First Quarter

Fiscal Year 2024

Earnings

Presentation

August 3, 2023

Today's presenters

Scott Hart

Jason Ment

CEO

President & Co-COO

Mike McCabe

Johnny Randel

Head of Strategy

Chief Financial Officer

GAAP Consolidated Income (Loss) Statements

GAAP net income was $49.4 million for the quarter.

GAAP net income attributable to StepStone Group Inc. was $21.3 million (or $0.34 per share) for the quarter.

($ in thousands, except per share amounts)

Revenues

Management and advisory fees, net

Performance fees:

Incentive fees

Carried interest allocations:

Realized

Unrealized

Total carried interest allocations

Legacy Greenspring carried interest allocations(1)

Total revenues

Expenses

Compensation and benefits:

Cash-based compensation

Equity-based compensation

Performance fee-related compensation:

Realized

Unrealized

Total performance fee-related compensation

Legacy Greenspring performance fee-related compensation(1)

Total compensation and benefits

General, administrative and other

Total expenses

Other income (expense)

Investment income (loss)

Legacy Greenspring investment loss(1)

Investment income of Consolidated Funds

Interest income

Interest expense

Other income (loss)

Total other income (expense)

Income (loss) before income tax

Income tax expense

Net income (loss)

Less: Net income attributable to non-controlling interests in subsidiaries

Less: Net loss attributable to non-controlling interests in legacy Greenspring entities(1)

Less: Net income (loss) attributable to non-controlling interests in the Partnership

Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds

Net income (loss) attributable to StepStone Group Inc.

Net income (loss) per share of Class A common stock - Basic

Net income (loss) per share of Class A common stock - Diluted

Quarter

Jun '22

Jun '23

% Fav / Unfav

$

116,732

$

138,115

18%

-

6

na

73,607

14,473

-80%

(113,950)

49,364

na

(40,343)

63,837

na

(153,607)

(23,947)

84%

(77,218)

178,011

na

60,061

70,081

-17%

3,714

8,472

-128%

41,735

9,102

78%

(54,553)

24,211

na

(12,818)

33,313

na

(153,607)

(23,947)

84%

(102,650)

87,919

na

34,232

33,277

3%

(68,418)

121,196

na

(1,101)

3,086

na

(8,604)

(2,866)

67%

-

2,362

na

11

431

3818%

(587)

(2,012)

-243%

(1,104)

227

na

(11,385)

1,228

na

(20,185)

58,043

na

1,286

8,597

-569%

(21,471)

49,446

na

7,571

9,630

-27%

(8,604)

(2,866)

67%

(9,398)

19,860

na

-

1,553

na

$

(11,040)

$

21,269

na

$

(0.18)

$

0.34

na

$

(0.18)

$

0.34

na

STEPSTONE GROUP

1

Reflects amounts attributable to consolidated VIEs for which we did not acquire any direct economic interests. Such amounts are attributable to employees and therefore have been reflected as legacy

3

Greenspring performance fee-related compensation and net income (loss) attributable to non-controlling interests in legacy Greenspring entities, respectively.

Fiscal Q1 2024 overview

Key Business Drivers

FQ1'24

FQ1'23

vs. FQ1'23

FQ4'23

vs. FQ4'23

Assets under management ("AUM")

$142.6 B

$136.5 B

4%

$138.4 B

3%

Fee-earning AUM ("FEAUM")

$87.4 B

$78.6 B

11%

$85.4 B

2%

Undeployed fee-earning capital

$16.9 B

$17.1 B

-1%

$15.7 B

8%

Gross accrued carry

$1,277.8 M

$1,366.3 M

-6%

$1,227.2 M

4%

Financial Highlights1

Business Update

($M, except per share amounts)

FQ1'24

FQ1'23

vs. FQ1'23

FQ4'23

vs. FQ4'23

Adjusted revenues

$152.8

$190.3

-20%

$152.9

-%

Management and advisory fees, net

$138.3

$116.7

18%

$132.7

4%

Fee-related earnings ("FRE")

$44.4

$36.6

21%

$37.8

17%

Fee-related earnings margin2

32%

31%

28%

Adjusted net income ("ANI")

$29.4

$47.1

-38%

$27.1

8%

ANI per share

$0.26

$0.41

-37%

$0.24

8%

  • Declared a quarterly cash dividend of $0.21 per share of Class A common stock payable on September 15, 2023 to record holders of Class A common stock at the close of business on August 31, 2023
  • Raised a total of $11 billion of new capital for separately managed accounts ("SMA")3 over the LTM
  • Raised a total of $4 billion for commingled funds over the LTM, which includes closings of StepStone's private equity secondaries fund, multi-strategy global venture capital fund, expansion stage venture capital directs fund, special situation real estate secondaries fund, multi-strategy growth equity fund and infrastructure co-investment fund
  • Total retail platform assets surpassed $1.7 billion in AUM, driven by continued strong subscriptions in SPRIM and SPRING

1

Adjusted revenues, management and advisory fees, net, fee-related earnings, fee-related earnings margin, adjusted net income, and ANI per share are non-GAAP measures. See definition and reconciliation of non-GAAP

STEPSTONE GROUP

measures at the end of this presentation.

4

2 Fee-related earnings margin is calculated by dividing fee-related earnings by management & advisory fees, net.

3

Includes advisory accounts for which we have discretion.

Overview

STEPSTONE GROUP

5

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Disclaimer

StepStone Group Inc. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 20:26:57 UTC.