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- **Record financial performance**: Adjusted net income up 51% YoY to $80M, driven by 35% growth in core fee-related earnings.
- **SPRING Evergreen dominance**: 39% annual returns and 34% NAV growth, with $207M in incentive fees.
- **Global fundraising strength**: $34B 12-month AUM additions, 67% from outside North America, led by Europe and Asia.
- **AI diversification**: 11% software exposure, focused on AI infrastructure and physical AI.
- **Risk mitigation**: 13% small/mid-market PE software exposure, 34% of SPRING in primary investments.

**【Management Opening Remarks】**
- Reported a GAAP net loss of $123 million due to buy-in adjustments, but adjusted net income rose to $80 million (up 51% YoY) driven by higher fee-related and performance earnings.
- Fee-related earnings (FRE) were $89 million, up 20% YoY. Core FRE (excluding retroactive fees) grew 35% to $88 million, with a stable 37% margin.
- Retroactive fees declined from $9.7 million to $1.1 million, reflecting reduced secondary market activity.

**【CEO Commentary】**
- **Record fundraising**: $34 billion in 12-month gross AUM additions, with $8 billion in Q3 alone. 50% of managed account inflows came from new/expansion clients.
- **Private wealth success**: SPRING Evergreen fund grew 34% in NAV to $5.5 billion, delivering 39% annual returns. Private wealth AUM reached $15 billion.
- **AI strategy**: 11% of total AUM in software investments, with 7% excluding venture. Focus on AI infrastructure, cybersecurity, and physical AI.
- **Diversified growth**: 67% of fundraising from outside North America, led by Europe and Asia. Infrastructure and private equity secondaries funds raised $16 billion in prior vintages.

**【CFO Commentary】**
- Fee revenues rose 26% YoY to $241 million (32% ex retroactive fees), driven by 63bps blended fee rate and Evergreen fund growth.
- Performance fees surged to $253 million, with $207 million from SPRING's exceptional returns. ~$25 million of this flows to pretax ANI.
- Adjusted cash-based compensation ratio was 44%, with G&A up $6 million due to conferences.
- Net accrued carry increased 4% to $875 million, with 65% tied to mature programs ready for realization.

**【Q&A Highlights】**
- **Software risk management**: 13% of small/mid-market PE exposure vs 24% in large PE. 34% of SPRING is primary directs, 64% direct secondaries.
- **SPRING scalability**: Team maintains ample deployment opportunities in private markets. 2027 incentive fees expected to moderate if returns normalize.
- **Fundraising outlook**: Modest growth for new vintages (~$16B prior vintages). Re-ups (30%+ growth) and new clients will drive Evergreen fund momentum.
- **Regional trends**: Europe and Middle East leading infrastructure fundraising. Private credit demand resilient despite industry headwinds.

StepStone Group Inc. (STEP) Q3 2026 Earnings Call Transcript

- **Private Wealth Surge**: STPEX and SPRING drove $1.5B+ in new subscriptions, with 50%+ partners selling multiple products.
- **Strong Financials**: 34% YoY growth in core earnings, despite elevated G&A from travel and tech investments.
- **Execution Risks**: Cannibalization of existing products, but 70% of carry ready to harvest offsets near-term volatility.
- **Growth Catalysts**: Global office expansion, model portfolio integration, and daily-priced indices in development.

**【CEO Summary Section】**
- **Record Private Wealth Growth**: Q2 private wealth subscriptions reached $2.4 billion, driven by new products like STPEX ($700M+ in 30 days) and SPRING ($800M+).
- **Global Expansion**: New offices opened in Netherlands, Spain, South Korea, and Saudi Arabia; 50% of distribution partners now sell multiple Evergreen products.
- **Institutional Fundraising**: $3.8B in managed account inflows (12-month total $10B+), with 34% YoY growth in fee-related earnings.

**【CFO Financial Commentary】**
- **GAAP Net Loss**: $366M due to fair value adjustments, but core fee-related earnings up 34% YoY to $78M.
- **Expense Management**: G&A up $2M QoQ due to travel/IT, but 46% cash comp ratio maintained.
- **Performance Fees**: $65M gross, $34M net after compensation; SPRING incentive fee crystallization expected next quarter.

**【Q&A Highlights】**
- **STPEX Cannibalization**: 50% of SPRIM flows shifted to STPEX, but 70% of net accrued carry is ready to harvest.
- **Distribution Strategy**: 650+ partners sell 5 flagship products; 50% sell 2+ products, with 12-month AUM growth of 18%.
- **Market Trends**: Private markets facing slower exits, but narrowing bid-ask spreads suggest improving realizations.
- **Expense Outlook**: Elevated G&A in Q3 (StepStone 360 Conference) and Q4 (VC Conference) expected.


StepStone Group Inc. (STEP) Q2 2026 Earnings Call Transcript

- **Strong AUM Growth**: Fee-earning AUM rose to $127 billion, up 5% QoQ and $27 billion over 12 months.
- **Partnership with FTSE Russell**: Launching private asset indices to enhance benchmarking, with licensing fees expected in late 2026.
- **Evergreen Product Success**: SPRING venture fund surpasses $10 billion, CRDEX credit fund expands to 50 platforms.
- **Retirement Market Expansion**: Executive Order support for alternative investments in 401(k)s, targeting custom target-date funds.
- **Performance Fees Outlook**: Q2 expected to see improvement, with a healthy transaction pipeline.


**【Management Opening Remarks】**
- Reported a GAAP net loss of $38 million ($0.49 per share) for Q1 FY26, with fee-related earnings (FRE) of $81 million, up 13% YoY.
- FRE margin was 38%, with retroactive fees declining to $3 million (vs. $19 million prior year).
- Adjusted net income was $0.40 per share, down from $0.48 YoY due to lower retroactive fees and performance-related earnings.

**【CEO Scott Hart’s Commentary】**
- Q1 saw $8.7 billion in gross AUM additions, driven by $6.5 billion in managed accounts and $2 billion in commingled funds, raising fee-earning AUM to $127 billion.
- Launched a partnership with FTSE Russell to develop private asset indices, targeting improved benchmarking and transparency in private markets.
- Performance fees were light Q1 but expected to improve in Q2, with a healthy pipeline of transactions.

**【CFO David Park’s Financial Commentary】**
- Fee revenues reached $213 million (+19% YoY), with core fee revenues (excluding retroactive) up 32% YoY.
- Adjusted cash-based compensation was $96 million, with a cash comp ratio of 46% (consistent with guidance).
- Net accrued carry grew 6% QoQ to $783 million, with 75% tied to mature programs ready for harvesting.

**【Q&A Highlights】**
- **Index Partnership**: First indices expected late 2026, initially generating licensing fees; long-term potential for asset management solutions.
- **Evergreen Products**: SPRING venture fund crossed $10 billion AUM, CRDEX credit fund on 50 platforms, with 50% of partners selling multiple products.
- **Retirement Space**: Executive Order support for alternative investments in 401(k)s; targeting custom target-date funds and partnerships.
- **FX Impact**: $800 million AUM benefit Q1, with $2 million net unfavorable impact on FRE due to hedging.
- **Capital Markets**: Activity levels similar to 2024, with disciplined sellers and moderate realization pace.


StepStone (STEP)-7 Aug 25-2026 Q1 Earnings call transcript

- **Revenue Surge**: Q4 2025 fee-related earnings $94.1M (+85% YoY), FRE margin 44% (highest ever). Full-year AUM growth 29% to $121B.
- **Private Wealth Explosion**: Assets jump to $8.2B (+133% YoY), driven by 400+ new distribution platforms and evergreen fund subscriptions.
- **Strategic Fund Closures**: Largest real estate secondaries fund ($3.75B) and debut infrastructure co-investment fund ($1B) highlight fundraising prowess.
- **Profitability**: Adjusted net income $0.68/share (Q4) vs. $0.33 YoY, supported by 37% core FRE margin and 30% annualized fee growth.
- **Market Resilience**: SMA re-up rate >90%, with 30% growth in re-ups, ensuring sustained fee earning momentum.


**【CEO Scott Hart Key Highlights】**
- **Record Fiscal Year Performance**: Fee-related earnings doubled in two years, reaching $94.1 million Q4 2025, with a 44% FRE margin. Fee earning AUM grew 29% YoY to $121B.
- **Market Leadership**: Raised $31B in AUM (highest ever), including $8.5B in SMA inflows and $10B+ in commingled funds. Private Wealth assets surged to $8.2B (+133% YoY).
- **Strategic Fundraising**: Closed largest real estate secondaries fund ($3.75B) and debuted infrastructure co-investment fund ($1B). SMA re-up rate >90% with 30% growth in re-ups.

**【CFO David Park Financial Breakdown】**
- **Q4 2025 Results**: GAAP net loss $18.5M, but adjusted net income $80.6M (+125% YoY). Fee revenues $215M (+40% YoY), driven by 65bps blended fee rate and retroactive fees ($15.7M).
- **Cost Efficiency**: Adjusted cash comp 46% of fee-related revenues. Core FRE margin 37% (excl. retro), up 600bps YoY. UFEC grew to $25B, providing dry powder for market dislocations.
- **Dividend Growth**: Full-year dividend $1.36/share (+37% YoY), supported by 30% annualized fee-related earnings growth.

**【Q&A Key Takeaways】**
- **Pipeline Strength**: >$31B AUM raised in FY25, with $7B Q4 inflows. SMA re-up pipeline remains robust, and commingled funds (e.g., private equity secondaries) poised for re-opens.
- **Market Dynamics**: Volatility in public markets driving private market outperformance. StepStone leverages private market expertise to capitalize on dislocations.
- **NCI Buy-In**: $161M equity issuance for NCI buy-in, accreting earnings at >15% discount to public multiple. NCI share of profits expected to decline gradually.


StepStone Group Inc. (STEP) Q4 2025 Earnings Call Transcript

- **Record Revenue Growth**: Fee-related earnings up 46% YoY to $74.1 million, driven by infrastructure and private wealth funds.
- **AUM Expansion**: Fee-earning assets under management reach $114 billion, +28% YoY, with $6.5 billion of undeployed capital activated.
- **Infrastructure Breakthrough**: $1.2 billion inaugural co-investment fund launched, solidifying StepStone as a top global infrastructure manager.
- **Private Wealth Momentum**: Platform AUM exceeds $6 billion, with $1 billion in new subscriptions this quarter.

**【Seth Weiss - Financial Highlights】**
- **GAAP Net Loss**: $287 million, driven by fair value adjustments for future buy-in of StepStone Private Wealth profits interest.
- **Fee-Related Earnings (FRE)**: $74.1 million (+46% YoY), with a 39% FRE margin.
- **Retroactive Fees**: $9.7 million (vs. $8.6 million last year), primarily from real estate, infrastructure, and growth equity funds.
- **Adjusted Net Income**: $52.7 million ($0.44 per share), up 25% YoY due to higher FRE and realized performance fees.

**【Scott Hart - Strategic Growth】**
- **Fee-Earning AUM**: $114 billion (+28% YoY), highest organic growth quarter in company history.
- **UFEC Deployment**: Activated $6.5 billion of undeployed capital, with $2 billion invested in attractive market opportunities.
- **Long-Term Growth**: 70% increase in fee-earning AUM since Q4 2021, CAGR of 18%, despite industry fundraising challenges.
- **Key Milestones**: 
  - $1.2 billion infrastructure co-investment fund (first-of-its-kind).
  - Private wealth platform surpasses $6 billion AUM (+$1 billion new subscriptions).

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