StepStone Group Inc. Q2 FY2026 earnings call

Private Wealth - Recorded $2.4 billion in new subscriptions, with SPRING venture and growth fund at over $800M and STPEX private equity interval fund having over $700M in first 30 days; expanded internationally with a partnership with Aviva in the U.K. ### Institutional - Strong managed accounts and commingled funds fundraising; managed accounts had $3.8B in gross additions for the quarter; commingled funds had $3.4B in gross additions. ### Data and Technology - Launched Kroll StepStone Private Credit benchmarks and FTSE StepStone Global Private Market Indices. ### Fund Launches - PE co-investment fund had a first close and PE secondaries fund is in market.

Private Wealth generated $2.4 billion of new subscriptions, a record for StepStone, with SPRING venture and growth fund seeing over $800 million in new subscriptions and STPEX, a pure-play private equity interval fund, having over $700 million in gross subscriptions in the first 30 days. Institutional fundraising was strong with $3.8 billion in managed account gross additions for the quarter and over $10 billion for the first half of the fiscal year. Fee-related earnings were $79 million, up 9% from the prior year quarter, with core fee-related earnings at $78 million, up 34% y-o-y. Fee-earning AUM increased by nearly $6 billion to nearly $133 billion.

Private Wealth - STPEX initial subscription surge will moderate, expecting a pullback from the quarter's levels. ### G&A Expenses - Higher due to travel, IT, and general operating costs, with expected step-up in G&A costs for upcoming conferences in future quarters. ### Market Trends - Private market distributions low temporarily, but indicators like increased IPOs and investment banking activity suggest better realizations ahead.

• Geopolitical and market challenges could impact private market distributions and fundraising. - Slower exits industry-wide leading to potential fundraising declines.

Q: About STPEX demand and cannibalization risk A: Driven by partner demand for PE exclusive exposure and ticker availability, some rotation from SPRIM occurred with majority already having happened Q: STPEX subscriptions and G&A expenses A: STPEX initial surge will pull back from the quarter's levels, G&A up due to travel, IT, and conference costs with future step-ups expected Q: STPEX impact on SPW subscriptions and G&A drivers A: Initial STPEX surge flattered SPW subscriptions, G&A up from travel, IT, and conferences with durable investment in business growth Q: Aviva partnership and index monetization A: Aviva partnership for U.K. trust-based pension scheme, indices monetized via licensing with FTSE Russell, longer-term asset management potential Q: Deal sourcing and Private Wealth product evolution A: Balanced deal flow across primary markets, Private Wealth product evolution around distribution and model inclusion with ongoing dialogue on model integration Q: Geographical strength and strategy preferences A: Balanced geographies with Middle East, Asia, Europe, etc., and interest in private credit in Asia and Middle East