Anzeige
Mehr »
Login
Donnerstag, 30.05.2024 Börsentäglich über 12.000 News von 688 internationalen Medien
Die neuen Aktien-Stars der nächsten Rallye-Stufe im Uransektor
Anzeige

Indizes

Kurs

%
News
24 h / 7 T
Aufrufe
7 Tage

Aktien

Kurs

%
News
24 h / 7 T
Aufrufe
7 Tage

Xetra-Orderbuch

Fonds

Kurs

%

Devisen

Kurs

%

Rohstoffe

Kurs

%

Themen

Kurs

%

Erweiterte Suche

WKN: A2QCW6 | ISIN: US85914M1071 | Ticker-Symbol:
NASDAQ
30.05.24
16:59 Uhr
43,850 US-Dollar
+0,700
+1,62 %
1-Jahres-Chart
STEPSTONE GROUP INC Chart 1 Jahr
5-Tage-Chart
STEPSTONE GROUP INC 5-Tage-Chart
GlobeNewswire (Europe)
269 Leser
Artikel bewerten:
(1)

StepStone Group Inc: StepStone Group Reports Second Quarter Fiscal Year 2024 Results

NEW YORK, Nov. 06, 2023 (GLOBE NEWSWIRE) -- 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 September 30, 2023. This represents results for the second quarter of the fiscal year ending March 31, 2024. The Board of Directors of the Company has declared a quarterly cash dividend of $0.21 per share of Class A common stock, payable on December 15, 2023, to the holders of record as of the close of business on November 30, 2023.

StepStone issued a full detailed presentation of its second quarter fiscal 2024 results, which can be accessed by visiting the Company's website at https://shareholders.stepstonegroup.com or by clicking here.

Webcast and Earnings Conference Call

Management will host a webcast and conference call on Monday, November 6, 2023, at 5:00 pm ET to discuss the Company's results for the second quarter of the fiscal year ending March 31, 2024. 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.vevent.com/register/BId605e133586b4cd284f5a7815047cfbd. 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, data and administrative services to its clients. As of September 30, 2023, StepStone was responsible for approximately $659 billion of total capital, including $146 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 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, successful execution of business and growth strategies 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 on May 26, 2023, 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: adjusted management and advisory fees, net, 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 net realized performance fees. 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 Six Months Ended
September 30,
Percentage Change
(in thousands, except share and per share amounts and where noted)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023 vs. FQ2'23vs. FQ2'23 YTD
Financial Highlights
GAAP Results
Management and advisory fees, net$119,121 $128,753 $132,573 $138,115 $142,123 $235,853 $280,238 19%19%
Total revenues (158,495) (4,235) 172,374 178,011 191,422 (235,713) 369,433 nana
Total performance fees (277,616) (132,988) 39,801 39,896 49,299 (471,566) 89,195 nana
Net income (loss) (67,065) (13,555) 56,816 49,446 59,251 (88,536) 108,697 nana
Net income (loss) per share of Class A common stock:
Basic$(0.48)$(0.11)$0.46 $0.34 $0.42 $(0.66)$0.76 nana
Diluted$(0.48)$(0.11)$0.46 $0.34 $0.42 $(0.66)$0.75 nana
Weighted-average shares of Class A common stock:
Basic 61,407,834 62,192,899 62,805,788 62,834,818 62,858,468 61,276,707 62,846,708 2%3%
Diluted 61,407,834 62,192,899 65,831,409 65,739,470 66,198,129 61,276,707 65,970,053 8%8%
Quarterly dividend per share of Class A common stock(1)$0.20 $0.20 $0.20 $0.20 $0.21 $0.40 $0.41 5%3%
Supplemental dividend per share of Class A common stock(2)$- $- $- $0.25 $- $- $0.25 nana
Accrued carried interest allocations 1,189,323 1,126,386 1,227,173 1,277,783 1,331,778 12%
Non-GAAP Results(3)
Adjusted management and advisory fees, net(4)$119,121 $128,753 $132,720 $138,301 $142,327 $235,853 $280,628 19%19%
Adjusted revenues 150,638 148,053 152,940 152,780 149,800 340,977 302,580 (1)%(11)%
Fee-related earnings ("FRE") 39,044 42,701 37,796 44,402 43,827 75,661 88,229 12%17%
FRE margin(5) 33% 33% 28% 32% 31% 32% 31%
Gross realized performance fees 31,517 19,300 20,220 14,479 7,473 105,124 21,952 (76)%(79)%
Adjusted net income ("ANI") 37,261 31,153 27,115 29,388 30,173 84,395 59,561 (19)%(29)%
Adjusted weighted-average shares 114,606,326 114,651,163 114,765,635 114,673,696 115,118,060 114,537,025 114,897,093 -%-%
ANI per share$0.33 $0.27 $0.24 $0.26 $0.26 $0.74 $0.52 (21)%(30)%
Key Business Drivers/Operating Metrics (in billions)
Assets under management ("AUM")(6)$135.0 $134.0 $138.4 $142.6 $145.8 8%
Assets under advisement ("AUA")(6) 466.7 468.0 482.2 497.0 512.9 10%
Fee-earning AUM ("FEAUM") 80.1 83.0 85.4 87.4 87.3 9%
Undeployed fee-earning capital ("UFEC") 16.5 14.0 15.7 16.9 18.1 10%


(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 year 2023.
(3) Adjusted management and advisory fees, net, adjusted revenues, FRE, FRE margin, gross realized performance fees, 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 adjusted management and advisory fees, net.
(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.


StepStone Group Inc.
GAAP Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)
As of
September 30, 2023 March 31, 2023
Assets
Cash and cash equivalents$117,484 $102,565
Restricted cash 679 955
Fees and accounts receivable 45,237 44,450
Due from affiliates 51,050 54,322
Investments:
Investments in funds 129,768 115,187
Accrued carried interest allocations 1,331,778 1,227,173
Legacy Greenspring investments in funds and accrued carried interest allocations(1) 700,473 770,652
Deferred income tax assets 36,828 44,358
Lease right-of-use assets, net 99,843 101,130
Other assets and receivables 52,615 44,060
Intangibles, net 333,322 354,645
Goodwill 580,542 580,542
Assets of Consolidated Funds:
Cash and cash equivalents 58,639 25,997
Investments, at fair value 68,481 30,595
Other assets 1,624 772
Total assets$3,608,363 $3,497,403
Liabilities and stockholders' equity
Accounts payable, accrued expenses and other liabilities$91,561 $89,396
Accrued compensation and benefits 110,413 66,614
Accrued carried interest-related compensation 697,377 644,517
Legacy Greenspring accrued carried interest-related compensation(1) 556,219 617,994
Due to affiliates 204,503 205,424
Lease liabilities 119,117 121,224
Debt obligations 123,586 98,351
Liabilities of Consolidated Funds:
Other liabilities 7,904 566
Total liabilities 1,910,680 1,844,086
Redeemable non-controlling interests in Consolidated Funds 59,272 24,530
Stockholders' equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 64,068,952 and 62,834,791
issued and outstanding as of September 30, 2023 and March 31, 2023, respectively
64 63
Class B common stock, $0.001 par value, 125,000,000 authorized; 46,314,543 and 46,420,141
issued and outstanding as of September 30, 2023 and March 31, 2023, respectively
46 46
Additional paid-in capital 628,977 610,567
Retained earnings 165,240 160,430
Accumulated other comprehensive income 338 461
Total StepStone Group Inc. stockholders' equity 794,665 771,567
Non-controlling interests in subsidiaries 30,394 36,380
Non-controlling interests in legacy Greenspring entities(1) 144,255 152,658
Non-controlling interests in the Partnership 669,097 668,182
Total stockholders' equity 1,638,411 1,628,787
Total liabilities and stockholders' equity$3,608,363 $3,497,403

(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.


StepStone Group Inc.
GAAP Condensed Consolidated Statements of Income (Loss) (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended September 30, Six Months Ended September 30,
2023 2022 2023 2022
Revenues
Management and advisory fees, net$142,123 $119,121 $280,238 $235,853
Performance fees:
Incentive fees 4,946 5,365 4,952 5,365
Carried interest allocations:
Realized 1,585 22,469 16,058 96,076
Unrealized 55,371 (176,778) 104,735 (290,728)
Total carried interest allocations 56,956 (154,309) 120,793 (194,652)
Legacy Greenspring carried interest allocations(1) (12,603) (128,672) (36,550) (282,279)
Total performance fees 49,299 (277,616) 89,195 (471,566)
Total revenues 191,422 (158,495) 369,433 (235,713)
Expenses
Compensation and benefits:
Cash-based compensation 74,851 59,501 144,932 119,562
Equity-based compensation 5,916 3,783 14,388 7,497
Performance fee-related compensation:
Realized 1,720 13,630 10,822 55,365
Unrealized 28,712 (86,126) 52,923 (140,679)
Total performance fee-related compensation 30,432 (72,496) 63,745 (85,314)
Legacy Greenspring performance fee-related compensation(1) (12,603) (128,672) (36,550) (282,279)
Total compensation and benefits 98,596 (137,884) 186,515 (240,534)
General, administrative and other 31,729 33,733 65,006 67,965
Total expenses 130,325 (104,151) 251,521 (172,569)
Other income (expense)
Investment income (loss) 3,080 (3,691) 6,166 (4,792)
Legacy Greenspring investment loss(1) (3,966) (15,357) (6,832) (23,961)
Investment income of Consolidated Funds 8,772 - 11,134 -
Interest income 977 356 1,408 367
Interest expense (2,108) (817) (4,120) (1,404)
Other loss (872) (634) (645) (1,738)
Total other income (expense) 5,883 (20,143) 7,111 (31,528)
Income (loss) before income tax 66,980 (74,487) 125,023 (94,672)
Income tax expense (benefit) 7,729 (7,422) 16,326 (6,136)
Net income (loss) 59,251 (67,065) 108,697 (88,536)
Less: Net income attributable to non-controlling interests in subsidiaries 9,615 8,690 19,245 16,261
Less: Net loss attributable to non-controlling interests in legacy Greenspring entities(1) (3,966) (15,357) (6,832) (23,961)
Less: Net income (loss) attributable to non-controlling interests in the Partnership 22,928 (31,177) 42,788 (40,575)
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds 4,449 - 6,002 -
Net income (loss) attributable to StepStone Group Inc.$26,225 $(29,221) $47,494 $(40,261)
Net income (loss) per share of Class A common stock:
Basic$0.42 $(0.48) $0.76 $(0.66)
Diluted$0.42 $(0.48) $0.75 $(0.66)
Weighted-average shares of Class A common stock:
Basic 62,858,468 61,407,834 62,846,708 61,276,707
Diluted 66,198,129 61,407,834 65,970,053 61,276,707

(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.

Non-GAAP Financial Measures: Definitions and Reconciliations

Adjusted Management and Advisory Fees, Net

The following table presents the components of adjusted management and advisory fees, net. We believe adjusted management and advisory fees, net is useful to investors because it removes the impact of consolidating the Consolidated Funds which we are required to consolidate under GAAP.

Three Months Ended Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
Focused commingled funds(1)$51,553$60,680$62,093$67,119$70,481 $104,295$137,600
Separately managed accounts 52,179 53,515 54,033 55,744 56,431 102,639 112,175
Advisory and other services 13,788 13,926 15,546 14,101 13,740 26,772 27,841
Fund reimbursement revenues(1) 1,601 632 1,048 1,337 1,675 2,147 3,012
Adjusted management and advisory fees, net$119,121$128,753$132,720$138,301$142,327 $235,853$280,628

(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

Adjusted Revenues

Adjusted revenues represents the components of revenues used in the determination of ANI and comprise adjusted management and advisory fees, net, incentive fees (including the deferred portion) 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 Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31,2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
Total revenues$(158,495)$(4,235)$172,374 $178,011 $191,422 $(235,713)$369,433
Unrealized carried interest allocations 176,778 63,367 (100,753) (49,364) (55,371) 290,728 (104,735)
Deferred incentive fees 3,683 - 209 - 942 3,683 942
Legacy Greenspring carried interest allocations 128,672 88,921 80,963 23,947 12,603 282,279 36,550
Management and advisory fee revenues for the Consolidated Funds(1) - - 147 186 204 - 390
Adjusted revenues$150,638 $148,053 $152,940 $152,780 $149,800 $340,977 $302,580

(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

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. 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 Six Months Ended September 30,
(in thousands)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
GAAP management and advisory fees, net$119,121 $128,753 $132,573 $138,115 $142,123 $235,853 $280,238
Management and advisory fee revenues for the Consolidated Funds(1) - - 147 186 204 - 390
Adjusted management and advisory fees, net$119,121 $128,753 $132,720 $138,301 $142,327 $235,853 $280,628
GAAP cash-based compensation$59,501 $62,628 $69,990 $70,081 $74,851 $119,562 $144,932
Adjustments(2) (740) (520) (653) (531) (574) (1,431) (1,105)
Adjusted cash-based compensation$58,761 $62,108 $69,337 $69,550 $74,277 $118,131 $143,827
GAAP equity-based compensation$3,783 $8,108 $9,335 $8,472 $5,916 $7,497 $14,388
Adjustments(3) (3,125) (7,444) (8,274) (7,171) (4,644) (6,196) (11,815)
Adjusted equity-based compensation$658 $664 $1,061 $1,301 $1,272 $1,301 $2,573
GAAP general, administrative and other$33,733 $43,582 $35,612 $33,277 $31,729 $67,965 $65,006
Adjustments(4) (13,075) (20,302) (11,086) (10,229) (8,778) (27,205) (19,007)
Adjusted general, administrative and other$20,658 $23,280 $24,526 $23,048 $22,951 $40,760 $45,999
GAAP interest income$356 $701 $853 $431 $977 $367 $1,408
Interest income earned by the Consolidated Funds(5) - - (195) (244) (249) - (493)
Adjusted interest income$356 $701 $658 $187 $728 $367 $915
GAAP other income (loss)$(634)$358 $(40)$227 $(872) $(1,738)$(645)
Adjustments(6) - - 86 (376) 403 - 27
Adjusted other income (loss)$(634)$358 $46 $(149)$(469) $(1,738)$(618)

(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2) Reflects the removal of severance and compensation paid to certain employees as part of an acquisition earn-out.
(3) 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 connection with the Private Wealth Transaction.
(4) Reflects the removal of lease remeasurement adjustments, accelerated depreciation of leasehold improvements for changes in lease terms, amortization of intangibles, transaction-related costs and other non-core operating income and expenses.
(5) Reflects the removal of interest income earned by the Consolidated Funds.
(6) Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss) and the removal of the impact of consolidation of the Consolidated Funds.

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 as none of the economics are attributable to us. The components of revenues used in the determination of ANI ("adjusted revenues") comprise adjusted management and advisory fees, net, incentive fees (including the deferred portion) 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 connection with the Private Wealth Transaction, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in subsidiaries, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance. 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 adjusted management and advisory fees, net, 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 connection with the Private Wealth Transaction, (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. 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 income (loss) before income tax to ANI and FRE.

Three Months Ended Six Months Ended
September 30,
(in thousands)September 30, 2022December 31, 2022March 31,
2023
June 30,
2023
September 30,
2023
2022 2023
Income (loss) before income tax$(74,487) (14,287)$67,505 $58,043 $66,980 $(94,672)$125,023
Net income attributable to non-controlling interests in subsidiaries(1) (9,985) (10,802) (10,151) (10,540) (10,321) (18,101) (20,861)
Net loss attributable to non-controlling interests in legacy Greenspring entities 15,357 8,966 11,148 2,866 3,966 23,961 6,832
Unrealized carried interest allocations 176,778 63,367 (100,753) (49,364) (55,371) 290,728 (104,735)
Unrealized performance fee-related compensation (86,126) (31,875) 53,515 24,211 28,712 (140,679) 52,923
Unrealized investment (income) loss 5,795 1,354 (2,207) (2,529) (1,657) 8,865 (4,186)
Impact of Consolidated Funds - (4,895) (4,002) (2,647) (8,223) - (10,870)
Deferred incentive fees 3,683 - 209 - 942 3,683 942
Equity-based compensation(2) 3,125 7,444 8,274 7,171 4,644 6,196 11,815
Amortization of intangibles 10,870 10,870 10,870 10,661 10,661 21,741 21,322
Tax Receivable Agreements adjustments through earnings - - (244) - - - -
Non-core items(3) 2,945 9,952 733 (50) (1,500) 6,895 (1,550)
Pre-tax ANI 47,955 40,094 34,897 37,822 38,833 108,617 76,655
Income taxes(4) (10,694) (8,941) (7,782) (8,434) (8,660) (24,222) (17,094)
ANI 37,261 31,153 27,115 29,388 30,173 84,395 59,561
Income taxes(4) 10,694 8,941 7,782 8,434 8,660 24,222 17,094
Realized carried interest allocations (22,469) (16,320) (18,693) (14,473) (1,585) (96,076) (16,058)
Realized performance fee-related compensation(5) 13,630 11,726 12,755 9,102 1,720 55,365 10,822
Realized investment income (2,104) (673) (757) (557) (1,423) (4,073) (1,980)
Incentive fees (5,365) (2,980) (1,318) (6) (4,946) (5,365) (4,952)
Deferred incentive fees (3,683) - (209) - (942) (3,683) (942)
Adjusted interest income(6) (356) (701) (658) (187) (728) (367) (915)
Interest expense 817 1,111 1,674 2,012 2,108 1,404 4,120
Adjusted other (income) loss(6)(7) 634 (358) (46) 149 469 1,738 618
Net income attributable to non-controlling interests in subsidiaries(1) 9,985 10,802 10,151 10,540 10,321 18,101 20,861
FRE$39,044 $42,701 $37,796 $44,402 $43,827 $75,661 $88,229

(1) Reflects the portion of pre-tax ANI of our subsidiaries attributable to non-controlling interests:

Three Months Ended Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
FRE attributable to non-controlling interests in subsidiaries$10,149 $10,167$9,843$10,534$9,463 $18,663 $19,997
Non fee-related earnings (losses) attributable to non-controlling interests in subsidiaries (164) 635 308 6 858 (562) 864
Net income attributable to non-controlling interests in subsidiaries$9,985 $10,802$10,151$10,540$10,321 $18,101 $20,861

(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 connection with the Private Wealth Transaction.
(3) Includes (income) expense related to the following non-core operating income and expenses:

Three Months Ended Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March
31, 2023
June
30, 2023
September
30, 2023
2022 2023
Transaction costs$- $6,812$38 $37 $163 $3 $200
Lease remeasurement adjustments (2,709) - - - - (2,709) -
Accelerated depreciation of leasehold improvements for changes in lease terms 210 631 631 631 631 210 1,262
Severance costs 134 42 73 - - 178 -
(Gain) loss on change in fair value for contingent consideration obligation 4,704 1,989 (588) (1,249) (2,868) 7,960 (4,117)
Compensation paid to certain employees as part of an acquisition earn-out 606 478 579 531 574 1,253 1,105
Total non-core operating income and expenses$2,945 $9,952$733 $(50)$(1,500) $6,895 $(1,550)

(4) Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

Three Months Ended Six Months Ended
September 30,
September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
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%1.3% 1.3%1.3%
Blended statutory rate22.3%22.3%22.3%22.3%22.3% 22.3%22.3%

(5) Includes carried interest-related compensation expense related to the portion of net carried interest allocation revenue attributable to equity holders of the Company's consolidated subsidiaries that are not 100% owned:

Three Months Ended Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September 30,
2023
2022 2023
Realized carried interest-related compensation$2,412$2,208$2,358$2,189$- $6,809$2,189

(6) Excludes the impact of consolidating the Consolidated Funds.
(7) Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($244 thousand for the three months ended March 31, 2023).

Fee-Related Earnings Margin

FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by adjusted management and advisory fees, net. 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 Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September 30,
2023
2022 2023
FRE$39,044 $42,701 $37,796 $44,402 $43,827 $75,661 $88,229
Adjusted management and advisory fees, net 119,121 128,753 132,720 138,301 142,327 235,853 280,628
FRE margin 33% 33% 28% 32% 31% 32% 31%

Gross Realized Performance Fees

Gross realized performance fees represents realized carried interest allocations and incentive fees, including the deferred portion and excluding legacy Greenspring entities. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us.

Net Realized Performance Fees

Net realized performance fees represents gross realized performance fees, less realized performance fee-related compensation and excluding legacy Greenspring entities. We believe net realized performance fees 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 and net realized performance fees.

Three Months Ended Six Months Ended
September 30,
(in thousands)September
30, 2022
December
31, 2022
March
31, 2023
June
30, 2023
September
30, 2023
2022 2023
Incentive fees$5,365 $2,980 $1,318 $6 $4,946 $5,365 $4,952
Realized carried interest allocations 22,469 16,320 18,693 14,473 1,585 96,076 16,058
Unrealized carried interest allocations (176,778) (63,367) 100,753 49,364 55,371 (290,728) 104,735
Legacy Greenspring carried interest allocations (128,672) (88,921) (80,963) (23,947) (12,603) (282,279) (36,550)
Total performance fees (277,616) (132,988) 39,801 39,896 49,299 (471,566) 89,195
Unrealized carried interest allocations 176,778 63,367 (100,753) (49,364) (55,371) 290,728 (104,735)
Legacy Greenspring carried interest allocations 128,672 88,921 80,963 23,947 12,603 282,279 36,550
Deferred incentive fees 3,683 - 209 - 942 3,683 942
Gross realized performance fees 31,517 19,300 20,220 14,479 7,473 105,124 21,952
Realized performance fee-related compensation(1) (13,630) (11,726) (12,755) (9,102) (1,720) (55,365) (10,822)
Net realized performance fees$17,887 $7,574 $7,465 $5,377 $5,753 $49,759 $11,130

Adjusted Weighted-Average Shares and Adjusted Net Income Per Share

ANI per share measures our per-share earnings assuming all Class B units and Class C 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 Six Months Ended
September 30,
September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
2022 2023
ANI$37,261$31,153$27,115$29,388$30,173 $84,395$59,561
Weighted-average shares of Class A common stock outstanding - Basic 61,407,834 62,192,899 62,805,788 62,834,818 62,858,468 61,276,707 62,846,708
Assumed vesting of RSUs 913,479 457,818 524,576 400,034 801,014 856,217 601,620
Assumed vesting and exchange of Class B2 units 2,466,194 2,486,197 2,501,045 2,504,618 2,538,647 2,457,561 2,521,725
Exchange of Class B units in the Partnership(1) 46,889,995 46,662,062 46,420,141 46,420,141 46,417,845 47,017,716 46,418,987
Exchange of Class C units in the Partnership(2) 2,928,824 2,852,187 2,514,085 2,514,085 2,502,086 2,928,824 2,508,053
Adjusted weighted-average shares 114,606,326 114,651,163 114,765,635 114,673,696 115,118,060 114,537,025 114,897,093
ANI per share$0.33$0.27$0.24$0.26$0.26 $0.74$0.52

(1) Assumes the full exchange of Class B units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement.
(2) Assumes the full exchange of Class C units in the Partnership for Class A common stock of SSG pursuant to the Class C Exchange Agreement.

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 Ended Six Months Ended
September 30,
Percentage Change
(in millions)September 30, 2022December 31, 2022March 31,
2023
June 30,
2023
September 30, 2023 2022 2023 vs. FQ2'23
Separately Managed Accounts
Beginning balance$52,198 $52,881 $53,420 $55,345 $56,645 $49,586 $55,345 9%
Contributions(1) 1,760 2,149 2,378 1,425 1,036 5,131 2,461 (41)%
Distributions(2) (588) (2,178) (997) (429) (1,459) (1,033) (1,888) 148%
Market value, FX and other(3) (489) 568 544 304 158 (803) 462 na
Ending balance$52,881 $53,420 $55,345 $56,645 $56,380 $52,881 $56,380 7%
Focused Commingled Funds
Beginning balance$26,352 $27,236 $29,565 $30,086 $30,762 $25,587 $30,086 17%
Contributions(1) 1,139 2,497 713 796 992 2,299 1,788 (13)%
Distributions(2) (304) (168) (308) (252) (988) (686) (1,240) 225%
Market value, FX and other(3) 49 - 116 132 139 36 271 184%
Ending balance$27,236 $29,565 $30,086 $30,762 $30,905 $27,236 $30,905 13%
Total
Beginning balance$78,550 $80,117 $82,985 $85,431 $87,407 $75,173 $85,431 11%
Contributions(1) 2,899 4,646 3,091 2,221 2,028 7,430 4,249 (30)%
Distributions(2) (892) (2,346) (1,305) (681) (2,447) (1,719) (3,128) 174%
Market value, FX and other(3) (440) 568 660 436 297 (767) 733 na
Ending balance$80,117 $82,985 $85,431 $87,407 $87,285 $80,117 $87,285 9%

(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.

Asset Class Summary

Three Months Ended Percentage Change
(in millions)September
30, 2022
December
31, 2022
March 31,
2023
June 30,
2023
September
30, 2023
vs. FQ2'23
FEAUM
Private equity$42,781$45,048$45,766$46,539$46,464 9%
Infrastructure 18,592 18,314 19,274 19,874 20,122 8%
Private debt 13,377 14,082 14,361 14,865 15,122 13%
Real estate 5,367 5,541 6,030 6,129 5,577 4%
Total$80,117$82,985$85,431$87,407$87,285 9%
Separately managed accounts$52,881$53,420$55,345$56,645$56,380 7%
Focused commingled funds 27,236 29,565 30,086 30,762 30,905 13%
Total$80,117$82,985$85,431$87,407$87,285 9%
AUM(1)
Private equity$72,169$70,868$71,611$73,511$76,031 5%
Infrastructure 27,749 27,324 27,285 28,521 28,678 3%
Private debt 23,583 24,437 26,592 27,099 27,520 17%
Real estate 11,516 11,372 12,891 13,469 13,612 18%
Total$135,017$134,001$138,379$142,600$145,841 8%
Separately managed accounts$78,625$77,797$82,243$85,058$85,387 9%
Focused commingled funds 43,928 43,289 43,062 44,389 46,266 5%
Advisory AUM 12,464 12,915 13,074 13,153 14,188 14%
Total$135,017$134,001$138,379$142,600$145,841 8%
AUA
Private equity$239,640$239,270$242,461$251,880$264,327 10%
Infrastructure 47,538 47,833 50,700 53,593 55,146 16%
Private debt 16,831 16,823 17,362 17,525 18,026 7%
Real estate 162,691 164,072 171,668 173,992 175,369 8%
Total$466,700$467,998$482,191$496,990$512,868 10%
Total capital responsibility(2)$601,717$601,999$620,570$639,590$658,709 9%

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).

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

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 September 30, 2023 reflects final data for the prior period (June 30, 2023), adjusted for net new client account activity through September 30, 2023. NAV data for underlying investments is as of June 30, 2023, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2023. When NAV data is not available by the business day occurring on or after 100 days following June 30, 2023, 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 September 30, 2023 reflects final data for the prior period (June 30, 2023), adjusted for net new client account activity through September 30, 2023. NAV data for underlying investments is as of June 30, 2023, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2023. When NAV data is not available by the business day occurring on or after 100 days following June 30, 2023, 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.

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.

Private Wealth Transaction refers to new arrangements entered into by which certain members of the StepStone Group Private Wealth LLC ("SPW") team received a profits interest in SPW and concurrently entered into an option agreement which provides that, (i) we have the right to acquire the profits interest at the end of any fiscal quarter after June 30, 2027, in exchange for payment of a call price and (ii) the SPW management team, through an entity named CH Equity Partners, LLC, has the right to put the profits interest to us on June 30, 2026 or at the end of any fiscal quarter thereafter, in exchange for payment of a put price.

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 this capital is 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.


KI-Champions: 3 Top-Werte, die Ihr Portfolio revolutionieren
Fordern Sie jetzt den brandneuen kostenfreien Sonderreport an und erfahren Sie, wie Sie von den enormen Wachstumschancen im Bereich Künstliche Intelligenz profitieren können - 100 % kostenlos.
Hier klicken
© 2023 GlobeNewswire (Europe)
Werbehinweise: Die Billigung des Basisprospekts durch die BaFin ist nicht als ihre Befürwortung der angebotenen Wertpapiere zu verstehen. Wir empfehlen Interessenten und potenziellen Anlegern den Basisprospekt und die Endgültigen Bedingungen zu lesen, bevor sie eine Anlageentscheidung treffen, um sich möglichst umfassend zu informieren, insbesondere über die potenziellen Risiken und Chancen des Wertpapiers. Sie sind im Begriff, ein Produkt zu erwerben, das nicht einfach ist und schwer zu verstehen sein kann.