StepStone Group Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Key takeaways

Management and advisory fees rose 27%: Management and advisory fees, net reached $269.2 million, up from $211.2 million a year earlier. Fee revenues were $270.9 million and adjusted revenues were $300.6 million. Source
Performance fees fell 28% year on year: Total performance fees were $109.7 million against $153.1 million a year earlier. Total revenues were $378.9 million, up 4% from $364.3 million. Source
Net loss larger on equity compensation: The GAAP net loss was $170.4 million, or $1.41 per diluted share, against a net loss of $12.0 million, or $0.49, a year earlier. Source
Fee-related earnings rose 30%: FRE was $105.6 million, up from $81.2 million. ANI was $60.3 million, up 24%, and ANI per share was $0.48, up 20%. Source
Total fee-earning contributions more than doubled: Total contributions to fee-earning AUM were $11.2 billion, up 122% from $5.0 billion a year earlier. Source
Assets under management rose 23%: Assets under management were $245.4 billion, up from $199.3 billion a year earlier and $233.3 billion at March 31, 2026. Source
Quarterly dividend declared at $0.33: The Board declared the $0.33 quarterly dividend, payable September 15, 2026, to holders of record at August 31, 2026, up from $0.28. Source

Guidance

Area	Period	Figure	Against last quarter
Quarterly cash dividend per share of Class A common stock Source	Payable September 15, 2026; holders of record at August 31, 2026	$0.33 per share	Raised from $0.28

What changed from last quarter

Guidance raised: The declared quarterly dividend rose to $0.33 per share from $0.28 in the prior quarter. Source

Results and growth drivers

Management and advisory fees rose 27%: Management and advisory fees, net reached $269.2 million, up from $211.2 million a year earlier. Fee revenues were $270.9 million and adjusted revenues were $300.6 million. Source
Performance fees fell 28% year on year: Total performance fees were $109.7 million against $153.1 million a year earlier. Total revenues were $378.9 million, up 4% from $364.3 million. Source
Net loss larger on equity compensation: The GAAP net loss was $170.4 million, or $1.41 per diluted share, against a net loss of $12.0 million, or $0.49, a year earlier. Source
Fee-related earnings rose 30%: FRE was $105.6 million, up from $81.2 million. ANI was $60.3 million, up 24%, and ANI per share was $0.48, up 20%. Source
Quarter covers first fiscal 2027 period: The release covers the quarter ended June 30, 2026, which is the first quarter of the fiscal year ending March 31, 2027. Source

Segments and asset classes

Private equity led fee-earning AUM growth: Private equity fee-earning AUM was $83.8 billion, up 26%. Infrastructure was $31.3 billion, up 20%, and private debt was $25.6 billion, up 19%. Source
Real estate fee-earning AUM declined: Real estate fee-earning AUM was $12.9 billion, down 3% from a year earlier, and the only asset class in the table with a year-on-year decline. Source
Private equity AUM reached $127.6 billion: Private equity AUM was $127.6 billion, up 27%. Infrastructure AUM was $49.5 billion, up 24%, and private debt AUM was $47.7 billion, up 22%. Source
Advisory AUM roughly flat: Advisory AUM was $16.3 billion, up 2% from a year earlier. Source

Products and customers

Focused commingled fees grew most: Focused commingled fund fee revenues were $172.5 million, from $120.0 million a year earlier. Separately managed account fee revenues were $75.3 million, from $70.4 million. Source
Focused commingled contributions rose sharply: Focused commingled fund contributions were $8.2 billion, up 306% from $2.0 billion. Separately managed account contributions were $3.0 billion, down 2%. Source
Separately managed account FEAUM grew 9%: Separately managed account fee-earning AUM was $83.3 billion, up 9%. Focused commingled fund fee-earning AUM was $70.3 billion, up 39%. Source
Advisory fee revenue slightly lower: Advisory and other services fee revenue was $19.5 million, against $19.9 million a year earlier. Fund reimbursement revenues were $3.7 million. Source

Costs, margins and pricing

Equity-based compensation rose sharply: Equity-based compensation was $317.3 million, from $188.7 million a year earlier. Cash-based compensation was $117.2 million, from $96.0 million. Source
General and administrative costs increased: General, administrative and other expense was $53.5 million, against $42.9 million a year earlier. Total expenses were $583.7 million, from $423.3 million. Source
FRE margin edged up: The FRE margin was 39%, against 38% a year earlier and 40% in the prior quarter. Source

Demand and the order book

Total fee-earning contributions more than doubled: Total contributions to fee-earning AUM were $11.2 billion, up 122% from $5.0 billion a year earlier. Source
Undeployed fee-earning capital fell from Q4: Undeployed fee-earning capital was $39.3 billion, up 37% year on year but down from $40.1 billion in the prior quarter. Source
Fee-earning AUM rose 21%: Fee-earning AUM was $153.6 billion, up from $127.2 billion a year earlier and from $144.0 billion at March 31, 2026. Source
Accrued carried interest grew 31%: Accrued carried interest allocations were $2.08 billion, up 31% from $1.59 billion a year earlier and $2.04 billion at the prior quarter-end. Source

Performance fees and carried interest

Unrealized carried interest fell: Unrealized carried interest allocations were $44.0 million against $88.9 million. Realized carried interest allocations were $28.6 million against $24.4 million. Source
Gross realized performance fees rose 20%: Gross realized performance fees were $29.7 million, up 20%. Performance fee-related earnings were $15.8 million, up 21%. Source
Legacy Greenspring carried interest reported separately: Legacy Greenspring carried interest allocations were $37.2 million, against $39.6 million. The release states none of these economics are attributable to the company. Source

Assets under management and advisement

Assets under management rose 23%: Assets under management were $245.4 billion, up from $199.3 billion a year earlier and $233.3 billion at March 31, 2026. Source
Assets under advisement rose 27%: Assets under advisement were $667.9 billion, up 27% from a year earlier. Source
Total capital responsibility rose 26%: Total capital responsibility, which equals AUM plus AUA, was $913.2 billion, up 26% from a year earlier. Source

Consolidated funds and balance sheet

Consolidated fund assets increased: Assets of Consolidated Funds were $2.56 billion at June 30, 2026, against $1.70 billion at March 31, 2026. Total assets were $7.77 billion. Source
Cash and equivalents slightly lower: Cash and cash equivalents were $201.2 million, against $213.1 million at March 31, 2026. Debt obligations were $270.9 million. Source
Stockholders’ equity increased: Total stockholders’ equity was $970.5 million, up from $691.0 million at March 31, 2026. Source

Capital and shareholder returns

Quarterly dividend declared at $0.33: The Board declared the $0.33 quarterly dividend, payable September 15, 2026, to holders of record at August 31, 2026, up from $0.28. Source
Supplemental dividend tied to fiscal years: The $0.55 supplemental dividend shown for the quarter relates to fiscal 2026 earnings, and the $0.40 shown a year earlier relates to fiscal 2025. Source
Class A shares outstanding increased: Class A shares outstanding were 82,340,884 at June 30, 2026, and Class B shares outstanding were 38,387,761 at that date. Source

Figures management reported

Figure	Reported
Assets under management (AUM) Source	$245.4 billion
Assets under advisement (AUA) Source	$667.9 billion
Fee-earning AUM (FEAUM) Source	$153.6 billion
Undeployed fee-earning capital (UFEC) Source	$39.3 billion
Total capital responsibility Source	$913.2 billion

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

STEPSTONE GROUP REPORTS FIRST QUARTER FISCAL YEAR 2027 RESULTS

NEW YORK, August 6, 2026 - StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended June 30, 2026. This represents results for the first quarter of the fiscal year ending March 31, 2027. The Board of Directors of the Company has declared a quarterly cash dividend of $0.33 per share of Class A common stock, payable on September 15, 2026, to the holders of record as of the close of business on August 31, 2026.

StepStone issued a full detailed presentation of its first quarter fiscal 2027 results, which can be accessed by visiting the Company’s website at https://shareholders.stepstonegroup.com.

Webcast and Earnings Conference Call

Management will host a webcast and conference call today, Thursday, August 6, 2026, at 5:00 pm ET to discuss the Company’s results for the first quarter of the fiscal year ending March 31, 2027. The webcast will be made available on the Shareholders section of the Company’s website at https://shareholders.stepstonegroup.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. A replay will also be available on the Shareholders section of the Company’s website approximately two hours after the conclusion of the event.

To join as a live participant in the question and answer portion of the call, participants must register at https://register-conf.media-server.com/register/BIb7358a7075e744b1b4ef2e638196914a. Upon registering you will receive the dial-in number and a PIN to join the call as well as an email confirmation with the details.

About StepStone Group

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of June 30, 2026, StepStone was responsible for approximately $913 billion of total capital, including $245 billion of assets under management. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

Forward-Looking Statements

Forward-looking statements notice

Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, our successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under the “Risk Factors” section of our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 27, 2026, and in our subsequent reports filed with the SEC, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use the following non-GAAP financial measures: fee revenues, adjusted revenues, adjusted net income (on both a pre-tax and after-tax basis), adjusted net income per share, adjusted weighted-average shares, fee-related earnings, fee-related earnings margin, gross realized performance fees and performance fee-related earnings. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures in this earnings release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. For definitions of these non-GAAP measures and reconciliations to applicable GAAP measures, please see the section titled “Non-GAAP Financial Measures: Definitions and Reconciliations.”

Financial Highlights and Key Business Drivers/Operating Metrics

	Three Months Ended
(in thousands, except share and per share amounts and where noted)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026	vs. FQ1'26
Financial Highlights
GAAP Results
Management and advisory fees, net	$211,173	$215,489	$239,932	$259,871	$269,171	27%
Total revenues	364,287	454,225	586,511	588,580	378,889	4%
Total performance fees	153,114	238,736	346,579	328,709	109,718	(28)%
Net income (loss)	(12,011)	(575,490)	(162,435)	6,660	(170,366)		na
Net loss per share of Class A common stock:
Basic	$(0.49)	$(4.66)	$(1.55)	$(0.10)	$(1.41)	186%
Diluted	$(0.49)	$(4.66)	$(1.55)	$(0.10)	$(1.41)	186%
Weighted-average shares of Class A common stock:
Basic	77,846,710	78,561,587	79,465,039	80,297,984	81,995,674	5%
Diluted	77,846,710	78,561,587	79,465,039	80,297,984	81,995,674	5%
Quarterly dividend per share of Class A common stock	$0.24	$0.28	$0.28	$0.28	$0.28	17%
Supplemental dividend per share of Class A common stock	$0.40	$ -	$ -	$ -	$0.55	38%
Accrued carried interest allocations	1,585,209	1,733,922	1,835,862	2,036,892	2,080,443	31%
Non-GAAP Results
Fee revenues	$212,740	$217,461	$241,133	$260,285	$270,934	27%
Adjusted revenues	237,467	282,342	494,500	305,841	300,595	27%
Fee-related earnings (“FRE”)	81,246	78,633	89,236	105,334	105,609	30%
FRE margin	38%	36%	37%	40%	39%
Gross realized performance fees	24,727	64,881	253,367	45,556	29,661	20%
Performance fee-related earnings (“PRE”)	13,022	33,886	131,152	17,894	15,799	21%
Adjusted net income (“ANI”)	48,534	66,709	79,858	69,459	60,295	24%
Adjusted weighted-average shares	122,292,943	122,462,594	122,590,230	122,481,335	125,893,054	3%
ANI per share	$0.40	$0.54	$0.65	$0.57	$0.48	20%
Key Business Drivers/Operating Metrics (in billions)
Assets under management (“AUM”)	$199.3	$209.1	$219.8	$233.3	$245.4	23%
Assets under advisement (“AUA”)	524.2	561.6	591.3	651.8	667.9	27%
Fee-earning AUM (“FEAUM”)	127.2	132.8	138.6	144.0	153.6	21%
Undeployed fee-earning capital (“UFEC”)	28.7	29.8	32.7	40.1	39.3	37%

(1)Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.

(2)The supplemental cash dividend relates to earnings in respect of our full fiscal years 2025 and 2026, respectively.

(3)Fee revenues, adjusted revenues, FRE, FRE margin, gross realized performance fees, PRE, ANI, adjusted weighted-average shares and ANI per share are non-GAAP measures. See the definitions of these measures and reconciliations to the respective, most comparable GAAP measures under “Non-GAAP Financial Measures: Definitions and Reconciliations.”

(4)AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented. Does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.

StepStone Group Inc.

GAAP Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share amounts)

	As of
	June 30, 2026	March 31, 2026
Assets
Cash and cash equivalents	$201,167	$213,065
Restricted cash	581	579
Fees and accounts receivable	109,711	133,287
Due from affiliates	153,019	113,150
Investments:
Investments in funds	264,450	249,447
Accrued carried interest allocations	2,080,443	2,036,892
Legacy Greenspring investments in funds and accrued carried interest allocations	783,847	752,776
Deferred income tax assets	663,333	614,788
Lease right-of-use assets, net	95,222	81,565
Other assets and receivables	59,861	58,946
Intangibles, net	212,855	223,044
Goodwill	580,542	580,542
Assets of Consolidated Funds	2,562,643	1,704,621
Total assets	$7,767,674	$6,762,702
Liabilities and stockholders’ equity
Accounts payable, accrued expenses and other liabilities	$84,915	$102,685
Accrued compensation and benefits	2,681,305	2,360,770
Accrued carried interest-related compensation	1,145,080	1,100,604
Legacy Greenspring accrued carried interest-related compensation	656,035	619,186
Due to affiliates	366,798	362,833
Lease liabilities	116,465	103,600
Debt obligations	270,898	270,572
Liabilities of Consolidated Funds	1,206,522	956,426
Total liabilities	6,528,018	5,876,676
Redeemable non-controlling interests in Consolidated Funds	259,913	186,236
Redeemable non-controlling interests in subsidiaries	9,214	8,777
Stockholders’ equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 82,340,884 and 80,703,553 issued and outstanding as of June 30, 2026 and March 31, 2026, respectively	82	81
Class B common stock, $0.001 par value, 125,000,000 authorized; 38,387,761 and 38,637,761 issued and outstanding as of June 30, 2026 and March 31, 2026, respectively	38	39
Additional paid-in capital	541,815	482,057
Accumulated deficit	(1,082,511)	(896,879)
Accumulated other comprehensive income	1,376	1,143
Total StepStone Group Inc. stockholders’ equity	(539,200)	(413,559)
Non-controlling interests in subsidiaries	1,867,651	1,373,242
Non-controlling interests in legacy Greenspring entities	127,812	133,590
Non-controlling interests in the Partnership	(485,734)	(402,260)
Total stockholders’ equity	970,529	691,013
Total liabilities and stockholders’ equity	$7,767,674	$6,762,702

(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.

StepStone Group Inc.

GAAP Condensed Consolidated Statements of Loss (Unaudited)

(in thousands, except share and per share amounts)

	Three Months Ended June 30,
	2026	2025
Revenues
Management and advisory fees, net	$269,171	$211,173
Performance fees:
Incentive fees	-	190
Carried interest allocations:
Realized	28,572	24,404
Unrealized	43,975	88,883
Total carried interest allocations	72,547	113,287
Legacy Greenspring carried interest allocations	37,171	39,637
Total performance fees	109,718	153,114
Total revenues	378,889	364,287
Expenses
Compensation and benefits:
Cash-based compensation	117,234	95,985
Equity-based compensation	317,277	188,718
Performance fee-related compensation:
Realized	13,862	11,705
Unrealized	44,686	44,357
Total performance fee-related compensation	58,548	56,062
Legacy Greenspring performance fee-related compensation	37,171	39,637
Total compensation and benefits	530,230	380,402
General, administrative and other	53,469	42,914
Total expenses	583,699	423,316
Other income (expense)
Investment income	10,823	10,512
Legacy Greenspring investment income (loss)	(5,247)	3,382
Investment income of Consolidated Funds	2,844	21,671
Interest income	4,721	2,496
Interest expense	(4,338)	(4,534)
Other income (loss)	(4,243)	5,152
Total other income	4,560	38,679
Loss before income tax	(200,250)	(20,350)
Income tax benefit	(29,884)	(8,339)
Net loss	(170,366)	(12,011)
Less: Net income attributable to non-controlling interests in subsidiaries	22,731	28,617
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities	(5,247)	3,382
Less: Net loss attributable to non-controlling interests in the Partnership	(76,134)	(27,122)
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds	3,663	20,957
Less: Net income attributable to redeemable non-controlling interests in subsidiaries	437	579
Net loss attributable to StepStone Group Inc.	$(115,816)	$(38,424)
Net loss per share of Class A common stock:
Basic	$(1.41)	$(0.49)
Diluted	$(1.41)	$(0.49)
Weighted-average shares of Class A common stock:
Basic	81,995,674	77,846,710
Diluted	81,995,674	77,846,710

(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.

Non-GAAP Financial Measures: Definitions and Reconciliations

Fee Revenues

Fee revenues represents management and advisory fees, net, including amounts earned from the Consolidated Funds which are eliminated in consolidation. We believe fee revenues is useful to investors because it presents the net amount of management and advisory fee revenues attributable to us.

The table below presents the components of fee revenues.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Focused commingled funds(1)(2)	$120,036	$127,085	$144,277	$160,769	$172,483
Separately managed accounts	70,379	71,685	75,226	76,339	75,278
Advisory and other services	19,939	16,259	18,395	19,998	19,476
Fund reimbursement revenues	2,386	2,432	3,235	3,179	3,697
Fee revenues	$212,740	$217,461	$241,133	$260,285	$270,934

(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

(2)Includes income-based incentive fees from certain funds:

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Income-based incentive fees	$4,408	$5,334	$5,998	$7,105	$6,998

Adjusted Revenues

Adjusted revenues represents the components of revenues used in the determination of ANI and comprise fee revenues, adjusted incentive fees and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues.

The table below shows a reconciliation of revenues to adjusted revenues.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Total revenues	$364,287	$454,225	$586,511	$588,580	$378,889
Unrealized carried interest allocations	(88,883)	(147,813)	(101,985)	(201,031)	(43,975)
Deferred incentive fees	-	671	(1,544)	(282)	-
Legacy Greenspring carried interest allocations	(39,637)	(27,143)	10,063	(81,994)	(37,171)
Management and advisory fee revenues for the Consolidated Funds	1,567	1,972	1,201	414	1,763
Incentive fees for the Consolidated Funds	133	430	254	154	1,089
Adjusted revenues	$237,467	$282,342	$494,500	$305,841	$300,595

(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

(2)Reflects the add-back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation.

Adjusted Net Income

Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to evaluate profitability. ANI represents the after-tax net realized income attributable to us. ANI does not reflect legacy Greenspring carried interest allocation revenues, legacy Greenspring carried interest-related compensation and legacy Greenspring investment income (loss) as none of the economics are attributable to us. The components of revenues used in the determination of ANI (“adjusted revenues”) comprise fee revenues, adjusted incentive fees and realized carried interest allocations. In addition, ANI excludes: (a) unrealized carried interest allocation revenues and related compensation, (b) unrealized investment income (loss), (c) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). ANI is fully taxed at our blended statutory rate. We believe ANI and adjusted revenues are useful to investors because they enable investors to evaluate the performance of our business across reporting periods.

Fee-Related Earnings

Fee-related earnings, or “FRE,” is a non-GAAP performance measure used to monitor our baseline earnings from recurring management and advisory fees. FRE is a component of ANI and comprises fee revenues less adjusted expenses which are operating expenses other than (a) performance fee-related compensation, (b) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (c) amortization of intangibles, (d) charges associated with acquisitions and corporate transactions, and (e) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). FRE is presented before income taxes. We believe FRE is useful to investors because it provides additional insight into the operating profitability of our business and our ability to cover direct base compensation and operating expenses from total fee revenue.

The table below shows a reconciliation of GAAP measures to additional non-GAAP measures. We use the non-GAAP measures presented below as components when calculating FRE and ANI (as defined below). We believe these additional non-GAAP measures are useful to investors in evaluating both the baseline earnings from recurring management and advisory fees, which provide additional insight into the operating profitability of our business, and the after-tax net realized income attributable to us, allowing investors to evaluate the performance of our business. These additional non-GAAP measures remove the impact of Consolidated Funds that we are required to consolidate under GAAP, and certain other items that we believe are not indicative of our core operating performance.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
GAAP management and advisory fees, net	$211,173	$215,489	$239,932	$259,871	$269,171
Adjustments	1,567	1,972	1,201	414	1,763
Fee revenues	$212,740	$217,461	$241,133	$260,285	$270,934
GAAP incentive fees	$190	$4,902	$207,954	$7,087	$ -
Adjustments	133	1,101	(1,290)	(128)	1,089
Adjusted incentive fees	$323	$6,003	$206,664	$6,959	$1,089
GAAP cash-based compensation	$95,985	$100,348	$107,114	$110,700	$117,234
Adjustments	(17)	(17)	-	(59)	(70)
Adjusted cash-based compensation	$95,968	$100,331	$107,114	$110,641	$117,164
GAAP equity-based compensation	$188,718	$884,470	$468,808	$200,061	$317,277
Adjustments	(184,509)	(880,154)	(464,124)	(193,974)	(310,650)
Adjusted equity-based compensation	$4,209	$4,316	$4,684	$6,087	$6,627
GAAP general, administrative and other	$42,914	$45,292	$50,640	$48,408	$53,469
Adjustments	(11,597)	(11,111)	(10,541)	(10,185)	(11,935)
Adjusted general, administrative and other	$31,317	$34,181	$40,099	$38,223	$41,534
GAAP realized investment income	$940	$2,516	$1,560	$2,677	$1,557
Adjustments	-	-	-	11,194	-
Adjusted realized investment income	$940	$2,516	$1,560	$13,871	$1,557
GAAP interest income	$2,496	$3,224	$2,455	$3,658	$4,721
Adjustments	(998)	(1,273)	(4)	(2,060)	(3,256)
Adjusted interest income	$1,498	$1,951	$2,451	$1,598	$1,465
GAAP other income (loss)	$5,152	$1,978	$(1,312)	$(5,121)	$(4,243)
Adjustments	(4,159)	(1,073)	660	5,066	3,639
Adjusted other income (loss)	$993	$905	$(652)	$(55)	$(604)

(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

(2)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.

(3)Reflects the removal of unrealized amounts associated with cash-based incentive awards tracked to the performance of a designated investment fund and unrealized amounts associated with deferred compensation plan liability adjustments.

(4)Reflects the removal of equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.

(5)Reflects the removal of amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation, the impact of consolidation of the Consolidated Funds and other non-core operating income and expenses.

(6)Reflects the realization of a seed capital investment in the StepStone Funds, which is eliminated in consolidation.

(7)Reflects the removal of interest income earned by the Consolidated Funds.

(8)Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), unrealized amounts associated with deferred compensation plan asset adjustments and the impact of consolidation of the Consolidated Funds.

The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Loss before income tax	$(20,350)	$(675,826)	$(194,649)	$(344)	$(200,250)
Net income attributable to non-controlling interests in subsidiaries	(30,725)	(27,645)	(115,887)	(43,399)	(41,585)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities	(3,382)	(1,313)	527	(777)	5,247
Unrealized carried interest allocations	(88,883)	(147,813)	(101,985)	(201,031)	(43,975)
Unrealized performance fee-related compensation	44,357	88,727	69,050	140,091	44,686
Unrealized investment (income) loss	(9,572)	3,726	(8,268)	(19,011)	(9,266)
Impact of Consolidated Funds	(24,407)	(43,864)	(18,944)	5,852	1,912
Deferred incentive fees	-	671	(1,544)	(282)	-
Equity-based compensation	184,509	880,154	464,124	193,974	310,650
Amortization of intangibles	10,207	10,207	10,207	10,207	10,190
Tax Receivable Agreements adjustments through earnings	-	(1,302)	-	5,537	-
Non-core items	686	99	106	6	294
Pre-tax ANI	62,440	85,821	102,737	90,823	77,903
Income taxes	(13,906)	(19,112)	(22,879)	(21,364)	(17,608)
ANI	48,534	66,709	79,858	69,459	60,295
Income taxes	13,906	19,112	22,879	21,364	17,608
Realized carried interest allocations	(24,404)	(58,878)	(46,703)	(38,597)	(28,572)
Realized performance fee-related compensation	11,705	30,995	122,215	27,662	13,862
Adjusted realized investment income	(940)	(2,516)	(1,560)	(13,871)	(1,557)
Adjusted incentive fees	(323)	(6,003)	(206,664)	(6,959)	(1,089)
Adjusted interest income	(1,498)	(1,951)	(2,451)	(1,598)	(1,465)
Interest expense	4,534	4,425	5,123	4,420	4,338
Adjusted other (income) loss	(993)	(905)	652	55	604
Net income attributable to non-controlling interests in subsidiaries	30,725	27,645	115,887	43,399	41,585
FRE	$81,246	$78,633	$89,236	$105,334	$105,609

(1)Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary:

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
FRE attributable to non-controlling interests in subsidiaries and profits interests	$26,672	$24,791	$32,280	$39,988	$39,678
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests	4,053	2,854	83,607	3,411	1,907
Net income attributable to non-controlling interests in subsidiaries and profits interests	$30,725	$27,645	$115,887	$43,399	$41,585

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
FRE attributable to profits interests issued in the private wealth subsidiary	$8,469	$10,103	$14,354	$19,530	$23,908
Performance-related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary	(14)	31	83,172	601	535
Net income attributable to profits interests issued in the private wealth subsidiary	$8,455	$10,134	$97,526	$20,131	$24,443

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries presented above specifically not attributable to the profits interests issued in the private wealth subsidiary is presented below.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
FRE attributable to non-controlling interests in subsidiaries	$18,203	$14,688	$17,926	$20,458	$15,770
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries	4,067	2,823	435	2,810	1,372
Net income attributable to non-controlling interests in subsidiaries	$22,270	$17,511	$18,361	$23,268	$17,142

(2)Reflects equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.

(3)Includes (income) expense related to the following non-core operating income and expenses:

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Transaction costs	$605	$24	$47	$ -	$235
Loss on change in fair value for contingent consideration obligation	64	58	59	54	-
Unrealized amounts associated with cash-based incentive awards tracked to investment funds	17	17	-	72	6
Gain realized upon vesting of cash-based incentive awards tracked to investment funds	-	-	-	(107)	-
Unrealized amounts associated with deferred compensation plan asset adjustments	-	-	-	-	(11)
Unrealized amounts associated with deferred compensation plan liability adjustments	-	-	-	(13)	64
Total non-core operating income and expenses	$686	$99	$106	$6	$294

(4)Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

	Three Months Ended
	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Federal statutory rate	21.0%	21.0%	21.0%	21.0%	21.0%
Combined state, local and foreign rate	1.3%	1.3%	1.3%	2.5%	1.6%
Blended statutory rate	22.3%	22.3%	22.3%	23.5%	22.6%

(5)Reflects the realization of a seed capital investment in the StepStone Funds, which is eliminated in consolidation.

(6)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.

(7)Reflects the removal of interest income earned by the Consolidated Funds.

(8)Reflects the removal of Tax Receivable Agreements adjustments recognized as other income (loss) ($(5.5) million for the three months ended March 31, 2026 and $1.3 million for the three months ended September 30, 2025), unrealized amounts associated with deferred compensation plan asset adjustments and the impact of consolidation of the Consolidated Funds.

Fee-Related Earnings Margin

FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by fee revenues. We believe FRE margin is an important measure of profitability on revenues that are largely recurring by nature. We believe FRE margin is useful to investors because it enables them to better evaluate the operating profitability of our business across periods.

The table below shows a reconciliation of FRE to FRE margin.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
FRE	$81,246	$78,633	$89,236	$105,334	$105,609
Fee revenues	212,740	217,461	241,133	260,285	270,934
FRE margin	38%	36%	37%	40%	39%

Gross Realized Performance Fees

Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us.

Performance Fee-Related Earnings

Performance fee-related earnings, or “PRE,” represents gross realized performance fees less realized performance fee-related compensation. We believe PRE is useful to investors because it presents the performance fees attributable to us, net of amounts paid to employees as performance fee-related compensation.

The table below shows a reconciliation of total performance fees to gross realized performance fees and PRE.

	Three Months Ended
(in thousands)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
Incentive fees	$190	$4,902	$207,954	$7,087	$ -
Realized carried interest allocations	24,404	58,878	46,703	38,597	28,572
Unrealized carried interest allocations	88,883	147,813	101,985	201,031	43,975
Legacy Greenspring carried interest allocations	39,637	27,143	(10,063)	81,994	37,171
Total performance fees	153,114	238,736	346,579	328,709	109,718
Unrealized carried interest allocations	(88,883)	(147,813)	(101,985)	(201,031)	(43,975)
Legacy Greenspring carried interest allocations	(39,637)	(27,143)	10,063	(81,994)	(37,171)
Incentive fee revenues for the Consolidated Funds	133	430	254	154	1,089
Deferred incentive fees	-	671	(1,544)	(282)	-
Gross realized performance fees	24,727	64,881	253,367	45,556	29,661
Realized performance fee-related compensation	(11,705)	(30,995)	(122,215)	(27,662)	(13,862)
PRE	$13,022	$33,886	$131,152	$17,894	$15,799

(1)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

Adjusted Weighted-Average Shares and Adjusted Net Income Per Share

ANI per share measures our per-share earnings assuming all Class B units, Class C units and Class D units in the Partnership were exchanged for Class A common stock in SSG, including the dilutive impact of outstanding equity-based awards. ANI per share is calculated as ANI divided by adjusted weighted-average shares outstanding. We believe adjusted weighted-average shares and ANI per share are useful to investors because they enable investors to better evaluate per-share operating performance across reporting periods.

The following table shows a reconciliation of diluted weighted-average shares of Class A common stock outstanding to adjusted weighted-average shares outstanding used in the computation of ANI per share.

	Three Months Ended
(in thousands, except share and per share amounts)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026
ANI	$48,534	$66,709	$79,858	$69,459	$60,295
Weighted-average shares of Class A common stock outstanding - Basic	77,846,710	78,561,587	79,465,039	80,297,984	81,995,674
Assumed vesting of RSUs	347,813	509,007	590,042	320,535	343,420
Assumed purchase under ESPP	-	-	-	349	408
Exchange of Class B units in the Partnership	39,608,270	39,500,159	39,094,629	39,013,494	38,555,343
Exchange of Class C units in the Partnership	960,025	947,580	931,103	931,103	914,619
Exchange of Class D units in the Partnership	3,530,125	2,944,261	2,509,417	1,917,870	4,083,590
Adjusted weighted-average shares	122,292,943	122,462,594	122,590,230	122,481,335	125,893,054
ANI per share	$0.40	$0.54	$0.65	$0.57	$0.48

(1)Assumes the full exchange of Class B units, Class C units or Class D units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement, Class C Exchange Agreement or Class D Exchange Agreement, respectively.

Key Operating Metrics

We monitor certain operating metrics that are either common to the asset management industry or that we believe provide important data regarding our business. Refer to the Glossary below for a definition of each of these metrics.

Fee-Earning AUM

	Three Months Ended
(in millions)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026	vs. FQ1'26
Separately Managed Accounts
Beginning balance	$73,174	$76,708	$78,207	$80,328	$81,815	12%
Contributions	3,013	2,559	2,627	2,637	2,950	(2)%
Distributions	(1,010)	(725)	(1,117)	(1,584)	(1,038)	3%
Market value, FX and other	1,531	(335)	611	434	(476)		na
Ending balance	$76,708	$78,207	$80,328	$81,815	$83,251	9%
Focused Commingled Funds
Beginning balance	$48,216	$50,511	$54,584	$58,223	$62,232	29%
Contributions	2,022	3,547	3,245	4,494	8,205	306%
Distributions	(392)	(580)	(547)	(1,252)	(1,596)	307%
Market value, FX and other	665	1,106	941	767	1,472	121%
Ending balance	$50,511	$54,584	$58,223	$62,232	$70,313	39%
Total
Beginning balance	$121,390	$127,219	$132,791	$138,551	$144,047	19%
Contributions	5,035	6,106	5,872	7,131	11,155	122%
Distributions	(1,402)	(1,305)	(1,664)	(2,836)	(2,634)	88%
Market value, FX and other	2,196	771	1,552	1,201	996	(55)%
Ending balance	$127,219	$132,791	$138,551	$144,047	$153,564	21%

(1)Contributions consist of new capital commitments that earn fees on committed capital and capital contributions to funds and accounts that earn fees on net invested capital or NAV.

(2)Distributions consist of returns of capital from funds and accounts that pay fees on net invested capital or NAV and reductions in fee-earning AUM from funds that moved from a committed capital to net invested capital fee basis or from funds and accounts that no longer pay fees.

(3)Market value, FX and other primarily consist of changes in market value appreciation (depreciation) for funds that pay on NAV and the effect of foreign exchange rate changes on non-U.S. dollar denominated commitments.

Asset Class Summary

	Three Months Ended
(in millions)	June 30, 2025	September 30, 2025	December 31, 2025	March 31, 2026	June 30, 2026	vs. FQ1'26
FEAUM
Private equity	$66,428	$69,932	$73,193	$75,626	$83,774	26%
Infrastructure	26,090	27,007	27,897	30,745	31,311	20%
Private debt	21,435	22,443	23,882	24,797	25,583	19%
Real estate	13,266	13,409	13,579	12,879	12,896	(3)%
Total	$127,219	$132,791	$138,551	$144,047	$153,564	21%
Separately managed accounts	$76,708	$78,207	$80,328	$81,815	$83,251	9%
Focused commingled funds	50,511	54,584	58,223	62,232	70,313	39%
Total	$127,219	$132,791	$138,551	$144,047	$153,564	21%
AUM
Private equity	$100,540	$106,408	$112,190	$119,698	$127,569	27%
Infrastructure	40,087	42,437	44,624	47,569	49,518	24%
Private debt	39,242	40,438	42,269	45,587	47,706	22%
Real estate	19,445	19,864	20,716	20,493	20,558	6%
Total	$199,314	$209,147	$219,799	$233,347	$245,351	23%
Separately managed accounts	$120,649	$124,991	$130,111	$136,133	$140,132	16%
Focused commingled funds	62,672	68,014	73,375	80,807	88,876	42%
Advisory AUM	15,993	16,142	16,313	16,407	16,343	2%
Total	$199,314	$209,147	$219,799	$233,347	$245,351	23%
AUA
Private equity	$262,472	$283,034	$301,403	$341,289	$345,565	32%
Infrastructure	71,126	78,762	86,955	94,706	103,784	46%
Private debt	20,874	23,402	24,173	25,918	25,061	20%
Real estate	169,679	176,357	178,810	189,892	193,487	14%
Total	$524,151	$561,555	$591,341	$651,805	$667,897	27%
Total capital responsibility	$723,465	$770,702	$811,140	$885,152	$913,248	26%

Note: Amounts may not sum to total due to rounding. AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented, and does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.

(1)Allocation of AUM by asset class is presented by underlying investment asset classification.

(2)Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA).

Shareholder Relations:

Seth Weiss shareholders@stepstonegroup.com

1-212-351-6106

Media:

Jordan Niezelski / Maggie Duffy

Edelman

StepStone@edifi-dje.com

Glossary

Assets under advisement, or “AUA,” consists of client assets for which we do not have full discretion to make investment decisions but play a role in advising the client or monitoring their investments. We generally earn revenue for advisory-related services on a contractual fixed fee basis. Advisory-related services include asset allocation, strategic planning, development of investment policies and guidelines, screening and recommending investments, legal negotiations, monitoring and reporting on investments, and investment manager review and due diligence. Advisory fees vary by client based on the scope of services, investment activity and other factors. Most of our advisory fees are fixed, and therefore, increases or decreases in AUA do not necessarily lead to proportionate changes in revenue. We believe AUA is a useful metric for assessing the relative size of our advisory business.

Our AUA is calculated as the sum of (i) the NAV of client portfolio assets for which we do not have full discretion and (ii) the unfunded commitments of clients to the underlying investments. Our AUA reflects the investment valuations in respect of the underlying investments of our client accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUA does not include post-period investment valuation or cash activity. AUA as of June 30, 2026 reflects final data for the prior period (March 31, 2026), adjusted for net new client account activity through June 30, 2026. NAV data for underlying investments is as of March 31, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2026. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2026, such NAVs are adjusted for cash activity following the last available reported NAV.

Assets under management, or “AUM,” primarily reflects the assets associated with our separately managed accounts (“SMAs”) and focused commingled funds. We classify assets as AUM if we have full discretion over the investment decisions in an account or have responsibility or custody of assets. Although management fees are based on a variety of factors and are not linearly correlated with AUM, we believe AUM is a useful metric for assessing the relative size and scope of our asset management business.

Our AUM is calculated as the sum of (i) the net asset value (“NAV”) of client portfolio assets, including the StepStone Funds and (ii) the unfunded commitments of clients to the underlying investments and the StepStone Funds. Our AUM reflects the investment valuations in respect of the underlying investments of our funds and accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUM does not include post-period investment valuation or cash activity. AUM as of June 30, 2026 reflects final data for the prior period (March 31, 2026), adjusted for net new client account activity through June 30, 2026. NAV data for underlying investments is as of March 31, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2026. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2026, such NAVs are adjusted for cash activity following the last available reported NAV.

Consolidated Funds refer to the StepStone Funds that we are required to consolidate as of the applicable reporting period. We consolidate funds and other entities in which we hold a controlling financial interest.

Consolidated VIEs refer to the variable interest entities that we are required to consolidate as of the applicable reporting period. We consolidate VIEs in which we hold a controlling financial interest.

Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee revenue (i.e., fee basis) and includes assets in our SMAs, focused commingled funds and assets held directly by our clients for which we have fiduciary oversight and are paid fees as the manager of the assets. Our SMAs and focused commingled funds typically pay management fees based on capital commitments, net invested capital and, in certain cases, NAV, depending on the fee terms. Management fees are only marginally affected by market appreciation or depreciation because substantially all of the StepStone Funds pay management fees based on capital commitments or net invested capital. As a result, management fees and FEAUM are not materially affected by changes in market value. We believe FEAUM is a useful metric in order to assess assets forming the basis of our management fee revenue.

Legacy Greenspring entities refers to certain entities for which the Company, indirectly through its subsidiaries, became the sole and/or managing member in connection with the Greenspring acquisition.

SSG refers solely to StepStone Group Inc., a Delaware corporation, and not to any of its subsidiaries.

StepStone Funds refer to SMAs and focused commingled funds of the Company, including acquired Greenspring funds, for which the Partnership or one of its subsidiaries acts as both investment adviser and general partner or managing member.

The Partnership refers solely to StepStone Group LP, a Delaware limited partnership, and not to any of its subsidiaries.

Total capital responsibility equals AUM plus AUA. AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets.

Undeployed fee-earning capital represents the amount of capital commitments to StepStone Funds that has not yet been invested or considered active but will generate management fee revenue once invested or activated. We believe undeployed fee-earning capital is a useful metric for measuring the amount of capital that we can put to work in the future and thus earn management fee revenue thereon.