StepStone, a global private markets investment firm, reported total capital responsibility of approximately $709 billion as of March 31, 2025. This included $189 billion of assets under management (AUM) and $520 billion of assets under advisement (AUA). The firm operates from 28 cities across 16 countries on five continents, with approximately 1,130 total employees, including over 375 investment professionals.
The company's revenue is generated from management and advisory fees, as well as performance fees earned from StepStone Funds and clients. StepStone also invests its own capital in the funds it manages, aligning its interests with those of its clients and earning a pro-rata share of the results, including performance-based fees.
In 2024, StepStone issued $175.0 million aggregate principal amount of 5.52% Series A senior notes due October 22, 2029, in a private placement exempt from registration under the Securities Act. Additionally, the firm entered into agreements to acquire all outstanding equity interests of Asset Class Entities over a defined period of time, exchanging sellers' equity interests for newly-created Class D equity interests in the Partnership and cash in annual exchanges.
Recent market events have impacted StepStone's operations. In 2024, positive returns were observed in most financial markets despite elevated inflation. However, in 2025, financial markets experienced significant volatility due to uncertainty surrounding U.S. trade policy developments, leading to a slight contraction in the U.S. economy in the first quarter of 2025.
StepStone is closely monitoring developments related to inflation, interest rates, trade, regulatory and governmental policy, banking system volatility, and geopolitical tension, and assessing their impact on financial markets and its business.
The firm's future performance is expected to be influenced by factors such as clients' preference for private markets investments, its ability to generate strong returns, maintain a data advantage, source investments with attractive risk-adjusted returns, and manage increased competition and clients' desire to work with fewer managers. The market has reacted to these announcements by moving the company's shares 3.54% to a price of $58.72. Check out the company's full 10-K submission here.
