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

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