• StepStone is like the Indeed.com of Europe.
• StepStone is like the Amazon of online job search for Europe.

• Online Job Platforms: Operates digital job boards that connect job seekers with potential employers across various industries and regions.
• e-Recruitment Software: Provides software-as-a-service (SaaS) solutions designed to assist employers with applicant tracking, talent management, and HR processes.
• Employer Branding Solutions: Offers services to companies to enhance their employer brand and attract top talent through tailored advertising campaigns and corporate profiles.
• Recruitment Data & Analytics: Supplies employers with market insights and data-driven tools to optimize their hiring strategies and understand talent trends.

StepStone (symbol: STEP) primarily sells its services to other companies (B2B).

As a leading operator of online job portals, StepStone's business model involves connecting employers with job seekers. Its paying customers are businesses that utilize its platforms to post job advertisements, access CV databases, and leverage recruitment solutions.

Due to the nature of its business, StepStone serves an extremely broad and diverse customer base. Its customers consist of millions of employers and recruiters ranging from small and medium-sized enterprises (SMEs) to large corporations across nearly all industries globally. Consequently, StepStone does not have a few specific "major customer companies" that are publicly identified or represent a significant concentration of its revenue. Its financial success is derived from the aggregate revenue generated from a vast number of individual business clients rather than from a select few large accounts.

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Scott W. Hart, Chief Executive Officer

Mr. Hart has served as Chief Executive Officer of StepStone Group since January 2022, and as a member of its board of directors since September 2020. He previously held the role of Co-Chief Executive Officer from August 2019 to December 2021. Mr. Hart joined StepStone in 2007 and has held various responsibilities across the organization, including managing client relationships and serving as co-head of private equity co-investments. He is a member of the Global Executive Committee, Private Equity Executive Committee, Venture Capital & Growth Equity Executive Committee, Private Equity Investment Committee, and Private Equity Portfolio and Risk Management Committee.

David Y. Park, Chief Financial Officer

Mr. Park has served as the Chief Financial Officer of StepStone Group since January 2024. Prior to this role, he was the Company's Chief Accounting Officer since November 2019, and Chief Accounting Officer of StepStone Group LP since July 2019. Before joining StepStone in 2019, Mr. Park worked at Oaktree Capital Management, L.P., a global alternative investment management firm, starting in 2012, where he ultimately served as the head of corporate accounting, policy and reporting.

Jason P. Ment, President and Co-Chief Operating Officer

Mr. Ment has served as President and Co-Chief Operating Officer of StepStone since November 2019. He joined StepStone in October 2010 as Partner, General Counsel, and Chief Compliance Officer, later assuming the role of Co-Chief Operating Officer in July 2018 before becoming Partner, President, and Co-Chief Operating Officer in May 2019. Prior to joining StepStone, Mr. Ment was General Counsel of Citigroup Private Equity, a $10 billion equity co-investment, mezzanine, and fund of private equity funds business, from 2007 to 2010. While at Citigroup, he also served as General Counsel for Metalmark Capital, a middle-market private equity business, and Citi Sustainable Development Investments, a clean technology and renewable energy-focused venture investment business. Earlier in his career, he was an Associate in the Mergers & Acquisitions/Private Equity Group at O'Melveny & Myers LLP and in the Mergers & Acquisitions Group at McDermott Will & Emery LLP.

Monte M. Brem, Chairman

Mr. Brem has served as Chairperson of StepStone's board of directors since November 2019 and currently provides consulting services as Executive Advisor since August 2023. He co-founded StepStone in January 2007 and served as its Chief Executive Officer until August 2019, then as Co-Chief Executive Officer until December 2021. From 2002 to 2005, before co-founding StepStone, Mr. Brem was a Managing Director, Principal, and later President at Pacific Corporate Group LLC, a private equity investment firm overseeing approximately $15 billion of institutional client commitments. His earlier career included serving as an Associate at the law firm of Gibson, Dunn & Crutcher LLP.

Michael I. McCabe, Head of Strategy

Mr. McCabe has served as Head of Strategy for StepStone Group since November 2019 and has been a Partner since October 2010. He is involved with various investment and risk management activities as a member of the private equity team. Before joining StepStone, Mr. McCabe was a Vice President at Hamilton Lane Advisors L.L.C. from 2005 to 2008, where he co-headed secondary and co-investment funds. Additionally, from 1995 to 2005, he served as a Director at CEMEX S.A.B de C.V., focusing on due diligence, financial analysis of capital investments, and strategic mergers and acquisitions.

The key risks to StepStone's business include challenging macroeconomic and market conditions, operational execution and client retention risks, and regulatory and governance considerations.

1. Macroeconomic and Market Conditions: StepStone's business is highly sensitive to the broader economic environment and private market trends. Elevated inflation and interest rates could significantly slow investment activity among its clients, directly impacting the firm's ability to deploy capital and generate fees. Additionally, reduced market liquidity can delay the realization of profits from investments, affecting StepStone's overall returns. The success of the business relies heavily on identifying and securing suitable investment opportunities for its clients, which are inherently subject to market conditions and other external factors beyond the company's control. Poor performance of the StepStone Funds could lead to a decline in the company's revenue.
2. Operational Execution and Client Retention: StepStone faces risks related to its operational execution and maintaining client relationships. While strong demand is positive, the firm must consistently identify and deploy capital effectively and quickly to meet client expectations. The company's growth strategy often involves acquisitions, which carry inherent risks such as challenges in integration, failure to achieve anticipated benefits, difficulty in retaining key personnel and business relationships, and exposure to unknown or contingent liabilities. Furthermore, third-party clients have the contractual right to remove StepStone as a general partner of a fund or terminate investment periods under specific circumstances, which could lead to substantial decreases in the firm's revenues.
3. Regulatory and Governance Risks: StepStone is exposed to various regulatory and governance risks. Legal and regulatory factors constitute a notable portion of the company's overall risk profile. A disparity in voting rights among different classes of common stock means that holders of Class A common stock may have limited influence over decisions, which could negatively affect the stock price. The company also faces potential impacts from "anti-ESG" policies or legislation, where investors subject to such rules might view StepStone's funds or sustainability practices as contradictory, leading to adverse effects. Regulatory and legislative developments can generally influence the company's financial results and operations.

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StepStone (STEP) operates within the global private markets, offering customized investment solutions and advisory services across private equity, real estate, infrastructure, and private debt.

The addressable markets for StepStone's main products and services are substantial and are generally defined by the total assets under management (AUM) within these private market segments globally.

• Global Private Markets: The total assets under management in global private markets were approximately $14.3 trillion as of January 2025. This figure is projected to grow, with estimates suggesting it could reach over $15 trillion by 2025 and surpass $18 trillion by 2027. Other estimates suggest growth from $13 trillion currently to more than $20 trillion by 2030.
• Private Equity: The global private equity market reached approximately $5.3 trillion in 2023 and is expected to grow to $6 trillion by the end of 2024. North America holds the largest share, with $3.4 trillion in AUM in 2023, followed by Europe at $1.1 trillion and Asia-Pacific at $611 billion. Some reports indicate the global private equity market was valued at $787 billion in 2024 and is projected to reach $1,670.43 billion by 2033. (Note: There is some variation in reported market sizes for private equity; the higher figures often refer to broader private markets).
• Real Assets (Real Estate and Infrastructure):
  • Real Estate: Globally, real assets, including real estate and infrastructure, comprised $3.4 trillion of private markets AUM. The total value of the world's property (real estate) stood at $379.7 trillion at the end of 2022, though this encompasses all property, not solely private market investments. Global real estate deal value reached $707 billion in 2024.
  • Infrastructure: The total market value of infrastructure assets under management globally reached $1.22 trillion at the end of 2024, having grown significantly from $170 billion in 2010 to $1 trillion in 2021.
• Private Debt: This asset class accounted for $1.5 trillion of private markets AUM. Private credit AUM reached a record $1.6 trillion at the end of 2023. BlackRock forecasts private debt AUM to reach $3.5 trillion. The addressable market for private credit in the United States alone is estimated at $30 trillion, referring to the potential pool of borrowers.

StepStone Group Inc. (NASDAQ: STEP) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market expansions. The company's forward guidance and recent commentary highlight a focus on increasing its reach and product offerings within the private markets investment sector.

Here are 3-5 expected drivers of StepStone's future revenue growth:

1. Expansion of the Private Wealth Platform: StepStone is actively expanding its Private Wealth platform, which is anticipated to be a significant driver of future revenue. This expansion involves catering to high-net-worth and mass affluent individuals, a growing client segment for private markets investments. Management has linked strong performance to robust client demand and record inflows across this platform.
2. Launch of New Products and Services: The introduction of new products, such as "StepX," is expected to contribute to revenue growth. Additionally, the company is focused on the commercialization of its private wealth product suite, which includes innovative offerings designed to attract new capital.
3. Deepening Distribution Relationships and Cross-Selling: StepStone aims to deepen its penetration with existing distribution partners by encouraging the uptake of additional products across these relationships. This strategy focuses on maximizing cross-sell opportunities with current partners, thereby increasing the revenue generated per client.
4. International Expansion: The company is pursuing further international growth, exploring new channels such as retirement schemes in the U.K. and other international regions. This geographical expansion broadens StepStone's client base and market reach, contributing to increased assets under management and, consequently, fee revenues.
5. Growth in Assets Under Management (AUM) and Fee-Earning AUM (FEAUM): A fundamental driver for StepStone's revenue is the continued growth in its Assets Under Management (AUM) and Fee-Earning AUM (FEAUM). The company has demonstrated strong growth in these areas, with AUM reaching $209.1 billion (up 19% year-over-year) and Fee-Earning AUM growing by 27% year-over-year to $132.8 billion in Q2 FY2026. This growth in fee-earning capital directly translates to higher management and advisory fees. StepStone's ability to raise new capital for separately managed accounts and commingled funds, totaling $29 billion over the last twelve months, further supports this growth trajectory.

Capital Allocation Decisions (Last 3-5 Years)

Share Issuance

• StepStone Group Inc. completed its initial public offering (IPO) on September 16, 2020, issuing 20,125,000 shares of Class A common stock at $18.00 per share, amounting to approximately $362.25 million.
• In the first quarter of fiscal year 2026 (April-June 2025), StepStone expected to issue 3.2 million shares, utilizing $161 million of equity, for the second tranche of buying non-controlling interest in its asset classes.
• The company's shares outstanding have increased over the last twelve months (as of October 16, 2024), driven by the annual acquisition of non-controlling interests in subsidiaries and stock-based compensation.

Outbound Investments

• In June 2022, StepStone made an investment in Multiverse as part of a $220 million investment round.
• During fiscal year 2025 (ending March 31, 2025), StepStone closed on three commingled funds of over $3 billion, including a $300 million final close on a growth equity fund and a $1.2 billion close on a real estate secondaries fund.
• In January 2025, StepStone announced the final close of StepStone Infrastructure Co-Investment Partners 2022 (SICP) and related separate accounts with US$1.4 billion of capital commitments, focusing on opportunities in energy transition, digital connectivity, and AI.