StepStone Group Inc. reported significant financial performance in its latest quarterly filing, with total revenues reaching $339.0 million for the three months ended December 31, 2024, a substantial increase from a loss of $14.6 million in the same period last year. For the nine months ended December 31, 2024, revenues surged to $797.1 million, up from $354.8 million in the prior year. The growth was primarily driven by a 26% increase in management and advisory fees, which totaled $190.8 million, and a notable rise in performance fees, including carried interest allocations, which amounted to $148.2 million.
The company experienced a marked improvement in profitability, although it still reported a net loss of $192.0 million for the quarter, compared to a loss of $20.2 million in the same quarter of the previous year. For the nine-month period, the net loss was $161.1 million, contrasting with a profit of $27.3 million in the prior year. The losses were attributed to increased compensation expenses, particularly in equity-based compensation, which rose significantly due to liability classified awards related to the company's private wealth subsidiary.
Strategically, StepStone has been active in expanding its operations, with total assets under management (AUM) reaching $179 billion as of December 31, 2024, up from $157 billion in March 2024. The firm also reported a 24% growth in average fee-earning AUM, reflecting strong client activity and new fund closings. The company has continued to enhance its investment capabilities, with approximately 1,090 employees, including 375 investment professionals, as of the end of the reporting period.
In terms of operational metrics, StepStone's fee-related earnings (FRE) increased by 46% to $74.1 million for the three months ended December 31, 2024, driven by higher adjusted management and advisory fees. The company also reported a significant increase in its undeployed fee-earning capital, which stood at $21.7 billion, indicating potential future revenue generation once this capital is invested. Looking ahead, StepStone remains focused on leveraging its multi-asset class expertise and expanding its client base, while navigating the challenges posed by market conditions and competition in the private markets sector.
About StepStone Group Inc.
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