StepStone Group Inc.

What they do

StepStone manages and advises on private markets portfolios for institutional and private wealth clients, using strategies that include primary fund commitments, secondary market purchases, and direct co-investments. The firm generates revenue from management and advisory fees, performance fees, and carried interest, and also invests its own capital in the funds it manages. As of June 30, 2026, StepStone was responsible for approximately $913 billion in total capital, with $245 billion in AUM and $668 billion in AUA, and it operates from 31 cities across 19 countries.

Revenue drivers

• Separately managed accounts (SMAs) — SMAs, including directly managed assets, comprised $140 billion of AUM as of June 30, 2026, and generate management fees based on client-specific portfolios.
• Focused commingled funds — These multi-client funds deploy capital in specific asset classes and strategies, comprising $89 billion of AUM as of June 30, 2026, and earn management and performance fees.
• Advisory and data services — Includes recurring portfolio construction support, project-based due diligence, and licensed access to proprietary tools like SPI Research; this segment comprised $668 billion of AUA and $16 billion of AUM as of June 30, 2026.

Recent performance

For the quarter ended June 30, 2026, StepStone reported revenue of $378.9 million, down from $588.6 million in the prior quarter, and the company declared a dividend of $0.33 per share. For fiscal year 2026 (ended March 31, 2026), annual revenue was $1.99 billion, but net income was a loss of $743.3 million, with diluted EPS of -$6.78. Operating cash flow for fiscal 2026 was $66.5 million, and total capital under management grew to $913 billion as of June 30, 2026, from $885 billion at March 31, 2026.

Strategy

StepStone focuses on customization, a global-and-local operating model, and multi-asset class expertise. The firm continues to invest in proprietary data and technology platforms such as SPI, which includes research, reporting, and pacing tools. Management has pursued opportunistic acquisitions to accelerate growth, such as the Greenspring acquisition, and aims to deepen client relationships across pension funds, sovereign wealth funds, and private wealth channels.

Risks

• Market conditions — Higher borrowing costs and market headwinds could reduce the availability of suitable investment opportunities and impact fund performance.
• Performance fees volatility — Carried interest and performance fees are unpredictable and depend on fund performance, which can swing quarterly results.
• Consolidation of funds — Consolidated funds can amplify earnings volatility and affect reported net income, as seen in fiscal 2026 losses.
• Client concentration — A significant portion of revenue comes from large institutional clients, and loss of a key client could materially impact results.

Outlook

Management has not provided specific forward guidance in the provided excerpts, but they expect continued growth in private markets allocations and are expanding capabilities through investments in technology and team. The company declared a quarterly dividend of $0.33 per share for the first quarter of fiscal 2027, indicating stable cash return expectations. StepStone continues to review over 4,700 investment opportunities annually and conducts thousands of fund manager meetings, suggesting sustained activity in sourcing and deploying capital.