Q4 2021 StepStone Group Inc Earnings Call
[music].
Good afternoon, ladies and gentlemen, and welcome to step stones fourth quarter and fiscal year, 2020.1 earnings conference call. As a reminder, this call will be recorded.
I'd now like to turn the conference over to Seth Weiss step stones head of Investor Relations.
Thank you and good afternoon, everyone. Joining me on the call today are Scott Hartz co Chief Executive Officer, Jason Meggs, President and co Chief operating officer.
Mike Mccabe head of strategy, and Johnny Randall Chief Financial Officer.
During our prepared remarks, we will be referring to a presentation, which is available on our investor Relations website at shareholders got step Stone group dotcom.
Yeah.
Before we begin I'd like to remind everyone that this conference call as well as the presentation contains certain forward looking statements regarding the company's expected operating and financial performance for future periods.
Forward looking statements reflect management's current plans estimates and expectations and are inherently uncertain and are subject to various risks uncertainties and assumptions.
Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to a number of risks or other factors that are described and the risk factors section of step stones prospectus filed with the U S Securities and Exchange Commission on March 19th 2021.
Turning to our financial results on slide 3.
We reported GAAP net income of $151.2 million and $314.6 million for the quarter and fiscal year ended March 31.2021.
GAAP net income attributable to step stone group was.
It was $37.8 million for the quarter and $62.6 million for the year to day period since the IPO.
Fee related earnings for the quarter was 21.0 million and increase of 38% from a year ago.
While full year fee related earnings were $89.5 million up 45%.
Adjusted net income for the quarter was $24.6 million up 191%, while full year and I was $85.4 million up 70% from the prior year.
Finally, we reported adjusted net income per share up 25 cents for the quarter and 87 for the full year.
The current quarter contained retroactive fees tied to additional closes on step stone and tactical growth fund 3 that benefited revenue.
Related earnings and pre tax adjusted net income by zero point $8 million.
This compares to retroactive fees and the fourth quarter of fiscal 2020.
That contributed $3.8 million to revenue and $3.7 million to fee related earnings and pre tax adjusted net income.
I'd now like to turn the call over to step stones co Chief Executive Officer, Scott Hart.
Thank you Seth and good afternoon, everyone and hope everyone is staying healthy and well before I get started please join me in welcoming Seth Weiss, who recently joined US as our head of Investor Relations with thrilled to have him on board.
Our last 12 months represented our busiest year ever it steps down.
Turning to slide 4 we conducted over 4200 meetings with GPS reviewed over 3200 investment opportunities.
Facilitate over $50 billion of private market capital allocations and added $11 billion of fee, earning assets under management, Mark and our largest you're ever of total deployment and growth of fee, earning AUM.
We are optimistic about the outlook as we have stepped into the new fiscal year.
Declining incidence of Covid and rising vaccination rates pretend well for a return to normalcy and many geographies.
We have reopened the majority of our offices on a voluntary basis and have begun to resume in person due diligence and business development and a measured way.
Turning to slide 5 our strength lies in our ability to provide efficient customized private market solutions that help meet our clients' needs by utilizing a diversified set of investment tools across geographies and asset classes and strategies.
Layered on top is our proprietary technology and data, which yields a wealth of information and as a critical competitive advantage.
We now oversee $427 billion and combined assets under management and advisory and.
As we continue to grow and build scale our platform growth stronger as our increased activity leads to better information insights and deal flow.
Shifting to our results on slide 6 as Seth mentioned adjusted net income for the quarter was $24.6 million or 25 per share up 191% versus the prior year's quarter.
For the full year adjusted net income was $85.4 million or <unk> 87 per share up 70% versus the prior year.
These results reflect robust growth in fee, earning assets and strong performance fees. We finished the year with 52 billion and fee, earning assets up 12% sequentially and up 26% annually.
The growth and our fee, earning AUM was the primary driver of and 19% year on year growth and fee related revenue and a 38% growth and fee related earnings illustrating the positive operating leverage and our business.
Lower travel related costs due to the pandemic also contributed to our margin when comparing expenses relative to the prior fiscal years quarter.
Johnny Randall will speak to the financial results in more detail shortly.
Our expertise across all the major private market asset classes positions us to thrive and a variety of market conditions and allows us to pivot to the best opportunities for our clients.
Within private equity our momentum remains very strong our private equity fee, earning AUM increased by over $3 billion and the quarter due to the activation of recently awarded mandates as well as solid deployment across strategies.
The environment remains favorable across primary co invest and secondary opportunities.
Well, while there is a significant amount of activity and the market. We remain disciplined on our deployment to ensure we deliver optimal performance for our clients.
And infrastructure were seeing market activity accelerate following a relatively slow pace and the back half of 2020 investments within the renewable energy sector in particular are driving compelling deployment opportunities.
Infrastructure and real assets have the ability to provide a natural hedge against inflation and rising interest rates further Stoke and client demand for this asset class.
Moving to real estate fee, earning assets are up about $1 billion or 25% and the last 12 months.
However, the environment has been challenging for the last few quarters certain segments, such as office and retail remain under pressure, while yield and more highly favored sectors, such as industrial and multifamily are relatively low.
We remain very active and sourcing and researching opportunities and we anticipate that the real estate asset class will be 1 of the biggest beneficiaries of a post pandemic reopening and a return to travel will favor fundraising and enhanced research and diligence.
Finally, private debt has grown at the fastest rate of all of our asset classes over the last year, we added $4 billion of fee, earning AUM representing growth of more than 65%.
Private debt is in high demand as yields have proven resilient performance remains strong even and stress scenarios and shorter durations on the underlying investments provide protection against rising rates.
Before concluding my remarks, and excited to welcome Valerie Brown as a third independent director of our board salaries deep experience and financial services and expertise and wealth management are invaluable as step stone continues to expand our footprint within high net worth and mass affluent investors.
Finally, I would like to thank our team for their dedication ingenuity and flat flexibility and what has been a challenging but invigorating year I'm extremely proud of all we've accomplished and I'm, even more excited about what we will achieve and the future.
With that I'll pass it over to Mike Mccabe, our head of strategy.
Great. Thanks, Scott.
Turning to slide 8 as Scott mentioned, our asset footprint has reached $427 billion, reflecting our ability to execute on our global growth strategy.
Turning to slide 9 as we laid out during the last quarter, we have 6 strategic priorities designed to drive growth.
1 continue to grow with our existing clients.
To add new clients globally.
3 continue to expand distribution for private wealth clients.
And for leverage our scale and has operating margins.
5 monetize our data and analytical capability and lastly, pursue accretive transactions to complement our existing platform.
I would now like to take a few minutes to talk through our asset and revenue growth.
So turning to slide 10, we had a really strong year for growth and assets under management and fee, earning AUM driven by robust fundraising among new clients high retention and growth and model.
On existing clients and healthy deployment into the market.
We generated over $13 billion of new growth and in the last year of which over 90% was generated outside of the U S.
It was a good year for this development was approximately $2 billion raised and Commingled fund and over $1 billion raised and separately managed accounts from new relationships.
Perhaps even more constructive as our continued growth with existing clients, who made over $10 billion on our separately managed accounts and inflows during the year.
Furthermore, over a third of our clients conduct business across multiple asset classes, which tends to make our relationships with those clients larger and stickier.
Earlier this year, we launched <unk> on <unk>.
Divot markets funds for high net worth and mass affluent individuals.
As of June <unk>, the fund's net asset value growth to over $135 million with an exceptional net retired a 43% since inception.
The robust returns were driven by strong portfolio company performance.
We also benefited from pricing dislocations during the pandemic by purchasing funds managed by top tier managers at meaningful discounts to current net asset values.
The strong fundraising and investment performance positions us well as we look to expand distribution and more deeply penetrate the private wealth market.
Moving to slide 11.
We have growth fee, earning AUM at a 33% annual rate over the last 3 years.
Furthermore, as of quarter, and we have $14 billion of unemployed fee, earning capital, which we anticipate and will generate management fees as capital is deployed into the coming years.
Combination of our fee, earning and unemployed fee, earning capital increased nearly 20% from the prior year and has grown at a compounded compounded annual rate of 24% over the last 3 years.
We view this combination of fee, earning and unemployed capital is an important indicator of our future earnings power.
Slide 12 shows the evolution of our management and advisory fees.
And you can see our management fees grew at a 32% annual rate over the last 3 years, which is a similar pace as our growth in fee, earning AUM.
Notably the blended fee rate of 52 basis points has stayed relatively steady throughout the last 3 years.
And with that I'd like to turn it over to Jonny Randall our CFO to discuss our financials in more detail.
Thank you Mike moving on to slide 14 to touch on a few of our financial highlights our financial performance for the quarter and the fiscal year was driven by continued strong growth in fee, earning AUM.
And expansion and strong realized performance fees.
Generated fee related earnings of $21 million, and the quarter and $89.5 million for the fiscal year free.
Pretax adjusted net income of $29.2 line for the quarter and $110.3 million and for the year and NII per share was <unk> 25 cents for the quarter and <unk> 87 for the year.
Our FRE and large and for the quarter was 28% up approximately 400 basis points versus the prior year quarter and.
And our FRE FRE margin was 31% for the fiscal year up about 500 basis points.
As I previously mentioned retroactive fees had a positive impact on both the current quarter and the fourth quarter of fiscal 2020 normalizing for these items that show and even greater year over year improvement and this quarter's FRE and FRE margin.
And your expense things within FRE include an increase in cash compensation, both sequentially and year over year.
And of the increase sequentially relates to annual salary increases which occurred at the beginning of the calendar year and to increases in head count.
However, the majority of the sequential quarter change and cash compensation relates to elevated bonuses and the period.
Increase was driven by strong financial performance, leading to higher accruals as well as the alignment of the timing of bonus payments within certain asset classes to our fiscal year and that changed from calendar year timing.
General and administrative expenses net of non core items increased $5.9 million from the prior quarter. The increase primarily reflects ongoing investments and our infrastructure and other general operating cost.
Additionally, since the IPO in September we are also seeing the continued layering in of expenses associated with being a public company, which also impacts prior year comparisons.
Gross realized performance fees were $25.1 million for the quarter and $73.1 million for the year realized performance fees can fluctuate significantly and any given quarter. So we believe a longer term view on performance fees is more appropriate slide.
Slide 26, and the appendix provides quarterly and last 12 months trends of net performance fees.
Finally, a comment on the effective tax rate reflected and Eni. The current quarter's results have and effective tax rate of 15, 8%, reflecting a true up to our blended statutory rate of 22, 6% for fiscal 'twenty..1 and this is the decrease from the 25% rate that had been previously used.
The new blended statutory tax rate reflects our updated state apportionment of income based on our most recently filed tax returns and.
22, 6% rate is the best estimate of our blended statutory tax rate moving forward.
Turning to slide 15, and I will speak to core revenue trends on both a full year and longer term basis, starting with management and advisory teams at the top.
Total management and advisory fees were up 21% for the full year and have grown at an annualized rate of 27% over the past 3 years more specifically for the fiscal year advisory fees are up 9% and management fees are up 25%.
As a reminder, we generally earn management fees as a percentage of fee, earning AUM, while our advisory advisory teams tend to be more closely tied to the services, we provide rather than the dollar amount of anyway and more detailed breakdown on a fee revenue is provided on slide 27, and 28 and the appendix.
Gross realized performance fees were up 45% over fiscal 'twenty and have grown at an annualized rate of 29% over the past 3 years.
The bottom chart shows adjusted or cash revenue, which is that some of the top 2 charts adjusted revenues increased 26% over the last year and its zone at an annualized rate of 27% over the last 3 years.
Performance fees as a percentage of adjusted revenue for fiscal 'twenty, 1 or 20%.
Turning to our core profitability metrics on slide 16 full year fee related earnings of 89 million were up 45% and FRE has grown at an annualized rate of 55% over the last 3 years fee related earnings growth was driven by higher fee, earning AUM lower G&A expenses and positive operating.
Rich.
Adjusted net income is shown in the bottom chart grew by 70% for the full year and that.
On an annualized rate of 35% over the last 3 years, driven by FRE growth and higher net performance fee.
On slide 17, we highlight a couple of key balance sheet items gross accrued carry continued to increase driven by strong underlying investment performance and in the quarter at 897 million. This is up 41% from the prior quarter and up 95% over the last 12 months.
As a reminder, changes and our accrued carry balance reflect our share of the unrealized gains and losses the client portfolios on a 1 quarter lag.
Think of accrued carry as a backlog of cash revenue that may convert to cash over time portfolios mature and investments are exited provided that investment performance remains positive.
On the bottom chart, our own investment portfolio ended the quarter at $74 million up 39% over the prior year, reflecting both market appreciation and net contribution and fun.
And the commitments to the to these programs are.
Approximately $61 million as of quarter and.
Moving to slide 18, we manage a large pool of over $43 billion of performance fee eligible capital and importantly, this capital is widely diversified across approximately 130 programs with about 90 of these program programs, reflecting and accrued carry position as at March 31.
57% of our unrealized carry at year end was tied to programs with vintages of 2015 or earlier, which means that these programs and that pass their investment period and have entered harvesting mode.
64% of this unrealized carry of tourists from vehicles with deal by deal waterfalls, and and realized carry and payable at the time of investment exits.
This concludes our prepared remarks, I'll now turn it back over to the operator to open up the line for any questions.
Thank you we will.
And now be conducting a question and answer session.
I would like to ask a question. Please press star 1 on your telephone keypad on a confirmation tone will indicate that your line is and the queue. You May press star 2 if you would like to remove your question from Mchugh from participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys, 1 moment, please while we poll for questions.
Our first question is from Ken Worthington with Jpmorgan. Please proceed.
Hi, good afternoon. Thanks for taking my questions, maybe first steps on deployed a lot of previously unemployed capital on the quarter and.
On the SMA business.
And is that pace of deployment continuing are likely to remain elevated here and how much pent up demand is there to invest capital as the global economy continues to recover from Covid.
Sure Ken and this is Scott. Thanks for thanks for the question look I think you are correct to point out that we did have a nice increase in fee, earning AUM as a result of some of them.
And deploy CRE and capital and I think to understand what drove that it's actually important to think back to the prior quarter, where we did have quite a strong quarter for new fund raising that led to nice increase and both AUR and <unk> and.
<unk> fee, earning capital this quarter, we did see a significant portion of that convert in the fee, earning EUM.
A combination of those deployments.
And some activated accounts that were signed up in the prior quarter, but but not activate it and therefore not be paying until the quarter ending March 31.
The deployment was really driven by I would say the private debt and private equity asset class is in particular.
We continue to see strong levels of activity, there and really across the different investment strategies and are also encouraged by some of the recovery that we're seeing and infrastructure activity and real estate, while its track a bit slower as also coming back there. The team is quite active and evaluating new opportunities. So.
That's what I would say on on deployment I would just circle back to my comment on activated and it.
And that we discussed on prior calls this is not something that we will see frequently and quarters going going forward, but may happen from time to time and typically when we've had a commingled fund that had a first close prior to the predecessor fund being fully invested and so therefore, there's a delay and active.
<unk> or where we have a separate account that paid on committed capital and maybe signed up and 1 quarter, but not.
But not activate it until the subsequent quarter and so it was a combination of factors that drove that jump and hearing aid AUM this quarter.
Got it okay Crystal clear.
And then secondly, love to hear more about subprime.
How many platforms to see prime on at this point and how are the addition of the new platforms coming.
The product seems to offer seems awesome and I was wondering is anything holding back sales on these platforms like is there sort of like and education of underlying advisers that you have to go through.
Anything else sort of.
Preventing these this product from being a.
Huge and growing even more quickly than it has thus far.
Thanks, John.
Got it.
Great.
So in terms of the number of platforms. We are investment committee approved on about 50 platforms today, and so that and that growth has been.
And pretty steady each and each month as we go through the process, obviously, the diligence process at each RIAA independent broker.
Dealer wire or international platform is a bit different.
And then once we are approved or the related improvement depending on the platform, we usually see and education process that can last anywhere from a few weeks on the on the near term to call. It 2 to 3 months on the on the long term.
Depending on the platform from an education perspective.
But no impediments.
The enthusiasm has been great and to be honest has been increasing.
The platforms, we've been talking to and as the.
<unk> grown it makes it and easier conversation with with more platforms that look for a minimum size.
Great. Okay. Thank you very much.
Yeah.
Thank you our next question.
From Adam Beatty with UBS. Please proceed.
Hi, good afternoon, and thank you for taking the questions from.
And I wanted to hone in on a little bit on the fee rate.
And it all the disclosure and it looks like the non cash.
<unk> asset classes had a nice improvement and and fee rate over the past fiscal year, and just trying to parse that out a little bit more in terms of what the main driver was it asset class mix or is it more about account type within the non p/e asset classes and and how much of that was the retroactive fees where you are.
Did provide some additional detail.
Sure Adam Thanks for the question and this is Scott I'll start on that question I might ask Johnny Randall to just jump in with a bit of additional detail if needed, but I think on your specific question around the increase in net fee rate for the real estate infrastructure and private debt asset classes and yes.
I think part of that is going to be driven by the the final closing and the fund raising for our commingled product and the real estate business and as you can see from the chart on page 12 of our presentation and the different fee rates across commingled funds and SMA.
Commingled funds had a higher fee rates and some of that is mix shift, but I would maybe just cause Johnny just jumping and keep me honest on that on that point there.
Yes that is right Scott there is nothing to add but.
It is that that subsequent close on the real estate Commingled fund and that drove that and any.
Increase you're seeing.
Perfect. Thank you and if I could just 1 more on.
Actually among the strategic priorities.
1 of them is monetizing the data and analytics capabilities.
Forgive me if you've commented on that in the past and I've I've missed it a little bit obviously it is important to the core franchise in terms of just driving additional contributions and effective deployment, but just wondering if theres anything where.
And that you are contemplating where those capabilities might be monetize kind of more directly to the income statement. Thank you.
Sure Jason do you want to jump in again.
Sure.
So in terms of how we think about monetizing the technology platform today.
Today licensing access to spy, which is our front and investment decisioning tool or omni, which is the backend portfolio monitoring tool or other value added tools that we've built on top of those things.
And things like ESG dashboards for clients. These are still newer initiatives today, but certainly active.
In terms of the the tools that we've built and the technologies that we've built on top of the data and some of those are.
We're able to attract differentiation and our solutions are to drive differentiation and ourselves and so for example, the interaction of our pacing tool.
And our daily valuation engine and cash management optimization tools enable us to deliver a better risk adjusted returns and deliver on the promise of liquidity for something like <unk> prime and the mass affluent space or the potential target date opportunity when that arises here and the U S.
Or as another example, very data driven analysis.
To put together a capital efficient rate of note structures for insurance companies.
The next I would say is that by granting access to the technology solutions as a value added service, we're able to secure and retain asset management opportunities whether that be on the commingled or SMA.
Arena and.
And then obviously because it's a homegrown technology stack that we built and own ourselves and it's not purely outsourced.
There'll be future embedded options and how we use that technology and the future and how that will adapt.
Yes, perfect, that's where I'll cover thank you Jason.
Thank you. Our next question is from Alex Blaustein with Goldman Sachs. Please proceed.
Great Good afternoon, and thanks, everybody for taking the question as well.
Was hoping to build a little bit on Ken's question around deployment.
So it seems like you guys are obviously able to replenish the deployed and deployed capital that has yet to turn on fees.
Fairly quickly.
As you look out.
And the next couple of quarters and years and I guess, Scott given your comments around pretty robust deployment activity.
Can you help us think about how quickly you expect some on that on deploying capital to come into the management fee run rate.
And I guess in addition, and what's the fee rate associated with that sort of $14 billion of future opportunity on the appointment.
Sure. Thanks, Thanks, Alex I'll start there and then maybe Johnny you can come in on the final question around the fee rate on the remaining $14 billion there, but thank you.
Reality is the answer to that question Hasnt changed much I think the investment period across many of the.
Accounts that are embedded in that $14 billion are on to points peering capital tend to have a 3 to 5 year investment period that is that is the time period that we would expect to invest the capital over I think that gives us sufficient and flexibility.
To make sure that share that were being patient and disciplined looking at and a market environment that has been very active but is also 1 that is characterized as having.
Full valuation so I think 1 of the things that we are spending a lot of time talking about today and years from other GPS as well its really kind of picking your spots.
And where you want to be.
Deploying and oftentimes that is in areas that you feel are in your.
Core area of expertise or where you have a competitive advantage and certainly for step stone, we talk a lot about the fact that our advantages are and the sourcing as a result of the platform that we built and the amount of capital that we are allocating into the private markets as well as the due diligence benefit as a result of the data and the network of relationships that we have and so I think we'll continue to.
And to look for those spots, where we can really leverage the interesting deal flow coming to the platform as well as the differentiated insights.
And that we have maybe John if you just want to finish up on the question around the fee rate there.
Yeah, Thanks, Scott and I think given that that and deployed amount is across a number different strategies and different asset classes and when you sort of look at the blended rate, it's not meaningfully different than what we're seeing overall.
And so the the impact on the fee rate will depend on which of those strategies and asset classes deploy but generally speaking, it's not materially different than what we're seeing at a consolidated right now.
Great that makes sense.
And then maybe shifting gears to operating leverage from <unk>.
When you guys from public and Big part of the story was obviously expansion of the.
The related margin over the next couple of years given.
Some of your peers are in the space.
Maybe just a quick update on how you expect fee related.
And to evolve over the next year to 2 years.
Given the fact, you are quite busy obviously fund raising and deploying the economies on putting out so presumably there'll be a little bit more travel and things like that.
Hey, Alex This is Mike here. Thanks for the question. It is an area of focus and something we continue to look at very carefully and as we've talked about and prior quarters.
We are striving to balance this growth versus profitability scale and and as Scott mentioned in his opening remarks, we enjoy quite a bit of operating leverage over the last year as we had record fundraising years across the board and so we expect to see the operating leverage and the organizations continue to tick up.
And the short medium and certainly long term, but we always caveat that with our reservation to continue to focus on opportunities to investing in growth, but we're pleased that we were able to drive margins north while having an exceptional year from an AUM and development standpoint as well.
Great. Thanks very much.
Thank you.
Our next question is from Michael Cyprus with Morgan Stanley.
Please proceed.
Hey, Thanks for taking the question, maybe just coming back to the pace of capital deployment, just given the rapid pace that you guys are putting capital to work maybe you could just talk a little bit about how that informs your outlook for fundraising how is that top of the funnel progressing and can you just elaborate a bit more on the fund raising outlook.
Sure so.
Mike. This is Scott. Thanks for the question I think in terms of how the top of the funnel is progressing I think exactly to the prior point I made around the deal flow and interesting opportunities that are coming across the platform I think we continue to see.
Number of interesting opportunities that is across strategy and I think if I look for example on the private equity bid on each of the primary on investment business secondary business and co investment business have been particularly active over the last couple of quarters, maybe driven by different reasons, but again no no shortage of deal flow, we are really focused.
And again, maintaining discipline and and being very selective about which opportunities we ultimately pursue.
And it really has resulted in certain cases and in.
And and the ability to come back to market for certain for certain either separate accounts are commingled funds on a slightly accelerated pace.
But I think we remain very focused on maintaining vintage vintage year diversification and I think frankly, 1 of the things that we've seen across the private markets on a number of the manager's returning to market quite quickly.
I think we are mindful of wanting to build portfolios that are diversified from a vintage year standpoint, and really even early in the Covid crisis, as we were communicating with GPS and management teams and and looking at which which portfolios and where most heavily impacted and they were those that had concentrated positions in the wrong company industry or vintage year and so again.
And I think particularly coming out of the Covid crisis here, we remain quite focused on making sure that we are disciplined from a vintage year standpoint that being said I think on on the fund raising side, we continue to be in market with our venture and growth fund as well as some of our private debt vehicles and have also earlier this.
<unk> launched our private equity co investment vehicle as well generally according to <unk>.
And from a timing standpoint.
Great and just maybe on performance fees, you have nearly $900 million or so and accrued incentives there yet to be recognized how should we think about the timeframe of those coming through the P&L and realization and what sort of magnitude can want to expect over the next 1 to 3 years would you say.
Sure I mean, I'll start there and I might ask Johnny to jump in as well because in addition to the.
And the accrued performance fees and then you've also seen a bit of an uptick and some of the realized performance fees and thats largely driven by some of the same factors that we've mentioned in prior quarters, we've really seen and environment, where all exit routes are open.
And whether the public markets strategic M&A activities, certainly financial buyers given the amount of dry powder and the market as well as some new exit routes that emerge and so you've seen a pickup in and realized.
Performance fees, but Johnny I don't know.
Certainly in terms of the go forward, it's difficult to predict quarter to quarter, but maybe John if you want to point to.
Some of the aging.
Those vehicles and how we think about the performance fees on a go forward basis.
Yes, sure Scott and I think what we've tried to do on some of the pages and pages 17, and 18 and in the deck and so it gives you some sense of of how that programs and you know how the programs are diversified and then the accrued amounts whats tied to <unk>.
Programs that are and harvesting mode. So you know on page 18, we talk about.
No.
57% and of that accrued amount is tied to programs with 2015 vintages or earlier. So those are the ones that we're largely seeing the exits out of and as Scott mentioned, we don't control that so quarter to quarter is certainly hard.
To predict but moving.
We're seeing a good performing portfolio.
Portfolio start to mature and exit as we would expect we've got track record detail on the backseat and kind of see how that performance has trended but.
Again, it would be dependent on the markets and the ability to exit and we're doing our best to try and disclose at least some sense of where we think is likely to occur more recently than not.
And I think you've mentioned that roughly 2 thirds or American style or so order falls is that similar sort of mix applied to that 2015 and earlier vintages as well.
And so we haven't put that number out there, but because we have had no thankfully strong performance on some of our more recent vintages, but we're still trying to settle the right disclosure that is helpful. But we.
And we don't have a number out there the types of 64%.
That kind of American style waterfall to the vintage, but we'll get that from Bob.
Okay. Thank you.
Thank you.
This concludes the question and answer session and I would like to turn the call back to Scott Hart for closing remarks.
Great I would just thank everyone for participating the call today and for your continued interest and step stone and we look forward to keeping you updated and future quarters and thanks, everyone.
Yeah.
This concludes today's conference you may disconnect. Your lines at this time. Thank you very much for your participation have a great day.