STEPSTONE GROUP REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS NEW YORK, May 20, 2026 - 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, 2026. This represents results for the fourth quarter and fiscal year ended 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, and a supplemental cash dividend of $0.55 per share of Class A common stock, both payable on June 30, 2026, to the holders of record as of the close of business on June 15, 2026.
StepStone issued a full detailed presentation of its fourth quarter and full fiscal year ended March 31, 2026 results, which can be accessed by visiting the Company's website at https:// shareholders.stepstonegroup.com.
Webcast and Earnings Conference CallManagement will host a webcast and conference call today, Wednesday, May 20, 2026 at 5:00 pm ET to discuss the Company's results for the fourth quarter and fiscal year ended 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/BI9163fe26cabd4cc5b21fbe0592aac5b7.
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 GroupStepStone 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, 2026, StepStone was responsible for approximately $885 billion of total capital, including $233 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 StatementsSome 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 annual report on Form 10-K to be filed with the SEC for the fiscal year ended March 31, 2026, 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 MeasuresTo 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 | March 31, | June 30, | September | December | March 31, | ||
share amounts and where noted) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 | 2025 2026 vs. FQ4'25 | vs. FY'25 |
Financial Highlights | |||||||
GAAP Results | |||||||
Management and advisory fees, net | $213,401 | $211,173 | $215,489 | $239,932 | $259,871 | $767,014 $926,465 22 % | 21 % |
Total revenues | 377,729 | 364,287 | 454,225 | 586,511 | 588,580 | 1,174,830 1,993,603 56 % | 70 % |
Total performance fees | 164,328 | 153,114 | 238,736 | 346,579 | 328,709 | 407,816 1,067,138 100 % | 162 % |
Net income (loss) | 13,153 | (12,011) | (575,490) | (162,435) | 6,660 | (172,827) (743,276) (49)% | 330 % |
Net income (loss) per share of Class A common stock: | |||||||
Basic | $ (0.24) | $ (0.49) | $ (4.66) | $ (1.55) | $ (0.10) | $ (2.52) $ (6.78) (60)% | 169 % |
Diluted | $ (0.24) | $ (0.49) | $ (4.66) | $ (1.55) | $ (0.10) | $ (2.52) $ (6.78) (60)% | 169 % |
Weighted-average shares of Class A common stock: | |||||||
Basic | 75,975,770 | 77,846,710 | 78,561,587 | 79,465,039 | 80,297,984 | 71,142,916 79,039,229 6 % | 11 % |
Diluted | 75,975,770 | 77,846,710 | 78,561,587 | 79,465,039 | 80,297,984 | 71,142,916 79,039,229 6 % | 11 % |
Quarterly dividend per share of Class A common stock(1) | $ 0.24 | $ 0.24 | $ 0.28 | $ 0.28 | $ 0.28 | $ 0.93 $ 1.08 17 % | 16 % |
Supplemental dividend per share of Class A common stock(2) | $ - | $ 0.40 | $ - | $ - | $ - | $ 0.15 $ 0.40 na | 167 % |
Accrued carried interest allocations | $1,495,664 | $1,585,209 | $1,733,922 | $1,835,862 | $2,036,892 | 36 % | |
Non-GAAP Results(3) | |||||||
Fee revenues | $214,662 | $212,740 | $217,461 | $241,133 | $260,285 | $770,489 $931,619 21 % | 21 % |
Adjusted revenues | 295,861 | 237,467 | 282,342 | 494,500 | 305,841 | 969,719 1,320,150 3 % | 36 % |
Fee-related earnings ("FRE") | 94,081 | 81,246 | 78,633 | 89,236 | 105,334 | 312,204 354,449 12 % | 14 % |
FRE margin | 44 % | 38 % | 36 % | 37 % | 40 % | 41 % 38 % | |
Gross realized performance fees | 81,199 | 24,727 | 64,881 | 253,367 | 45,556 | 199,230 388,531 (44)% | 95 % |
Performance fee-related earnings ("PRE") | 41,543 | 13,022 | 33,886 | 131,152 | 17,894 | 104,482 195,954 (57)% | 88 % |
Adjusted net income ("ANI") | 80,603 | 48,534 | 66,709 | 79,858 | 69,459 | 244,072 264,560 (14)% | 8 % |
Adjusted weighted-average shares 118,869,111 122,292,943 122,462,594 122,590,230 122,481,335 118,772,442 122,457,089 | |||||||
ANI per share $ 0.68 $ 0.40 $ 0.54 $ 0.65 $ 0.57 $ 2.05 $ 2.16 (16)% 5 %
Key Business Drivers/Operating Metrics (in billions)Assets under management ("AUM")(4)
$ 189.4 $ 199.3 $ 209.1 $ 219.8 $ 233.3
23 %
Assets under advisement
("AUA")(4) | 519.7 | 524.2 | 561.6 | 591.3 | 651.8 | 25 % |
Fee-earning AUM ("FEAUM") | 121.4 | 127.2 | 132.8 | 138.6 | 144.0 | 19 % |
Undeployed fee-earning capital ("UFEC") | 24.6 | 28.7 | 29.8 | 32.7 | 40.1 | 63 % |
Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.
The supplemental cash dividend relates to earnings in respect of our full fiscal years 2024 and 2025, respectively.
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."
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.
(in thousands, except share and per share amounts)
As of March 31,2026 | 2025 | |
Assets | ||
Cash and cash equivalents | $ 213,065 | $ 244,791 |
Restricted cash | 579 | 502 |
Fees and accounts receivable | 133,287 | 80,871 |
Due from affiliates | 113,150 | 92,723 |
Investments: | ||
Investments in funds | 249,447 | 183,694 |
Accrued carried interest allocations | 2,036,892 | 1,495,664 |
Legacy Greenspring investments in funds and accrued carried interest allocations(1) | 752,776 | 629,228 |
Deferred income tax assets | 614,788 | 382,886 |
Lease right-of-use assets, net | 81,565 | 91,841 |
Other assets and receivables | 58,946 | 62,869 |
Intangibles, net | 223,044 | 263,872 |
Goodwill | 580,542 | 580,542 |
Assets of Consolidated Funds: | ||
Cash and cash equivalents | 905,357 | 44,511 |
Investments, at fair value | 715,335 | 415,011 |
Other assets | 83,929 | 17,688 |
Total assets | $ 6,762,702 | $ 4,586,693 |
Liabilities and stockholders' equity | ||
Accounts payable, accrued expenses and other liabilities | $ 102,685 | $ 89,731 |
Accrued compensation and benefits | 2,360,770 | 736,695 |
Accrued carried interest-related compensation | 1,100,604 | 757,968 |
Legacy Greenspring accrued carried interest-related compensation(1) | 619,186 | 495,739 |
Due to affiliates | 362,833 | 331,821 |
Lease liabilities | 103,600 | 113,519 |
Debt obligations | 270,572 | 269,268 |
Liabilities of Consolidated Funds: | ||
Other liabilities | 25,241 | 17,580 |
Debt obligations | 931,185 | - |
Total liabilities | 5,876,676 | 2,812,321 |
Redeemable non-controlling interests in Consolidated Funds | 186,236 | 377,897 |
Redeemable non-controlling interests in subsidiaries | 8,777 | 6,327 |
Stockholders' equity: | ||
Class A common stock, $0.001 par value, 650,000,000 authorized; 80,703,553 and 76,761,399 issued and outstanding as of March 31, 2026 and 2025, respectively | 81 | 77 |
Class B common stock, $0.001 par value, 125,000,000 authorized; 38,637,761 and 39,656,954 issued and outstanding as of March 31, 2026 and 2025, respectively | 39 | 40 |
Additional paid-in capital | 482,057 | 421,057 |
Accumulated deficit | (896,879) | (242,546) |
Accumulated other comprehensive income | 1,143 | 728 |
Total StepStone Group Inc. stockholders' equity | (413,559) | 179,356 |
Non-controlling interests in subsidiaries | 1,373,242 | 1,056,510 |
Non-controlling interests in legacy Greenspring entities(1) | 133,590 | 133,489 |
Non-controlling interests in the Partnership | (402,260) | 20,793 |
Total stockholders' equity | 691,013 | 1,390,148 |
Total liabilities and stockholders' equity | $ 6,762,702 | $ 4,586,693 |
Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
(in thousands, except share and per share amounts)
Three Months Ended March 31, Year Ended March 31,2026 | 2025 | 2026 | 2025 | ||
Revenues | |||||
Management and advisory fees, net | $ 259,871 | $ 213,401 | $ 926,465 | $ 767,014 | |
Performance fees: | |||||
Incentive fees | 7,087 | 5,910 | 220,133 | 32,275 | |
Carried interest allocations: | |||||
Realized | 38,597 | 75,935 | 168,582 | 159,653 | |
Unrealized | 201,031 | 21,177 | 539,712 | 141,547 | |
Total carried interest allocations | 239,628 | 97,112 | 708,294 | 301,200 | |
Legacy Greenspring carried interest allocations(1) | 81,994 | 61,306 | 138,711 | 74,341 | |
Total performance fees | 328,709 | 164,328 | 1,067,138 | 407,816 | |
Total revenues | 588,580 | 377,729 | 1,993,603 | 1,174,830 | |
Expenses | |||||
Compensation and benefits: | |||||
Cash-based compensation | 110,700 | 85,510 | 414,147 | 331,808 | |
Equity-based compensation | 200,061 | 126,197 | 1,742,057 | 669,126 | |
Performance fee-related compensation: | |||||
Realized | 27,662 | 39,656 | 192,577 | 94,748 | |
Unrealized | 140,091 | 27,777 | 342,225 | 94,272 | |
Total performance fee-related compensation | 167,753 | 67,433 | 534,802 | 189,020 | |
Legacy Greenspring performance fee-related compensation(1) | 81,994 | 61,306 | 138,711 | 74,341 | |
Total compensation and benefits | 560,508 | 340,446 | 2,829,717 | 1,264,295 | |
General, administrative and other | 48,408 | 43,152 | 187,254 | 177,354 | |
Total expenses | 608,916 | 383,598 | 3,016,971 | 1,441,649 | |
Other income (expense) | |||||
Investment income | 21,688 | 9,386 | 40,819 | 15,096 | |
Legacy Greenspring investment income (loss)(1) | 777 | 2,934 | 4,945 | (1,185) | |
Investment income of Consolidated Funds | 3,410 | 34,496 | 92,407 | 65,374 | |
Interest income | 3,658 | 3,218 | 11,833 | 10,850 | |
Interest expense | (4,420) | (3,191) | (18,502) | (12,701) | |
Other income (loss) | (5,121) | (31,024) | 697 | (32,650) | |
Total other income | 19,992 | 15,819 | 132,199 | 44,784 | |
Income (loss) before income tax | (344) | 9,950 | (891,169) | (222,035) | |
Income tax benefit | (7,004) | (3,203) | (147,893) | (49,208) | |
Net income (loss) | 6,660 | 13,153 | (743,276) | (172,827) | |
Less: Net income attributable to non-controlling interests in subsidiaries | 41,361 | 16,316 | 103,782 | 79,282 | |
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1) | 777 | 2,934 | 4,945 | (1,185) | |
Less: Net loss attributable to non-controlling interests in the Partnership | (15,358) | (17,994) | (384,633) | (125,850) | |
Less: Net income (loss) attributable to redeemable non-controlling interests in Consolidated Funds | (13,192) | 30,630 | 65,988 | 53,731 | |
Less: Net income (loss) attributable to redeemable non-controlling interests in subsidiaries | 863 | (225) | 2,450 | 758 | |
Net loss attributable to StepStone Group Inc. | $ (7,791) | $ (18,508) | $ (535,808) | $ (179,563) | |
Net loss per share of Class A common stock: | |||||
Basic | $ (0.10) | $ (0.24) | $ (6.78) | $ (2.52) | |
Diluted | $ (0.10) | $ (0.24) | $ (6.78) | $ (2.52) | |
Weighted-average shares of Class A common stock: | |||||
Basic | 80,297,984 | 75,975,770 | 79,039,229 | 71,142,916 | |
Diluted | 80,297,984 | 75,975,770 | 79,039,229 | 71,142,916 |
Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
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 Year Ended March 31,March 31, | June 30, | September | December | March 31, | |||
(in thousands) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 | 2025 | 2026 |
Focused commingled funds(1)(2) | $ 124,604 $ 120,036 $ 127,085 $ 144,277 $ 160,769 $ 442,975 $ 552,167 | ||||||
Separately managed accounts | 67,695 70,379 71,685 75,226 76,339 252,709 293,629 | ||||||
Advisory and other services | 19,927 19,939 16,259 18,395 19,998 67,061 74,591 | ||||||
Fund reimbursement revenues(1) | 2,436 2,386 2,432 3,235 3,179 7,744 11,232 | ||||||
Fee revenues | $ 214,662 $ 212,740 $ 217,461 $ 241,133 $ 260,285 $ 770,489 $ 931,619 | ||||||
Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
Includes income-based incentive fees from certain funds:
(in thousands)
March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 2025 2026Income-based incentive fees $ 3,377 $ 4,408 $ 5,334 $ 5,998 $ 7,105 $ 7,956 $ 22,845
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 31,(in thousands) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 | 2025 | 2026 |
Total revenues | $ 377,729 $ | 364,287 $ | 454,225 $ | 586,511 | $ 588,580 | $1,174,830 | $1,993,603 |
Unrealized carried interest allocations | (21,177) | (88,883) | (147,813) | (101,985) | (201,031) | (141,547) | (539,712) |
Deferred incentive fees | (513) | - | 671 | (1,544) | (282) | 1,938 | (1,155) |
Legacy Greenspring carried interest | |||||||
allocations | (61,306) | (39,637) | (27,143) | 10,063 | (81,994) | (74,341) | (138,711) |
Management and advisory fee revenues for | |||||||
the Consolidated Funds(1) | 1,261 | 1,567 | 1,972 | 1,201 | 414 | 3,475 | 5,154 |
Incentive fees for the Consolidated | |||||||
Funds(2) | (133) | 133 | 430 | 254 | 154 | 5,364 | 971 |
Adjusted revenues | $ 295,861 $ | 237,467 | $ 282,342 | $ 494,500 | $ 305,841 | $ 969,719 | $1,320,150 |
Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
Reflects the add back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation.
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 EarningsFee-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,(in thousands)
March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 2025 2026GAAP management and advisory fees, net $ 213,401 $ 211,173 $ 215,489 $ 239,932 $ 259,871 $ 767,014 $ 926,465
Adjustments(1) 1,261 1,567 1,972 1,201 414 3,475 5,154
Fee revenues $ 214,662 $ 212,740 $ 217,461 $ 241,133 $ 260,285 $ 770,489 $ 931,619
GAAP incentive fees | $ 5,910 | $ 190 | $ 4,902 | $ 207,954 | $ 7,087 | $ 32,275 | $ 220,133 | |
Adjustments(2) | (646) | 133 | 1,101 | (1,290) | (128) | 7,302 | (184) | |
Adjusted incentive fees | $ 5,264 | $ 323 | $ 6,003 | $ 206,664 | $ 6,959 | $ 39,577 | $ 219,949 | |
GAAP cash-based compensation | $ 85,510 | $ 95,985 | $ 100,348 | $ 107,114 | $ 110,700 | $ 331,808 | $ 414,147 | |
Adjustments(3) | - | (17) | (17) | - | (59) | (374) | (93) | |
Adjusted cash-based compensation | $ 85,510 | $ 95,968 | $ 100,331 | $ 107,114 | $ 110,641 | $ 331,434 | $ 414,054 | |
GAAP equity-based compensation | $ 126,197 | $ 188,718 | $ 884,470 | $ 468,808 | $ 200,061 | $ 669,126 | $1,742,057 | |
Adjustments(4) | (123,263) | (184,509) | (880,154) | (464,124) | (193,974) | (658,953) | (1,722,761) | |
Adjusted equity-based compensation | $ 2,934 | $ 4,209 | $ 4,316 | $ 4,684 | $ 6,087 | $ 10,173 | $ 19,296 | |
GAAP general, administrative and other | $ 43,152 | $ 42,914 | $ 45,292 | $ 50,640 | $ 48,408 | $ 177,354 | $ 187,254 | |
Adjustments(5) | (11,015) | (11,597) | (11,111) | (10,541) | (10,185) | (60,676) | (43,434) | |
Adjusted general, administrative and other | $ 32,137 | $ 31,317 | $ 34,181 | $ 40,099 | $ 38,223 | $ 116,678 | $ 143,820 | |
GAAP realized investment income | $ 3,379 | $ 940 | $ 2,516 | $ 1,560 | $ 2,677 | $ 8,135 | $ 7,693 | |
Adjustments(6) | - | - | - | - | 11,194 | - | 11,194 | |
Adjusted realized investment income | $ 3,379 $ | 940 | $ 2,516 | $ 1,560 $ | 13,871 | $ 8,135 $ | 18,887 | |
GAAP interest income | $ 3,218 $ | 2,496 | $ 3,224 | $ 2,455 $ | 3,658 | $ 10,850 $ | 11,833 | |
Adjustments(7) | (1,600) | (998) | (1,273) | (4) | (2,060) | (4,757) | (4,335) | |
Adjusted interest income | $ 1,618 $ | 1,498 | $ 1,951 | $ 2,451 $ | 1,598 | $ 6,093 $ | 7,498 | |
GAAP other income (loss) | $ (31,024) $ | 5,152 | $ 1,978 | $ (1,312) $ | (5,121) | $ (32,650) $ | 697 | |
Adjustments(8) | 30,606 | (4,159) | (1,073) | 660 | 5,066 | 31,335 | 494 | |
Adjusted other income (loss) | $ (418) $ | 993 | $ 905 | $ (652) $ | (55) | $ (1,315) $ | 1,191 | |
Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
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.
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.
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.
Reflects the removal of amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation, the impact of consolidation of the Consolidated Funds and other non-core operating income and expenses.
Reflects the realization of a seed capital investment in the StepStone Funds which is eliminated in consolidation.
Reflects the removal of interest income earned by the Consolidated Funds.
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 Year Ended March 31,March 31, | June 30, | September December | March 31, | ||
(in thousands) | 2025 | 2025 | 30, 2025 31, 2025 | 2026 2025 | 2026 |
Income (loss) before income tax | $ 9,950 | (20,350) $ (675,826) $ (194,649) $ | (344) $ (222,035) | $ (891,169) | |
Net income attributable to non-controlling interests in subsidiaries(1) | (33,369) | (30,725) (27,645) (115,887) | (43,399) (102,897) | (217,656) | |
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities | (2,934) | (3,382) (1,313) 527 | (777) 1,185 | (4,945) | |
Unrealized carried interest allocations | (21,177) | (88,883) (147,813) (101,985) | (201,031) (141,547) | (539,712) | |
Unrealized performance fee-related compensation | 27,777 | 44,357 88,727 69,050 | 140,091 94,272 | 342,225 | |
Unrealized investment (income) loss | (6,007) | (9,572) 3,726 (8,268) | (19,011) (6,961) | (33,125) | |
Impact of Consolidated Funds | (35,723) | (24,407) (43,864) (18,944) | 5,852 (59,613) | (81,363) | |
Deferred incentive fees | (513) | - 671 (1,544) | (282) 1,938 | (1,155) | |
Equity-based compensation(2) | 123,263 | 184,509 880,154 464,124 | 193,974 658,953 | 1,722,761 | |
Amortization of intangibles | 10,250 | 10,207 10,207 10,207 | 10,207 41,000 | 40,828 | |
Tax Receivable Agreements adjustments through earnings | (348) | - (1,302) - | 5,537 (348) | 4,235 | |
Non-core items(3) | 32,474 | 686 99 106 | 6 50,054 | 897 | |
Pre-tax ANI | 103,643 | 62,440 85,821 102,737 | 90,823 314,001 | 341,821 | |
Income taxes(4) | (23,040) | (13,906) (19,112) (22,879) | (21,364) (69,929) | (77,261) | |
ANI | 80,603 | 48,534 66,709 79,858 | 69,459 244,072 | 264,560 | |
Income taxes(4) | 23,040 | 13,906 19,112 22,879 | 21,364 69,929 | 77,261 | |
Realized carried interest allocations | (75,935) | (24,404) (58,878) (46,703) | (38,597) (159,653) | (168,582) | |
Realized performance fee-related compensation | 39,656 | 11,705 30,995 122,215 | 27,662 94,748 | 192,577 | |
Adjusted realized investment income(5) | (3,379) | (940) (2,516) (1,560) | (13,871) (8,135) | (18,887) | |
Adjusted incentive fees(6) | (5,264) | (323) (6,003) (206,664) | (6,959) (39,577) | (219,949) | |
Adjusted interest income(7) | (1,618) | (1,498) (1,951) (2,451) | (1,598) (6,093) | (7,498) | |
Interest expense | 3,191 | 4,534 4,425 5,123 | 4,420 12,701 | 18,502 | |
Adjusted other (income) loss(8) | 418 | (993) (905) 652 | 55 1,315 | (1,191) | |
Net income attributable to non-controlling interests in subsidiaries(1) | 33,369 | 30,725 27,645 115,887 | 43,399 102,897 | 217,656 | |
FRE | $ 94,081 | $ 81,246 $ 78,633 $ 89,236 $ | 105,334 $ 312,204 | $ 354,449 | |
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 Year Ended March 31,March 31,
June 30,
September
December
March 31,
(in thousands)
2025
2025
30, 2025
31, 2025
2026 2025
2026
FRE attributable to non-controlling interests in
subsidiaries and profits interests
$ 30,451
$ 26,672
$ 24,791
$ 32,280
$ 39,988 $ 79,791
$ 123,731
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests
2,918
4,053
2,854
83,607
3,411 23,106
93,925
Net income attributable to non-controlling
interests in subsidiaries and profits interests $ 33,369 $ 30,725 $ 27,645 $ 115,887 $ 43,399 $ 102,897 $ 217,656
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 Year Ended March 31,March 31,
June 30,
September
December
March 31,
(in thousands)
2025
2025
30, 2025
31, 2025
2026 2025
2026
FRE attributable to profits interests issued in
the private wealth subsidiary
$ 6,399 $
8,469 $
10,103
$ 14,354
$ 19,530 $ 11,980
$ 52,456
Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary
(224)
(14)
31
83,172
601 11,170
83,790
Net income attributable to profits interests
issued in the private wealth subsidiary
$ 6,175 $
8,455 $
10,134
$ 97,526
$ 20,131 $ 23,150
$ 136,246
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 Year Ended March 31,March 31,
June 30,
September
December
March 31,
(in thousands)
FRE attributable to non-controlling interests in
2025
2025
30, 2025
31, 2025
2026 2025
2026
subsidiaries $ 24,052
$ 18,203
$ 14,688
$ 17,926
$ 20,458 $ 67,811
$ 71,275
Performance related earnings / other income (loss) attributable to non-controlling
interests in subsidiaries 3,142
4,067
2,823
435
2,810 11,936
10,135
Net income attributable to non-controlling
interests in subsidiaries $ 27,194
$ 22,270
$ 17,511
$ 18,361
$ 23,268 $ 79,747
$ 81,410
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.
Includes (income) expense related to the following non-core operating income and expenses:
Three Months Ended Year Ended March 31,March 31,
June 30,
September
December
March 31,
(in thousands)
2025
2025
30, 2025
31, 2025
2026 2025 2026
Transaction costs
$
179
$
605
$
24
$
47
$
- $
1,003 $
676
(Gain) loss on change in fair value for contingent consideration obligation
(205)
64
58
59
54
16,112
235
Compensation paid to certain employees as part of an acquisition earn-out
-
-
-
-
-
409
-
Unrealized amounts associated with cash-based incentive awards tracked to investment funds
-
17
17
-
72
-
106
Gain realized upon vesting of cash-based incentive awards tracked to investment funds
-
-
-
-
(107)
-
(107)
Unrealized amounts associated with deferred compensation liability adjustments
-
-
-
-
(13)
-
(13)
Loss on payment made in connection with private wealth fund secondary transaction
32,500
-
-
-
-
32,500
-
Other non-core items
-
-
-
-
-
30
-
Total non-core operating income and expenses
$
32,474
$
686
$
99
$
106
$
6 $
50,054 $
897
Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:
Three Months Ended Year Ended March 31,March 31,
June 30,
September
December
March 31,
2025
2025
30, 2025
31, 2025
2026
2025
2026
Federal statutory rate
21.0 %
21.0 %
21.0 %
21.0 %
21.0 %
21.0 %
21.0 %
Combined state, local and foreign rate
1.2 %
1.3 %
1.3 %
1.3 %
2.5 %
1.3 %
1.6 %
Blended statutory rate
22.2 %
22.3 %
22.3 %
22.3 %
23.5 %
22.3 %
22.6 %
Reflects the realization of a seed capital investment in the StepStone Funds which is eliminated in consolidation.
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.
Reflects the removal of interest income earned by the Consolidated Funds.
Reflects the removal of Tax Receivable Agreements adjustments recognized as other income (loss) ($(5.5) million for the three months ended March 31, 2026, $1.3 million for the three months ended September 30, 2025, $0.3 million for the three months ended March 31, 2025, and $(4.2) million and $0.3 million in fiscal 2026 and fiscal 2025, 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), and the impact of consolidation of the Consolidated Funds.
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) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 | 2025 2026 |
FRE | $ 94,081 | $ 81,246 | $ 78,633 | $ 89,236 | $105,334 | $312,204 $354,449 |
Fee revenues | 214,662 | 212,740 | 217,461 | 241,133 | 260,285 | 770,489 931,619 |
FRE margin | 44 % | 38 % | 36 % | 37 % | 40 % | 41 % 38 % |
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 EarningsPerformance 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) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 | 2025 2026 |
Incentive fees | $ 5,910 | $ 190 | $ 4,902 | $ 207,954 | $ 7,087 | $ 32,275 $ 220,133 |
Realized carried interest allocations | 75,935 | 24,404 | 58,878 | 46,703 | 38,597 | 159,653 168,582 |
Unrealized carried interest allocations | 21,177 | 88,883 | 147,813 | 101,985 | 201,031 | 141,547 539,712 |
Legacy Greenspring carried interest allocations | 61,306 | 39,637 | 27,143 | (10,063) | 81,994 | 74,341 138,711 |
Total performance fees | 164,328 | 153,114 | 238,736 | 346,579 | 328,709 | 407,816 1,067,138 |
Unrealized carried interest allocations | (21,177) | (88,883) | (147,813) | (101,985) | (201,031) | (141,547) (539,712) |
Legacy Greenspring carried interest allocations | (61,306) | (39,637) | (27,143) | 10,063 | (81,994) | (74,341) (138,711) |
Incentive fee revenues for the Consolidated Funds(1) | (133) | 133 | 430 | 254 | 154 | 5,364 971 |
Deferred incentive fees | (513) | - | 671 | (1,544) | (282) | 1,938 (1,155) |
Gross realized performance fees | 81,199 | 24,727 | 64,881 | 253,367 | 45,556 | 199,230 388,531 |
Realized performance fee-related compensation | (39,656) | (11,705) | (30,995) | (122,215) | (27,662) | (94,748) (192,577) |
PRE | $ 41,543 $ 13,022 $ 33,886 $ 131,152 $ 17,894 | $ 104,482 $ 195,954 | ||||
Reflects the add back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
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, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 2025 2026ANI $ 80,603 $ 48,534 $ 66,709 $ 79,858 $ 69,459 $ 244,072 $ 264,560
Weighted-average shares of Class A
common stock outstanding - Basic
75,975,770 77,846,710 78,561,587 79,465,039 80,297,984 71,142,916 79,039,229
Assumed vesting and exchange of
Class B2 units(1)
-
-
-
-
-
431,851
-
Assumed vesting of RSUs 270,492 347,813 509,007 590,042 320,535 590,645 442,772
Exchange of Class B units in the
Partnership(1)
40,122,028 39,608,270 39,500,159 39,094,629 39,013,494 43,233,005 39,304,897
Assumed purchase under ESPP - - - - 349 529 86
Exchange of Class C units in the
Partnership(1) 965,761 960,025 947,580 931,103 931,103 1,365,647 942,467
Exchange of Class D units in the
Partnership(1)
1,535,060 3,530,125 2,944,261 2,509,417 1,917,870 2,007,849 2,727,638
Adjusted weighted-average shares 118,869,111 122,292,943 122,462,594 122,590,230 122,481,335 118,772,442 122,457,089
ANI per share $ 0.68 $ 0.40 $ 0.54 $ 0.65 $ 0.57 $ 2.05 $ 2.16
The Class B2 units fully vested in June 2024.
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.
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 Year Ended March 31, Percentage ChangeMarch 31, | June 30, | September | December | March 31, | ||
(in millions) | 2025 | 2025 | 30, 2025 | 31, 2025 | 2026 2025 2026 | vs. FQ4'25 |
Separately Managed Accounts | ||||||
Beginning balance | $ 69,974 | $ 73,174 | $ 76,708 | $ 78,207 | $ 80,328 $ 58,897 $ 73,174 | 15 % |
Contributions(1) | 3,874 | 3,013 | 2,559 | 2,627 | 2,637 16,715 10,836 | (32)% |
Distributions(2) | (1,225) | (1,010) | (725) | (1,117) | (1,584) (3,590) (4,436) | 29 % |
Market value, FX and other(3) | 551 | 1,531 | (335) | 611 | 434 1,152 2,241 | (21)% |
Ending balance | $ 73,174 | $ 76,708 | $ 78,207 | $ 80,328 | $ 81,815 $ 73,174 $ 81,815 | 12 % |
Focused Commingled Funds | ||||||
Beginning balance | $ 44,192 | $ 48,216 | $ 50,511 | $ 54,584 | $ 58,223 $ 34,961 $ 48,216 | 32 % |
Contributions(1) | 3,403 | 2,022 | 3,547 | 3,245 | 4,494 13,698 13,308 | 32 % |
Distributions(2) | (313) | (392) | (580) | (547) | (1,252) (1,938) (2,771) | 300 % |
Market value, FX and other(3) | 934 | 665 | 1,106 | 941 | 767 1,495 3,479 | (18)% |
Ending balance | $ 48,216 | $ 50,511 | $ 54,584 | $ 58,223 | $ 62,232 $ 48,216 $ 62,232 | 29 % |
Total | |||||||||
Beginning balance | $ 114,166 | $ 121,390 | $ 127,219 | $ 132,791 | $ 138,551 | $ 93,858 | $ 121,390 | 21 % | |
Contributions(1) | 7,277 | 5,035 | 6,106 | 5,872 | 7,131 | 30,413 | 24,144 | (2)% | |
Distributions(2) | (1,538) | (1,402) | (1,305) | (1,664) | (2,836) | (5,528) | (7,207) | 84 % | |
Market value, FX and other(3) | 1,485 | 2,196 | 771 | 1,552 | 1,201 | 2,647 | 5,720 | (19)% | |
Ending balance | $ 121,390 $ | 127,219 $ | 132,791 $ | 138,551 $ | 144,047 | $ 121,390 $ | 144,047 | 19 % | |
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.
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.
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.
Asset Class Summary
Three Months Ended Percentage Change(in millions) | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | vs. FQ4'25 |
FEAUM | ||||||
Private equity | $ 65,007 | $ 66,428 | $ 69,932 | $ 73,193 | $ 75,626 | 16% |
Infrastructure | 23,830 | 26,090 | 27,007 | 27,897 | 30,745 | 29% |
Private debt | 19,517 | 21,435 | 22,443 | 23,882 | 24,797 | 27% |
Real estate | 13,036 | 13,266 | 13,409 | 13,579 | 12,879 | (1)% |
Total | $ 121,390 | $ 127,219 | $ 132,791 | $ 138,551 | $ 144,047 | 19% |
Separately managed accounts | $ 73,174 | $ 76,708 | $ 78,207 | $ 80,328 | $ 81,815 | 12% |
Focused commingled funds | 48,216 | 50,511 | 54,584 | 58,223 | 62,232 | 29% |
Total | $ 121,390 | $ 127,219 | $ 132,791 | $ 138,551 | $ 144,047 | 19% |
AUM(1) | ||||||
Private equity | $ 95,937 | $ 100,540 | $ 106,408 | $ 112,190 | $ 119,698 | 25% |
Infrastructure | 37,026 | 40,087 | 42,437 | 44,624 | 47,569 | 28% |
Private debt | 37,133 | 39,242 | 40,438 | 42,269 | 45,587 | 23% |
Real estate | 19,284 | 19,445 | 19,864 | 20,716 | 20,493 | 6% |
Total | $ 189,380 | $ 199,314 | $ 209,147 | $ 219,799 | $ 233,347 | 23% |
Separately managed accounts | $ 114,806 | $ 120,649 | $ 124,991 | $ 130,111 | $ 136,133 | 19% |
Focused commingled funds | 59,410 | 62,672 | 68,014 | 73,375 | 80,807 | 36% |
Advisory AUM | 15,164 | 15,993 | 16,142 | 16,313 | 16,407 | 8% |
Total | $ 189,380 | $ 199,314 | $ 209,147 | $ 219,799 | $ 233,347 | 23% |
AUA | ||||||
Private equity | $ 262,884 | $ 262,472 | $ 283,034 | $ 301,403 | $ 341,289 | 30% |
Infrastructure | 69,027 | 71,126 | 78,762 | 86,955 | 94,706 | 37% |
Private debt | 19,726 | 20,874 | 23,402 | 24,173 | 25,918 | 31% |
Real estate | 168,047 | 169,679 | 176,357 | 178,810 | 189,892 | 13% |
Total | $ 519,684 | $ 524,151 | $ 561,555 | $ 591,341 | $ 651,805 | 25% |
Total capital responsibility(2) | $ 709,064 | $ 723,465 | $ 770,702 | $ 811,140 | $ 885,152 | 25% |
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.
Allocation of AUM by asset class is presented by underlying investment asset classification.
Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA).
Seth Weiss shareholders@stepstonegroup.com 1-212-351-6106
Media:Jordan Niezelski / Maggie Duffy Edelman
StepStone@edifi-dje.com
GlossaryAssets 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, 2026 reflects final data for the prior period (December 31, 2025), adjusted for net new client account activity through March 31, 2026. NAV data for underlying investments is as of
December 31, 2025, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2025. When NAV data is not available by the business day occurring on or after 115 days following December 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 March 31, 2026 reflects final data for the prior period (December 31, 2025), adjusted for net new client account activity through March 31, 2026. NAV data for underlying investments is as of December 31, 2025, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2025. When NAV data is not available by the business day occurring on or after 115 days following December 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.