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STEPSTONE GROUP REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS
NEW YORK, May 22, 2025 – 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, 2025. This represents results for the fourth quarter and fiscal year ended March 31, 2025. The Board of Directors of the Company has declared a quarterly cash dividend of $0.24 per share of Class A common stock, and a supplemental cash dividend of $0.40 per share of Class A common stock, both payable on June 30, 2025, to the holders of record as of the close of business on June 13, 2025.
StepStone issued a full detailed presentation of its fourth quarter and full fiscal year ended March 31, 2025 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, May 22, 2025 at 5:00 pm ET to discuss the Company’s results for the fourth quarter and fiscal year ended March 31, 2025. 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/BI83b497f55a944def8cfadab7f935822b. 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 March 31, 2025, StepStone was responsible for approximately $709 billion of total capital, including $189 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.
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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 24, 2024, and in our annual report on Form 10-K to be filed with the SEC for the fiscal year ended March 31, 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.”
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Financial Highlights and Key Business Drivers/Operating Metrics

Three Months EndedYear Ended March 31,Percentage Change
(in thousands, except share and per share amounts and where noted)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025vs. FQ4'24vs. FY'24
Financial Highlights
GAAP Results
Management and advisory fees, net$153,410 $178,015 $184,758 $190,840 $213,401 $585,140 $767,014 39 %31 %
Total revenues356,810 186,401 271,677 339,023 377,729 711,631 1,174,830 6 %65 %
Total performance fees203,400 8,386 86,919 148,183 164,328 126,491 407,816 (19)%222 %
Net income (loss)82,542 48,045 53,138 (287,163)13,153 167,820 (172,827)(84)%na
Net income (loss) per share of Class A common stock:
Basic$0.48 $0.20 $0.26 $(2.61)$(0.24)$0.91 $(2.52)nana
Diluted$0.48 $0.20 $0.26 $(2.61)$(0.24)$0.91 $(2.52)nana
Weighted-average shares of Class A common stock:
Basic64,194,859 66,187,754 68,772,051 73,687,289 75,975,770 63,489,135 71,142,916 18 %12 %
Diluted67,281,567 68,593,761 69,695,315 73,687,289 75,975,770 66,544,038 71,142,916 13 %7 %
Quarterly dividend per share of Class A common stock(1)
$0.21 $0.21 $0.24 $0.24 $0.24 $0.83 $0.93 14 %12 %
Supplemental dividend per share of Class A common stock(2)
$— $0.15 $— $— $— $0.25 $0.15 na(40)%
Accrued carried interest allocations$1,354,051 $1,328,853 $1,381,110 $1,474,543 $1,495,664 10 %
Non-GAAP Results(3)
Fee revenues(4)
$153,808 $178,514 $185,481 $191,832 $214,662 $586,379 $770,489 40 %31 %
Adjusted revenues177,357 221,165 208,788 243,905 295,861 665,060 969,719 67 %46 %
Fee-related earnings (“FRE”)50,900 71,656 72,349 74,118 94,081 189,793 312,204 85 %64 %
FRE margin(5)
33 %40 %39 %39 %44 %32 %41 %
Gross realized performance fees23,549 42,651 23,307 52,073 81,199 78,681 199,230 245 %153 %
Performance fee-related earnings (“PRE”)12,128 21,803 14,540 26,596 41,543 40,994 104,482 243 %155 %
Adjusted net income (“ANI”)37,716 57,241 53,569 52,659 80,603 139,393 244,072 114 %75 %
Adjusted weighted-average shares
115,512,301 118,510,499 118,774,233 118,935,179 118,869,111 115,134,473 118,772,442 
ANI per share$0.33 $0.48 $0.45 $0.44 $0.68 $1.21 $2.05 106 %69 %
Key Business Drivers/Operating Metrics (in billions)
Assets under management (“AUM”)(6)
$156.6 $169.3 $176.1 $179.2 $189.4 21 %
Assets under advisement (“AUA”)(6)
521.1 531.4 505.9 518.7 519.7 — %
Fee-earning AUM (“FEAUM”)93.9 100.4 104.4 114.2 121.4 29 %
Undeployed fee-earning capital (“UFEC”)
22.6 27.6 29.7 21.7 24.6 9 %
_______________________________
(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 2023 and 2024, 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.
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(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.
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StepStone Group Inc.
GAAP Consolidated Balance Sheets
(in thousands, except share and per share amounts)
As of March 31,
20252024
Assets
Cash and cash equivalents$244,791 $143,430 
Restricted cash502 718 
Fees and accounts receivable80,871 56,769 
Due from affiliates92,723 67,531 
Investments:
Investments in funds183,694 135,043 
Accrued carried interest allocations1,495,664 1,354,051 
Legacy Greenspring investments in funds and accrued carried interest allocations(1)
629,228 631,197 
Deferred income tax assets382,886 184,512 
Lease right-of-use assets, net91,841 97,763 
Other assets and receivables62,869 60,611 
Intangibles, net263,872 304,873 
Goodwill580,542 580,542 
Assets of Consolidated Funds:
Cash and cash equivalents44,511 38,164 
Investments, at fair value415,011 131,858 
Other assets17,688 1,745 
Total assets
$4,586,693 $3,788,807 
Liabilities and stockholders’ equity
Accounts payable, accrued expenses and other liabilities$89,731 $127,417 
Accrued compensation and benefits736,695 101,481 
Accrued carried interest-related compensation757,968 719,497 
Legacy Greenspring accrued carried interest-related compensation(1)
495,739 484,154 
Due to affiliates331,821 212,918 
Lease liabilities113,519 119,739 
Debt obligations269,268 148,822 
Liabilities of Consolidated Funds:
Other liabilities17,580 1,645 
Total liabilities2,812,321 1,915,673 
Redeemable non-controlling interests in Consolidated Funds377,897 102,623 
Redeemable non-controlling interests in subsidiaries6,327 115,920 
Stockholders’ equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 76,761,399 and 65,614,902 issued and outstanding as of March 31, 2025 and 2024, respectively
77 66 
Class B common stock, $0.001 par value, 125,000,000 authorized; 39,656,954 and 45,030,959 issued and outstanding as of March 31, 2025 and 2024, respectively
40 45 
Additional paid-in capital421,057 310,293 
Retained earnings (accumulated deficit)(242,546)13,768 
Accumulated other comprehensive income728 304 
Total StepStone Group Inc. stockholders’ equity179,356 324,476 
Non-controlling interests in subsidiaries1,056,510 974,559 
Non-controlling interests in legacy Greenspring entities(1)
133,489 147,042 
Non-controlling interests in the Partnership20,793 208,514 
Total stockholders’ equity1,390,148 1,654,591 
Total liabilities and stockholders’ equity$4,586,693 $3,788,807 
(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
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StepStone Group Inc.
GAAP Consolidated Statements of Income (Loss)
(in thousands, except share and per share amounts)
Three Months Ended March 31,Year Ended March 31,
2025202420252024
Revenues
Management and advisory fees, net$213,401 $153,410 $767,014 $585,140 
Performance fees:
Incentive fees5,910 2,496 32,275 25,339 
Carried interest allocations:
Realized75,935 18,054 159,653 49,401 
Unrealized21,177 151,757 141,547 126,908 
Total carried interest allocations97,112 169,811 301,200 176,309 
Legacy Greenspring carried interest allocations(1)
61,306 31,093 74,341 (75,157)
Total performance fees164,328 203,400 407,816 126,491 
Total revenues377,729 356,810 1,174,830 711,631 
Expenses
Compensation and benefits:
Cash-based compensation85,510 74,411 331,808 292,962 
Equity-based compensation126,197 13,937 669,126 42,357 
Performance fee-related compensation:
Realized39,656 11,421 94,748 37,687 
Unrealized27,777 84,014 94,272 74,694 
Total performance fee-related compensation67,433 95,435 189,020 112,381 
Legacy Greenspring performance fee-related compensation(1)
61,306 31,093 74,341 (75,157)
Total compensation and benefits340,446 214,876 1,264,295 372,543 
General, administrative and other43,152 54,310 177,354 167,317 
Total expenses383,598 269,186 1,441,649 539,860 
Other income (expense)
Investment income9,386 3,337 15,096 7,452 
Legacy Greenspring investment income (loss)(1)
2,934 (33)(1,185)(9,087)
Investment income of Consolidated Funds34,496 6,115 65,374 28,472 
Interest income3,218 1,429 10,850 3,664 
Interest expense(3,191)(2,649)(12,701)(9,331)
Other income (loss)(31,024)(1,308)(32,650)2,455 
Total other income15,819 6,891 44,784 23,625 
Income (loss) before income tax9,950 94,515 (222,035)195,396 
Income tax expense (benefit)(3,203)11,973 (49,208)27,576 
Net income (loss)13,153 82,542 (172,827)167,820 
Less: Net income attributable to non-controlling interests in subsidiaries16,316 4,443 79,282 37,240 
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)
2,934 (33)(1,185)(9,087)
Less: Net income (loss) attributable to non-controlling interests in the Partnership(17,994)37,279 (125,850)59,956 
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds30,630 4,248 53,731 15,838 
Less: Net income (loss) attributable to redeemable non-controlling interests in subsidiaries(225)5,782 758 5,782 
Net income (loss) attributable to StepStone Group Inc.$(18,508)$30,823 $(179,563)$58,091 
Net income (loss) per share of Class A common stock:
Basic$(0.24)$0.48 $(2.52)$0.91 
Diluted$(0.24)$0.48 $(2.52)$0.91 
Weighted-average shares of Class A common stock:
Basic75,975,770 64,194,859 71,142,916 63,489,135 
Diluted75,975,770 67,281,567 71,142,916 66,544,038 
(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
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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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Focused commingled funds(1)(2)
$80,434 $104,798 $107,855 $105,718 $124,604 $296,667 $442,975 
Separately managed accounts55,945 57,376 61,393 66,245 67,695 223,958 252,709 
Advisory and other services16,147 14,769 14,907 17,458 19,927 60,057 67,061 
Fund reimbursement revenues(1)
1,282 1,571 1,326 2,411 2,436 5,697 7,744 
Fee revenues
$153,808 $178,514 $185,481 $191,832 $214,662 $586,379 $770,489 
_______________________________
(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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Income-based incentive fees$753 $1,113 $1,347 $2,120 $3,377 $1,372 $7,956 
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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Total revenues$356,810 $186,401 $271,677 $339,023 $377,729 $711,631 $1,174,830 
Unrealized carried interest allocations(151,757)25,170 (52,215)(93,325)(21,177)(126,908)(141,547)
Deferred incentive fees1,450 6 2,445 — (513)2,392 1,938 
Legacy Greenspring carried interest allocations
(31,093)9,089 (13,917)(8,207)(61,306)75,157 (74,341)
Management and advisory fee revenues for the Consolidated Funds(1)
398 499 723 992 1,261 1,239 3,475 
Incentive fees for the Consolidated Funds(2)
1,549 — 75 5,422 (133)1,549 5,364 
Adjusted revenues$177,357 $221,165 $208,788 $243,905 $295,861 $665,060 $969,719 
_______________________________
(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.
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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.
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Three Months EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
GAAP management and advisory fees, net$153,410 $178,015 $184,758 $190,840 $213,401 $585,140 $767,014 
Management and advisory fee revenues for the Consolidated Funds(1)
398 499 723 992 1,261 1,239 3,475 
Fee revenues$153,808 $178,514 $185,481 $191,832 $214,662 $586,379 $770,489 
GAAP incentive fees$2,496 $841 $3,155 $22,369 $5,910 $25,339 $32,275 
Adjustments(2)
2,999 6 2,520 5,422 (646)3,941 7,302 
Adjusted incentive fees$5,495 $847 $5,675 $27,791 $5,264 $29,280 $39,577 
GAAP cash-based compensation$74,411 $78,224 $82,871 $85,203 $85,510 $292,962 $331,808 
Adjustments(3)
(461)(428)(285)339 — (2,140)(374)
Adjusted cash-based compensation$73,950 $77,796 $82,586 $85,542 $85,510 $290,822 $331,434 
GAAP equity-based compensation$13,937 $19,179 $37,332 $486,418 $126,197 $42,357 $669,126 
Adjustments(4)
(12,210)(16,785)(34,947)(483,958)(123,263)(36,635)(658,953)
Adjusted equity-based compensation$1,727 $2,394 $2,385 $2,460 $2,934 $5,722 $10,173 
GAAP general, administrative and other$54,310 $41,011 $50,061 $43,130 $43,152 $167,317 $177,354 
Adjustments(5)
(27,079)(14,343)(21,900)(13,418)(11,015)(67,275)(60,676)
Adjusted general, administrative and other$27,231 $26,668 $28,161 $29,712 $32,137 $100,042 $116,678 
GAAP interest income$1,429 $2,057 $3,016 $2,559 $3,218 $3,664 $10,850 
Interest income earned by the Consolidated Funds(6)
(612)(907)(1,363)(887)(1,600)(1,645)(4,757)
Adjusted interest income$817 $1,150 $1,653 $1,672 $1,618 $2,019 $6,093 
GAAP other income (loss)$(1,308)$(351)$1,177 $(2,452)$(31,024)$2,455 $(32,650)
Adjustments(7)
395 (72)(1,082)1,883 30,606 (3,879)31,335 
Adjusted other income (loss)$(913)$(423)$95 $(569)$(418)$(1,424)$(1,315)
______________________________
(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 lease remeasurement adjustments, accelerated depreciation of leasehold improvements for changes in lease terms, 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, gain associated with amounts received as part of negotiations with a third party related to certain corporate matters, loss on sale of subsidiary and the impact of consolidation of the Consolidated Funds.
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The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.
Three Months EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Income (loss) before income tax$94,515 54,842 $57,888 $(344,715)$9,950 $195,396 $(222,035)
Net income attributable to non-controlling interests in subsidiaries(1)
(12,822)(18,951)(17,812)(32,765)(33,369)(49,220)(102,897)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities33 1,255 4,031 (1,167)(2,934)9,087 1,185 
Unrealized carried interest allocations(151,757)25,170 (52,215)(93,325)(21,177)(126,908)(141,547)
Unrealized performance fee-related compensation84,014 (10,923)27,748 49,670 27,777 74,694 94,272 
Unrealized investment (income) loss(2,280)(1,180)(430)656 (6,007)(907)(6,961)
Impact of Consolidated Funds(4,138)(7,731)(9,267)(6,892)(35,723)(26,076)(59,613)
Deferred incentive fees1,450 6 2,445 — (513)2,392 1,938 
Equity-based compensation(2)
12,210 16,785 34,947 483,958 123,263 36,635 658,953 
Amortization of intangibles10,423 10,250 10,250 10,250 10,250 42,406 41,000 
Tax Receivable Agreements adjustments through earnings90 — — — (348)312 (348)
Non-core items(3)
16,780 4,137 11,349 2,094 32,474 21,565 50,054 
Pre-tax ANI48,518 73,660 68,934 67,764 103,643 179,376 314,001 
Income taxes(4)
(10,802)(16,419)(15,365)(15,105)(23,040)(39,983)(69,929)
ANI37,716 57,241 53,569 52,659 80,603 139,393 244,072 
Income taxes(4)
10,802 16,419 15,365 15,105 23,040 39,983 69,929 
Realized carried interest allocations(18,054)(41,804)(17,632)(24,282)(75,935)(49,401)(159,653)
Realized performance fee-related compensation
11,421 20,848 8,767 25,477 39,656 37,687 94,748 
Realized investment income(1,057)(1,415)(1,621)(1,720)(3,379)(6,545)(8,135)
Adjusted incentive fees(5)
(5,495)(847)(5,675)(27,791)(5,264)(29,280)(39,577)
Adjusted interest income(5)
(817)(1,150)(1,653)(1,672)(1,618)(2,019)(6,093)
Interest expense2,649 2,990 3,512 3,008 3,191 9,331 12,701 
Adjusted other (income) loss(5)(6)
913 423 (95)569 418 1,424 1,315 
Net income attributable to non-controlling interests in subsidiaries(1)
12,822 18,951 17,812 32,765 33,369 49,220 102,897 
FRE$50,900 $71,656 $72,349 $74,118 $94,081 $189,793 $312,204 
_______________________________
(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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
FRE attributable to non-controlling interests in subsidiaries and profits interests
$11,559 $13,308 $14,969 $21,063 $30,451 $42,074 $79,791 
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests
1,263 5,643 2,843 11,702 2,918 7,146 23,106 
Net income attributable to non-controlling interests in subsidiaries and profits interests
$12,822 $18,951 $17,812 $32,765 $33,369 $49,220 $102,897 
The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.
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Three Months EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
FRE attributable to profits interests issued in the private wealth subsidiary$— $574 $2,051 $2,956 $6,399 $— $11,980 
Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary— 51 206 11,137 (224)3,074 11,170 
Net income attributable to profits interests issued in the private wealth subsidiary
$— $625 $2,257 $14,093 $6,175 $3,074 $23,150 
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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
FRE attributable to non-controlling interests in subsidiaries
$11,559 $12,734 $12,918 $18,107 $24,052 $42,074 $67,811 
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries
1,263 5,592 2,637 565 3,142 4,072 11,936 
Net income attributable to non-controlling interests in subsidiaries
$12,822 $18,326 $15,555 $18,672 $27,194 $46,146 $79,747 
(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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Transaction costs$3,985 $672 $140 $12 $179 $4,855 $1,003 
Lease remeasurement adjustments— — — — — (106)— 
Accelerated depreciation of leasehold improvements for changes in lease terms— — — — — 1,893 — 
(Gain) loss on change in fair value for contingent consideration obligation12,280 2,953 10,888 2,476 (205)17,217 16,112 
Compensation paid to certain employees as part of an acquisition earn-out515 482 321 (394)— 2,194 409 
Loss on payment made in connection with private wealth fund secondary transaction— — — — 32,500 — 32,500 
Gain from negotiation of certain corporate matters— — — — — (5,300)— 
Loss on sale of subsidiary— — — — — 812 — 
Other non-core items— 30 — — — — 30 
Total non-core operating income and expenses$16,780 $4,137 $11,349 $2,094 $32,474 $21,565 $50,054 
(4)Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:
Three Months EndedYear Ended March 31,
March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Combined state, local and foreign rate1.3 %1.3 %1.3 %1.3 %1.2 %1.3 %1.3 %
Blended statutory rate22.3 %22.3 %22.3 %22.3 %22.2 %22.3 %22.3 %
(5)Excludes the impact of consolidating the Consolidated Funds and includes deferred incentive fees which are not included in GAAP revenues.
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(6)Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($0.3 million for the three months ended March 31, 2025, $(0.1) million for the three months ended March 31, 2024, and $0.3 million and $(0.3) million in fiscal 2025 and fiscal 2024, 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), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters ($5.3 million in fiscal 2024), and loss on sale of subsidiary ($0.8 million in fiscal 2024).
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 EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
FRE$50,900 $71,656 $72,349 $74,118 $94,081 $189,793 $312,204 
Fee revenues153,808 178,514 185,481 191,832 214,662 586,379 770,489 
FRE margin33 %40 %39 %39 %44 %32 %41 %
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.
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Three Months EndedYear Ended March 31,
(in thousands)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
Incentive fees$2,496 $841 $3,155 $22,369 $5,910 $25,339 $32,275 
Realized carried interest allocations
18,054 41,804 17,632 24,282 75,935 49,401 159,653 
Unrealized carried interest allocations151,757 (25,170)52,215 93,325 21,177 126,908 141,547 
Legacy Greenspring carried interest allocations31,093 (9,089)13,917 8,207 61,306 (75,157)74,341 
Total performance fees203,400 8,386 86,919 148,183 164,328 126,491 407,816 
Unrealized carried interest allocations(151,757)25,170 (52,215)(93,325)(21,177)(126,908)(141,547)
Legacy Greenspring carried interest allocations(31,093)9,089 (13,917)(8,207)(61,306)75,157 (74,341)
Incentive fee revenues for the Consolidated Funds(1)
1,549 — 75 5,422 (133)1,549 5,364 
Deferred incentive fees1,450 6 2,445 — (513)2,392 1,938 
Gross realized performance fees23,549 42,651 23,307 52,073 81,199 78,681 199,230 
Realized performance fee-related compensation
(11,421)(20,848)(8,767)(25,477)(39,656)(37,687)(94,748)
PRE$12,128 $21,803 $14,540 $26,596 $41,543 $40,994 $104,482 
_______________________________
(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 EndedYear Ended March 31,
March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025
ANI$37,716 $57,241 $53,569 $52,659 $80,603 $139,393 $244,072 
Weighted-average shares of Class A common stock outstanding – Basic64,194,859 66,187,754 68,772,051 73,687,289 75,975,770 63,489,135 71,142,916 
Assumed vesting of RSUs512,946 673,854 921,166 491,014 270,492 512,152 590,645 
Assumed vesting and exchange of Class B2 units2,573,762 1,732,153 — — — 2,542,751 431,851 
Assumed purchase under ESPP— — 2,098 — — — 529 
Exchange of Class B units in the Partnership(1)
46,272,227 45,827,707 45,212,921 41,729,937 40,122,028 46,356,244 43,233,005 
Exchange of Class C units in the Partnership(1)
1,958,507 1,849,846 1,626,812 1,016,737 965,761 2,234,191 1,365,647 
Exchange of Class D units in the Partnership(1)
— 2,239,185 2,239,185 2,010,202 1,535,060 — 2,007,849 
Adjusted weighted-average shares115,512,301 118,510,499 118,774,233 118,935,179 118,869,111 115,134,473 118,772,442 
ANI per share$0.33 $0.48 $0.45 $0.44 $0.68 $1.21 $2.05 
_______________________________
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(1)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 EndedYear Ended March 31,Percentage Change
(in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 202520242025vs. FQ4'24
Separately Managed Accounts
Beginning balance$56,660 $58,897 $60,272 $62,121 $69,974 $55,345 $58,897 23 %
Contributions(1)
2,757 2,085 1,723 9,033 3,874 6,327 16,715 41 %
Distributions(2)
(795)(830)(535)(1,000)(1,225)(4,080)(3,590)54 %
Market value, FX and other(3)
275 120 661 (180)551 1,305 1,152 100 %
Ending balance$58,897 $60,272 $62,121 $69,974 $73,174 $58,897 $73,174 24 %
Focused Commingled Funds
Beginning balance$32,772 $34,961 $40,084 $42,294 $44,192 $30,086 $34,961 35 %
Contributions(1)
2,429 5,653 2,122 2,520 3,403 6,115 13,698 40 %
Distributions(2)
(327)(661)(282)(682)(313)(1,841)(1,938)(4)%
Market value, FX and other(3)
87 131 370 60 934 601 1,495 974 %
Ending balance$34,961 $40,084 $42,294 $44,192 $48,216 $34,961 $48,216 38 %
Total
Beginning balance$89,432 $93,858 $100,356 $104,415 $114,166 $85,431 $93,858 28 %
Contributions(1)
5,186 7,738 3,845 11,553 7,277 12,442 30,413 40 %
Distributions(2)
(1,122)(1,491)(817)(1,682)(1,538)(5,921)(5,528)37 %
Market value, FX and other(3)
362 251 1,031 (120)1,485 1,906 2,647 310 %
Ending balance$93,858 $100,356 $104,415 $114,166 $121,390 $93,858 $121,390 29 %
_______________________________
(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 and year ended March 31, 2025 include a $0.6 billion secondary transaction within focused commingled funds.
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Asset Class Summary
Three Months EndedPercentage Change
(in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025vs. FQ4'24
FEAUM
Private equity$49,869 $54,855 $57,136 $62,811 $65,007 30%
Infrastructure20,114 20,377 20,986 23,411 23,830 18%
Private debt15,477 16,161 16,975 17,882 19,517 26%
Real estate8,398 8,963 9,318 10,062 13,036 55%
Total$93,858 $100,356 $104,415 $114,166 $121,390 29%
Separately managed accounts$58,897 $60,272 $62,121 $69,974 $73,174 24%
Focused commingled funds34,961 40,084 42,294 44,192 48,216 38%
Total$93,858 $100,356 $104,415 $114,166 $121,390 29%
AUM(1)
Private equity$81,942 $89,329 $91,891 $93,404 $95,937 17%
Infrastructure30,003 32,756 35,392 36,156 37,026 23%
Private debt28,491 30,336 31,854 31,987 37,133 30%
Real estate16,201 16,912 16,996 17,665 19,284 19%
Total$156,637 $169,333 $176,133 $179,212 $189,380 21%
Separately managed accounts$93,938 $103,003 $107,252 $109,305 $114,806 22%
Focused commingled funds48,545 51,682 53,870 55,142 59,410 22%
Advisory AUM14,154 14,648 15,011 14,765 15,164 7%
Total$156,637 $169,333 $176,133 $179,212 $189,380 21%
AUA
Private equity$270,350 $279,909 $255,125 $263,420 $262,884 (3)%
Infrastructure60,339 62,599 62,891 67,100 69,027 14%
Private debt21,976 22,280 19,328 19,325 19,726 (10)%
Real estate168,455 166,659 168,519 168,807 168,047 —%
Total$521,120 $531,447 $505,863 $518,652 $519,684 —%
Total capital responsibility(2)
$677,757 $700,780 $681,996 $697,864 $709,064 5%
_____________________________
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).
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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
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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 March 31, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is 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. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, 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, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is 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. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, 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
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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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