StepStone Group Shatters Growth Records with 46% Increase in Fee-Related Earnings

StepStone Group, a leading alternative investment manager, has reported a stellar performance in its Fiscal Third Quarter 2025 earnings conference call. The company's fee-related earnings soared by 46% to $74.1 million, surpassing its previous highest level ever.

"This was a standout quarter for both fee-related earnings and fee-related asset growth," said Scott Hart, Chief Executive Officer of StepStone Group. "We generated fee-related earnings of $74 million, our highest level ever and increased our fee earning assets under management by nearly $10 million, which is the strongest quarter of organic growth in StepStone's history."

The company's total fee-earning assets under management now stand at over $114 billion, a 28% increase from the same period last year. This significant growth can be attributed to StepStone Group's strong fundraising efforts over the past year, which have enabled it to deploy and activate a substantial portion of its undeployed fee-earning capital (UFEC). In this quarter alone, the company deployed over $2 billion of capital and activated over $6.5 billion of capital from its UFEC balance.

"We tend to look at our growth over a longer period than just 1 or 2 quarters in order to reflect cumulative efforts of fundraising, investing and relationship building that span cycles," said Hart. "Measuring our progress since the fall of 2021, we've increased our fee-earning AUM by 70% or a compounded annual rate of 18% with all this growth generated organically."

This achievement is particularly noteworthy, given the fundraising pressures faced by many private market managers in recent years. StepStone Group's success demonstrates its ability to navigate these challenges and maintain a strong growth trajectory.

"Our results for both the quarter and the last several years are a validation of our strategy and business model," said Hart. "While certain investment approaches may be in or out of fashion in any given period, the diversification of our offerings provides a complete array of solutions for our clients and provides a balance for consistent growth for our shareholders."

For StepStone Group's investors, this quarter's results are a testament to the company's commitment to delivering strong returns while maintaining a diversified investment approach.