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Here are 1-3 brief analogies for StepStone (STEP):

• Blackstone for investing in other private equity and venture capital funds.
• Vanguard for private market funds.
• A diversified asset manager like Fidelity or T. Rowe Price, but exclusively for private market investments.

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• Direct Investments: StepStone provides capital directly to private companies across various stages, sectors, and geographies through equity and debt investments.
• Fund of Funds Investments: The firm invests in a diversified portfolio of private investment funds, including private equity, venture capital, real estate, and infrastructure funds, managed by other firms.
• Secondary Investments: StepStone acquires existing limited partnership interests in private funds or direct stakes in private companies from other investors.

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StepStone Group Inc. (STEP) is an investment firm that manages capital for clients who invest in its various private markets strategies (including direct investments, fund of funds, secondary direct, and secondary indirect investments).

While the provided background information details the types of investments StepStone makes and the companies/funds it invests in, it does not specifically name the clients (Limited Partners) who invest with StepStone. Therefore, based on the typical client base for investment firms of this nature, StepStone's major customers primarily fall into the following categories:

• Institutional Investors: This broad category includes large organizations such as public and corporate pension funds, university endowments, charitable foundations, and sovereign wealth funds. These entities commit capital to StepStone's private markets strategies to achieve long-term financial objectives and diversify their portfolios.
• Insurance Companies: These firms manage significant reserves and seek diverse investment avenues, often allocating capital to private market funds like those managed by StepStone to meet long-term liabilities and generate returns.
• Family Offices and High-Net-Worth Individuals: Wealthy families and individuals, often advised by dedicated family offices, invest in private market opportunities through StepStone to gain exposure to alternative assets and seek attractive risk-adjusted returns.

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1. Dependence on Favorable Private Markets and Economic Conditions: StepStone's success as an investment firm is heavily reliant on the overall health and favorability of global and domestic market conditions and the private markets fundraising environment. A downturn in these conditions could significantly limit investment opportunities and impact capital commitments from clients.

2. Regulatory and ESG Landscape: StepStone faces risks from evolving global regulations, particularly in the EU and UK, which could lead to increased operational costs and regulatory scrutiny. Furthermore, divergent investor views on sustainability and human capital management (ESG), coupled with anti-ESG sentiment and legislation in the U.S., could restrict investment opportunities and complicate fundraising efforts.

3. Competition and Market Position: The company's operational execution is vulnerable due to its relatively small market presence in certain areas and intense competition within the investment management industry. Broader industry challenges, such as labor shortages and reduced customer capital spending, could also negatively impact its business.

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• Global Private Markets: The total assets under management (AUM) in global private markets reached approximately $22 trillion in 2024. This figure includes both traditional closed-end funds and alternative capital sources such as open-end funds, separately managed accounts, co-investments, and permanent capital. Projections indicate that global private market assets could further expand to $20-$25 trillion by the end of the decade.
• Global Private Equity: Within the broader private markets, private equity constitutes a significant portion. As of January 2025, global private equity assets under management were approximately $9.4 trillion. This market is projected to grow from $7.5 trillion in 2026 to over $20.2 trillion by 2034.
• Global Private Debt (or Private Credit): The global private credit market reached $3.5 trillion in assets under management by the end of 2024. This represents a substantial increase and highlights the growing role of non-bank lending.
• Global Real Assets (Real Estate & Infrastructure): Real assets, which include private real estate and infrastructure investments, accounted for approximately $3.4 trillion in assets under management as of January 2025. This amount was nearly equally split between real estate and infrastructure.

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StepStone Group Inc. (STEP) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Growth in Fee-Earning Assets Under Management (AUM) and Undeployed Fee-Earning Capital (UFEC): StepStone's revenue is primarily generated from management fees tied to its committed and invested capital. The company has demonstrated a robust increase in its fee-earning AUM and UFEC, which collectively grew to over $171 billion, representing a significant sequential increase of more than $8 billion and an annual increase of over $35 billion. This expansion translates to a healthy 20% annual organic growth rate since fiscal 2021, indicating a sustained increase in its core revenue-generating base.

2. Expansion of the Private Wealth Platform: The private wealth platform is identified as a substantial driver of future growth. StepStone's private wealth platform has expanded to $15 billion in assets, with new subscriptions reaching over $2.2 billion in a recent quarter. This growth is fueled by the introduction of new products, an expanded distribution network, and the successful cross-selling of existing funds. Continued momentum and scaling opportunities within this segment are anticipated to contribute significantly to future fee revenues.

3. International Expansion and Institutional Fundraising: StepStone is experiencing strong fundraising momentum from international clients, particularly institutional investors in regions such as Asia Pacific, Europe, and the Middle East, who are progressively increasing their allocations to private markets. Roughly two-thirds of the firm's gross asset additions in the past year originated from outside North America. The company is strategically expanding its global presence, including opening new offices, to capitalize on these growing international client relationships and diversify its revenue streams geographically.

4. Realization of Accrued Carried Interest and Performance-Related Earnings: As an investment firm, a significant portion of StepStone's total revenue is derived from performance-related earnings, which are tied to the realization of accrued carried interest. Approximately 65% to 70% of the company's net accrued carry is linked to mature programs that are over five years old, positioning them for potential harvesting and realization. Management has expressed confidence that an improving capital market environment could lead to stronger realizations in the coming year, converting these accrued gains into recognized revenue.

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Share Repurchases

• StepStone Group Inc. announced a stock repurchase program of up to $100 million of its Class A common stock on March 9, 2026.
• This program allows for repurchases through open market purchases, privately negotiated transactions, or other means.

Share Issuance

• In March 2021, StepStone Group closed an underwritten secondary offering of 9,200,000 shares of its Class A common stock by certain selling stockholders at $29.50 per share.
• In September 2024, StepStone Group intended to offer 4,099,997 shares of Class A common stock in an underwritten offering, with net proceeds used to purchase shares from certain holders and to pay cash upon exchange of Class B and Class C units, expecting no dilution to existing stockholders.
• The number of shares outstanding for StepStone Group increased from 29.23 million in 2020 to 79.46 million at the end of 2025, reaching 79,465,039 as of March 2026.

Inbound Investments

• BlackRock, Inc. acquired 693,198 shares of StepStone Group Inc. at $57.88 per share on December 31, 2024, increasing its total holdings to 10,093,969 shares, representing 13.90% of StepStone's total shares.
• Capital World Investors increased its position in StepStone Group by 3.6% during the third quarter, owning 2,961,976 shares worth approximately $193.4 million.
• Vanguard Group Inc. boosted its stake in StepStone Group by 4.0% during the third quarter, acquiring an additional 296,378 shares, bringing their total to 7,721,468 shares worth $504.289 million.

Outbound Investments

• StepStone Group completed the fundraising for StepStone Secondary Opportunities Fund V, L.P. and related separate accounts (Fund V) with $7.4 billion of capital commitments in September 2024.
• On May 30, 2025, StepStone Group Inc. and StepStone Group LP completed a transaction to acquire additional equity interests in their Asset Class Entities (StepStone Group Real Estate LP, StepStone Group Real Assets LP, and StepStone Group Private Debt AG), increasing their ownership to approximately 60% in SRE and SRA, and 61% in SPD, for a consideration of $11 million in cash, shares of Class A Common Stock, and Class D Units.
• The firm closed its inaugural Infrastructure Co-Investment Fund with approximately $1.2 billion in total fund size.