STEP - Earnings call 2 2021 | StepStone Group Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to StepStone's Fiscal 2021 Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this call will be recorded.

I would now like to turn the conference over to Michael Kim of ICR, StepStone's Investor Relations liaison. Please go ahead, Michael.

Michael Kim

Thank you, and good afternoon, everyone.

Officer. Hart, Officer; Officer; Strategic Mike Johnny Chief Scott and Ment, Planning; are Randel, Operating Co-Chief McCabe, Financial today Co-Chief Jason Executive President and Joining Head of

referring During to viewing our download website our stepstonegroup.com. from we prepared will or slides, are available remarks, which for at be

Before for expected slides this forward-looking contain call we statements to future operating well as regarding that I'd everyone like company's and certain performance financial as periods. begin, the remind conference the presentation

expectations and and estimates are plans, for current by management's reflect statements to to from detail the Factors filed in uncertainties statements days. and and these be of IPO prospectus uncertain risks, the future materially due subject implied Securities StepStone's U.S. a our assumptions. and are under expressed differ to Forward-looking few inherently results Risk or number on those risks factors forward-looking Form periods in or various may other September with of filed next Exchange that and Commission are expected XX XX-Q greater described Actual

from the financial quarter. results. the income September $XXX.X of net of We a StepStone million GAAP Inc. reported for loss $X.X for our attributable XX was net million Group, income GAAP to quarter, to period Turning Fee-related prior $XX.X earnings XX% September And to XXXX. year. XX, from million up for a net was the was per $XX.X up $X.XX share, the income XXX% adjusted ago. year million or

Co-Chief over StepStone's call With the Executive Mr. that, Scott I'd to like Scott? to Officer, Hart. turn

Scott Hart

all like today's commitment unprecedented thank public thanking of our continue I trust their partnership We StepStone's during earnings a in and inaugural for their everyone, thank by company. employees and the Thanks, would they for times. work for Michael. start call to Good you also clients these for place StepStone's to and us to us. joining hard afternoon, wanted as call

new all Finally, of many vote our confidence. shareholders your to for thanks of

shareholders. culture. are and us founding Step tool a us retain for our transition know, long-term September we're The company our principles journey attract, ownership to shareholders. some When continuing opportunity created and As drive and public an to of entrepreneurial new in looking StepStone, able we allows XXX clients team that are that and forward over spirit successfully we were value equity and IPO to an proud equity strong to you a to members. we included our a reward with say to employees to now have provided that And broaden our

XXXX. the the an of September ended presentation XX, X quarter highlights Slide provides overview for of results the and

over of capital account in funds, the under commingled strong, Asset total assets $X more will $XX presentation. part by billion and the in in focused fundraising growth detail later $X approximately remained up across approximately to the our management in billion. new Mike separately walk with billion addition was XX% through last which This year driven managed in

increased fee-earning the months during Our billion. XX% to AUM $XX last XX

carry increased or second will at accrued million Looking undeployed the $XXX deployed the the fee-earning by which on stood million. once capital XX% $XXX billion or activated, end capital, quarter, and fiscal of at earn we to over quarter ahead, fees $XX or gross during

share $X.XX fees final income Turning XXX% Estate retroactive AUM growth $XX.X advisory the fee-earning related year-over-year, up earnings. rising earnings strong financial in quarter, and $XX.X close StepStone and income to of adjusted and into for adjusted management results. an million summary a turn, management quarter, for or IV. translated fees, of Partners our the and per Fee-related subsequent $X.X net The totaled included XX% fee-related million net to the increase approximately for year-over-year. million totaled Real In

across view, starting we and private our X competitive ecosystem. StepStone positioning in In key an refresher, brief our advantages areas. Slide provide markets a the maintains of X, with Now on overview durable StepStone

our on solutions of needs to specifically to our the build portfolio focus clients. meet allows First, customized us tailored

at outside offices fees of firm management Second, and global local yet the with coming scale approximately our truly based XX based of of team advisory a across our we U.S. nearly from and XX built outside X/X the have operating clients XX% countries, of U.S. with

of improves we the large have flow technology invested capture not that in Third, proprietary heavily also through to and operational allows platform. StepStone analyze only but efficiency, our us that amounts data

estate built asset provide Fourth, with private across solution. the market us infrastructure, to and debt private and capabilities expertise we clients classes, a specialized have complete equity, private enabling real

culture, the structure And to finally, our organizational we you've maintain drive an date. teams in a entrepreneurial empowering team-of-teams decentralized business seen and growth large a to team, and experienced our

X,XXX the to StepStone closely with an over on work analyzing our and $XX of relationships. markets global facilitate and partners private limited X. increasingly cover investment opportunities informed of complex markets way. We into to clients maintains leverage the private and position StepStone the essential to our the by sourcing the platform allocation ecosystem. in alongside efficient, over our markets help Slide basis Turning allows This an increasingly or billion to private cost-effective per an annual clients the in year GP

platform powerful the StepStone becoming is over more time. And

in returns completing As we and thereby allocate us and additional creating more helping access cycle and virtuous a flow, GP flywheel to to replicate. that better the number attract greater generate clients, work more of with relationships, is across difficult more capital we deal effect more clients, a resulting data

private out Slide X. platform we Next, comprehensive our on markets lay

In and clients tools it to we As important might case, of is in variety address includes a our a can X structures use we toolbox solutions primary of have our face. that a wide that so strategies, we toolbox that secondaries core mentioned; number our a provider, co-investments; challenges investment the our to number investments, fund and that deliver different previously of asset solutions. classes X

is accounts, customized this solutions. the managed dedication AUM, single the of is are largest objectives client. needs billion that to part of which business meet demonstrates providing of are First and and designed of to essentially $XX our funds our one specific separately fee-earning a At today

Next, our strategies. investment commingled focused which our offer to that vehicles funds, allow specialized are to aggregation us most you some clients access have of

managed the of September, and of or total XX% base. end funds we of $XX fee-earning our As commingled AUM fee-earning of AUM billion

our we and have offerings. data as reporting portfolio as services and our well advisory analytics Finally,

results of assets capacity work in in which in billion of reflected reporting from monitoring on us part everything in significant portfolio flow, business, more the annual the advantage a and an allowing analytics. advisement, what we an initial the investments private deal advisory everything, is and of design advisory clients and $XX Here, $XXX is into in data and and billion on its and scale construction of marketplace, under our over StepStone our ongoing to markets to between. deploy in gives basis The existing

to remain the would like appreciation all data and competitive around committed capabilities Mike, to our of off leveraging continue I Before and and clients. for advantages hand technology hard to our to team to diversification, members StepStone's work. commitment to deep customized provide and passion, I reiterate firm's ongoing solutions We proprietary for it integrated scale, their reach durable geographic investment

that, Strategic McCabe, Head of I'll our over pass With to Planning. Mike? Mike it

Michael McCabe

Scott. you, Thank Great.

the and X. comprehensive and reporting and data for advisory is One strategies the of markets firm's competitive most solutions and providing asset advantages on private by the platform solution have We the we StepStone's Slide and model, and analytics full-service across shown of solutions portfolio depth breadth asset classes, as structures. built key believe management,

X. to Turning Slide

We we today's private debt developing are infrastructure, operating which equity, at real holistic for private in scale estate is asset across marketplace. our and essential classes, believe solutions

our investment XX investment in on each experts equity, dedicated demonstrating while professionals team, professionals industry-leading outside have across we equity, the our we Focusing teams to asset more commitment class. fielding have even of private and private

across flows platform, enable data us clients thereby make allow platforms Our amount analytical our and our technology the and tremendous make into coupled to in-house broadening investment the solutions. with to with tools, relationship better to decisions, of clients that

portfolios $XXX overlaying SPI professionals. from over monitoring the of is decisioning tool, is analyze and diligence with with worth back-end the OMNI used our we to is and front-end collect XXX qualitative our approximately of during due track investment billion software information analytical managers views tools portfolio fund commitments. that investment

by growth while to Now ahead. and have we turning we of The date, believe Slide been equally asset And our of to inception X. we per are lies growth proud strong since continues achieved footprint excited about growth compounding XX% has we're this to that experience today. growth total year the

accounts. the Turning mandates X. We for Most came funds. either continues AUM Slide the growth signed up quarter drive billion during reups of for last approximately fiscal new expanded to formation period. and billion managed second and with Capital from accounts account existing growth the or the to XX-month -- of both first commingled $X SMAs during $X approximately managed

net on billion We from XX, also as they undeployed XXXX. $XX at that invested capital Total September manage fees successfully stands fee-earning over billion SMAs, capital. $X of their invested

to We of raised $X attributed IV, quarter billion last Estate a the $XXX million. total largely SREP of the fund total a of final IV, which funds, our $X.X or Fund close StepStone Partners double billion, raised predecessor in Real commingled

Lending first months fund, equity including real IV program as raised programs. September Corporate estate and well closings for we of XX and through last final growth Senior debt as XX, closings total the our vintage During billion, a next our on $X Fund StepStone's the private Secondary

Net over AUA the additions billion client increased XX months. $XX last by advisory

solutions for are during firm. discussed focus our As roadshow, advisory the IPO a central our

fee correlation retainer-based between revenue, and meaningful no is fixed mandates. there AUA typically which are However,

charts of estate or the measured on AUM infrastructure, diversification footprint Slide of the debt. platform real by our AUA, XX private approximately Next, by our asset and scale markets. the from comes highlights private Whether and across half

are with specialized a to to asset who our teams Our across holistic increasingly culture work classes listen is seeking clients in to our way.

asset or more of class. work a little X/X than X clients with us fact, X/X our in over In

Slide on and XX the commercial left by structure class. longer-term for progression the fee-earning asset shows AUM

it's XX% fee-earning SMAs While XXXX, fee-earning has to September mix risen the remained with for XXXX XX%. note steady, of X quarters the AUM AUM accounting our structure and of roughly has important commercial through representing from March funds end commingled that

to of asset reinforcing estate, debt and the mix private a platform. power diversified infrastructure, continues favor grow in of real Importantly, class the

for XX through progression advisory around fees, longer-term XX% fee and XXXX through management with basis management our at months revenue, asset for million for grown have annually XX, Management in Slide our holding million $XXX total the points. and relatively $XXX of XX year the to September advisory which XX account management XX% fees. fiscal from walks fee steady overall blended rate XXXX,

same agreements, experienced an or growth of revenues retainer, our from fee fees, have the Advisory rate XX% fixed project-based during period. annual

discussion With our Officer, financials. to detailed that, Randel, Johnny I'll Johnny? it a more our around now hand for over Chief Financial

Johnny Randel

highlights quarter. Thank move XX financial now for you, Mike. to to Slide touch will I the on

given and have we travel the continued is fiscal once the we restricted are: travel two, retroactive performance this asset driving to and financial a related pandemic. the view quarter of benefited conditions would fees final on IV the the our environment G&A revenue year this SREP during three, temporary our expense speaking make we throughout benefited to growth normalize; one, low would from from fee-earning during activities expect numbers, trends; We Before positive resumption key points the previous strong close. as environment number

was for favorable the quarter on quarter, for below, as driven the and FRE now assets Fee-related previously that highlights. expense year stood increase retroactive growth both in management but than The XX% and margins, the fee-earning a to increases temporarily for touch advisory And environment growth. to by by the increased in And revenue at revenue improvement XX% XX% year-to-date margin and earnings drove XX% buoyed shown prior XX% XXX% fee year-to-date, mentioned. and table by driven expanded period. fees the higher year-to-date. the XX% quarter much in fee the of is quarter

after-tax close FRE per revenue, of quarter Pretax adjusted have IV and share and on final bullet, SREP the the year-to-date. XX% the ANI provided the XX% nonrecurring ANI. net and last income for And we increased impact on

of the this the table, line both is capital. generate line this Scott over the years, programs. is the fee-earning these fees and of of mentioned with few deployed the next periods third capital In capital investment as Again, $XX respective in undeployed will billion Mike that

fees timing to lower lower quarterly period, during quarter more given have reflecting are the Gross across slide XX, longer-term time period. our of on realizations detail year-to-date in encourage view a appendix, portfolios realized trends. a these Slide the We for and provide and LTM uncertainty, performance and the the underlying trends

XX% revenues, which line of increased bottom cash at or year-to-date. for revenues the table, quarter Adjusted and the XX% is the

Turning core metrics. to revenue discuss Slide XX to

advisory months, We left and growth across client last management the is with are driving for XX-month on periods top activity chart, growth growth. fee-earning both XX% strong this showing year-to-date increased last The is In XX and right. year-to-date on the asset fee the fee and the XX% up advisory and revenue revenue.

We all and fund programs growth growth, a shown. and commingled have this breakdown highlighting periods SMA provided of across

middle chart, performance $X million fees year-to-date trends. higher last realized to are showing months. the fee In Gross and gross for $X performance XX we million the are lower

mentioned, has As over time. more the detail Slide XX appendix in

Finally, in is the This on the is the the fees bottom sum revenues. chart, in chart the fee adjusted revenue performance gross chart. realized top middle of

driving is apply XX% adjusted the metrics X over which then XX those revenue trends XX% the last So higher to months. year-to-date, revenue, higher

strong year Slide as fee focuses have improvements increased XX by driven over periods. growth trends have earnings, favorable the are XX% margin reported Fee-related XX% as measures. and core X income, to on trends XX the core environment expense experienced the profitability led year-to-date this months. the last mentioned we operating these well for our revenue FRE

drive adjusted realized or in measure metric. ANI is and The of over and drivers increased calculation of income to provides trends the income a net The the appendix ANI ANI bottom at ANI over page, net XX are metrics attributable this is to in XX% Moving will Slide realized overall months. the XX% performance last a earnings cash StepStone. this trends the year-to-date non-GAAP XX fees. and fee-related discussed those time. main of

also onetime more see time, metrics expense public expense to with these company and close from benefit the expect We going we will over retroactive a and of the to the environment. would introduction the favorable revenue associated expenses of trends with level of Both forward. IV associated a SREP resume normalized being fee final low

top stats past key covers diverse provided sheet and programs message quarters. bullet we accrued portfolio this carry the of and XX to that carry carry of chart, from Turning balance perform. assuming amount key revenue And broad of carry the on a some time, up the to to several when the trends million. diversification this accrued accrued portfolios balance $XXX points. a will continue the and on gross showing the Slide think and to XX% year over you look is items. cash on at that as the We're accrued prior key investments investments, The is of carry in sheet convert backlog We set over

decline lag. the unrealized then quarter, impacting income When is subsequent valuations in you look on first at quarter see in the and see the a increase our will recent statement. you'll in quarters, the trends second changes driven the This year-to-date one in carry you portfolio quarter the by the underlying

see unfunded stood in The end. over bottom has at which increased XX% million programs page, can months last our of $XX to to the million, you commitments quarter XX the of these portfolio, investment $XX.X and at the value approximately trends proprietary

carry was is portion deal-by-deal XX% on or period is accrued have this of takeaways diversified carry chart on widely programs this waterfalls. harvest American large some tied earned; which from means Moving these may that: already The of programs, next vintage now funds billion SMAs key prior outside to many have Slide this a to of accrued commingled the $XX programs XX. those we high number capital to position; of be three, the pie are left, to with tied reflecting in and this investment or approximately Approximately highlighted mature two, large that's that of are fees their years largely accrued a a incentive of and mode. that which page one, capital, and with carry or carry pool to amount across XXXX,

appendix. review slides in We have additional your the for

now close this over to it Scott? out. to Scott I'll back And turn

Scott Hart

And for have results excited thank interest. and excited to and to Johnny, forward on our our you, under the We're public to progress and everyone, the transition Thank calls. your discuss quarter. a our time to look fiscal of belt company you, are about we future continuing second

open to Operator, operator any up open So the call. with back over it I the that, why to lines for the turn please don't questions.

Operator

Adam first UBS. Our with comes Instructions] question from [Operator Beatty

Adam Beatty

health more want kind that And fund given your private perspective markets, to these little the days. around seeing and broadly, all bit bird's you maybe just the sector of deployment But distress. about sponsors, be consolidation a just there have pressures may opportunities that. you're I ask and data experiencing others We've be your single the where that kind right opportunities that eye heard in of now. may the asset get from wanted to or on thoughts funds

Scott Hart

chime that opportunities, of This others course the first on for are question. and Thanks, your may throughout deployment seeing I'll But start question where year. the has Sure. terms Adam, Scott. in the of evolved in. we is

that imagine significantly, asset not can really in unexpected the things strategies, and dislocation. pretty XXXX, across COVID across of down classes the You half slowed first given

we've bid-ask and new we've in what past of looking bit think got a seen slowdown to spread do looking work in to periods buyers sellers dislocations, see investment exit. that activity. a you Really, capital put I a of between

But start trends I across when has as come geographies. board have to that pockets Asia, back. you've to sooner for do others. seen certain back we than in quarter-over-quarter, probably deal flows at where come come seen the really When think think have about you the look you It opposed example, back

You've really tends sectors been have be the held And throughout up COVID sectors better have active. seen more certain crisis. to that it that the

and sooner within renewables market might at seeing this as point IT areas are is we're would That such equity. areas what from certain health there be come a back segments infrastructure, be and others. So Within that have care. than that that sector standpoint of private the like communications

the significantly pretty in new starting Again, opportunities to see But such the was in the GP-led areas equity first are today. as emerge opportunities that are the those also in assets seeing whether of the to of half we're down are it year. debt We're types helping private portfolios space, deployment market. secondaries of buy in to drive whether market those private transactions, secondaries

To more health say on your generally. of is certain markets Look, private the diversification. I funds fund characteristics helping really would is that one second that question think the of what is managers I

of mentioned you managers. fund think types sort single -- I of or

have this I individual or throughout because think sectors is ways that the those think highly companies throughout the different I universe, certainly with benefiting done are of different and in that market different assets, calls COVID portfolio the diversified private environment. impacting managers most are we

Operator

Alex Blostein comes next from Our Goldman question with Sachs.

Alexander Blostein

bit on I build on to public so company. around deployment down are you about as macro are year of the not fees how guys question starting given next will AUM but to actual about the your translate And the a -- the to pace so. of was a some shadow the about uncertainty. couple a But as forward into pace. call I bit that opportunities, a couple given look of to months, of of billion $XX where all we slowed that quarters the to talk get the maybe or And some going maybe interesting fact more around hoping much conditions talked Congrats wanted or a little there little first us deployment. better, maybe back areas management that really has really

areas funds conditions couple but more into also your hit maybe challenging the of I was over kind the might a a brighter timing little you little macro think guys the run going bit as they of look one forward. months where And rate, because of also next of bit come the the last on for commingled could round were that

Scott Hart

Thanks, question. Scott Sure. for Alex, again. It's the

that's that have you will during billion But of think deployment look, a remarks invested comment we capital Mike on question, is that over to standpoint. the last the from months. from I made things accounts heard how on one $X separate invested So pay look the approximately the hard XX prepared that the predict -- quarter-to-quarter

the it that that I has that gives across good period, has more of a we like, not you So extended last think certainly that, bit what looked think though. about a sense. evenly X If a time been invested quarters over

a undeployed really of think X- the -- do so there's with we're those about actively not I think capital, if that meant $XX X-year to us billion pace that we period, to pressure we provide we that flexibility investment most for But can fee-earning investment as of And invest we to accounts the see also no if sufficient opportunities. seeing so can opportunities. invest have

-- about about thinking over And X-year it is billion how think time be probably period right the way so X- I a invested. to think will that to $XX

We fundraises, In Fund recently Opportunities terms ] Real well we've of Partners [ that we as Fund as closed closed Secondaries first Senior on your commingled question March. held market at the StepStone Tactical as Corporate (sic) III that Estate closings recently as StepStone Opportunity Secondary IV of the well on mentioned Fund StepStone mentioned that in Fund end Growth are we currently Lending on and II. StepStone

StepStone from market, equity that So fund and was our commingled Capital to return be year. fund. StepStone next leaves to ought standpoint, fund Partners to Partners, set co-investment just really private Capital XXXX last probably a sometime The in early raised

Alexander Blostein

your in guess, guys fund carry. capital public that pricing you for for of about LPs something marketplace their some co-invest the find, talked the you flipping to just of Is of the in the seeing Great. starting J-curve pricing that little percentage that maybe on in paying paying co-invest dynamics a lineup? a exchange And speaking a mitigate question committed Is from seeing unique? bit in see broader product are trying I your changes any of got deployed as dynamics? couple a higher changes pricing. So more in days some on Are of structure to to ago peer kind around they're of

Scott Hart

I any don't think change. seeing major

our separate what in really and a business $XX you of think invested fees that account have undeployed that's fee-earning we driven has number offered on of capital. the I years, know for capital billion

case, can do, we something that's ways that secondaries, or And something like that effort, help fee through with that's help that the and working the achieve their clients J-curve, mitigating and I J-curve. in our structures which on think think this deploying we mitigate whether continue strategies, aid help will you'll need to that's us really in continue whether I help do. that's needs, the to see through certain that through to

Operator

next Our comes Barclays. from Campbell question Jeremy with

Jeremy Campbell

Just get here. quick one a wanted to in

of kind stuff more realization since supportive a you're longer -- macro time wondering dated. around of lot little to a here with Just the be seems a a of of little what bit backdrop thinking line bit

Scott Hart

Sure, COVID. Jeremy. you the gross to seen year are This over start and quarters. is progression QX realized and look fees are QX. portfolios some true few seen and to think see But certainly the chime some the improvement want the Scott. the we from things others when carry-generating our at this in the can slight comments in through disruption down calendar performance front, to well. may given I front, of on I similar on both last numbers think you've That's terms quarter-over-quarter, QX my new investment in have as Look, to not realization to I The we improvement. starting I year-over-year, surprisingly, an think from quarter-over-quarter

years. seen one in some of across broader monitor, more September particular, last months the saw we most private distribution September we've few October were activity. also was of where You've that In distributions we active equity, in the funds that for the active of terms the seen that months in and that universe of

back. looked are before to come different rebounded And at of have powder to exit realizations that. started may they're I looking up, play obviously a like crisis. out it think COVID routes coming may in see who open. in selling you year really a driving IPO where things has Obviously, a invest, be it But offense been you point obviously, has or The whether open the there corporates looking dry window today, more to crisis to to was all be opened financial variety a the and time there's selling as market the it's market sponsors few COVID of early who

You've seen recapitalizations. dividend

through seen continuation exit new routes You've vehicles. or emerging, SPACs GP-led whether

minds, in of think the realization And are in to starting an our some activity. so are those drive things uptick that, I

Jeremy Campbell

Great. rolled And I out kind capital fully guys -- policy. -- haven't then know return you just a you of

can kind your if developing for That cetera? et of What you're thought you wondering around Just process helpful. would looking a us through policy? take or such be evaluating,

Michael McCabe

The Mike. you bit broke Would up at end. it's little a repeating the question mind it? Jeremy,

Jeremy Campbell

Sure, haven't had take a around a baked capital just looking capital of return thought maybe for yes. I process here. things or through But such return can the you know your evaluating development fully us kind wondering you some yet. the of guys policy, policy you're if of from

Michael McCabe

are Sure. minted certainly newly things we're company. as working currently I on, mean these public a that

bit at across we flow-generative, and we're we've are cash going on continue sheet cash have And the across We and to balance a classes the the quite look industry. IPO. of from the that raised asset to opportunities

Board in discuss coming would as with our this sit public look But We are, later the something and also hope we months, to policy sometime could you rolled months expect discussed year. in policy, we and what out might new see prior like. discussing that a to to dividend

Operator

from question Ken Worthington comes next Our JPMorgan. with

Kenneth Worthington

Conversus. Maybe first on

of you see Is investors kicked first quarterly about for How of growth million, guys of more the or the you larger, this do something think here? from if close that sort I the of going I from of over off cadence you monthly closes think first I see we Or CPRIM sort infrequent sort receptiveness closes either talk time? on? $XX product. have developing Can product? right. was this do your close to we're see

of a were distributors. existing are lines, those intentions the these to handful the What your beyond position along selling then through And either existing with deepen you group? distributors broaden or

Jason Ment

Jason. is This Ken. Thanks,

a That did we is product in CPRIM October. release, press offered right, the as 'XX first for are a had we Act-registered that the for You reminder just fund. everyone, perpetually close product, as

offshore weeks couple We a live ago feeder also that have an as well. went of

market outside U.S. starting now the to So we're

offer it Additionally, liquidity. subscriptions does quarterly and monthly will take

the We banks with channels with diligence wires. the across working begin U.S., distribution there and have U.S. and begun in independent different the outside private wealth started here not And broker-dealers but broadening channel that well. have are RIAs as the the RIA of the then a number and U.S. to distribution due processes with base only

a product many different will be across firms. This channels that broadly distribution distributed is and

not So knit how the a are to group to and on And select tightly channels. or quarterly going. of inflows exclusive providing others it's look you update we forward

Kenneth Worthington

Okay. the Smith. if of value-added client Leon this market for see demand reason for seen due versus business, demand certain one and your of interest And Apollo's Great. terms others? it high-profile sort from attention private of the then Black more diligence, in is a is of for services sort Robert segments publicity to And impact to press clients? Vista's which we've of implicitly does, there Does your

Scott Hart

Thanks, Ken. we situations Certainly, monitoring at the that others I a that demand major our of time. a This couple we that a are seen point this or for change quite services in Scott. to know But have those is result closely. don't publicity as of of

to we'll Something continue though. monitor,

Kenneth Worthington

public Okay. as from just -- is are your accelerating Well, What you maybe it punt And the your I'll from fundraising you because hearing And being of then. increases sort activity feedback are LPs? that of on IPO, your what seeing? profile?

Scott Hart

it's helpful. I do think

-- the our and the talked really to you equity capital the going about that recognition. if both transparency to as increase us think was ownership is public well amongst the employees, the to to back market the we brand some as base provide to think reasons broaden to of I capital was access

in it's where relationships, that this travel, think new developing of in difficult do at particular, firms terms new more I better-known and to sizable those difficult in advantage an are to relationships. more build And market, that

to I think we're that see benefit. starting

Operator

with Kaloostian Our next Peter question Morgan comes from Stanley.

Peter Kaloostian

the was see FRE evolving the I the you Just are your profiles? could you different business specifically, And profitability do NCI, profitability of the overall? versus how on minority-owned time? firm talk margin about And of the over hoping differences the

Michael McCabe

maybe... So

Scott Hart

Yes. I'll to Do sorry, ahead? start ahead, -- Mike. go you want go

Michael McCabe

Go ahead, Johnny.

Johnny Randel

do just going so we over -- that sort -- largely I'm expect No. provide class say, we We metrics and profitability don't we different what as they'll time, levels. the I to operate asset think single segment, a of don't converge.

have disclosed to different of disclosing of We some sense. and be give sort kind people will metrics

line you roll the then up to of our through and the StepStone and AUM flow what have prospectus in for can don't ours the And Q and nonprivate the the those fee the team our Group. by line classes. you providing don't AUM members bottom to classes, equity are rate that that on We asset asset belongs see NCI fee-earning will different of

we operate the from of close, We that some it don't provide final NCI we business. quarter just in you there prior the piece. buckets, but one So quarter way. really periods. We will about think kind think of that certainly this it as see with SREP that it is And way. elevated IV But

I at we so performed. that know data But guidance, level least that. Mike, of think we've we And really of enough if but to to sense to people they've you don't how don't provided provide give a add points want

Michael McCabe

No.

captures Johnny. that think Thanks. it, I

Operator

you. Thank

to for portion. come end to the I have Hart Scott comments. back the We question-and-answer call of Mr. would the closing over turn like to

Scott Hart

to in continuing and you StepStone much. Well, thank again future progress look evening. your you We calls. our forward interest on appreciate call to during very update certainly Great. our Thanks for joining this

Operator

This teleconference. concludes today's

You at have participation. may day. and lines you for a And time, disconnect this your great thank your

StepStone (STEP) 10 Nov 202021 Q2 Earnings call transcript