StepStone Group Inc - Ordinary Shares (STEP) 8 Aug 24 2025 Q1 Earnings call transcript

StepStone Group, a leading private markets firm, delivered a robust performance in the first quarter of fiscal 2025, showcasing a strong foundation for sustained growth. The company reported a GAAP net income of $48.0 million, attributable to StepStone Group Inc., marking a significant increase from the prior year quarter. This positive momentum was reflected in the fee-related earnings of $71.7 million, up 61% year-over-year.

Financial Highlights and Strategic Initiatives

The quarter was marked by a record period for fundraising, net contribution to fee-earning assets, and net additions to undeployed fee-earning capital. These achievements position StepStone for a strong fiscal 2025 and future growth. The company's diverse array of offerings, supportive client base, and in-demand strategies have been instrumental in its success.

Innovation in Wealth Management

StepStone has been at the forefront of innovation in wealth management, with the introduction of ticker-based products and the acquisition of the Greenspring back office. These initiatives have streamlined the investment process for individual investors, offering a more accessible and seamless experience.

Future Growth and Challenges

Looking ahead, StepStone expects to maintain its momentum, with a focus on expanding its private wealth offerings and capitalizing on the increasing demand for private market solutions. However, the company also acknowledges the challenges posed by a muted capital market environment and the impact of volatility on performance fees.

Key Takeaways

StepStone's strong financial results in Q1 fiscal 2025 underscore its strategic initiatives, operational efficiency, and market positioning. The company's commitment to innovation, client-centric approach, and robust financial performance position it well for continued growth and success in the evolving private markets landscape.