StepStone Group Reports Fourth Quarter and Fiscal Year 2025 Results

/EIN News/ -- NEW YORK, May 22, 2025 (GLOBE NEWSWIRE) -- StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended March 31, 2025. This represents results for the fourth quarter and fiscal year ended March 31, 2025. The Board of Directors of the Company has declared a quarterly cash dividend of $0.24 per share of Class A common stock, and a supplemental cash dividend of $0.40 per share of Class A common stock, both payable on June 30, 2025, to the holders of record as of the close of business on June 13, 2025.

StepStone issued a full detailed presentation of its fourth quarter and full fiscal year ended March 31, 2025 results, which can be accessed by visiting the Company’s website at https://shareholders.stepstonegroup.com.

Webcast and Earnings Conference Call

Management will host a webcast and conference call today, Thursday, May 22, 2025 at 5:00 pm ET to discuss the Company’s results for the fourth quarter and fiscal year ended March 31, 2025. The webcast will be made available on the Shareholders section of the Company's website at https://shareholders.stepstonegroup.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. A replay will also be available on the Shareholders section of the Company's website approximately two hours after the conclusion of the event.

To join as a live participant in the question and answer portion of the call, participants must register at https://register-conf.media-server.com/register/BI83b497f55a944def8cfadab7f935822b. Upon registering you will receive the dial-in number and a PIN to join the call as well as an email confirmation with the details.

About StepStone

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of March 31, 2025, StepStone was responsible for approximately $709 billion of total capital, including $189 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

Forward-Looking Statements

Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, our successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under the “Risk Factors” section of our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 24, 2024, and in our annual report on Form 10-K to be filed with the SEC for the fiscal year ended March 31, 2025, and in our subsequent reports filed with the SEC, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use the following non-GAAP financial measures: fee revenues, adjusted revenues, adjusted net income (on both a pre-tax and after-tax basis), adjusted net income per share, adjusted weighted-average shares, fee-related earnings, fee-related earnings margin, gross realized performance fees and performance fee-related earnings. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures in this earnings release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. For definitions of these non-GAAP measures and reconciliations to applicable GAAP measures, please see the section titled “Non-GAAP Financial Measures: Definitions and Reconciliations.”

Financial Highlights and Key Business Drivers/Operating Metrics

	Three Months Ended																Year Ended March 31,							Percentage Change
(in thousands, except share and per share amounts and where noted)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025			vs. FQ4'24	vs. FY'24
Financial Highlights
GAAP Results
Management and advisory fees, net	$	153,410		$	178,015		$	184,758		$	190,840		$	213,401			$	585,140		$	767,014			39%	31%
Total revenues		356,810			186,401			271,677			339,023			377,729				711,631			1,174,830			6%	65%
Total performance fees		203,400			8,386			86,919			148,183			164,328				126,491			407,816			(19)%	222%
Net income (loss)		82,542			48,045			53,138			(287,163	)		13,153				167,820			(172,827	)		(84)%	na
Net income (loss) per share of Class A common stock:
Basic	$	0.48		$	0.20		$	0.26		$	(2.61	)	$	(0.24	)		$	0.91		$	(2.52	)		na	na
Diluted	$	0.48		$	0.20		$	0.26		$	(2.61	)	$	(0.24	)		$	0.91		$	(2.52	)		na	na
Weighted-average shares of Class A common stock:
Basic		64,194,859			66,187,754			68,772,051			73,687,289			75,975,770				63,489,135			71,142,916			18%	12%
Diluted		67,281,567			68,593,761			69,695,315			73,687,289			75,975,770				66,544,038			71,142,916			13%	7%
Quarterly dividend per share of Class A common stock(1)	$	0.21		$	0.21		$	0.24		$	0.24		$	0.24			$	0.83		$	0.93			14%	12%
Supplemental dividend per share of Class A common stock(2)	$	—		$	0.15		$	—		$	—		$	—			$	0.25		$	0.15			na	(40)%
Accrued carried interest allocations	$	1,354,051		$	1,328,853		$	1,381,110		$	1,474,543		$	1,495,664										10%
Non-GAAP Results(3)
Fee revenues(4)	$	153,808		$	178,514		$	185,481		$	191,832		$	214,662			$	586,379		$	770,489			40%	31%
Adjusted revenues		177,357			221,165			208,788			243,905			295,861				665,060			969,719			67%	46%
Fee-related earnings (“FRE”)		50,900			71,656			72,349			74,118			94,081				189,793			312,204			85%	64%
FRE margin(5)		33	%		40	%		39	%		39	%		44	%			32	%		41	%
Gross realized performance fees		23,549			42,651			23,307			52,073			81,199				78,681			199,230			245%	153%
Performance fee-related earnings (“PRE”)		12,128			21,803			14,540			26,596			41,543				40,994			104,482			243%	155%
Adjusted net income (“ANI”)		37,716			57,241			53,569			52,659			80,603				139,393			244,072			114%	75%
Adjusted weighted-average shares		115,512,301			118,510,499			118,774,233			118,935,179			118,869,111				115,134,473			118,772,442
ANI per share	$	0.33		$	0.48		$	0.45		$	0.44		$	0.68			$	1.21		$	2.05			106%	69%
Key Business Drivers/Operating Metrics (in billions)
Assets under management (“AUM”)(6)	$	156.6		$	169.3		$	176.1		$	179.2		$	189.4										21%
Assets under advisement (“AUA”)(6)		521.1			531.4			505.9			518.7			519.7										—
Fee-earning AUM (“FEAUM”)		93.9			100.4			104.4			114.2			121.4										29%
Undeployed fee-earning capital (“UFEC”)		22.6			27.6			29.7			21.7			24.6										9%

_______________________________
(1) Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.
(2) The supplemental cash dividend relates to earnings in respect of our full fiscal years 2023 and 2024, respectively.
(3) Fee revenues, adjusted revenues, FRE, FRE margin, gross realized performance fees, PRE, ANI, adjusted weighted-average shares and ANI per share are non-GAAP measures. See the definitions of these measures and reconciliations to the respective, most comparable GAAP measures under “Non-GAAP Financial Measures: Definitions and Reconciliations.”
(4) Excludes the impact of consolidating the Consolidated Funds. See reconciliation of GAAP measures to adjusted measures that follows.
(5) FRE margin is calculated by dividing FRE by fee revenues.
(6) AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented. Does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.  

StepStone Group Inc.
GAAP Consolidated Balance Sheets
(in thousands, except share and per share amounts)

	As of March 31,
		2025				2024
Assets
Cash and cash equivalents	$	244,791			$	143,430
Restricted cash		502				718
Fees and accounts receivable		80,871				56,769
Due from affiliates		92,723				67,531
Investments:
Investments in funds		183,694				135,043
Accrued carried interest allocations		1,495,664				1,354,051
Legacy Greenspring investments in funds and accrued carried interest allocations(1)		629,228				631,197
Deferred income tax assets		382,886				184,512
Lease right-of-use assets, net		91,841				97,763
Other assets and receivables		62,869				60,611
Intangibles, net		263,872				304,873
Goodwill		580,542				580,542
Assets of Consolidated Funds:
Cash and cash equivalents		44,511				38,164
Investments, at fair value		415,011				131,858
Other assets		17,688				1,745
Total assets	$	4,586,693			$	3,788,807
Liabilities and stockholders’ equity
Accounts payable, accrued expenses and other liabilities	$	89,731			$	127,417
Accrued compensation and benefits		736,695				101,481
Accrued carried interest-related compensation		757,968				719,497
Legacy Greenspring accrued carried interest-related compensation(1)		495,739				484,154
Due to affiliates		331,821				212,918
Lease liabilities		113,519				119,739
Debt obligations		269,268				148,822
Liabilities of Consolidated Funds:
Other liabilities		17,580				1,645
Total liabilities		2,812,321				1,915,673
Redeemable non-controlling interests in Consolidated Funds		377,897				102,623
Redeemable non-controlling interests in subsidiaries		6,327				115,920
Stockholders’ equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 76,761,399 and 65,614,902 issued and outstanding as of March 31, 2025 and 2024, respectively		77				66
Class B common stock, $0.001 par value, 125,000,000 authorized; 39,656,954 and 45,030,959 issued and outstanding as of March 31, 2025 and 2024, respectively		40				45
Additional paid-in capital		421,057				310,293
Retained earnings (accumulated deficit)		(242,546	)			13,768
Accumulated other comprehensive income		728				304
Total StepStone Group Inc. stockholders’ equity		179,356				324,476
Non-controlling interests in subsidiaries		1,056,510				974,559
Non-controlling interests in legacy Greenspring entities(1)		133,489				147,042
Non-controlling interests in the Partnership		20,793				208,514
Total stockholders’ equity		1,390,148				1,654,591
Total liabilities and stockholders’ equity	$	4,586,693			$	3,788,807

(1)   Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.     

StepStone Group Inc.
GAAP Consolidated Statements of Income (Loss)
(in thousands, except share and per share amounts)

	Three Months Ended March 31,								Year Ended March 31,
		2025				2024				2025				2024
Revenues
Management and advisory fees, net	$	213,401			$	153,410			$	767,014			$	585,140
Performance fees:
Incentive fees		5,910				2,496				32,275				25,339
Carried interest allocations:
Realized		75,935				18,054				159,653				49,401
Unrealized		21,177				151,757				141,547				126,908
Total carried interest allocations		97,112				169,811				301,200				176,309
Legacy Greenspring carried interest allocations(1)		61,306				31,093				74,341				(75,157	)
Total performance fees		164,328				203,400				407,816				126,491
Total revenues		377,729				356,810				1,174,830				711,631
Expenses
Compensation and benefits:
Cash-based compensation		85,510				74,411				331,808				292,962
Equity-based compensation		126,197				13,937				669,126				42,357
Performance fee-related compensation:
Realized		39,656				11,421				94,748				37,687
Unrealized		27,777				84,014				94,272				74,694
Total performance fee-related compensation		67,433				95,435				189,020				112,381
Legacy Greenspring performance fee-related compensation(1)		61,306				31,093				74,341				(75,157	)
Total compensation and benefits		340,446				214,876				1,264,295				372,543
General, administrative and other		43,152				54,310				177,354				167,317
Total expenses		383,598				269,186				1,441,649				539,860
Other income (expense)
Investment income		9,386				3,337				15,096				7,452
Legacy Greenspring investment income (loss)(1)		2,934				(33	)			(1,185	)			(9,087	)
Investment income of Consolidated Funds		34,496				6,115				65,374				28,472
Interest income		3,218				1,429				10,850				3,664
Interest expense		(3,191	)			(2,649	)			(12,701	)			(9,331	)
Other income (loss)		(31,024	)			(1,308	)			(32,650	)			2,455
Total other income		15,819				6,891				44,784				23,625
Income (loss) before income tax		9,950				94,515				(222,035	)			195,396
Income tax expense (benefit)		(3,203	)			11,973				(49,208	)			27,576
Net income (loss)		13,153				82,542				(172,827	)			167,820
Less: Net income attributable to non-controlling interests in subsidiaries		16,316				4,443				79,282				37,240
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)		2,934				(33	)			(1,185	)			(9,087	)
Less: Net income (loss) attributable to non-controlling interests in the Partnership		(17,994	)			37,279				(125,850	)			59,956
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds		30,630				4,248				53,731				15,838
Less: Net income (loss) attributable to redeemable non-controlling interests in subsidiaries		(225	)			5,782				758				5,782
Net income (loss) attributable to StepStone Group Inc.	$	(18,508	)		$	30,823			$	(179,563	)		$	58,091
Net income (loss) per share of Class A common stock:
Basic	$	(0.24	)		$	0.48			$	(2.52	)		$	0.91
Diluted	$	(0.24	)		$	0.48			$	(2.52	)		$	0.91
Weighted-average shares of Class A common stock:
Basic		75,975,770				64,194,859				71,142,916				63,489,135
Diluted		75,975,770				67,281,567				71,142,916				66,544,038

(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.  

Non-GAAP Financial Measures: Definitions and Reconciliations

Fee Revenues

Fee revenues represents management and advisory fees, net, including amounts earned from the Consolidated Funds which are eliminated in consolidation. We believe fee revenues is useful to investors because it presents the net amount of management and advisory fee revenues attributable to us.

The table below presents the components of fee revenues.

	Three Months Ended											Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025				2024		2025
Focused commingled funds(1)(2)	$	80,434	$	104,798	$	107,855	$	105,718	$	124,604		$	296,667	$	442,975
Separately managed accounts		55,945		57,376		61,393		66,245		67,695			223,958		252,709
Advisory and other services		16,147		14,769		14,907		17,458		19,927			60,057		67,061
Fund reimbursement revenues(1)		1,282		1,571		1,326		2,411		2,436			5,697		7,744
Fee revenues	$	153,808	$	178,514	$	185,481	$	191,832	$	214,662		$	586,379	$	770,489

_______________________________
(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2) Includes income-based incentive fees from certain funds:

	Three Months Ended											Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025				2024		2025
Income-based incentive fees	$	753	$	1,113	$	1,347	$	2,120	$	3,377		$	1,372	$	7,956

Adjusted Revenues

Adjusted revenues represents the components of revenues used in the determination of ANI and comprise fee revenues, adjusted incentive fees and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues.

The table below shows a reconciliation of revenues to adjusted revenues.

	Three Months Ended															Year Ended March 31,
(in thousands)	March 31, 2024			June 30, 2024		September 30, 2024			December 31, 2024			March 31, 2025					2024			2025
Total revenues	$	356,810		$	186,401	$	271,677		$	339,023		$	377,729			$	711,631		$	1,174,830
Unrealized carried interest allocations		(151,757	)		25,170		(52,215	)		(93,325	)		(21,177	)			(126,908	)		(141,547	)
Deferred incentive fees		1,450			6		2,445			—			(513	)			2,392			1,938
Legacy Greenspring carried interest allocations		(31,093	)		9,089		(13,917	)		(8,207	)		(61,306	)			75,157			(74,341	)
Management and advisory fee revenues for the Consolidated Funds(1)		398			499		723			992			1,261				1,239			3,475
Incentive fees for the Consolidated Funds(2)		1,549			—		75			5,422			(133	)			1,549			5,364
Adjusted revenues	$	177,357		$	221,165	$	208,788		$	243,905		$	295,861			$	665,060		$	969,719

_______________________________
(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2) Reflects the add back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation.

Adjusted Net Income

Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to evaluate profitability. ANI represents the after-tax net realized income attributable to us. ANI does not reflect legacy Greenspring carried interest allocation revenues, legacy Greenspring carried interest-related compensation and legacy Greenspring investment income (loss) as none of the economics are attributable to us. The components of revenues used in the determination of ANI (“adjusted revenues”) comprise fee revenues, adjusted incentive fees and realized carried interest allocations. In addition, ANI excludes: (a) unrealized carried interest allocation revenues and related compensation, (b) unrealized investment income (loss), (c) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). ANI is fully taxed at our blended statutory rate. We believe ANI and adjusted revenues are useful to investors because they enable investors to evaluate the performance of our business across reporting periods.

Fee-Related Earnings

Fee-related earnings, or “FRE,” is a non-GAAP performance measure used to monitor our baseline earnings from recurring management and advisory fees. FRE is a component of ANI and comprises fee revenues less adjusted expenses which are operating expenses other than (a) performance fee-related compensation, (b) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (c) amortization of intangibles, (d) charges associated with acquisitions and corporate transactions, and (e) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). FRE is presented before income taxes. We believe FRE is useful to investors because it provides additional insight into the operating profitability of our business and our ability to cover direct base compensation and operating expenses from total fee revenue.

The table below shows a reconciliation of GAAP measures to additional non-GAAP measures. We use the non-GAAP measures presented below as components when calculating FRE and ANI (as defined below). We believe these additional non-GAAP measures are useful to investors in evaluating both the baseline earnings from recurring management and advisory fees, which provide additional insight into the operating profitability of our business, and the after-tax net realized income attributable to us, allowing investors to evaluate the performance of our business. These additional non-GAAP measures remove the impact of Consolidated Funds that we are required to consolidate under GAAP, and certain other items that we believe are not indicative of our core operating performance.

	Three Months Ended																Year Ended March 31,
(in thousands)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025
GAAP management and advisory fees, net	$	153,410		$	178,015		$	184,758		$	190,840		$	213,401			$	585,140		$	767,014
Management and advisory fee revenues for the Consolidated Funds(1)		398			499			723			992			1,261				1,239			3,475
Fee revenues	$	153,808		$	178,514		$	185,481		$	191,832		$	214,662			$	586,379		$	770,489
GAAP incentive fees	$	2,496		$	841		$	3,155		$	22,369		$	5,910			$	25,339		$	32,275
Adjustments(2)		2,999			6			2,520			5,422			(646	)			3,941			7,302
Adjusted incentive fees	$	5,495		$	847		$	5,675		$	27,791		$	5,264			$	29,280		$	39,577
GAAP cash-based compensation	$	74,411		$	78,224		$	82,871		$	85,203		$	85,510			$	292,962		$	331,808
Adjustments(3)		(461	)		(428	)		(285	)		339			—				(2,140	)		(374	)
Adjusted cash-based compensation	$	73,950		$	77,796		$	82,586		$	85,542		$	85,510			$	290,822		$	331,434
GAAP equity-based compensation	$	13,937		$	19,179		$	37,332		$	486,418		$	126,197			$	42,357		$	669,126
Adjustments(4)		(12,210	)		(16,785	)		(34,947	)		(483,958	)		(123,263	)			(36,635	)		(658,953	)
Adjusted equity-based compensation	$	1,727		$	2,394		$	2,385		$	2,460		$	2,934			$	5,722		$	10,173
GAAP general, administrative and other	$	54,310		$	41,011		$	50,061		$	43,130		$	43,152			$	167,317		$	177,354
Adjustments(5)		(27,079	)		(14,343	)		(21,900	)		(13,418	)		(11,015	)			(67,275	)		(60,676	)
Adjusted general, administrative and other	$	27,231		$	26,668		$	28,161		$	29,712		$	32,137			$	100,042		$	116,678
GAAP interest income	$	1,429		$	2,057		$	3,016		$	2,559		$	3,218			$	3,664		$	10,850
Interest income earned by the Consolidated Funds(6)		(612	)		(907	)		(1,363	)		(887	)		(1,600	)			(1,645	)		(4,757	)
Adjusted interest income	$	817		$	1,150		$	1,653		$	1,672		$	1,618			$	2,019		$	6,093
GAAP other income (loss)	$	(1,308	)	$	(351	)	$	1,177		$	(2,452	)	$	(31,024	)		$	2,455		$	(32,650	)
Adjustments(7)		395			(72	)		(1,082	)		1,883			30,606				(3,879	)		31,335
Adjusted other income (loss)	$	(913	)	$	(423	)	$	95		$	(569	)	$	(418	)		$	(1,424	)	$	(1,315	)

______________________________
(1) Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2) Reflects the add back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.
(3) Reflects the removal of compensation paid to certain employees as part of an acquisition earn-out and unrealized amounts associated with cash-based incentive awards tracked to the performance of a designated investment fund.
(4) Reflects the removal of equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
(5) Reflects the removal of lease remeasurement adjustments, accelerated depreciation of leasehold improvements for changes in lease terms, amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation and other non-core operating income and expenses.
(6) Reflects the removal of interest income earned by the Consolidated Funds.
(7) Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds, gain associated with amounts received as part of negotiations with a third party related to certain corporate matters, loss on sale of subsidiary and the impact of consolidation of the Consolidated Funds.

The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.

	Three Months Ended																Year Ended March 31,
(in thousands)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025
Income (loss) before income tax	$	94,515			54,842		$	57,888		$	(344,715	)	$	9,950			$	195,396		$	(222,035	)
Net income attributable to non-controlling interests in subsidiaries(1)		(12,822	)		(18,951	)		(17,812	)		(32,765	)		(33,369	)			(49,220	)		(102,897	)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities		33			1,255			4,031			(1,167	)		(2,934	)			9,087			1,185
Unrealized carried interest allocations		(151,757	)		25,170			(52,215	)		(93,325	)		(21,177	)			(126,908	)		(141,547	)
Unrealized performance fee-related compensation		84,014			(10,923	)		27,748			49,670			27,777				74,694			94,272
Unrealized investment (income) loss		(2,280	)		(1,180	)		(430	)		656			(6,007	)			(907	)		(6,961	)
Impact of Consolidated Funds		(4,138	)		(7,731	)		(9,267	)		(6,892	)		(35,723	)			(26,076	)		(59,613	)
Deferred incentive fees		1,450			6			2,445			—			(513	)			2,392			1,938
Equity-based compensation(2)		12,210			16,785			34,947			483,958			123,263				36,635			658,953
Amortization of intangibles		10,423			10,250			10,250			10,250			10,250				42,406			41,000
Tax Receivable Agreements adjustments through earnings		90			—			—			—			(348	)			312			(348	)
Non-core items(3)		16,780			4,137			11,349			2,094			32,474				21,565			50,054
Pre-tax ANI		48,518			73,660			68,934			67,764			103,643				179,376			314,001
Income taxes(4)		(10,802	)		(16,419	)		(15,365	)		(15,105	)		(23,040	)			(39,983	)		(69,929	)
ANI		37,716			57,241			53,569			52,659			80,603				139,393			244,072
Income taxes(4)		10,802			16,419			15,365			15,105			23,040				39,983			69,929
Realized carried interest allocations		(18,054	)		(41,804	)		(17,632	)		(24,282	)		(75,935	)			(49,401	)		(159,653	)
Realized performance fee-related compensation		11,421			20,848			8,767			25,477			39,656				37,687			94,748
Realized investment income		(1,057	)		(1,415	)		(1,621	)		(1,720	)		(3,379	)			(6,545	)		(8,135	)
Adjusted incentive fees(5)		(5,495	)		(847	)		(5,675	)		(27,791	)		(5,264	)			(29,280	)		(39,577	)
Adjusted interest income(5)		(817	)		(1,150	)		(1,653	)		(1,672	)		(1,618	)			(2,019	)		(6,093	)
Interest expense		2,649			2,990			3,512			3,008			3,191				9,331			12,701
Adjusted other (income) loss(5)(6)		913			423			(95	)		569			418				1,424			1,315
Net income attributable to non-controlling interests in subsidiaries(1)		12,822			18,951			17,812			32,765			33,369				49,220			102,897
FRE	$	50,900		$	71,656		$	72,349		$	74,118		$	94,081			$	189,793		$	312,204

_______________________________
(1) Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary:

	Three Months Ended											Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025				2024		2025
FRE attributable to non-controlling interests in subsidiaries and profits interests	$	11,559	$	13,308	$	14,969	$	21,063	$	30,451		$	42,074	$	79,791
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests		1,263		5,643		2,843		11,702		2,918			7,146		23,106
Net income attributable to non-controlling interests in subsidiaries and profits interests	$	12,822	$	18,951	$	17,812	$	32,765	$	33,369		$	49,220	$	102,897

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.

	Three Months Ended												Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025					2024		2025
FRE attributable to profits interests issued in the private wealth subsidiary	$	—	$	574	$	2,051	$	2,956	$	6,399			$	—	$	11,980
Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary		—		51		206		11,137		(224	)			3,074		11,170
Net income attributable to profits interests issued in the private wealth subsidiary	$	—	$	625	$	2,257	$	14,093	$	6,175			$	3,074	$	23,150

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries presented above specifically not attributable to the profits interests issued in the private wealth subsidiary is presented below.

	Three Months Ended											Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025				2024		2025
FRE attributable to non-controlling interests in subsidiaries	$	11,559	$	12,734	$	12,918	$	18,107	$	24,052		$	42,074	$	67,811
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries		1,263		5,592		2,637		565		3,142			4,072		11,936
Net income attributable to non-controlling interests in subsidiaries	$	12,822	$	18,326	$	15,555	$	18,672	$	27,194		$	46,146	$	79,747

(2) Reflects equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
(3) Includes (income) expense related to the following non-core operating income and expenses:

	Three Months Ended													Year Ended March 31,
(in thousands)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024			March 31, 2025					2024			2025
Transaction costs	$	3,985	$	672	$	140	$	12		$	179			$	4,855		$	1,003
Lease remeasurement adjustments		—		—		—		—			—				(106	)		—
Accelerated depreciation of leasehold improvements for changes in lease terms		—		—		—		—			—				1,893			—
(Gain) loss on change in fair value for contingent consideration obligation		12,280		2,953		10,888		2,476			(205	)			17,217			16,112
Compensation paid to certain employees as part of an acquisition earn-out		515		482		321		(394	)		—				2,194			409
Loss on payment made in connection with private wealth fund secondary transaction		—		—		—		—			32,500				—			32,500
Gain from negotiation of certain corporate matters		—		—		—		—			—				(5,300	)		—
Loss on sale of subsidiary		—		—		—		—			—				812			—
Other non-core items		—		30		—		—			—				—			30
Total non-core operating income and expenses	$	16,780	$	4,137	$	11,349	$	2,094		$	32,474			$	21,565		$	50,054

(4) Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

	Three Months Ended						Year Ended March 31,
	March 31, 2024	June 30, 2024	September 30, 2024	December 31, 2024	March 31, 2025		2024		2025
Federal statutory rate	21.0%	21.0%	21.0%	21.0%	21.0%		21.0%		21.0%
Combined state, local and foreign rate	1.3%	1.3%	1.3%	1.3%	1.2%		1.3%		1.3%
Blended statutory rate	22.3%	22.3%	22.3%	22.3%	22.2%		22.3%		22.3%

(5) Excludes the impact of consolidating the Consolidated Funds and includes deferred incentive fees which are not included in GAAP revenues.
(6) Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($0.3 million for the three months ended March 31, 2025, $(0.1) million for the three months ended March 31, 2024, and $0.3 million and $(0.3) million in fiscal 2025 and fiscal 2024, respectively), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds ($32.5 million for the three months ended March 31, 2025 and in fiscal 2025), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters ($5.3 million in fiscal 2024), and loss on sale of subsidiary ($0.8 million in fiscal 2024).

Fee-Related Earnings Margin

FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by fee revenues. We believe FRE margin is an important measure of profitability on revenues that are largely recurring by nature. We believe FRE margin is useful to investors because it enables them to better evaluate the operating profitability of our business across periods.

The table below shows a reconciliation of FRE to FRE margin.

	Three Months Ended																Year Ended March 31,
(in thousands)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025
FRE	$	50,900		$	71,656		$	72,349		$	74,118		$	94,081			$	189,793		$	312,204
Fee revenues		153,808			178,514			185,481			191,832			214,662				586,379			770,489
FRE margin		33	%		40	%		39	%		39	%		44	%			32	%		41	%

Gross Realized Performance Fees

Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us.

Performance Fee-Related Earnings

Performance fee-related earnings, or “PRE,” represents gross realized performance fees less realized performance fee-related compensation. We believe PRE is useful to investors because it presents the performance fees attributable to us, net of amounts paid to employees as performance fee-related compensation.

The table below shows a reconciliation of total performance fees to gross realized performance fees and PRE.

	Three Months Ended																Year Ended March 31,
(in thousands)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025
Incentive fees	$	2,496		$	841		$	3,155		$	22,369		$	5,910			$	25,339		$	32,275
Realized carried interest allocations		18,054			41,804			17,632			24,282			75,935				49,401			159,653
Unrealized carried interest allocations		151,757			(25,170	)		52,215			93,325			21,177				126,908			141,547
Legacy Greenspring carried interest allocations		31,093			(9,089	)		13,917			8,207			61,306				(75,157	)		74,341
Total performance fees		203,400			8,386			86,919			148,183			164,328				126,491			407,816
Unrealized carried interest allocations		(151,757	)		25,170			(52,215	)		(93,325	)		(21,177	)			(126,908	)		(141,547	)
Legacy Greenspring carried interest allocations		(31,093	)		9,089			(13,917	)		(8,207	)		(61,306	)			75,157			(74,341	)
Incentive fee revenues for the Consolidated Funds(1)		1,549			—			75			5,422			(133	)			1,549			5,364
Deferred incentive fees		1,450			6			2,445			—			(513	)			2,392			1,938
Gross realized performance fees		23,549			42,651			23,307			52,073			81,199				78,681			199,230
Realized performance fee-related compensation		(11,421	)		(20,848	)		(8,767	)		(25,477	)		(39,656	)			(37,687	)		(94,748	)
PRE	$	12,128		$	21,803		$	14,540		$	26,596		$	41,543			$	40,994		$	104,482

_______________________________
(1) Reflects the add back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

Adjusted Weighted-Average Shares and Adjusted Net Income Per Share

ANI per share measures our per-share earnings assuming all Class B units, Class C units and Class D units in the Partnership were exchanged for Class A common stock in SSG, including the dilutive impact of outstanding equity-based awards. ANI per share is calculated as ANI divided by adjusted weighted-average shares outstanding. We believe adjusted weighted-average shares and ANI per share are useful to investors because they enable investors to better evaluate per-share operating performance across reporting periods.

The following table shows a reconciliation of diluted weighted-average shares of Class A common stock outstanding to adjusted weighted-average shares outstanding used in the computation of ANI per share.

	Three Months Ended											Year Ended March 31,
	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025				2024		2025
ANI	$	37,716	$	57,241	$	53,569	$	52,659	$	80,603		$	139,393	$	244,072
Weighted-average shares of Class A common stock outstanding – Basic		64,194,859		66,187,754		68,772,051		73,687,289		75,975,770			63,489,135		71,142,916
Assumed vesting of RSUs		512,946		673,854		921,166		491,014		270,492			512,152		590,645
Assumed vesting and exchange of Class B2 units		2,573,762		1,732,153		—		—		—			2,542,751		431,851
Assumed purchase under ESPP		—		—		2,098		—		—			—		529
Exchange of Class B units in the Partnership(1)		46,272,227		45,827,707		45,212,921		41,729,937		40,122,028			46,356,244		43,233,005
Exchange of Class C units in the Partnership(1)		1,958,507		1,849,846		1,626,812		1,016,737		965,761			2,234,191		1,365,647
Exchange of Class D units in the Partnership(1)		—		2,239,185		2,239,185		2,010,202		1,535,060			—		2,007,849
Adjusted weighted-average shares		115,512,301		118,510,499		118,774,233		118,935,179		118,869,111			115,134,473		118,772,442
ANI per share	$	0.33	$	0.48	$	0.45	$	0.44	$	0.68		$	1.21	$	2.05

_______________________________
(1)   Assumes the full exchange of Class B units, Class C units or Class D units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement, Class C Exchange Agreement or Class D Exchange Agreement, respectively.

Key Operating Metrics

We monitor certain operating metrics that are either common to the asset management industry or that we believe provide important data regarding our business. Refer to the Glossary below for a definition of each of these metrics.

Fee-Earning AUM

	Three Months Ended																Year Ended March 31,							Percentage Change
(in millions)	March 31, 2024			June 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025					2024			2025			vs. FQ4'24
Separately Managed Accounts
Beginning balance	$	56,660		$	58,897		$	60,272		$	62,121		$	69,974			$	55,345		$	58,897			23%
Contributions(1)		2,757			2,085			1,723			9,033			3,874				6,327			16,715			41%
Distributions(2)		(795	)		(830	)		(535	)		(1,000	)		(1,225	)			(4,080	)		(3,590	)		54%
Market value, FX and other(3)		275			120			661			(180	)		551				1,305			1,152			100%
Ending balance	$	58,897		$	60,272		$	62,121		$	69,974		$	73,174			$	58,897		$	73,174			24%
Focused Commingled Funds
Beginning balance	$	32,772		$	34,961		$	40,084		$	42,294		$	44,192			$	30,086		$	34,961			35%
Contributions(1)		2,429			5,653			2,122			2,520			3,403				6,115			13,698			40%
Distributions(2)		(327	)		(661	)		(282	)		(682	)		(313	)			(1,841	)		(1,938	)		(4)%
Market value, FX and other(3)		87			131			370			60			934				601			1,495			974%
Ending balance	$	34,961		$	40,084		$	42,294		$	44,192		$	48,216			$	34,961		$	48,216			38%
Total
Beginning balance	$	89,432		$	93,858		$	100,356		$	104,415		$	114,166			$	85,431		$	93,858			28%
Contributions(1)		5,186			7,738			3,845			11,553			7,277				12,442			30,413			40%
Distributions(2)		(1,122	)		(1,491	)		(817	)		(1,682	)		(1,538	)			(5,921	)		(5,528	)		37%
Market value, FX and other(3)		362			251			1,031			(120	)		1,485				1,906			2,647			310%
Ending balance	$	93,858		$	100,356		$	104,415		$	114,166		$	121,390			$	93,858		$	121,390			29%

_______________________________
(1) Contributions consist of new capital commitments that earn fees on committed capital and capital contributions to funds and accounts that earn fees on net invested capital or NAV.
(2) Distributions consist of returns of capital from funds and accounts that pay fees on net invested capital or NAV and reductions in fee-earning AUM from funds that moved from a committed capital to net invested capital fee basis or from funds and accounts that no longer pay fees.
(3) Market value, FX and other primarily consist of changes in market value appreciation (depreciation) for funds that pay on NAV and the effect of foreign exchange rate changes on non-U.S. dollar denominated commitments. The three months ended March 31, 2025 and year ended March 31, 2025 include a $0.6 billion secondary transaction within focused commingled funds.    

Asset Class Summary

	Three Months Ended											Percentage Change
(in millions)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025			vs. FQ4'24
FEAUM
Private equity	$	49,869	$	54,855	$	57,136	$	62,811	$	65,007		30%
Infrastructure		20,114		20,377		20,986		23,411		23,830		18%
Private debt		15,477		16,161		16,975		17,882		19,517		26%
Real estate		8,398		8,963		9,318		10,062		13,036		55%
Total	$	93,858	$	100,356	$	104,415	$	114,166	$	121,390		29%
Separately managed accounts	$	58,897	$	60,272	$	62,121	$	69,974	$	73,174		24%
Focused commingled funds		34,961		40,084		42,294		44,192		48,216		38%
Total	$	93,858	$	100,356	$	104,415	$	114,166	$	121,390		29%
AUM(1)
Private equity	$	81,942	$	89,329	$	91,891	$	93,404	$	95,937		17%
Infrastructure		30,003		32,756		35,392		36,156		37,026		23%
Private debt		28,491		30,336		31,854		31,987		37,133		30%
Real estate		16,201		16,912		16,996		17,665		19,284		19%
Total	$	156,637	$	169,333	$	176,133	$	179,212	$	189,380		21%
Separately managed accounts	$	93,938	$	103,003	$	107,252	$	109,305	$	114,806		22%
Focused commingled funds		48,545		51,682		53,870		55,142		59,410		22%
Advisory AUM		14,154		14,648		15,011		14,765		15,164		7%
Total	$	156,637	$	169,333	$	176,133	$	179,212	$	189,380		21%
AUA
Private equity	$	270,350	$	279,909	$	255,125	$	263,420	$	262,884		(3)%
Infrastructure		60,339		62,599		62,891		67,100		69,027		14%
Private debt		21,976		22,280		19,328		19,325		19,726		(10)%
Real estate		168,455		166,659		168,519		168,807		168,047		—%
Total	$	521,120	$	531,447	$	505,863	$	518,652	$	519,684		—%
Total capital responsibility(2)	$	677,757	$	700,780	$	681,996	$	697,864	$	709,064		5%

_____________________________
Note: Amounts may not sum to total due to rounding. AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented, and does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.
(1) Allocation of AUM by asset class is presented by underlying investment asset classification.
(2) Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA).    

Contacts

Shareholder Relations:
Seth Weiss
shareholders@stepstonegroup.com
1-212-351-6106

Media:
Brian Ruby / Chris Gillick / Matt Lettiero, ICR
StepStonePR@icrinc.com
1-203-682-8268

Glossary

Assets under advisement, or “AUA,” consists of client assets for which we do not have full discretion to make investment decisions but play a role in advising the client or monitoring their investments. We generally earn revenue for advisory-related services on a contractual fixed fee basis. Advisory-related services include asset allocation, strategic planning, development of investment policies and guidelines, screening and recommending investments, legal negotiations, monitoring and reporting on investments, and investment manager review and due diligence. Advisory fees vary by client based on the scope of services, investment activity and other factors. Most of our advisory fees are fixed, and therefore, increases or decreases in AUA do not necessarily lead to proportionate changes in revenue. We believe AUA is a useful metric for assessing the relative size of our advisory business.

Our AUA is calculated as the sum of (i) the NAV of client portfolio assets for which we do not have full discretion and (ii) the unfunded commitments of clients to the underlying investments. Our AUA reflects the investment valuations in respect of the underlying investments of our client accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUA does not include post-period investment valuation or cash activity. AUA as of March 31, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is as of December 31, 2024, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2024. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, such NAVs are adjusted for cash activity following the last available reported NAV.

Assets under management, or “AUM,” primarily reflects the assets associated with our separately managed accounts (“SMAs”) and focused commingled funds. We classify assets as AUM if we have full discretion over the investment decisions in an account or have responsibility or custody of assets. Although management fees are based on a variety of factors and are not linearly correlated with AUM, we believe AUM is a useful metric for assessing the relative size and scope of our asset management business.

Our AUM is calculated as the sum of (i) the net asset value (“NAV”) of client portfolio assets, including the StepStone Funds and (ii) the unfunded commitments of clients to the underlying investments and the StepStone Funds. Our AUM reflects the investment valuations in respect of the underlying investments of our funds and accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUM does not include post-period investment valuation or cash activity. AUM as of March 31, 2025 reflects final data for the prior period (December 31, 2024), adjusted for net new client account activity through March 31, 2025. NAV data for underlying investments is as of December 31, 2024, as reported by underlying managers up to the business day occurring on or after 115 days following December 31, 2024. When NAV data is not available by the business day occurring on or after 115 days following December 31, 2024, such NAVs are adjusted for cash activity following the last available reported NAV.

Consolidated Funds refer to the StepStone Funds that we are required to consolidate as of the applicable reporting period. We consolidate funds and other entities in which we hold a controlling financial interest.

Consolidated VIEs refer to the variable interest entities that we are required to consolidate as of the applicable reporting period. We consolidate VIEs in which we hold a controlling financial interest.

Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee revenue (i.e., fee basis) and includes assets in our SMAs, focused commingled funds and assets held directly by our clients for which we have fiduciary oversight and are paid fees as the manager of the assets. Our SMAs and focused commingled funds typically pay management fees based on capital commitments, net invested capital and, in certain cases, NAV, depending on the fee terms. Management fees are only marginally affected by market appreciation or depreciation because substantially all of the StepStone Funds pay management fees based on capital commitments or net invested capital. As a result, management fees and FEAUM are not materially affected by changes in market value. We believe FEAUM is a useful metric in order to assess assets forming the basis of our management fee revenue.

Legacy Greenspring entities refers to certain entities for which the Company, indirectly through its subsidiaries, became the sole and/or managing member in connection with the Greenspring acquisition.

SSG refers solely to StepStone Group Inc., a Delaware corporation, and not to any of its subsidiaries.

StepStone Funds refer to SMAs and focused commingled funds of the Company, including acquired Greenspring funds, for which the Partnership or one of its subsidiaries acts as both investment adviser and general partner or managing member.

The Partnership refers solely to StepStone Group LP, a Delaware limited partnership, and not to any of its subsidiaries.

Total capital responsibility equals AUM plus AUA. AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets.

Undeployed fee-earning capital represents the amount of capital commitments to StepStone Funds that has not yet been invested or considered active but will generate management fee revenue once invested or activated. We believe undeployed fee-earning capital is a useful metric for measuring the amount of capital that we can put to work in the future and thus earn management fee revenue thereon.