StepStone Group Inc. (STEP): History, Ownership, Mission, How It Works & Makes Money

As a seasoned financial analyst, I've seen countless firms try to navigate the complex world of private markets, but what makes StepStone Group Inc. (STEP) a true standout in this crowded space?

This global private markets investment firm closed its fiscal year 2025 (FY2025) with a massive $709 billion of total capital responsibility and $189 billion in Assets Under Management (AUM), demonstrating its critical role in allocating capital across private equity, debt, real estate, and infrastructure for major institutional clients.

With annual revenue hitting $1.175 billion for FY2025, StepStone's capital-light business model and focus on customized solutions-from fund investments to secondaries-is defintely working, so you need to understand how they generate that revenue and where their next growth engine lies.

How does a firm with this scale maintain a competitive edge and what does its structure mean for your investment strategy?

StepStone Group Inc. (STEP) History

You're looking for the bedrock of StepStone Group Inc., the story behind how a private markets firm grew into a global player. It all started with a clear focus on private capital, a handful of founders, and a strategy built on expanding beyond just private equity. The firm's evolution has been a steady march of smart acquisitions and strategic diversification, culminating in its current position managing hundreds of billions in capital.

Given Company's Founding Timeline

Year established

The company was established in 2007, initially focusing on providing customized investment solutions in the private capital space.

Original location

StepStone Group's original office was in La Jolla, California, before the firm expanded its footprint globally.

Founding team members

The founding team included key figures who had previously worked together in private equity, such as Thomas Keck, David Golub, Michael Elio, and Scott Hart. Monte Brem was also a co-founder.

Initial capital/funding

Specific details on the initial capital or seed funding are not publicly available. What matters more is the rapid scale-up that followed, driven by institutional client mandates.

Given Company's Evolution Milestones

The firm's growth wasn't accidental; it was driven by key strategic moves that broadened its asset classes and geographic reach. Here's the quick look at the major milestones:

Given Company's Transformative Moments

The biggest shifts for StepStone Group Inc. weren't single events, but rather a series of decisions that transformed it from a niche player into a diversified, global platform. The commitment to a multi-asset class approach is defintely the most crucial element.

For the fiscal year ended March 31, 2025, the firm reported total revenues of $377.7 million for the quarter, a clear sign of scale. Assets Under Management (AUM) hit $189.4 billion, with Fee-Earning AUM (FEAUM) growing by 29% to $121.4 billion. That kind of growth shows the model is working.

• Strategic Diversification: The firm consciously moved beyond its initial private equity focus to include infrastructure, private debt, and real estate, allowing them to serve a wider range of institutional and private wealth clients.
• The Evergreen Fund Push: Expanding into evergreen funds-investment vehicles that continuously take in new capital-has been a game-changer, especially for the high-net-worth and mass affluent markets. This shift is lowering the barrier to entry for private markets.
• Global Physical Expansion in 2025: The opening of new offices in Riyadh, Saudi Arabia, and Madrid, Spain, in October and November 2025, respectively, formalizes their presence in key growth regions, deepening client relationships and sourcing capabilities.

You can see the full financial picture that resulted from these moves in Breaking Down StepStone Group Inc. (STEP) Financial Health: Key Insights for Investors. The firm's ability to consistently grow its AUM and FEAUM demonstrates the success of its advisory and customized solutions model, even with the volatility in the broader private markets.

StepStone Group Inc. (STEP) Ownership Structure

StepStone Group Inc. operates with a hybrid ownership structure, typical of modern financial firms, where institutional capital holds the majority stake while a significant portion remains with the original insiders, aligning management's interests with long-term performance.

StepStone Group Inc.'s Current Status

StepStone Group Inc. is a publicly traded global private markets investment firm, listed on the NASDAQ stock exchange under the ticker symbol STEP. This public status allows for capital raising and provides liquidity for shareholders, but it also subjects the company to rigorous public reporting requirements (SEC filings) and shareholder scrutiny.

The firm ended its fiscal year 2025 (March 31, 2025) with approximately $709 billion of total capital responsibility, including $189 billion of assets under management (AUM), demonstrating its massive scale in the private markets space. If you want a deeper dive into the firm's balance sheet, check out Breaking Down StepStone Group Inc. (STEP) Financial Health: Key Insights for Investors.

StepStone Group Inc.'s Ownership Breakdown

As of late 2025, the ownership is heavily skewed toward large financial institutions, which is common for a company of this size and market focus. Institutional investors own well over half the stock, but the substantial insider stake is defintely the number to watch, as it shows management has skin in the game.

StepStone Group Inc.'s Leadership

The company is steered by a seasoned executive team, many of whom have been with the firm for a decade or more, ensuring strategic consistency. Scott W. Hart, the Chief Executive Officer, took the helm in January 2022, succeeding co-founder Monte M. Brem, who now serves as the Chairperson of the board of directors and an Executive Advisor.

Here's who is driving the day-to-day operations and long-term strategy:

• Scott W. Hart: Chief Executive Officer (CEO). He also serves on the board of directors.
• Jason P. Ment: President and Co-Chief Operating Officer (COO). He has been in a leadership role since 2010.
• Jose A. Fernandez: Co-Chief Operating Officer (COO). A co-founder of the Partnership in 2007.
• David Y. Park: Chief Financial Officer (CFO). He stepped into the CFO role in January 2024.
• Michael I. McCabe: Head of Strategy. He is also a long-standing Partner and board member.

This core leadership team, alongside 10 new partners and 24 new managing directors promoted in March 2025, manages the firm's global strategy across private equity, infrastructure, private debt, and real estate.

StepStone Group Inc. (STEP) Mission and Values

StepStone Group Inc. stands as a Mission Statement, Vision, & Core Values of StepStone Group Inc. (STEP). trusted partner for complex private markets investment, focusing its entire operation on generating superior, risk-adjusted returns for its sophisticated client base.

The firm's cultural DNA is built around a disciplined approach to private equity, private debt, real estate, and infrastructure, which is why their mission is centered on being a comprehensive solution provider, not just an allocator of capital.

StepStone Group Inc.'s Core Purpose

As a seasoned financial analyst, I see StepStone Group Inc.'s core purpose as bridging the gap between institutional capital and the opaque world of private markets (alternatives). They are paid to create clarity, opportunity, and value in this space, a role that is becoming defintely more critical as private markets grow.

To put a number on this commitment, as of September 30, 2025, the firm was responsible for over $771 billion in total capital, with $209 billion of that actively managed as Assets Under Management (AUM). That's a massive amount of trust placed in their hands.

Official mission statement

The company's mission is to be a trusted partner to sophisticated investors, providing comprehensive investment solutions and generating superior risk-adjusted returns. This isn't just corporate speak; it translates into a rigorous, four-part commitment:

• Be Client-Centric: Always prioritize the institutional investor-like pension funds and sovereign wealth funds.
• Deep Expertise: Specialize across all private market asset classes, from private equity to infrastructure.
• Disciplined Investment: Apply a rigorous research and risk management process.
• Value Creation: The ultimate goal is to deliver attractive returns for clients.

For the fiscal year ended March 31, 2025, this focus translated into management and advisory fees of $767 million, a 31% increase year-over-year, showing that clients are willing to pay for this specialized expertise.

Vision statement

While StepStone Group Inc. hasn't published a single, punchy vision statement, their actions and strategic objectives paint a clear picture. The vision is one of relentless, global expansion and platform enhancement.

You can infer their long-term vision is to be the indispensable, global platform for private markets, achieved by:

• Continued Growth: Expanding global reach and AUM, which hit $189 billion by the end of FY 2025.
• Innovation: Offering cutting-edge investment products and solutions.
• Operational Excellence: Promoting better decisions and investments through their proprietary data and technology.

The key here is that they are constantly evolving to solve the next complex challenge in private markets. They see the world in close-up.

StepStone Group Inc. slogan/tagline

The company uses several phrases that function as a tagline, all pointing to their role as an enabler in a complex asset class. The most direct summation of their purpose is: 'Creating clarity, opportunity and value in the private markets.'

Other taglines that speak to their internal culture and external value proposition include:

• Made to make more of the private markets and bring better opportunities to light.
• Our purpose. How we're built to evolve, solve and grow with our clients and partners.

Their core values-like 'People Matter,' 'Empowered Team,' integrity, and transparency-drive this. They foster an environment where everyone is an entrepreneur, applying curiosity to solve complex challenges. This internal culture is what makes the external promise of 'clarity' possible.

StepStone Group Inc. (STEP) How It Works

StepStone Group Inc. operates as a global private markets investment firm, connecting a diverse client base-from large pension funds to individual high-net-worth investors-with customized investment solutions and advisory services across private equity, infrastructure, private debt, and real estate.

The firm makes money primarily through management and advisory fees based on assets under management (AUM) and also earns performance fees when investments outperform a hurdle rate, generating $767 million in management and advisory fees for the fiscal year ending March 31, 2025.

StepStone Group Inc.'s Product/Service Portfolio

StepStone Group Inc. structures its offerings to provide access to the illiquid, high-potential private markets, spanning the four major asset classes: private equity, real estate, infrastructure, and private debt.

StepStone Group Inc.'s Operational Framework

The firm's value creation process is built on a global, integrated platform that combines deep asset-class specialization with a unified data and due diligence engine. This allows them to source, evaluate, and execute complex private market transactions efficiently.

• Global Sourcing: Operates from a network of 31 offices worldwide to provide local expertise and access to investment opportunities across all major global markets.
• Integrated Strategy: Deploys capital across primaries (new fund commitments), secondaries (buying existing fund stakes), and co-investments (direct deals) to optimize portfolio construction and fee structures for clients.
• Data-Driven Due Diligence: Utilizes a proprietary data platform to conduct rigorous operational and investment due diligence, which is critical for managing risk in private markets.
• Client Partnership: Partners with clients to define specific objectives, then develops and manages portfolios-StepStone was responsible for approximately $771 billion of total capital as of September 30, 2025.

Here's the quick math: with $209 billion in Assets Under Management as of Q3 2025, the firm's ability to scale its advisory and investment services across different client types is defintely the core driver of its $1.17 billion in annual revenue for the fiscal year 2025. You can dig into the specifics of this performance in Breaking Down StepStone Group Inc. (STEP) Financial Health: Key Insights for Investors.

StepStone Group Inc.'s Strategic Advantages

StepStone Group Inc.'s success in the highly competitive private markets hinges on its differentiated access, scale, and commitment to transparency, particularly for the newer private wealth segment.

• Superior Deal Flow: Deep, long-standing relationships with best-in-class fund managers globally grant the firm preferred access to co-investment and secondary opportunities that are often unavailable to smaller or less connected investors.
• Institutional-Grade Private Wealth Access: Pioneered streamlined investment structures, like evergreen funds, that simplify the complex private markets experience for individual investors, offering features like regular liquidity and transparent reporting.
• Pure-Play Focus: The firm focuses exclusively on the four core private market asset classes-private equity, private debt, real estate, and infrastructure-which concentrates expertise and avoids the distraction of public markets or hedge funds.
• Scale and Customization: Its massive capital responsibility allows it to be one of the largest allocators to private markets globally, but it still maintains a client-centric approach, building portfolios designed to meet specific client objectives.

StepStone Group Inc. (STEP) How It Makes Money

StepStone Group Inc. makes money by acting as a global private markets investment firm, earning fees primarily from managing client capital (Assets Under Management, or AUM) and from advisory and data services. The company's revenue is a two-part engine: a stable base of management fees and a more volatile, but high-margin, stream of performance fees tied to investment success.

StepStone Group Inc.'s Revenue Breakdown

For the fiscal year ended March 31, 2025, StepStone Group Inc. reported total annual revenue of approximately $1.175 billion. This revenue is split between predictable fees based on committed capital and success-driven fees based on realized gains.

The Management and Advisory Fees stream, which totaled $767 million in FY 2025, grew by 31% year-over-year. This is the defintely the backbone of the firm, providing predictable cash flow. Performance Fees and Other Revenue, which accounted for approximately $408 million, are realized when underlying investments are sold at a profit, making this component more sensitive to market conditions and exit activity.

Business Economics

The core of StepStone Group Inc.'s economic model is the compounding effect of its Assets Under Management (AUM) and its Fee-Related Earnings (FRE). The firm's AUM reached approximately $189 billion as of March 31, 2025, which is the direct driver of the stable management fees. They get paid a percentage of this capital, regardless of market performance, which creates a durable revenue base.

• Fee-Related Earnings (FRE): This key metric shows the profitability of the recurring revenue base, excluding the volatile performance fees. For the third quarter of FY 2025, FRE hit a record $74.1 million, representing a 46% year-over-year increase.
• FRE Margin: The firm's FRE margin stood at 39% in Q3 FY 2025, indicating strong operational efficiency in translating management fees into profit.
• Undeployed Fee-Earning Capital (UFEC): The firm also holds a significant pool of committed capital that has not yet been invested, which they call UFEC. Activating this capital-that is, deploying it into investments-is a clear runway for future fee growth.
• Private Wealth Scaling: A major growth vector is the private wealth channel, which saw subscriptions exceed $1 billion in a single quarter of FY 2025, scaling the platform to over $6 billion by year-end. This diversification reduces reliance on large institutional clients.

The business model is not just about managing money; it's also about providing advisory and data services, which further embeds the firm with its clients, creating a sticky, long-term relationship. To understand the strategic foundation of this model, you should look at their Mission Statement, Vision, & Core Values of StepStone Group Inc. (STEP).

StepStone Group Inc.'s Financial Performance

Looking at the full fiscal year 2025, the company demonstrated strong top-line growth, but you must look past GAAP net income to see the core health. The private markets business often requires non-GAAP metrics to truly assess performance.

• Total Capital: As of March 31, 2025, StepStone was responsible for approximately $709 billion of total capital, which includes both AUM and Assets Under Advisement.
• Annual Revenue Growth: The full-year FY 2025 revenue of $1.175 billion represents a significant 65.09% increase compared to the previous fiscal year, showing accelerating demand for private market solutions.
• Adjusted Net Income (ANI): This non-GAAP measure provides a cleaner view of profitability by excluding non-cash items. For the third quarter of FY 2025, ANI per share was $0.44, an increase of 19% year-over-year, driven by the higher FRE and realized performance fees.
• Dividend Policy: The firm's commitment to returning value is clear, having declared a quarterly cash dividend of $0.24 per share, along with a supplemental cash dividend of $0.40 per share, both payable in Q1 FY 2026.

Here's the quick math: the $189 billion in AUM is the annuity, and the 31% growth in management fees confirms that annuity is growing fast. The risk remains in the volatility of the Performance Fees, but the high FRE margin gives them a solid cushion.

StepStone Group Inc. (STEP) Market Position & Future Outlook

StepStone Group Inc. is strategically positioned for continued growth by capitalizing on the democratization of private markets, even as a challenging exit environment persists.

The firm's future is tied to its ability to convert its massive $709 billion in Total Capital Responsibility into higher-margin fee-earning assets, a strategy clearly evidenced by its launch of new evergreen vehicles in late 2025. This focus on scalable solutions for the private wealth channel is defintely the primary growth engine.

Competitive Landscape

In the private markets solutions space, StepStone Group competes directly against peers like Hamilton Lane, but also faces the immense scale of diversified alternative asset managers like Blackstone. Here's a look at the relative positioning, using Assets Under Management (AUM) as a key measure of scale in the solutions segment.

Here's the quick math: Comparing StepStone's $189 billion AUM to Hamilton Lane's $138.3 billion AUM (both as of March 31, 2025) shows StepStone holding a slight lead in discretionary assets among its closest peers in the private markets solutions segment. [cite: 4 in step 1, 4 in step 2] Blackstone, with its $1.21 trillion in AUM as of Q2 2025, operates on a fundamentally different scale, leveraging its size for global dominance. [cite: 8 in step 2]

Opportunities & Challenges

The private markets are complex, so you need to map the tailwinds and headwinds clearly. The biggest opportunity is the shift of high-net-worth (HNW) capital into alternatives, but the biggest challenge remains market liquidity.

Industry Position

StepStone Group is a leading global private markets firm, distinguished by its comprehensive advisory and data services model, which extends its influence far beyond its core AUM.

• Advisory Scale: The firm's $709 billion in Total Capital Responsibility (TCR) as of March 31, 2025, highlights its role as a key advisor to some of the world's largest institutional investors, including sovereign wealth funds and major pension funds. [cite: 2, 4, 5 in step 1]
• Product Innovation: Strategic initiatives like the launch of the StepStone Private Equity Strategies Fund in November 2025, which attracted over $750 million at inception, are critical for capturing the high-growth private wealth segment. [cite: 11, 12, 14 in step 1]
• Global Footprint: Recent office openings in Madrid and Riyadh in late 2025 show a clear strategy to deepen relationships in Europe and the Middle East, expanding the global distribution network. [cite: 11, 12 in step 1]
• Data as a Moat: The partnership with FTSE Russell to launch global fund-level daily private market indices demonstrates the firm's commitment to leveraging proprietary data, a core competitive advantage against peers. [cite: 12 in step 1]

To be fair, the firm's growth in management and advisory fees-up 31% to $767 million for the fiscal year ended March 31, 2025-shows strong demand for its core services, but the market will still watch for improved net income. [cite: 4 in step 1] You should check out Exploring StepStone Group Inc. (STEP) Investor Profile: Who's Buying and Why? for a deeper dive into who is betting on this strategy. The next big move is converting that TCR into more permanent, fee-earning capital.