Fiscal Year 2022 Second Quarter Earnings Presentation

Second Quarter Fiscal Year 2022 Earnings Presentation

NOVEMBER 9, 2021

Today's Presenters

Scott Hart	Jason Ment	Mike McCabe	Johnny Randel
Co-CEO	President & Co-COO	Head of Strategy	Chief Financial Officer

STEPSTONE GROUP

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GAAP Consolidated Income Statements

GAAP net income was $127.9 million for the quarter and $254.4 million year-to-date. GAAP net income attributable to StepStone Group Inc. was $62.1 million (or $1.45 per share) for the quarter and $103.7 million (or $2.50 per share) year-to-date.

($ in thousands, except per share amounts)	Quarter
Sep '20	Sep '21	% Fav / Unfav

Revenues
Management and advisory fees, net	$	75,652	$	83,583	10%
Performance fees:
Incentive fees		1,196							1,796	50%
Carried interest allocations:
Realized		8,556							52,531	514%
Unrealized		157,509							143,855	-9%
Total carried interest allocations		166,065							196,386									18%
Legacy Greenspring carried interest allocations(1)		-							-													na
Total revenues		242,913							281,765									16%
Expenses
Compensation and benefits:
Cash-based compensation		37,473							43,881	-17%
Equity-based compensation		952							3,213	-238%
Performance fee-related compensation:
Realized		4,811							26,781	-457%
Unrealized		78,533							74,206	-6%
Total performance fee-related compensation		83,344							100,987									21%
Legacy Greenspring performance fee-related compensation(1)		-							-													na
Total compensation and benefits		121,769							148,081									22%
General, administrative and other		11,356							25,320	-123%
Total expenses		133,125							173,401									30%
Other income (expense)
Investment income		4,325							7,187	66%
Legacy Greenspring investment income(1)		-							-													na
Interest income		165							206	25%
Interest expense		(5,270)							(88)	98%
Other income (loss)		242							(1,952)													na
Total other income (expense)		(538)							5,353													na
Income before income tax		109,250							113,717									4%
Income tax expense (benefit)		881							(14,145)													na
Net income		108,369							127,862									18%
Less: Net income attributable to non-controlling interests in subsidiaries		9,045							6,032	33%
Less: Net income attributable to non-controlling interests in legacy Greenspring entities(1)		-							-													na
Less: Net income attributable to non-controlling interests in the Partnership		100,114							59,756	-40%
Net income (loss) attributable to StepStone Group Inc.	$	(790)				$	62,074													na
Net income (loss) per share of Class A common stock - Basic	$	(0.03)					$	1.49
																na
Net income (loss) per share of Class A common stock - Diluted	$	(0.03)						$	1.45
																	na

Year -to-Date

	Sep '20			Sep '21									% Fav / Unfav
$	139,152		$	161,644	16%
	4,785			5,978	25%
	12,194			102,494	741%
	25,369			320,254	1162%
	37,563			422,748		1025%
	-			-									na
	181,500			590,370			225%
	77,126			86,552	-12%
	1,435			6,956	-385%
	7,711			52,089	-576%
	9,858			159,778	-1521%
	17,569			211,867				-1106%
	-			-									na
	96,130			305,375					-218%
	21,863			41,750	-91%
	117,993			347,125						-194%
	1,147			13,611	1087%
	-			-									na
	259			286	10%
	(7,327)			(94)	99%
	462			(2,389)									na
	(5,459)			11,414									na
	58,048			254,659							339%
	2,039			278	86%
	56,009			254,381								354%
	13,138			11,646	11%
	-			-									na
	43,661			139,011	-218%
$	(790)		$	103,724									na
$	(0.03)		$	2.57									na
$	(0.03)		$	2.50									na

Note: Foreign currency translation gains and losses have been reclassified from general, administrative and other expenses to other income (loss) in our consolidated income statements for all prior periods presented to conform to the current period presentation.

1 Represents carried interest allocations and investment income attributable to consolidated VIEs for which we did not acquire any economic interests. Such amounts are attributable to employees and therefore have been reflected as legacy GreenspringSTEPSTONEperformanceGROUP 3 fee-related compensation and net income attributable to non-controlling interests in legacy Greenspring entities, respectively. Reflects the net effect of gross realized gains fully offset by the reversal of such amounts in unrealized gains for the 10-day period ended

September 30, 2021.

Robust Growth Profile Since Inception

TOTALS ASSETS UNDER MANAGEMENT AND ADVISEMENT ($B)

$519

Assets under management	$427
Assets under advisement

$296

$266

											$130	$155
										$116
							$62	$64	$84
					$47	$54
				$27
$1	$5	$9
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	FY'17	FY'18	FY'19	FY'20	FY'21	FQ2'22

Note: Fiscal 2017-2021 reflect AUM/AUA as of March 31 of each fiscal year then ended. Prior year amounts are reported on a calendar year basis. Strategic acquisitions contributed approximately $5.6 billion, $1.8 billion, $0.9 billion, $3.6 billion, $2.4 billion and $22.5
billion of AUM and $1.0 billion, $0.0 billion, $0.0 billion, $1.0 billion, $92.5 billion and $0.0 billion of AUA in calendar year 2010, 2012, 2013, 2016, 2018 and 2021, respectively. As of September 30, 2021, approximately $0.9 billion, $0.2 billion, $0.1 billion, $2.7 billion, $2.1
billion and $22.5 billion of AUM and $0.0 billion, $0.0 billion, $0.0 billion, $0.2 billion, $100.1 billion and $0.0 billion of AUA acquired in calendar year 2010, 2012, 2013, 2016, 2018 and 2021, respectively, remains. An expansion of client data tracked contributed $70 billion
of AUA for fiscal 2021. The incremental client data captured represents assets for which StepStone serves as investment advisor for the portfolio, but does not provide monitoring/reporting services and did not make the initial investment recommendation.
STEPSTONE GROUP	4

Fiscal Q2 2022 Overview

KEY BUSINESS DRIVERS

FINANCIAL HIGHLIGHTS

BUSINESS UPDATE

1 Includes advisory accounts for which we have discretion.

		FQ2'22	FQ2'21	vs. FQ2'21	FQ1'22	vs. FQ1'22
Assets under management ("AUM")	$121.3 B	$72.0 B	68%	$89.8 B	35%
Fee-Earning AUM ("FEAUM")	$66.7 B	44.3 B	50%	52.9 B	26%
Undeployed fee-earning capital	17.8 B	16.4 B	9%	13.6 B	31%
Gross accrued carry	1,215.9 M	486.2 M	150%	1,072.7 M	13%
($M, except per share data)	FQ2'22	FQ2'21	vs. FQ2'21	FQ2'22 YTD	FQ2'21 YTD	vs. FQ2'21 YTD
Adjusted revenues	$139.7	$86.6	61%	$275.9	$160.8	72%
Management and advisory fees, net	$83.6	$75.7	10%	$161.6	$139.2	16%
Fee-related earnings ("FRE")	$26.4	$27.9	-5%	$49.5	$46.1	7%
Fee-related earnings margin	32%	37%		31%	33%
Adjusted Net Income ("ANI")	$40.1	$18.3	120%	$80.6	$33.7	139%
ANI per share	$0.40	$0.19	111%	$0.81	$0.34	138%

• Declared a dividend of $0.15 per share of Class A common stock, representing a quarterly increase of 114%. The dividend is payable on December 15, 2021 to record holders of Class A common stock at the close of business on November 30, 2021
• Raised a total of approximately $16 billion of new SMA1 capital in the last twelve months
• Interim closings of StepStone Tactical Growth Fund III ("STGF III"), first closing of StepStone's flagship co-investment fund, and additional closings of StepStone's senior corporate lending fund; raised a total of approximately $2 billion for commingled funds in the last twelve months
• Conversus StepStone Private Markets ("CPRIM") achieved a 59% net return since inception on October 1, 2020, and AUM of approximately $270 million as of November 1, 2021
• In September 2021, closed the acquisition of Greenspring Associates ("Greenspring"), a leading venture capital and growth equity platform. The acquisition adds $22.5 billion of assets under management and $11.4 billion of fee-earning AUM as of September 30, 2021

STEPSTONE GROUP

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