Second Quarter Fiscal Year 2023 Earnings Presentation

NOVEMBER 3, 2022

Today's Presenters

Scott Hart

Jason Ment

Mike McCabe

Johnny Randel

CEO

President & Co-COO

Head of Strategy

Chief Financial Officer

STEPSTONE GROUP

2

GAAP Consolidated Income Statements

GAAP net loss was $67.1 million for the quarter and $88.5 million year-to-date. GAAP net loss attributable to StepStone Group Inc. was $29.2 million (or $0.48 per share) for the quarter and $40.3 million (or $0.66 per share) year-to-date.

($ in thousands, except per share amounts)

Quart er

Year -To-D at e

Sep '21

Sep '22

% Fav / Unfav

Sep '21

Sep '22

% Fav / Unfav

Revenues

Management and advisory fees, net

$

83,583

$

119,121

43%

$

161,644

$

235,853

46%

Performance fees:

Incentive fees

1,796

5,365

199%

5,978

5,365

-10%

Carried interest allocations:

Realized

52,531

22,469

-57%

102,494

96,076

-6%

Unrealized

143,855

(176,778)

na

320,254

(290,728)

na

Total carried interest allocations

196,386

(154,309)

na

422,748

(194,652)

na

Legacy Greenspring carried interest allocations(1)

-

(128,672)

na

-

(282,279)

na

Tot al revenues

2 8 1 , 7 6 5

(1 5 8 , 4 9 5 )

na

5 9 0 , 3 7 0

(2 3 5 , 7 1 3 )

na

Ex penses

Compensation and benefits:

Cash-based compensation

43,881

59,501

-36%

86,552

119,562

-38%

Equity-based compensation

3,213

3,783

-18%

6,956

7,497

-8%

Performance fee-related compensation:

Realized

26,781

13,630

49%

52,089

55,365

-6%

Unrealized

74,206

(86,126)

na

159,778

(140,679)

na

Total performance fee-related compensation

100,987

(72,496)

na

211,867

(85,314)

na

Legacy Greenspring performance fee-related compensation(1)

-

(128,672)

na

-

(282,279)

na

Total compensation and benefits

148,081

(137,884)

na

305,375

(240,534)

na

General, administrative and other

25,320

33,733

-33%

41,750

67,965

-63%

Tot al ex penses

1 7 3 , 4 0 1

(1 0 4 , 1 5 1 )

na

3 4 7 , 1 2 5

(1 7 2 , 5 6 9 )

na

Ot her inc om e (ex pense)

Investment income (loss)

Legacy Greenspring investment loss(1)

Interest income

Interest expense

Other loss

Total other income (expense)

I nc om e (loss) before inc om e t ax

Income tax expense (benefit)

Net inc om e (loss)

Less: Net income attributable to non-controlling interests in subsidiaries

Less: Net loss attributable to non-controlling interests in legacy Greenspring entities(1)

Less: Net income (loss) attributable to non-controlling interests in the Partnership

Net inc om e (loss) at t ribut able t o St epSt one Group I nc .

Net inc om e (loss) per share of Class A c om m on st oc k - Basic Net inc om e (loss) per share of Class A c om m on st oc k - D ilut ed

7,187

(3,691)

na

13,611

(4,792)

na

-

(15,357)

na

-

(23,961)

na

206

356

73%

286

367

28%

(88)

(817)

-828%

(94)

(1,404)

-1394%

(1,952)

(634)

68%

(2,389)

(1,738)

27%

5,353

(20,143)

na

11,414

(31,528)

na

1 1 3 , 7 1 7

(7 4 , 4 8 7 )

na

2 5 4 , 6 5 9

(9 4 , 6 7 2 )

na

(14,145)

(7,422)

48%

278

(6,136)

na

1 2 7 , 8 6 2

(6 7 , 0 6 5 )

na

2 5 4 , 3 8 1

(8 8 , 5 3 6 )

na

6,032

8,690

-44%

11,646

16,261

-40%

-

(15,357)

na

-

(23,961)

na

59,756

(31,177)

na

139,011

(40,575)

na

$

6 2 , 0 7 4

$

(2 9 , 2 2 1 )

na

$

1 0 3 , 7 2 4

$

(4 0 , 2 6 1 )

na

$

1 . 4 9

$

(0 . 4 8 )

na

$

2 . 5 7

$

(0 . 6 6 )

na

$

1 . 4 5

$

(0 . 4 8 )

na

$

2 . 5 0

$

(0 . 6 6 )

na

1 Reflects amounts attributable to consolidated VIEs for which we did not acquire any direct economic interests. Such amounts are attributable to employees and therefore have been reflected as legacy Greenspring performance fee-related compensation and net income

3

(loss) attributable to non-controlling interests in legacy Greenspring entities, respectively. For the quarter and year-to-date ended September 30, 2021, 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)

$602

$570

Assets under management

Assets under advisement

$427

$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

FY'22

FQ2'23

Note: Fiscal 2017-2022 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, and fiscal year 2019 and 2022, respectively. As of September 30, 2022, approximately $0.9 billion, $0.2 billion, $0.1 billion,

$2.8 billion, $2.3 billion and $20.5 billion of AUM and $0.0 billion, $0.0 billion, $0.0 billion, $0.2 billion, $118.8 billion and $0.0 billion of AUA acquired in calendar year 2010, 2012, 2013, 2016, and fiscal year 2019 and 2022, 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 2023 Overview

KEY BUSINESS DRIVERS

FINANCIAL HIGHLIGHTS(1)

FQ2'23

FQ2'22

vs. FQ2'22

FQ1'23

vs. FQ1'23

Assets under management ("AUM")

$135.0 B

$121.3 B

11%

$136.5 B

-1%

Fee-Earning AUM ("FEAUM")

$80.1 B

$66.7 B

20%

$78.6 B

2%

Undeployed fee-earning capital

$16.5 B

$17.8 B

-7%

$17.1 B

-4%

Gross accrued carry

$1,189.3 M

$1,215.9 M

-2%

$1,366.3 M

-13%

($M, except per share amounts)

FQ2'23

FQ2'22

vs. FQ2'22

FQ2'23 YTD

FQ2'22 YTD

vs. FQ2'22 YTD

Adjusted revenues

$150.6

$139.7

8%

$341.0

$275.9

24%

Management and advisory fees, net

$119.1

$83.6

43%

$235.9

$161.6

46%

Fee-related earnings ("FRE")

$39.0

$26.4

48%

$75.7

$49.5

53%

Fee-related earnings margin

33%

32%

32%

31%

Adjusted Net Income ("ANI")

$37.3

$40.1

-7%

$84.4

$80.6

5%

ANI per share

$0.33

$0.40

-18%

$0.74

$0.81

-9%

  • Declared a dividend of $0.20 per share of Class A common stock, payable on December 15, 2022 to record holders of Class A common stock at the close of business on November 30, 2022
  • Updating approach to capital management, plan to augment the normal quarterly dividend with a recurring, supplemental, annual dividend funded by excess cash generation that is tied to performance-based earnings

• Raised a total of $11 billion of new SMA2 capital over the LTM

•

Additional closings of StepStone's multi-strategy global venture capital fund, infrastructure co-investments fund, and Conversus StepStone

BUSINESS UPDATE •

Private Markets ("CPRIM"); raised a total of $7 billion for commingled funds over the LTM

Total retail platform assets surpassed $1 billion in AUM, driven by continued strong subscriptions in CPRIM (to be renamed SPRIM), the first close

of the private venture & growth fund (to be renamed SPRING), and the expansion into Europe and Australia

  • Rebranding the Conversus platform as StepStone Private Wealth and entered into an agreement with the Private Wealth team which will enhance alignment with the broader StepStone platform
  1. See definition and reconciliation of non-GAAP measures at the end of this presentation.
  2. Includes advisory accounts for which we have discretion.

STEPSTONE GROUP

5

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StepStone Group Inc. published this content on 03 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2022 20:20:28 UTC.