The following is a summary of the StepStone Group Inc. (STEP) Q2 2025 Earnings Call Transcript:
Financial Performance:
StepStone Group reported a GAAP net income of $53.1 million, with GAAP net income attributable to StepStone Group Inc. at $17.6 million, or $0.26 per share.
Fee-related earnings reached $72.3 million, marking a 65% increase from the previous year, driven by robust growth in fee-earning assets and high net realized performance fees.
Adjusted net income for the quarter hit $53.6 million, or $0.45 per share, reflecting a significant improvement from $30.2 million, or $0.26 per share, in the second quarter of last fiscal year.
Business Progress:
StepStone closed the fifth vintage of its private equity secondaries fund at $4.8 billion, marking the largest commingled fund to date.
The company's private wealth platform surpassed $5 billion in net asset value, with StepStone Private Wealth evolving significantly as a contributor to AUM and earnings growth.
Firm-wide, StepStone grew its fee-earning AUM by $4 billion, with total AUM reaching $134 billion.
Significant activity in fundraising contributed positively, with over $30 billion in gross AUM inflows over the last 12 months.
Opportunities:
The ongoing growth in demand for private market solutions and the continuous development of the secondaries market provide significant opportunities for StepStone.
The expansions in the firm's private equity secondaries, special situations real estate secondaries, and infrastructure co-investment funds present opportunities for enhancing revenue streams.
Risks:
Constraints on liquidity remain a challenge across private markets due to periods of subdued market activity and lower-than-average monetization rates of private market investments.
Specified challenges in parts of the real estate and venture capital markets indicate sector-specific vulnerabilities and potential downturns if not navigated properly.
More details: StepStone Group IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
