StepStone recently released its 10-K report, which shows a business built around private markets investing and related advisory services rather than a single-fund strategy. The firm says it structures client portfolios across private equity, infrastructure, private debt and real estate through primaries, secondaries and co-investments, and it also provides portfolio construction, due diligence, reporting and data services. As of March 31, 2026, StepStone said it was responsible for about $885 billion of total capital, including $233 billion of AUM and $652 billion of AUA.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
StepStone describes itself as a global private markets investment firm serving pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices and private wealth clients. Its business is organized around customized investment solutions and advisory and data services, with portfolios built using commitments to funds, purchases of existing fund interests and direct investments in companies.
The firm said its solutions are delivered mainly through three structures. Separately managed accounts accounted for $136 billion of AUM as of March 31, 2026; focused commingled funds accounted for $81 billion; and advisory relationships accounted for $652 billion of AUA and $16 billion of AUM. StepStone also said it provided portfolio analytics and reporting on more than $900 billion of client commitments through SPI Reporting.
StepStone said it generated revenue from management fees, advisory fees and performance fees under contractual arrangements with its funds and clients. It also invests its own capital in the funds it manages, earning returns alongside clients and, in some cases, carried interest.
The company said its results are affected by market conditions, regulation and broader economic and political developments. It pointed to several specific pressures: slower fundraising and capital deployment, delayed or reduced management fees, weaker exit activity for fund managers and delayed or reduced performance fees.
StepStone also highlighted recent market volatility tied to U.S. trade policy, tariff changes, a weaker U.S. dollar and geopolitical developments in the Middle East. It said elevated inflation, slowing global growth and higher long-term rates have persisted, while unemployment remained low and the U.S. economy continued to grow through 2025 and into 2026.
The company said the One Big Beautiful Bill Act, enacted on July 4, 2025, was included in its fiscal 2026 income tax provision and did not have a significant effect on its consolidated financial statements. It added that it continues to monitor inflation, interest rates, foreign exchange, banking volatility, regulatory changes and geopolitical tensions, including in China, Russia, Ukraine, Europe and the Middle East.
StepStone also disclosed a corporate transaction tied to its asset class entities. On February 7, 2024, it entered agreements to acquire the remaining equity interests in SRA, SRE and SPD over time through annual exchanges. On May 31, 2024, it completed the first exchange and acquired about 5% of each entity, paying roughly $13 million in cash, issuing 513,394 shares of Class A common stock and 2,239,185 Class D units of the Partnership. After that exchange, the Partnership owned about 54% of SRA, 56% of SRE and 54% of SPD. The market has reacted to these announcements by moving the company's shares -0.71% to a price of $52.265. For more information, read the company's full 10-K submission here.
