StepStone Group Inc (NASDAQ: STEP) is a private markets asset management company that constructs and manages customized investment portfolios across private equity, infrastructure, private debt, and real estate on behalf of institutional and private wealth clients. It earns revenue through management and advisory fees on fee-earning assets under management, plus performance fees comprising incentive fees and carried interest allocations. As of March 31, 2025, StepStone managed $121.4 billion in fee-earning AUM (FEAUM), up from $93.9 billion as of March 31, 2024, deployed across separately managed accounts ($73.2 billion) and focused commingled funds ($48.2 billion). Management and advisory fees, net, were $767.0 million in FY2025, the primary recurring revenue stream. Total committed capital across all strategies reached $409.9 billion as of December 31, 2024. The firm operates through offices across 15 countries, with approximately 45% of investment professionals based outside the United States as of March 31, 2025.

Revenue model

Management and advisory fees charged on FEAUM (weighted-average fee rate of 0.65% as of March 31, 2025) form the recurring revenue base: $767.0 million in FY2025. Performance fees, comprising incentive fees ($32.3 million in FY2025) and realized carried interest allocations ($159.7 million in FY2025), provide variable upside tied to investment returns above hurdle rates.

Products and services

Separately managed accounts (SMAs) for customized private markets portfolios; focused commingled funds across private equity, infrastructure, private debt, and real estate; primary fund investments, secondary market transactions, and co-investments; advisory services including strategic planning, portfolio repositioning, and portfolio monitoring; proprietary software tools including SPI Research for investment decision-making.

Customers and end markets

Public and private defined benefit and defined contribution pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and private wealth clients. Client relationships are maintained by approximately 200 business development, marketing, and client relations professionals across 15 countries.

Value-chain role

Discretionary and non-discretionary asset manager and investment adviser sitting between capital allocators (institutional investors, private wealth clients) and underlying private markets fund managers. Aggregates capital, conducts due diligence via proprietary data systems, and allocates across primaries, secondaries, and co-investments.

Geographic exposure

Global operations with offices across 15 countries as of March 31, 2025. Regulated in the US, UK, EU/EEA (including Ireland and Luxembourg under AIFMD/AIFMD II), Switzerland, Japan, Korea, Singapore, Canada, and Brazil. Approximately 45% of investment professionals were based outside the United States as of March 31, 2025.

Source: SEC 10-K, filed 2025-05-23

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