Q1 2026 StepStone Group Inc Earnings Call
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Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today, Seth Weiss head of Investor Relations. Please go ahead.
Thank you and good evening.
Joining me on today's call are Scott Hart, Chief Executive Officer, Jason Mann, President and co Chief Operating Officer, Mike Mccabe head of strategy and David Clark Chief Financial Officer.
Speaker #1: Good
Speaker #1: day, and thank you for standing
During our prepared remarks, we will be referring to a presentation, which is available on our investor relations website at shareholders that steps on group Dot com.
Speaker #1: Welcome to the
Speaker #1: fiscal Q1 question, please press StepStone Group earnings
Speaker #1: conference call. At
Speaker #1: this time, all
Speaker #1: participants are in a listen-only
Before we begin I would 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.
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Speaker #1: question-and-answer session. To Thank you and good ask a question during the session, you will need to press *11 on our telephone; you then hear an automated
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Speaker #1: Please be advised that today's conference is being
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Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to changes in circumstances or a number of risks or other factors that are described in the risk factors section of Stepson's periodic filings. These forward looking statements are made only as of today and except as required we undertake no obligation to update or revise any of them.
Speaker #1: now like to hand the conference over to your first
Speaker #1: speaker today, Seth
Speaker #1: Weiss, head of investor
Speaker #1: relations. Please go
Speaker #1: ahead.
Speaker #2: Thank you and good evening.
Speaker #2: Joining me on today's call
Speaker #2: executive officer;
Speaker #2: Jason Mint, president
Speaker #2: and co-chief operating
Speaker #2: officer; Mike
Speaker #2: McCabe, head of
Today's presentation contains references to non-GAAP financial measures reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, our presentation and our filings with the SEC.
Speaker #2: officer. During our prepared
Speaker #2: remarks, we will be referring
Speaker #2: available on our estor relations website at shareholders.stepstonegroup.com. Before we begin, I'd ike 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.
Turning to our financial results for the first quarter of fiscal 2026.
Beginning with slide three we reported a GAAP net loss attributable to step stone group incorporated of $38 million or <unk> 49 per share.
Speaker #2: Forward-looking statements reflect circumstances, or a number
Speaker #2: management's current plans, estimates,
Speaker #2: expectations
Moving to slide five we generated fee related earnings of $81 million up 13% from the prior year quarter and.
Speaker #2: and are inherently uncertain in
Speaker #2: our subject to various risks,
Speaker #2: uncertainties, and
Speaker #2: umptions. Actual results
Speaker #2: differ materially from those expressed
And we generated an FRE margin of 38%.
Speaker #2: or implied by these
Speaker #2: forward-looking statements due to Reconciliations to the most directly
Speaker #2: changes in
Speaker #2: circumstances, or a number of risks, or
The quarter reflected retroactive fees from our special situations real estate Secondaries fund and from our infrastructure Secondaries Fund.
Speaker #2: other factors that
Speaker #2: are described in the risk factors section of StepStone's
Speaker #2: periodic filings. These
Speaker #2: forward-looking statements are made only
Speaker #2: as of today and accept as
Retroactive fees contributed $2 $9 million to fee revenues, which compare to retroactive fees of $19 1 million in the first quarter of the prior fiscal year.
Speaker #2: required. We undertake no obligation to update or
Speaker #2: revise any of them. Today's presentation Beginning with slide contains references to non-GAAP
Speaker #2: financial measures.
Speaker #2: Reconciliations to the most
Speaker #2: directly comparable GAAP financial
We earned $48 $5 million and adjusted net income for the quarter or <unk> 40 per share.
Speaker #2: measures are
Speaker #2: included in our earnings release, our
Speaker #2: ation, and our filings with
Speaker #2: the
Speaker #2: SEC. Turning to million
Speaker #2: our financial results for the
This is down from $57 2 million or <unk> 48 per share in the first quarter of the last fiscal year, driven by lower performance related earnings lower retroactive fees, but offset by higher core fee related earnings, which represent FRE, excluding the impact of retroactive fees.
Speaker #2: first quarter of
Speaker #2: fiscal
Speaker #2: 2026. Beginning with slide three, we reported
Speaker #2: a GAAP net loss attributable to StepStone Group Incorporated of $38 million or 49 cents per share. Moving to slide five, we generated fee-related earnings of $81 million up 13% from the prior year
I'll now hand, the call over to Scott.
Speaker #2: quarter. And we generated an FRE margin of 38%. The quarter
We kicked off our fiscal year with strong financial results and continued fundraising momentum. This comes despite a volatile market backdrop to start the quarter.
Speaker #2: reflected retroactive fees from our special situation real estate secondaries retroactive fees from our fund and from our infrastructure secondaries special situation real
Through it all our Lps, we remain committed to the private markets and look for a trusted partner to navigate the evolving landscape.
Speaker #2: $2.9 million to fee revenues which, compared to retroactive
Capital market conditions have improved over the last several months with deal activity picking up and our pipeline of investment opportunities appears healthy across strategies and asset classes.
Speaker #2: fees of $19.1 million in the first quarter of the strong financial results
Speaker #2: We earned
Speaker #2: $48.5 million in adjusted net committed to the private markets income for the quarter, or 40 cents per share. This is down from $57.2
Reflecting on our first quarter results total gross AUM additions were $8 7 billion driven.
Speaker #2: million or 48 cents per share in the first quarter of the last fiscal year, driven by and look for a trusted lower performance-related earnings, lower retroactive fees, but offset by higher core fee-related earnings, which represent
Driven by strong inflows in managed accounts and balanced contributions across commingled fund and all asset classes.
In private wealth, we generated another quarter of more than $1 billion in subscriptions.
Market volatility surrounding tariff developments had a slight impact on industry wide private wealth subscriptions in April but our flows quickly snapped back in May and June.
Speaker #2: FRE excluding the impact of partner to navigate the
Speaker #2: retroactive
Speaker #2: fees. I'll now hand the landscape.
Speaker #2: call over to
Speaker #3: We kicked off our
Speaker #3: iscal year with strong financial healthy across strategies results and continued fundraising
We increased fee, earning AUM by $6 billion during the quarter, representing 5% sequential growth, bringing our balance of over 127 billion.
Speaker #3: momentum. This comes despite a volatile market backdrop to start and asset the quarter.
Speaker #3: LPs remain committed to the private
Over the past 12 months, we have grown fee, earning AUM by $27 billion.
Speaker #3: markets and look for a $8.7 billion,
Speaker #3: trusted partner to navigate driven by strong inflows the evolving landscape. Capital market conditions have improved over the last several months, with deal activity picking up.
Driven by robust fundraising and deployment.
Excluding retroactive fees, we generated strong fee related earnings of $79 million and an FRE margin of 37%.
Speaker #3: And our pipeline of investment opportunities appears healthy across strategies and asset classes. Reflecting on our first quarter results, total gross AUM additions were $8.7 billion, driven by strong inflows in managed
On a reported basis, we generated FRE of $81 million.
Retro fees moderated from previous levels as we largely wrapped up our real estate and PE secondary funds in the last fiscal year.
Speaker #3: accounts and balanced balanced contributions across
Speaker #3: contributions across commingled funds commingled funds and all
Performance fees were relatively light this quarter due in part to the timing of the transaction closes, but we have visibility for stronger performance fees in the second fiscal quarter and we see capital market trend is supportive for performance fees going forward, David will speak to the realization environment in more detail.
Speaker #3: subscriptions. Market
Speaker #3: volatility surrounding months, we have grown
Speaker #3: tariff developments had a slight
Speaker #3: impact on industry-wide billion,
Speaker #3: private wealth subscriptions in driven by robust fundraising
Speaker #3: April. But our flows and
Speaker #3: quickly snapped back in May deployment.
Speaker #3: and
Speaker #3: We increased fearing
Speaker #3: AUM by $6 billion during the quarter. margin of Representing 5%
Finally in June we were excited to announce a framework agreement with FTSE Russell to jointly develop private asset indices data and analytics products.
Speaker #3: sequential growth, bringing 37%.
Speaker #3: grown fearing AUM by $27
Private market benchmarks have historically suffered from incomplete out of date and non standard performance measures. Our clients are seeking reliable means to monitor performance manage risk and make informed decisions.
Speaker #3: billion, driven by robust fundraising and secondary funds in the last deployment.
Speaker #3: Excluding retroactive fees, fiscal we generated strong
Speaker #3: fee-related earnings of $79 year.
This collaboration aims to enhance transparency and benchmarking capabilities in private markets. It envisions, enabling asset owners to benchmark private market portfolios within a total portfolio of framework.
Speaker #3: On a reported basis, we generated FRE
Speaker #3: of $81 market trends as supportive million, retro
Speaker #3: fees moderated from previous for performance fees going
Speaker #3: levels, as we largely forward.
Speaker #3: wrapped up our real estate David will speak
We are still in the early stages of product development. So we expect a near term, earning contributions will be modest with revenue driven largely by licensing fees as the indices are distributed.
Speaker #3: last fiscal
Speaker #3: year. announce a framework agreement Performance fees are relatively light
Speaker #3: this quarter, due in part to the timing of transaction with FTSE Russell to
Speaker #3: But we have visibility for stronger Private market performance fees in the second
However, we see a long term potential for asset management offerings that referenced these investable indices.
Speaker #3: supportive for performance fees going
Speaker #3: forward. Our clients are seeking
Speaker #3: David will speak to the realization
Servicing institutional and private wealth investors alike.
Speaker #3: detail. Finally, in June, we were excited to announce a framework performance, manage
We believe private asset entities can play a critical role in evolving areas like model portfolios and private wealth and target date funds and retirement.
Speaker #3: agreement with FTSE risk, and make informed
Speaker #3: Russell to jointly develop decisions.
Speaker #3: private asset indices This
Speaker #3: data and analytics collaboration aims to
Speaker #3: products. enhance transparency and
Additionally, we believe this partnership will add to our brand equity.
Speaker #4: historically suffered from
The forthcoming indices are expected to bring visibility to the step stone name and help validate it steps down as a leader in private market solutions with that I'll turn the call over to Mike.
Speaker #4: non-standard performance
Speaker #4: measures. Our clients are
Speaker #4: seeking reliable means to we expect a near-term
Speaker #4: monitor performance, earning contribution to be
Speaker #4: manage risk, and make
Speaker #4: informed driven largely by licensing decisions. This collaboration aims
Thanks Scott.
Speaker #4: to enhance
Speaker #4: transparency and benchmarking However, we see a long-term
Turning to slide eight we generated over $27 billion of gross AUM inflows over the last 12 months.
Speaker #4: capabilities in private
Speaker #4: markets. It envisions offerings that reference these
Speaker #4: enabling asset owners to investable
Speaker #4: benchmark private market indices servicing
Speaker #4: portfolios within a total
Approximately $18 billion of these inflows came from separately managed accounts and over $9 billion came from our commingled funds.
Speaker #4: portfolio
Speaker #4: framework. We are still in
Speaker #4: early stages of product play a critical role in
Speaker #4: development, so we expect a evolving areas like model
Speaker #4: near-term earning contribution to portfolios and private
Speaker #4: be modest, with wealth, and target date funds revenue driven largely by
During the quarter, we generated nearly $9 billion of gross additions, including $6 $5 billion of managed account AUM inflows and over $2 billion of co mingled fund inflows.
Speaker #4: indices are
Speaker #4: distributed. However, we see a
Speaker #4: long-term potential for asset
Speaker #4: management offerings that are expected to bring visibility
Speaker #4: alike. We believe private asset
Speaker #4: indices can play a critical role 12 in evolving areas like model portfolios and
Notable commingled fund additions included more than $400 million at our corporate direct lending funds.
Speaker #4: private wealth, and target date funds in retirement. months.
Speaker #4: Additionally, we believe this partnership will add to our brand equity. The forthcoming indices are expected to bring Approximately $18
$200 million, our infrastructure Secondaries fund.
$100 million final cleanup closed that are special situations real estate secondaries fund and more than $400 million in the first close of our multi strategy global venture capital Fund.
Speaker #4: visibility to the billion of these StepStone name and help
Speaker #4: With that, I'll turn the
Speaker #4: Mike.
Speaker #5: Thanks, Scott. Turning to of gross additions,
Speaker #5: slide eight, we including $6.5
We activated this global VC fund in July so those dollars, which are in our unemployed capital balance as of the first quarter, we will move into fee, earning capital in our second quarter.
Speaker #5: generated over $27 billion of billion of managed gross AUM inflows over
Speaker #5: the last 12 months.
Speaker #5: Approximately $18 billion of these inflows came from separately managed accounts, and over $9 billion came from our commingled funds. During the quarter, we
We are in market with our private equity co investment fund and we anticipate a first close at our second fiscal quarter.
Speaker #5: generated nearly $9 billion of gross inflows. additions, including
Turning to our Evergreen fund platform, we generated nearly $1 $2 billion of subscriptions that are private wealth suite of offerings growing the platform to nearly $10 billion as of the end of June.
Speaker #5: inflows, and over
Speaker #5: $2 billion of fund, and more than $400
Speaker #5: Notable commingled fund additions included more
Speaker #5: than $400 fund.
We are thrilled to have officially crossed the $10 billion threshold in July.
Speaker #5: lending
Speaker #5: funds, about $200 dollars which are in our
Speaker #5: million in our infrastructure
Additionally, we have grown our evergreen non traded BDC S cred to greater than $1 billion of net assets.
Speaker #5: fund, $100
Speaker #5: million final cleanup flows
Speaker #5: in our special our second
Speaker #5: fund, and more than
Speaker #5: $400 million in equity co-investment fund,
Speaker #5: the first close of our and we anticipate a
We have expanded our private wealth platform to over 550 individual of distribution partners and.
Speaker #5: -strategy global first close in our second
Speaker #5: venture capital fiscal fund. We
Speaker #5: in July, so those
And among our partners that have been with us on the platform for at least a year, 50% are selling more than one evergreen product.
Speaker #5: in our undeployed
Speaker #5: capital balance as of the first quarter will S-CRED, to move into fee-earning
Speaker #5: capital in our second quarter. We are in market with our greater than $1 billion in private equity co-investment
Slide nine shows our fee, earning AUM by structure and asset class for.
Speaker #5: fund, and we net anticipate a first close in our second fiscal quarter. Turning to our
For the quarter, we increased fee, earning assets by $6 billion.
Speaker #5: evergreen fund assets.
Our unemployed theory capital or <unk> grew by over $4 billion from the last quarter to nearly $29 billion.
Speaker #5: billion of subscriptions
Speaker #5: in our private wealth suite of individual distribution offerings, growing
Speaker #5: the platform to nearly partners.
Driven primarily by strong managed account fundraising.
Speaker #5: the end of June. We are thrilled
Speaker #5: crossed the $10 billion
Combination of fee, earning assets plus you effect grew to $156 billion, which is up $10 billion sequentially and is up $28 billion from a year ago.
Speaker #5: threshold in July. UFEC grew Additionally, we
Speaker #5: have grown our evergreen non-traded by over $4
This translates to a healthy 20% annual organic growth rate since fiscal 2021.
Speaker #5: We have expanded our
Speaker #5: private wealth platform to billion sequentially and
Speaker #5: distribution partners. And among our partners that have been with us on the
Yes.
Slide 10 shows our evolution of fee revenues.
Speaker #5: platform for at least a 2021.
Generated a blended management fee rate of 64 basis points over the last 12 months down slightly from the 65 basis points in fiscal 2025, driven by the moderation in retroactive fees.
Speaker #5: year, 50% are Slide 10 shows our
Speaker #5: selling more than one evergreen volution of fee product. Slide nine shows our
Speaker #5: e-earning AUM by structure and asset class. For revenues.
Speaker #5: the quarter, we We increased fee-earning assets by
Finally, I am pleased to announce that we are raising our quarterly dividend by 17% from 24 per share to <unk> 28 per share, reflecting strong and sustainable growth in our fee related earnings.
Speaker #5: $6 billion. generated a blended Our undeployed fee-earning capital, or
Speaker #5: UFEC, grew by over $4 management fee rate of $64 billion from the last quarter to nearly
Speaker #5: $29 billion. Driven basis points over the primarily by strong managed account
Speaker #5: fundraising. The combination of fee-earning last 12 assets plus
I'll now turn the call over to David to speak to our financial highlights.
Speaker #5: UFEC grew to months, down slightly from the $156
Thanks, Mike.
On slide 12, we earned fee revenues of $213 million of.
Speaker #5: billion which is up $10 billion $65 basis points in sequentially and is up $28 billion from a year
Of 19% from the prior year quarter.
Speaker #5: ago. This translates to a healthy fiscal
We achieved this increase despite significantly lower retroactive fees in the current year period of $3 million versus $19 million in the prior year quarter.
Speaker #5: 2021. Slide 10
Speaker #5: shows our evolution of quarterly dividend by fee
Speaker #5: revenues. We generated a $17% from
Excluding retroactive fees fee revenues grew 32% year over year.
Speaker #5: blended management fee rate of $0.24 per share to
Speaker #5: $64 basis $0.28 per points over the last 12
The increase was driven by growth in fee, earning AUM across commercial structures and a higher blended average fee rate and strong advisory fees.
Speaker #5: the $65 basis points in fiscal
Speaker #5: 2025 driven by earnings.
Speaker #5: moderation in
Speaker #5: retroactive cial
Fee related earnings were $81 million up 13% from a year ago.
Operating margin was 38% for the quarter.
Speaker #5: $0.24 per
Speaker #5: share to $0.28 increase despite significantly per share,
Normalizing for retroactive fees FRE was up 45% year over year and core FRE margin was 37% expanding by more than 300 basis points from a year ago.
Speaker #5: reflecting strong and
Speaker #5: sustainable growth in our
Speaker #5: I'll now turn
Speaker #5: the call over to David to speak to our financial quarter.
Speaker #5: highlights. Excluding retroactive
Speaker #6: Mike. Turning to
Speaker #6: slide 12, we earned across commercial fee revenues of $213 million. Up 19% from the prior year
Shifting to expenses adjusted cash based compensation was $96 million.
Speaker #6: quarter. We achieved structures, a higher blended
This is up from last quarter's $86 million.
Speaker #6: this increase despite average fee rate, and
Speaker #6: significantly lower strong advisory retroactive fees in the current
The increase reflected the impact of our annual Merit increase which took effect on April one.
Speaker #6: year period of $3 fees.
Speaker #6: million versus
Speaker #6: $19 million in the
Speaker #6: prior year a year
Head count growth and unfavorable FX due to the weakening of the U S dollar.
Speaker #6: quarter. Excluding
Speaker #6: retroactive fees, fee
Speaker #6: revenues grew
Speaker #6: 32% year over Normalizing for retroactive
Speaker #6: year. The increase was fees, FRE was
As we mentioned on the last call. The prior quarter's compensation expense included a favorable adjustment to the bonus accrual.
Speaker #6: driven by growth in
Speaker #6: fee-earning AUM across commercial 45% year over year structures, a
Speaker #6: rate, and strong
The cash compensation ratio adjusted for retroactive fees was 46% consistent with the expectations, we set out on our last earnings call.
Speaker #6: advisory
Speaker #6: fees. Fee-related points from a year
Speaker #6: earnings were $81 ago.
Speaker #6: million. Up
Speaker #6: 13% from a year expenses, adjusted ago.
Speaker #6: FRE cash-based compensation was
Speaker #6: margin was $96
Speaker #6: 38% for the million.
This is a fair cash compensation ratio to model going forward understanding that there may be variability quarter to quarter.
Speaker #6: Normalizing for retroactive fees, FRE was up
Speaker #6: 45% year over year and core FRE margin was 37%, expanding by more than $300 million.
Adjusted equity based compensation was $4 million.
Of $1 million relative to the prior quarter.
Speaker #6: ago. Shifting to expenses, adjusted cash-based compensation was $96 million. This is The up from last quarter's $86
The increase primarily reflects delivering a four year cycle of <unk> vesting from when we first started to issue annual equity incentive awards in 2021.
Speaker #6: million. The increase reflected the impact of our annual merit increase reflected the
General and administrative expenses were $31 million up $5 million from the prior year quarter, but down slightly sequentially.
Speaker #6: FX due to the weakening of the US
Speaker #6: As we
Speaker #6: mentioned on the last call, the
Gross realized performance fees were $25 million for the quarter and $13 million net of related compensation expense.
Speaker #6: prior quarter's
Speaker #6: compensation expense included a variability quarter to
Speaker #6: favorable adjustment to the quarter.
Speaker #6: The cash compensation
Speaker #6: ratio adjusted for retroactive fees million relative to the
This included realizations from the pipeline of deals announced in late 2024, and early 2025, which we had mentioned on the last call. Several of those transactions also closed in July which generated nearly $35 million.
Speaker #6: was prior
Speaker #6: 46%, consistent with the quarter.
Speaker #6: This is a fair cash compensation ratio
Speaker #6: to model going issue annual equity
Speaker #6: forward. Understanding that there may incentive awards
Speaker #6: be variability in
Our gross realized performance fees since the end of the quarter.
Speaker #6: quarter to 2021.
Speaker #6: quarter. Adjusted General and administrative
Speaker #6: equity-based compensation was expenses were $31
While the timing of performance fees is difficult to predict the pipeline of transactions that will generate future performance fees continues to grow and the market environment for Dealmaking has appeared to recover from the tariff related pause in April.
Speaker #6: $4 million up $5
Speaker #6: million. Up $1 million million from the prior year relative to the prior
Speaker #6: The increase primarily
Speaker #6: reflects the layering of performance fees were $25
Speaker #6: a full four-year million for the
Speaker #6: cycle of RSU quarter and $13 vesting, from when we first
Speaker #6: started to issue annual million net of related
Speaker #6: equity incentive awards compensation
Adjusted net income per share was <unk> 40 down from last quarter and last year as higher core FRE was offset by lower retroactive fees and lower performance related earnings.
Speaker #6: 2021. General and
Speaker #6: administrative expenses were
Speaker #6: $31 million up
Speaker #6: $5 million from the
Speaker #6: prior year quarter, but call.
Speaker #6: sequentially. Gross realized performance fees
Moving to key items on the balance sheet on slide 13.
Speaker #6: the quarter and
Net accrued carry finished the quarter at $783 million up 6% from last quarter.
Speaker #6: $13 million net of
Speaker #6: related compensation quarter.
Speaker #6: expense. This
Speaker #6: included realizations from
Speaker #6: the pipeline of deals predict, the pipeline of
Our net accrued carry is relatively mature approximately 75% are tied to programs that are older than five years, which means that these programs are ready to harvest.
Speaker #6: announced in late transactions that will generate
Speaker #6: 2024 and early future performance fees
Speaker #6: 2025, which continues to grow,
Speaker #6: we had mentioned on the last and the market environment for
Speaker #6: call. Several deal-making has appeared
Speaker #6: those transactions recover from the
Speaker #6: also closed in July, which generated nearly
Our own investment portfolio ended the quarter at $300 million.
Speaker #6: $35
Speaker #6: million of gross realized
Speaker #6: performance fees since the end of
This concludes our prepared remarks, I'll now turn it back over to the operator to open the line for any questions.
Speaker #6: the and last year's higher
Speaker #6: quarter. While the timing of
Speaker #6: performance fees is difficult to
Speaker #6: predict, the retroactive fees and
Speaker #6: pipeline of transactions that lower performance-related
Speaker #6: will generate future
Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please standby.
Speaker #6: grow, and the market environment for deal-making has appeared to recover from
Speaker #6: the tariff-related
Speaker #6: pause in
Speaker #6: April. Adjusted
Speaker #6: income per share was quarter.
Speaker #6: $0.40 down from
Speaker #6: last quarter and last mature.
Speaker #6: year's higher core Approximately FRE was offset
Speaker #6: fees and lower
Yeah.
Speaker #6: performance-related
Okay.
Speaker #6: earnings. Moving to key harvest.
Our first question comes from Ben Boudeuse from Barclays. Please go ahead.
Speaker #6: on slide 13. Net accrued
Speaker #6: carry finished the quarter at million.
Hi, good evening and thank you for taking the question.
Speaker #6: $783
Speaker #6: million, up 6% it back over to the
I'm wondering if you could talk a little bit more about the index opportunity the partnership with FTSE Russell Scott I know you mentioned in your prepared remarks. It will take some time for this to have a more meaningful impact, but what are the sort of the next steps are.
Speaker #6: from last operator to open the line for any quarter. Our net accrued carry
Speaker #6: mature. Approximately
Speaker #6: 75% are tied
Speaker #6: to programs that are older
Speaker #6: than five years,
Speaker #6: which means that these programs
Speaker #6: are ready to to press
Speaker #6: harvest. Our own *11 on your telephone and
Are you onboarding clients that want to use your benchmarks what are the things we should look for in the interim before theres, maybe a more meaningful P&L impacts to know that you are sort of on the right track.
Speaker #6: investment portfolio ended the wait for your name to be
Speaker #6: quarter at $300 announced.
Speaker #6: concludes our prepared
Speaker #6: remarks.
Speaker #6: over to the operator to open the line for any
Speaker #6: questions. by.
Okay, great Great and this is Mike behavior. Thanks for the question and yes, we were really excited to announce a framework that we signed with FTSE Russell back in June which was really going to be the beginning of a launch of a series of indices that will track the private markets across a number of different asset class.
Speaker #1: you. At this time, we will
Speaker #1: conduct the question and answer Budish from Barclays.
Speaker #1: session. As a
Speaker #1: inder, to ask a Hi.
Speaker #1: question, you will need to press
Speaker #1: *11 on your
Speaker #1: telephone and wait for your name k a little bit more about the
Speaker #1: to be announced. index opportunity the
Speaker #1: To withdraw your question,
Speaker #1: please press
Speaker #1: *11 again. Please
Speaker #1: stand time for this to have a more
Speaker #1: by. Our first question comes
Asses and what's unique about the indices that we're developing with FTSE Russell is that there'll be daily indices. In addition to the quarterly lagged indices that many are used to seeing.
Speaker #1: from Ben Budish from want to use your
Speaker #1: Barclays. Please go benchmarks?
Speaker #1: ahead.
Speaker #7: Hi.
Speaker #7: Good evening and thank you for taking the more meaningful, you know, P&L estion.
Speaker #7: wondering if you could talk a little bit impact to know that you're sort of on the
Speaker #7: more about the index right
Speaker #7: opportunity, the partnership with track?
What Youll see is later this year will be the launch of the first of a series of these indices that will be distributed across the FTSE Russell and steps to own client base and the revenue opportunity. There initially will be.
Speaker #7: ket. It'll take some time for this
Speaker #7: to have a more meaningful impact. yeah, we were really excited
Speaker #7: what are sort of the the to
Speaker #7: next steps you
Speaker #7: ow, are you onboarding
Speaker #7: clients that are that want to use in June.
Speaker #7: your benchmarks? what are the Which is really going to
Speaker #7: ings we should look be the beginning of a launch
Speaker #7: for in the interim
Simply the licensing revenue associated with the distribution of these indices.
Speaker #7: before there's maybe a more of indices that
Speaker #7: meaningful, you know, P&L impact to will track the private
Speaker #7: know that you're sort of on the right markets across a number of
Speaker #7: track?
We expect it to be fairly modest at the beginning but as the adoption rates grow we would expect it to grow as well in addition to developing other indices that go beyond maybe the first two asset classes will focus on might be private equity and infrastructure and that will go from there.
Speaker #8: Great, great, Ben. This is Mike McCabe
Speaker #8: here. Thanks for the
Speaker #8: question. And yeah, we were Russell is that they'll be
Speaker #8: really excited to daily.
Speaker #8: announce a Indices in addition to the
Speaker #8: framework that we signed with quarterly lagged
Speaker #8: of a launch of a
Speaker #8: series of indices that will track the private markets client base. across a number of different asset classes. And
I think longer term, it's reasonable to expect that as these indices become market, leading and the adoption rates pick up that there could very well be some asset management solutions that we will develop that references indexes as well.
Speaker #8: what's unique about the the indices that we're And and the revenue ing with FTSE Russell is that
Speaker #8: they'll be daily. opportunity there initially will
Speaker #8: Indices in be it was simply addition to the quarterly
Speaker #8: lagged indices
Speaker #8: that that many are used to with the distribution of
Speaker #8: seeing. I these think what you'll see
Speaker #8: is later this year will be indices.
But I hope that answers your question Ben.
Speaker #8: the launch of
Speaker #8: the first of a series of the adoption rates
Yes that was great. That's all from me. Thank you very much.
Speaker #8: these indices that will be grow, we expect it to
Speaker #8: distributed across grow as
Speaker #8: the FTSE Russell and well.
Thanks.
Speaker #8: StepStone client In addition to,
Thank you.
Speaker #8: And the
Speaker #8: revenue opportunity there initially will two asset classes we'll
Our next question comes from Kenneth Worthington from Jpmorgan. Please go ahead.
Speaker #8: licensing
Speaker #8: revenue associated with the 'll go from
Speaker #8: distribution of these there.
Speaker #8: indices. And we expect it to
Hi.
Good afternoon, thanks for taking the questions.
Speaker #8: be fairly modest at the ink, longer beginning. But as the
First evergreen products doing great.
Speaker #8: expect it to grow
Speaker #8: as well. In pick up, that there
I would say spring has been the monster here I sort of get it but maybe talk about the appetite here for venture and growth.
Speaker #8: addition to, you know,
Speaker #8: developing other indices management solutions that
Speaker #8: that go beyond we will develop that reference
Speaker #8: maybe the first two asset these indexes as
Speaker #8: classes we'll focus on might well.
Speaker #8: be private equity and infrastructure. And then we'll go
Uh huh.
Speaker #8: from Ben.
Speaker #8: there. I yeah, that was great.
How and maybe why this product is doing so, particularly well and then maybe credits seems still be finding its footing.
Speaker #8: it's reasonable to expect Thanks. Thank that as these indices become you. market-leading and the adoption rates pick Our next question comes from Kenneth Worthington from up, that there could very well JP Morgan.
So maybe next talk about that and then I'll wrap everything into the same question.
Speaker #8: be some asset management Please go head. solutions that we will
Speaker #8: develop that reference these Hi.
Talk about the product roadmap.
Speaker #8: well. But I hope that answers your
Speaker #8: estion, you know,
Where are you seeing appetite now.
Speaker #8: Ben. first, evergreen
Sure.
Speaker #7: That's all from me. Thank ou very
Speaker #7: much. say spring has been
The wealth channel.
Speaker #8: Thanks. the monster here.
Whereas it's driving you to look next in terms of product development.
Speaker #1: Thank
Speaker #1: you. Our next
Speaker #1: question comes from Kenneth and growth and Worthington from JP
Thanks, Ken this is Jason.
Speaker #1: Morgan. Please go
Speaker #1: head. and maybe why this this
Starting with <unk>.
Speaker #9: Hi. Good product is doing so particularly
Spring.
Speaker #9: afternoon. Thanks for taking the well.
First off I'd say.
This is a one on one product and so for those in the wealth channel looking for diversified exposure to venture growth.
Speaker #9: evergreen products
Speaker #9: doing great. I would say footing.
Speaker #9: monster here. I sort
Speaker #9: of get it. But maybe talk
<unk> is the answer in the marketplace.
Speaker #9: the appetite talk about the product
Speaker #9: here for venture and roadmap.
Speaker #9: growth. where are you seeing And you
The reputation of our venture and growth team dating back book on the steps down side on pre existing through the Green Spring acquisition is our market leading franchise. That's been active in the wealth channel with closed end drawdown fund for quite some time, so we're a familiar name.
Speaker #9: know, how and maybe appetite
Speaker #9: why this product is now
Speaker #9: doing so particularly
Speaker #9: well. And channel?
Speaker #9: CredEx seems to still be finding its footing.
Speaker #9: So maybe next talk development?
Speaker #9: that. And then I'll wrap
Speaker #9: everything into the same
Speaker #9: question. Talk about with,
Speaker #9: the product
Speaker #9: roadmap. Where are you an, first off, I'd
Particularly in this space and I think that is a good reason why youre seeing the activity.
Speaker #9: seeing appetite say, you know, this is a
Speaker #9: now one-on-one
Speaker #9: for the wealth
Speaker #9: channel and wealth channel looking for
Speaker #9: where is this driving you diversified exposure to venture
Particularly as overall, there's a lot of attention on the innovation economy.
Speaker #9: to look next in terms of growth, product
Speaker #9: development?
Speaker #3: Thanks, Ken. This is reputation of
Over time, whether that be AI today or.
Speaker #3: Jason. our venture and growth
Speaker #3: Starting team dating back
Speaker #3: with both on the StepStone side
Speaker #3: spring, I mean, first off, I'd and pre-existing
Are there areas within the software space and prior periods.
Speaker #3: , you
Speaker #3: ow, this is a one-on-one acquisition
So I think it's a pretty easy explanation as to why spring has been such an attractive opportunity not just with distribution partners directly but also for inclusion in model portfolios.
Speaker #3: product. And
Speaker #3: so for franchise that's been
Speaker #3: those in the wealth channel active in the wealth
Speaker #3: looking for diversified channel with closed-end exposure to venture
Speaker #3: growth, spring is drawdown funds for
Credits.
Speaker #3: dating back both on the
Speaker #3: StepStone side and eing the
The if we look at the <unk> zero comparison.
Speaker #3: preexisting through activity. the green spring
In terms of the organic raise there as opposed to the one secondary acquisition. We did earlier in the year. The organic rate is actually is tracking kind of right on top of the organic rate that we saw in the early days of S Prime and structure and spring. So we're happy with what's going on there in the syndicate.
Speaker #3: That's been active in
Speaker #3: the wealth channel with close-end drawdown
Speaker #3: funds for quite some today
Speaker #3: time. So
Speaker #3: we're a familiar the software
Speaker #3: name. Particularly in space in prior
Speaker #3: this periods.
Speaker #3: space. And I think that
Speaker #3: is a good reason why
Speaker #3: the activity. Particularly as
Speaker #3: overall, there's a lot of attention on the innovation economy inclusion in
Is building.
Month by month fairly well.
Speaker #3: AI today or
At this point.
On just about 50 platforms today, so I think it is.
Speaker #3: other areas within the software CredEx, the if
Speaker #3: space in we if we look at the day
Speaker #3: prior zero
Speaker #3: periods. So I comparison, in terms of the
Speaker #3: think that it's a pretty organic raise there as opposed to
Speaker #3: easy explanation as the, you know, the
It's not kind of outperforming what we saw with the prior funds and maybe we would've hoped for that but.
Speaker #3: to why spring has been one, secondary acquisition we
Speaker #3: such an attractive did earlier in the opportunity. Not
Speaker #3: just with distribution partners directly, but also for
But it is building obviously the credit landscape is.
Speaker #3: inclusion in model portfolios. right on top of CredEx,
Bit more competitive we do think that the multi manager platform.
And approach that we've got is differentiated relative to the direct lender bdcs.
Speaker #3: the day zero
Speaker #3: comparison, there.
Speaker #3: in terms of the organic
Speaker #3: raise there as opposed to the, you know,
We are confident that we will.
Speaker #3: One secondary month, fairly acquisition, we.
Speaker #3: did, earlier in the
We'll find shelf space as things go on in terms of the product roadmap. We do have a fund that is in registration now.
Speaker #3: year, the organic raise actually is it's on,
Speaker #3: tracking kind of right on top just about 50
Speaker #3: of the platforms. organic raise that we saw in the early days
Net effective so I won't go into too much detail, but.
Speaker #3: S-Prime. And
Speaker #3: S-Prime. And Strucks and outperforming what we saw with the prior
Speaker #3: Spring. So we're
We're looking at more of a pure play.
Speaker #3: appy with what's going on there. And that.
Speaker #3: the syndicate is
Within the private equity arena.
And in terms of where we.
Speaker #3: month-by-month fairly
Speaker #3: well. at this competitive.
The.
Speaker #3: point, it's
Activity from or interest from from the wealth channel overall.
Speaker #3: on, just platform,
Speaker #3: about 50 and approach that we've got platforms, today.
Speaker #3: So I think it
Speaker #3: is, it's
We believe that the suite that we have got a different products is generally.
Speaker #3: Not kind of outperforming what we are confident about.
Speaker #3: saw with the prior funds. And
Speaker #3: maybe we would have hoped for that. we'll, we'll find shelf space
Speaker #3: But, but it is as things go on.
Responsive to the needs that we're hearing today and we are focused on ensuring that the packaging is more finely tuned in so that's why you will have seen that we lifted the accredited investor status, meaning remove the decline and investor requirements from S. Prime earlier this year and instructs earlier this.
Speaker #3: building obviously, the credit In terms of the product
Speaker #3: landscape roadmap, we do have a fund
Speaker #3: is, a bit more that is in registration
Speaker #3: competitive. we
Speaker #3: do think that the effective.
Speaker #3: multi-manager
Speaker #3: platform, and approach But it
Speaker #3: that we've got is is, we're looking at more of
Speaker #3: differentiated relative a pure play,
Speaker #3: to the direct lender within the private
Speaker #3: BDCs. equity
Speaker #3: And, we are confident arena.
Speaker #3: we'll, we'll
Speaker #3: shelf space as things go
Here as well to allow for easier inclusion and model as well as.
Speaker #3: do have a fund that is
Speaker #3: in registration now. it's not yet effective. is, So I won't go into too much
Easier execution.
Speaker #3: detail. generally responsive to the But it
Within the wealth channel.
Speaker #3: is, we're looking at more of a pure play, within the needs that we're hearing private equity
Okay, great. Thank you very much.
Speaker #3: arena. today.
Thank you.
Speaker #3: And in terms of where
Speaker #3: we ensuring that the
Speaker #3: see
Speaker #3: activity from
Our next question comes from Alex Blaustein from Goldman Sachs Go ahead.
Speaker #3: or interest, that's why you will have seen that
Speaker #3: overall,
Hey, good evening as well thanks for the question a couple of follow ups related to Ken's question around well bid.
Speaker #3: we we removed the accredited
Speaker #3: believe that the suite that we've investor
Speaker #3: got of different
Speaker #3: products is,
Speaker #3: generally responsive to the needs that we're year as well.
A bit more I guess financially oriented.
Speaker #3: aring today. And
Speaker #3: We have focused a lot on allowing for...
The platform scaling really nicely. So maybe just a quick update how.
Speaker #3: on ensuring that easier inclusion in
Speaker #3: the packaging models, as well
Speaker #3: is more finely tuned. as, easier
How much in profitability net of Noncontrolling interest.
Speaker #3: And so that's why you execution, within the
Speaker #3: will have seen that we wealth
Speaker #3: lifted the channel.
Does the wealth franchise contribute two steps down right now and as you sort of think about the P&L and maybe geography with some of the things.
Speaker #3: status, meaning removed
Speaker #3: the accredited much.
Speaker #3: estor requirement from S-Prime earlier this year. And Strucks
Speaker #3: earlier this year as you.
Fee related performance revenues from some of these vehicles are likely going to become a bit more needle moving as the asset base gets bigger can you help us maybe understand how much that contributes today, that's what our current performance current run rate and whether or not you would consider reclassifying that like some of the others done in the space.
Speaker #3: well. To allow Our next for easier
Speaker #3: inclusion in models, as question comes from Alex
Speaker #3: well as, Blowstein from Goldman
Speaker #3: easier Sachs.
Speaker #3: within the wealth
Speaker #3: channel.
Speaker #7: much.
Speaker #1: you. Our next question comes
Hey, this is David Thanks for the question.
So right now in our press release, we do disclose the NCI impact of private wealth. So I think it's on page 11 or 12.
Speaker #1: from Alex net of net non-controlling
Speaker #1: Blowstein from Goldman interest, does the Sachs. Go
Speaker #2: Good day and thank ou for standing by. Welcome to the Fiscal Q1 StepStone Group Earnings Conference call. At this time, all participants are in a listen-only mode.
Speaker #1: head.
Speaker #10: thanks for the estion. a couple of follow-ups related to Ken's
The press release so.
Speaker #10: question around these vehicles are likely wealth. Maybe a bit more, I guess,
Speaker #2: After the speakers' presentation, there will be a estion and answer session. To ask a question during the session, you will need to press *11 on your telephone; you will then hear
It is contributing meaningfully and if you recall.
Speaker #10: ancially
Speaker #10: oriented. the needle-moving as the
Speaker #10: platform scaling really nicely. So asset base gets
The private wealth business, although 100% of the revenues.
Speaker #10: maybe just a quick bigger.
Speaker #10: update. how much in Can you help us maybe
Half of it goes to the business for sub stone alphabet stays with the private wealth business.
Speaker #10: of non-controlling
Speaker #10: interest, does the wealth rate, and whether or not franchise contribute to
Speaker #2: an automated message
Speaker #2: advising your hand is
Speaker #2: raised. To withdraw your by.
Speaker #10: StepStone right now?
Speaker #10: And as you sort of think about, you know, so the P&L and
You can track the assets calculate.
Speaker #2: *11
Speaker #2: again. Please be
The fee rate so you can.
Speaker #10: things, fee-related performance revenues from some of these Hey, this is, David.
Speaker #2: advised that today's
Speaker #2: conference is being
Estimated what the revenues are but but again this has been a very profitable business as it continues to scale today private wealth represents nearly 8% of our total fee, earning AUM. So as you as you can imagine going forward.
Speaker #2: recorded. I would now like mode.
Speaker #10: vehicles are likely going to Thanks for the
Speaker #10: become a bit more
Speaker #2: to hand the conference over to
Speaker #10: needle-moving as the asset
Speaker #2: our first speaker today, Seth Weiss, Head of Investor Relations. Please go
Speaker #10: base gets bigger. Can ou help us maybe understand how much that contributes
Speaker #2: head.
Speaker #10: Today, at sort of current, do disclose the...
Speaker #3: ing. Joining me
Speaker #10: and whether or not you would consider reclassifying that
Speaker #3: on today's call are Scott
Speaker #10: like some of the others done in the contributing meaningfully.
Speaker #3: Hart, Chief Executive
Speaker #3: Officer, Jason
Speaker #3: Mint, President and
You'd expect it to continue to scale.
Speaker #3: Co-Chief Operating
Speaker #11: Hey,
Speaker #11: this is, David. Thanks for the revenues half of it goes to question. so right
Speaker #3: Officer, Mike McCabe, Head Strategy, and
Margin expansion and contribute more meaningfully to the bottom line.
Speaker #11: now in our, press the business for release, we we do
Speaker #3: David Park, Chief Financial
Speaker #3: Officer. During our prepared remarks,
Speaker #11: disclose the StepStone.
Speaker #11: NCI impact of private
Speaker #3: we will be referring to a
Speaker #3: presentation which is
Speaker #11: wealth. So I think it's
Alright, and then just the fee related performance hernia dynamic.
Speaker #3: available on our Investor Relations website at
Speaker #11: on page 11 or
Speaker #11: 12 of you know, the fee rates.
Speaker #11: the, press release.
Speaker #3: shareholders.stepstonegroup.com.
But whether or not you guys would consider moving it around.
Speaker #11: So, it can estimate what the
Speaker #11: is, contributing
Speaker #3: Before we begin, I'd like to
Speaker #11: meaningfully. And if you again, this has been a
Speaker #3: ind everyone that this conference are Scott Hart, chief
Oh, yes.
Speaker #11: recall, the private wealth business, all the very
Speaker #3: call, as well as the
Speaker #3: presentation, contains
So right now we.
Speaker #3: certain forward-looking statements
Speaker #11: 100% of the profitable business as
Speaker #3: regarding the company's expected
We embed the fee related I guess.
Speaker #3: operating and financial
Speaker #11: business for StepStone. Half
Speaker #3: performance for future strategy; and David Park,
Fee, earning AUM within the asset classes, we don't have any plans to separate that out at this time Alright, I think this is as.
Speaker #11: of it stays with the private wealth of our total fee-earning business. you can track
Speaker #3: Forward-looking chief financial
Speaker #3: statements reflect management's
Speaker #3: current plans, estimates, and expectations, and are inherently uncertain in our subject to various risks, uncertainties, and umptions. Actual results for future
Speaker #11: the, you know,
Speaker #11: the fee rates. So you can you expect it to continue to
Are you referring to some of the incentive fees as well coming off the funds that's a bit of a reminder.
Speaker #11: estimate
Speaker #11: at the revenues are. But, but again,
Speaker #3: periods may differ materially from those expressed or implied by these forward-looking statements due to changes in
Speaker #11: this has been a very
Speaker #11: profitable, bottom business as it
Here on several of our vehicles, including S. Prime.
Speaker #11: continues to scale. line.
Speaker #3: of risks, or other factors that are described in risk factors section of StepStone's periodic filings. These forward-looking
Speaker #11: wealth represents nearly
And stripes, we're not charging performance fees today, we've obviously talked in great detail about for example spring.
Speaker #11: 8% of our
Speaker #11: total fee-earning you guys would consider you
Speaker #11: AUM. So, you know, as ow moving it
Speaker #11: you, as you can imagine, going forward, around?
Speaker #3: statements are made only as of
Speaker #3: today and accept as
Speaker #3: required. We undertake no
Speaker #11: you know, you'd expect it to Oh, yeah.
Speaker #3: obligation to update or revise any
Speaker #11: continue to
Speaker #11: scale and have we we embed the
Speaker #3: of them. Today's
Which crystallized at some of the incentive fees, David remind me, which number.
Speaker #11: margin expansion fee-related I
Speaker #3: presentation contains
Speaker #3: references to non-GAAP financial for future periods may
Speaker #11: and contribute more ess, fee-earning AUM
Speaker #3: measures.
Speaker #11: meaningfully to the bottom
Speaker #11: line.
In December I think we current plan is to continue to report that in a similar fashion to what we have done to date.
Speaker #3: comparable GAAP financial
Speaker #3: measures are included in our
Speaker #7: And did just the e-related performance revenue
Speaker #3: earnings release, our
Speaker #7: dynamic? Like whether or not you guys would
Speaker #3: ation, and our filings with the
Speaker #3: SEC. Turning to our
Speaker #7: consider moving well coming off the fund.
Speaker #3: financial results for the first
Speaker #7: it
Speaker #7: around?
Got it great alright, thanks, so much.
Speaker #3: quarter of fiscal
Speaker #11: yeah.
Speaker #3: 2026.
Speaker #11: So right now, our
Thank you.
Speaker #3: three, we reported a GAAP net loss attributable to StepStone Group Incorporated of
Speaker #11: you know, we vehicles including embed the
Speaker #11: fee-related, I guess, S-Prime, and and, fee-earning AUM within
Our next question comes from Mike suppressed from Morgan Stanley. Please go ahead.
Speaker #3: $38 million or
Speaker #11: We don't have
Speaker #3: 49 cents per
Speaker #11: any plans
Speaker #3: share.
Speaker #11: to separate that out this We've obviously talked
Great. Thank you. Good afternoon, just a question on retirement space with the executive order today that helps clear the path for <unk> to be included in the <unk> case space. It seems like we may need some rulemaking, perhaps to address and liquor liability concerns here that plan sponsors have so just curious your thoughts around that and how you see the.
Speaker #3: Moving to slide five,
Speaker #11: time.
Speaker #7: And sorry, I think this
Speaker #3: we generated fee-related
Speaker #7: is, yeah, Alex, you're
Speaker #3: earnings of $81
Speaker #7: ring to some of the
Speaker #7: incentive fees as well coming
Speaker #3: up 13% from the
Speaker #7: off the fund. So as a bit of a
Speaker #3: prior year
Speaker #7: reminder, you know, here
Speaker #3: quarter. And we generated an
Speaker #3: FRE margin of
Speaker #7: on several of our
Speaker #3: 38%. The quarter reflected
Speaker #7: vehicle
Speaker #7: including,
Speaker #7: S-Prime,
Speaker #7: and, and, and
Speaker #7: Strucks, you know, we're not charging, performance
Speaker #3: estate secondaries fund and from our infrastructure secondaries fund. Retroactive fees contributed $2.9 million to fee revenues which compared retroactive fees of $19.1 million in the first quarter of the prior fiscal year.
Speaker #7: fees today. We've date.
It's all playing out timeframe here it seems like target date might be the most obvious entry point curious your views around that what strategies might make the most sense to what extent might partnerships.
Speaker #7: viously talked and great detail
Speaker #7: about, for example, Thank spring, which crystallizes some of the
Speaker #7: incentive fees, you.
Speaker #7: David, remind me which,
Speaker #11: November. In December.
Speaker #7: In December. and I think we, you head.
Speaker #3: We earned $48.5 million in adjusted net income for the quarter, or 40 cents per share. This is down from $57.2 million or 48 cents per share in the first quarter of the last fiscal year, driven by lower performance-related earnings, lower retroactive fees, but offset by higher core fee-related earnings, which represent FRE
Helpful. Here, how you were thinking about that and evaluating potential for partnerships.
Speaker #7: ow, current plan is to continue to
Speaker #7: report, that in a fashion to what we afternoon.
Speaker #7: have, done to date. just a question Got it. Great. All right. Thanks so
Thanks, Mike This is Jason.
Speaker #7: much.
We were we were very happy to CEO issue today and yes.
Speaker #1: Thank
Speaker #1: you. Our next question comes
Obviously expect that to lead to rulemaking and hopefully that will.
Speaker #1: from Mike Ciprus from
Speaker #1: Morgan Stanley. Please go
Speaker #1: head.
Help to clarify the administration's position on them.
Speaker #12: Great. Thank you. Good
Speaker #12: afternoon. just a out, timeframe
Speaker #3: excluding the impact of retroactive fees. I'll now hand the call over to Scott.
Speaker #12: estion on here.
Fiduciary duties within Europe landscape I don't want to call out in our partner problem Public Policy Committee for Dakota, The Trade Association.
Speaker #12: retirement space with the
Speaker #12: executive order today
Speaker #12: that helps clear the path
Speaker #4: Thanks, Seth. We fund. Retroactive fees contributed kicked off our fiscal year with
Speaker #12: for us to be
Speaker #12: included in the 401(k)
Speaker #12: space. Seems like might partnerships
Speaker #4: and continued fundraising momentum. This comes despite a volatile market
Speaker #12: rulemaking, perhaps to address some
Advocating for D C.
Speaker #12: legal liability concerns
To adopt all.
Speaker #12: here. that plan sponsors have. So just curious
Speaker #4: backdrop to start the quarter. Through it prior fiscal
And the great work that the cost of goods to help them.
Speaker #12: your thoughts around this, how you
Speaker #4: all, our LPs remain year.
Speaker #12: see this all
Speaker #12: playing out, Jason.
Educate the administration.
Speaker #12: timeframe here. Seems
Speaker #4: evolving
Speaker #12: like target date might be the
On this topic.
Speaker #12: most obvious entry
Speaker #4: Capital market conditions have improved over the last several
So we're very happy to see it come into the frame.
Speaker #12: point. Curious your
Speaker #12: views around that. What
Speaker #4: months, with deal
Speaker #4: activity picking up. Scott.
Speaker #12: strategies might make the most lead to to rulemaking and
In terms of the timeframe for adoption.
Speaker #12: sense and to what extent might hopefully that will
Speaker #4: And our pipeline of investment Thanks,
Speaker #12: partnerships be
Speaker #4: opportunities appears Seth.
This is going to take time for it to be meaningful.
Speaker #12: helpful here? the the How you're thinking
Speaker #12: that and administration's position
Speaker #4: classes. Reflecting on
Speaker #12: evaluating potential on
Speaker #12: for
Just in the anticipation of.
Speaker #4: our first quarter results, total gross AUM Through it all, our additions were
Speaker #12: partnerships.
Activity.
Speaker #3: Thanks, Mike. partner, Bob Long, the head of This is
Speaker #3: Jason. we were, we
Of the administration conversations had been much warmer I would say over the last 456 months than they were a.
Speaker #3: were very happy to see the EO issue today. DeCalta.
Speaker #4: asset
Speaker #4: classes. In private in all asset wealth, we generated another quarter of more than $1 billion in
The year prior or prior to that.
Speaker #4: subscriptions, market volatility surrounding tariff developments had a slight impact on classes.
This is a space that we have been.
Active in and paying attention to and having conversations and education about going on nearly 10 years now.
Speaker #4: industry-wide private wealth In subscriptions in April. But our flows quickly snapped
Speaker #4: back in May and private wealth, we generated June. We
Speaker #4: back in May and private wealth, we generated June. We increased fearing AUM by another quarter of more than $1 $6 billion during the quarter, representing 5% sequential
So.
We're certainly patient and.
Giving the work required.
Speaker #4: growth, bringing our balance to over $127 billion in billion. Over the past 12
In terms of where we expect to see activity I think it will be.
Multifaceted certainly custom target date.
Speaker #4: fearing AUM by $27
A bunch of sense.
And I think that there are also other glidepath.
Speaker #4: Excluding retroactive fees, we
Speaker #4: generated strong fee-related earnings of $79
Structures, where we'll see it come into frame as opposed to <unk>.
Speaker #4: million and an FRE June.
Thinking that we're going to see it as a.
Speaker #4: On a reported basis, we
Speaker #4: generated FRE of ur balance to over
Menu item in the core lineup within a four one K point.
Speaker #4: $81 $127
Speaker #4: million, retro fees billion.
Speaker #4: moderated from previous levels, Over the
And then finally, you asked about partnerships.
Speaker #4: as we largely wrapped up past 12 months, we have our real estate and PE
There are a number of different <unk>.
Layers and types of players in the retirement space and we certainly would anticipate.
Speaker #4: Performance fees
Speaker #4: are relatively light this quarter, due in part to the million, and an timing of transaction closes. But we have
Having too.
Speaker #4: visibility for stronger performance FRE margin of fees in the second fiscal
Desiring to partner with different members of the ecosystem in order to bring products to market.
Speaker #4: quarter, and we see capital 37%.
And those conversations have been going on for some time.
Speaker #4: the realization environment
Speaker #4: in more detail. Finally, and PE secondary funds in in June, we were excited to
Great. That's helpful. One just quick follow up there just curious if you think existing target date funds that assets could be reallocated into alts in like one full swoop.
Speaker #4: jointly develop private
Speaker #4: asset indices data closes.
Speaker #4: products.
Speaker #5: benchmarks have historically
Or do you think it's really more about go forward new flows into the retirement space.
Speaker #5: suffered from incomplete, fiscal quarter, and we see out-of-date, and non-standard
Speaker #5: performance measures. capital market trends as
Speaker #5: reliable means to monitor
I think I think when you look at our flagship target date funds within the different providers you have to look at them kind of a fund by fund.
Speaker #5: benchmarking capabilities in private markets.
See what the eligible investments are and I think the different.
Speaker #5: envisions enabling asset owners to benchmark private market portfolios within a total Private market benchmarks have
Shops that that sponsor those funds probably have differing views as to whether they need to issue a new series.
Speaker #5: portfolio
Speaker #5: framework. We are still in the early incomplete, out-of-date, and
Speaker #5: stages of product development, so
Speaker #5: modest, with revenue
And with clients over whether they.
Can fit it within.
Speaker #5: fees as the indices are distributed.
The existing <unk>.
From product lineup, so I think youll see a mix of both.
Speaker #5: potential for asset management
Yeah.
Speaker #5: institutional and private wealth investors
Speaker #5: alike. We
Great. Thanks, so much.
Speaker #5: believe private asset indices can
Thank you.
Our next question comes from Ben <unk> from Barclays. Please go ahead.
Speaker #5: in
Speaker #5: retirement. Additionally, we licensing fees as the believe this partnership will add to our
Hi, Thanks for taking my follow up I wanted to just ask a more technical detail on your fee, earning AUM disclosure in management fees can you. Please explain.
Speaker #5: and
Speaker #5: equity. The forthcoming indices
Speaker #5: to the StepStone name and help validate
Speaker #5: StepStone as a leader in private market solutions. With that, I'll turn the call over to reference these investable
Some of the recent FX benefit are there any dynamics, where fee, earning AUM benefits from FX, but management fees do not just just curious whats I mean, clearly there has been.
Speaker #5: Mike. indices, servicing
Speaker #6: Thanks, Scott. Turning to slide institutional and private wealth eight, we generated over $27
Speaker #6: billion of gross investors AUM inflows over the last
So we can have the dollar lately, but.
Where are you seeing that benefit and does it flow into management fees in the same way it does fee, earning AUM.
Speaker #6: inflows came from separately managed accounts,
Speaker #6: and over $9 validate StepStone as a leader in billion came from our
Hey, Ben this is David Thanks for the question.
Speaker #6: commingled private market
Speaker #6: funds. During the solutions.
Yes, we do have some FX exposure.
Speaker #6: quarter, we generated
Speaker #6: nearly $9 billion call over to
On fee, earning AUM. We include that in the details on the <unk>.
Speaker #6: account AUM inflows, and over $2
Market value in the FX line this quarter was about $800 million benefit to fee, earning AUM and we do naturally have an impact on management fees as well.
Speaker #6: billion of commingled fund
Speaker #6: Notable commingled fund additions included more than
Speaker #6: $400 million in our porate direct lending funds, about $6.5 billion of $200 million in our infrastructure secondaries fund,
Most of our transactions are in U S dollar.
But when you look across currencies, the FX does impact our revenues.
Speaker #6: $100 million final cleanup close in our special situations real managed account AUM estate secondaries
Also our expenses if you look at this quarter.
Speaker #6: million in the first
Speaker #6: close of our commingled fund multi-strategy global venture
Movement in the FX rates cost about a 2 million dollar benefit to management fees this quarter.
Speaker #6: capital inflows.
Speaker #6: We activated this
Speaker #6: global VC fund in million in our corporate direct July so those
This was offset by slightly more than $2 million in expenses.
Speaker #6: undeployed capital
Speaker #6: balance as of the first
Speaker #6: quarter will move secondaries
Though our currencies our P&L is naturally hedged.
Speaker #6: into fee-earning capital in
Speaker #6: quarter. We are
If you say so the net impact FRE was actually like $200 $200000 unfavorable.
Speaker #6: in market with our private situations real estate secondaries
Speaker #6: quarter. Turning to our evergreen
Got it very helpful. Thank you.
Speaker #6: fund platform, activated this global VC fund
Thank you.
Speaker #6: we generated nearly $1.2 billion of subscriptions in our private wealth suite of offerings, growing the platform to nearly $10 billion as of the end of June.
Our next question comes from John Dunn from Evercore ISI. Please go ahead.
Speaker #6: We are thrilled to have officially crossed the $10 billion threshold in July. Additionally, we have grown our evergreen non-traded BDC,
John are you there.
Yes.
Yes. Thank you.
I was wondering could you give us an update on the kind of geographical mix of fundraising and then the same question for the four different strategy area.
Speaker #6: We have
Speaker #6: expanded our private wealth platform, we generated
Speaker #6: platform to over nearly $1.2 $550
Sure. Thanks, John for the question. So from a geographic standpoint, you will recall that the business is a very global one today that continues to be the case, if I look at where we had particular success in the most.
Speaker #6: And among
Speaker #6: our partners that have been $10 billion as of with us on the
Speaker #6: platform for at least a year,
Speaker #6: product. Slide nine shows our fee-earning AUM by structure and asset class. For the quarter, we increased fee-earning assets by $6 billion. Our dollars which are undeployed fee-earning capital or
The most recent quarter I think the two geographies that really stood out for us would have been Australia and the middle East the balance across other geographies was pretty consistent with history.
Look at slightly longer term time period would you say, it's clearly bounce around from quarter to quarter over the last 12 months that would have added to those two geographies.
Speaker #6: billion from the last quarter to nearly $29 billion. Driven primarily by strong managed
Speaker #6: account fundraising. The combination of fee-earning assets plus UFEC grew BDC,
You mentioned, Australia, Middle East and Asia, as being strong and drivers there now clearly given the strength of our private wealth business, which today is pretty heavily weighted towards the U S. That's where many much of our private wealth flows are coming from.
Speaker #6: to $156 S-Cred, to greater than $1
Speaker #6: billion which ion in net
Speaker #6: is up $10 assets.
Speaker #6: is up $28 billion from a year
Speaker #6: ago. This translates to a healthy 20% annual organic growth rate since $550 individual fiscal
At the moment, if we look across asset class.
Again, and again try to treat similarly look at the current quarter and then look over the last 12 months during the most recent quarter the key drivers of our.
Speaker #6: 2025 driven by the
Called AUM additions as well as fee, earning AUM growth would have been private credit and infrastructure.
Speaker #6: moderation in retroactive 20% annual
Speaker #6: fees. organic growth rate since
Speaker #6: Finally, I am pleased to fiscal announce that we are raising our
You'll recall real estate had just come off very successful fund raise for our flagship special situations Secondaries fund there so.
Speaker #6: share, reflecting
The current quarter a bit more muted there and again, if I look over the last 12 months very balanced across all four asset classes with all four contributing meaningfully in growing nicely year over year over year here.
Speaker #6: strong and sustainable months.
Speaker #6: growth in our fee-related Down slightly
Speaker #6: I'll now turn the call over to David to speak to our
Speaker #6: highlights.
Speaker #7: Thanks,
Speaker #7: Mike. Turning to slide 12, we earned fee fees.
Speaker #7: revenues of $213 Finally, I am
Speaker #7: million pleased to announce that we are
Speaker #7: up 19% from the raising our quarterly
Got it and then maybe could we just get your comment on your outlook for capital markets activity and in the second half of 'twenty five and into 'twenty six.
Speaker #7: prior year dividend by
Speaker #7: quarter. We achieved this 17% from
Speaker #7: lower retroactive fees
Speaker #7: in the current year period
Speaker #7: of $3
Speaker #7: million versus $19 fee-related
Speaker #7: million in the prior year earnings.
Just your expectations for improved private equity demand.
Speaker #7: fees, fee revenues
Speaker #7: grew 32% year over year; the increase was driven by Thanks, growth in fee-earning AUM
Sure.
So look I think what I would say is that there was probably a point in time earlier. This year that are pre liberation day, where we would have thought that our activity levels would have probably outpaced 2024, which actually did turn out to be a fairly active year for us. It was our most active year investing in <unk>.
Speaker #7: Fee-related earnings were $81
Speaker #7: million, up 13% from
Speaker #7: ago. FRE margin
Speaker #7: was 38% for the
Speaker #7: quarter.
Speaker #7: up
Secondary is across asset classes and it was our second most active year in private equity co investments things that clearly moderated somewhat although we are seeing them pick back up again and now I would tell you that our investment pace looks to be generally in line with last year as opposed to outpacing it.
Speaker #7: and core FRE
Speaker #7: margin was 37%, expanding by more higher blended average fee
Speaker #7: than 300 basis
Speaker #7: Shifting
Speaker #7: This is up from last
Speaker #7: quarter's $86 quarter.
Speaker #7: impact of our annual merit increase, which took
Similarly, if I think about not just new investment activity, but realization activity you heard us mentioned in the comments.
Speaker #7: effect on April 1st, headcount increase, which took effect on growth, and unfavorable FX due to the weakening of the US
Speaker #7: dollar. As we mentioned on the last call, the prior April 1st, quarter's compensation expense included a favorable adjustment to the bonus
The prepared remarks that obviously from a timing standpoint, we saw some things slipped from.
This most recent quarter and into next quarter. That's why we called out some of the realizations. We've already seen come through there. We are seeing good activity on the on the potential exit ramp, but also seeing that sellers.
Speaker #7: accrual. The cash compensation ratio adjusted for headcount growth, and retroactive fees was
Speaker #7: 46%, consistent the expectations
Speaker #7: we set out on our last
Speaker #7: earnings call. This is a fair cash compensation ratio to model dollar.
Are trying to maintain discipline and not willing to sell at any price and so we are still seeing many situations, where a GP runs an exit process and if they can't get.
Speaker #7: going forward.
Speaker #7: Understanding that there may be
Speaker #7: Adjusted equity-based
Speaker #7: compensation was $4 million, up $1
The evaluation, they're looking for they will elect to hold and continue to grow.
Speaker #7: The increase primarily reflects the layering
Speaker #7: of a full expectations we set out four-year cycle of
Assets, we're seeing similar trends with sellers in the secondary market.
Speaker #7: RSU investing, from on our last earnings
Speaker #7: when we first started to call.
So look I think we expect to see a recovery in activity levels.
But still question marks as to whether we really see kind of break out that level of activity.
Speaker #7: quarter, but down slightly
Speaker #7: sequentially. Gross realized quarter.
Thank you for the color.
Thank you.
I am showing no further questions at this time I would now like to turn it back to Scott for closing remarks.
Speaker #7: expense. This included
Speaker #7: realizations from the pipeline in of deals announced in late 2024 and
Speaker #7: early
Speaker #7: 2025, which we had mentioned
Great I just wanted to thank everyone for your time and interest in step stone and we hope everyone has a great rest of summer and look forward to connecting again next quarter. Thank you.
Speaker #7: on the last
Speaker #7: Several of those
Speaker #7: transactions also closed down slightly in July, which
Speaker #7: generated nearly $35
Speaker #7: million of gross were $25 million for realized performance fees
Speaker #7: since the end of the
Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker #7: While the timing of performance fees is
Speaker #7: difficult to
Speaker #7: tariff-related pause in
Speaker #7: April. Adjusted net income per
Speaker #7: share was $0.40
Speaker #7: down from last quarter
Speaker #7: core FRE was
Speaker #7: offset by lower
Speaker #7: earnings.
Speaker #7: Moving to key items on the balance sheet on slide
Speaker #7: 13, net performance fees continues to accrued carry finished the
Speaker #7: quarter at
Speaker #7: $783 million, up
Speaker #7: 6% from last
Speaker #7: Our net accrued carry is relatively
Speaker #7: 75% are tied to programs that
Speaker #7: are older than five by lower retroactive years, which means that
Speaker #7: these programs are ready to
Speaker #7: Our own investment portfolio
Speaker #7: ended the quarter at $300 items on the balance sheet
Speaker #7: This concludes our prepared remarks. I'll now turn
Speaker #7: questions.
Speaker #8: Thank is relatively you. At this
Speaker #8: time, we will conduct the question
Speaker #8: and answer
Speaker #8: session. As a reminder, to
Speaker #8: ask a question, you will need
Speaker #8: To withdraw your
Speaker #8: question, please press million.
Speaker #8: *11 This
Speaker #8: Please stand
Speaker #8: Our first Thank question comes from Ben
Speaker #8: Please go head.
Speaker #9: Good evening and thank ou for taking the
Speaker #9: estion. wondering if you could
Speaker #9: partnership with FTSE Russell. You
Speaker #9: know, Scott, I know you mentioned in
Speaker #9: our prepared remarks it'll take some
Speaker #9: meaningful impact. But what are sort of the the next steps you know, are you onboarding clients that are that
Speaker #9: what are the things we should look for in
Speaker #9: the interim before there's maybe a
Speaker #10: Okay.
Speaker #10: Great, great, Ben. This is FTSE Russell.
Speaker #10: Mike McCabe here. You know, Scott, I
Speaker #10: Thanks for the question. And ow you mentioned that you were prepared to
Speaker #10: announce a framework that we
Speaker #10: signed with FTSE Russell back
Speaker #10: of a series
Speaker #10: different asset classes. And what's unique
Speaker #10: about the the indices that Okay.
Speaker #10: we're developing with FTSE
Speaker #10: indices that that many
Speaker #10: are used to FTSE Russell back in
Speaker #10: seeing. I think what June which you'll see is later this year will be the launch
Speaker #10: of the first of a series of these indices that will be distributed across the FTSE is really going to be the beginning Russell and StepStone
Speaker #10: the licensing revenue associated
Speaker #10: And we expect it to be fairly modest at the beginning. But as
Speaker #10: you know, developing other indices that go
Speaker #10: beyond maybe the first base.
Speaker #10: equity and infrastructure. And then
Speaker #10: I
Speaker #10: term, it's reasonable to expect that
Speaker #10: as these indices become adoption rates grow, we market-leading and the adoption rates
Speaker #10: could very well be some asset
Speaker #10: but I hope that answers your question,
Speaker #9: that's all from me. Thank you very
Speaker #9: much. think longer term,
Speaker #11: good
Speaker #11: afternoon. Thanks for taking the estion. indexes as
Speaker #11: products doing Yeah, that was
Speaker #11: great. I would great.
Speaker #11: I I sort of get it. But maybe talk about the appetite here for venture
Speaker #11: and, you ow, how
Speaker #11: And then, maybe
Speaker #11: CredEx seems question.
Speaker #11: to still be finding its You know, first,
Speaker #11: so, maybe
Speaker #11: next talk about that. And spring has been the then I'll wrap everything into the
Speaker #11: same question.
Speaker #11: for, the wealth
Speaker #11: and where is this
Speaker #11: driving you to to look next then maybe in terms of product
Speaker #10: Thanks, Ken. This is
Speaker #10: Jason. starting
Speaker #10: spring, I
Speaker #10: product. And so for those in the
Speaker #10: Spring is the answer in the marketplace. The
Speaker #10: through the Greenspring
Speaker #10: is a market-leading
Speaker #10: quite some time.
Speaker #10: So we're a familiar the answer in the name.
Speaker #10: Particularly in this marketplace.
Speaker #10: space. And I think The reputation of
Speaker #10: that is a good our venture and
Speaker #10: reason why you're growth team
Speaker #10: particularly as
Speaker #10: overall, there's a lot acquisition is a of attention on the innovation
Speaker #10: economy. market-leading
Speaker #10: over time, whether franchise.
Speaker #10: that be AI
Speaker #10: or, other areas within
Speaker #10: So I
Speaker #10: think that it's a pretty easy
Speaker #10: explanation as to why spring has been such an attractive opportunity. Not
Speaker #10: just with distribution partners directly, but you're seeing also for
Speaker #10: model
Speaker #10: portfolios. over time, whether that be
Speaker #10: year, the organic raise actually is tracking kind of
Speaker #10: the organic raise that we saw in the early days of
Speaker #10: S-Prime. And Strucks and the if we look Spring. So we're we're happy with what's going
Speaker #10: And the syndicate
Speaker #10: is building you know, month by
Speaker #10: well. at this point,
Speaker #10: today. So I I
Speaker #10: think it it of is, it's not kind of
Speaker #10: funds. And maybe we would have hoped
Speaker #10: But, but it is building
Speaker #10: obviously, the credit landscape
Speaker #10: is, a building bit more
Speaker #10: we do think that the multi-manager
Speaker #10: is differentiated relative to the direct
Speaker #10: lender BDCs. And, we
Speaker #10: that
Speaker #10: now. it's not yet
Speaker #10: So I won't go into too much detail.
Speaker #10: And in terms of
Speaker #10: where that we
Speaker #10: see activity
Speaker #10: from or or
Speaker #10: from the wealth channel on.
Speaker #10: overall, we we believe that the suite that we've got of different In terms of the
Speaker #10: products product roadmap, we
Speaker #10: And we have focused a lot on
Speaker #10: packaging, is more
Speaker #10: finely tuned. And so
Speaker #10: we lifted
Speaker #10: the accredited from, from the wealth channel investor status, meaning
Speaker #10: requirement from S-Prime
Speaker #10: earlier this year. And
Speaker #10: Strucks earlier this
Speaker #10: To
Speaker #9: Great.
Speaker #9: Thank you very accredited investor
Speaker #8: Thank
Speaker #8: Go head.
Speaker #12: Hey, good evening as well. thanks for the execution, question. a couple of
Speaker #12: follow-ups related to Ken's question around
Speaker #12: wealth. Great.
Speaker #12: wealth. Great. Maybe a bit more, Thank you very guess, financially oriented. the
Speaker #12: the platform scaling really Thank nicely. So maybe just a quick update. how much in profitability
Speaker #12: wealth franchise contribute to StepStone right now? And as you sort of think Hey, , you know, so the
Speaker #12: P&L and maybe geography of some of the things, good evening as
Speaker #12: fee-related performance revenues from some well.
Speaker #12: going to become a bit more
Speaker #12: stand how much that
Speaker #12: contributes today at sort of profitability net current performance, current run
Speaker #12: you would consider reclassifying that like some of the others
Speaker #12: done in the space?
Speaker #12: Thanks.
Speaker #13: question.
Speaker #13: so right now in our,
Speaker #13: press release, we we
Speaker #13: NCI impact, the private wealth.
Speaker #13: I think it's on page 11 or 12 of the, press release. So, it performance, current run rate, it it is,
Speaker #13: And
Speaker #13: if you recall, ace?
Speaker #13: the private wealth business, all Thanks. the rep 100% of the
Speaker #13: the private wealth business. you track the assets,
Speaker #13: calculate the,
Speaker #13: So you you
Speaker #13: revenues are. But but
Speaker #13: as it continues to
Speaker #13: scale. Today, revenues, half private wealth represents
Speaker #13: nearly 8% of it goes to the
Speaker #13: AUM. So, you ow, as you as you
Speaker #13: can imagine, going the assets, calculate forward, you know, you'd
Speaker #13: scale
Speaker #13: have margin
Speaker #13: expansion and contribute more meaningfully to the
Speaker #9: Right. And did
Speaker #9: Right. And did just the fee-related performance Today, private revenue
Speaker #9: dynamic? Like whether or not
Speaker #13: So so right now, you know, we
Speaker #13: within the asset classes.
Speaker #13: We don't have any plans to separate that out at this time. And sorry,
Speaker #13: I think this is yeah, Right.
Speaker #13: Alex, you're referring to some of the incentive fees as
Speaker #13: So as a bit of a
Speaker #13: reminder, you
Speaker #13: know, here on several of Oh,
Speaker #13: and Strucks, you know, we're not
Speaker #13: charging the asset classes.
Speaker #13: performance fees today.
Speaker #13: and great detail
Speaker #13: about for
Speaker #13: example,
Speaker #13: Spring which
Speaker #13: crystallizes some of the incentive
Speaker #13: fees David reminded me which
Speaker #13: Remember. In December.
Speaker #13: In December. and I
Speaker #13: think we, you know, current plan is
Speaker #13: to continue to
Speaker #13: report that in a similar fashion to
Speaker #13: what we have done to
Speaker #9: Got it. Great. All right. Thanks so
Speaker #9: much.
Speaker #8: Our next question comes from Mike
Speaker #8: Ciprus from Morgan Stanley. Please go
Speaker #14: Great. Thank ou. Good
Speaker #14: on retirement space with the executive order today that helps clear path for us to be included in the 401(k)
Speaker #14: space. Seems like we may need
Speaker #14: some rulemaking, perhaps to address some legal liability concerns here.
Speaker #14: that plan sponsors have. So just
Speaker #14: curious your thoughts around
Speaker #14: this, how you see this all playing
Speaker #14: Seems like target date might be the most
Speaker #14: obvious entry point. Curious
Speaker #14: your views around
Speaker #14: that. What strategies might make the
Speaker #14: most sense and to what extent
Speaker #14: be helpful here?
Speaker #14: How we may need some you're thinking about that and
Speaker #14: evaluating
Speaker #14: potential for for
Speaker #14: partnerships.
Speaker #10: Thanks, Mike. This is
Speaker #10: we were we were very happy to
Speaker #10: see the EO
Speaker #10: issue today.
Speaker #10: And
Speaker #10: yes, obviously expect that to
Speaker #10: help to clarify
Speaker #10: fiduciary duties within the original
Speaker #10: landscape. I do want to call out and thank our
Speaker #10: the public policy committee for