation revenue (433,827) Unrealized performance fee-related c
Slide 13: Reconciliation of GAAP to Non-GAAP – StepStone
Reconciliation of GAAP to Non-GAAP – StepStone ($ in millions) Quarter 1Q FY21 2Q FY21 3Q FY21 4Q FY21 Realized carried interest revenue $ 3.6 $ 8.6 $ 26.1 $ 24.7 Incentive fees 3.6 1.2 0.3 0.4 Deferred incentive fees 3.5 1.2 - - Gross realized performance fees 10.8 10.9 26.4 25.0 Realized performan
Slide 14: Reconciliation of GAAP to Non-GAAP – Greenspring
Reconciliation of GAAP to Non-GAAP – Greenspring Twelve Months Ended March 31, ($ in thousands) 2021 Net income $ 22,833 Other (income) expense items (1) 5,193 Pre-tax adjusted net income 28,026 Income taxes - Adjusted net income 28,026 Income taxes - Interest expense 21 Fee-related earnings $ 28,04