StepStone Group’s fourth quarter results for 2025 exceeded Wall Street’s revenue and profit expectations, with management attributing the outperformance to continued momentum across its private wealth platform and a diversified approach to private markets investing. CEO Scott Hart highlighted the company’s best quarter ever in core fee-related earnings, driven by sustained demand for its evergreen funds and a record year for fundraising. Hart noted that “momentum also continues to grow in Structs and Credex, where we continue to build our syndicated partners,” reflecting the broad-based nature of StepStone’s growth across products and geographies.

Is now the time to buy STEP? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From StepStone Group’s Q4 Earnings Call

• Alex Blostein (Goldman Sachs) asked about StepStone’s portfolio exposure to software and the impact of AI disruption. CEO Scott Hart detailed the company’s diversified approach, noting only 11% of AUM is in software and most exposure is mitigated by multi-asset strategies.
• Blostein (Goldman Sachs) inquired about the momentum and scaling opportunities in the private wealth business. President Jason Ment highlighted ongoing early-stage syndicate building for funds like STEPEX and Credex, with no major new product launches but continued expansion in distribution channels and geographies.
• Kenneth Worthington (JPMorgan) questioned the management of inflows into the high-performing Spring venture fund. Hart explained that robust deployment avenues and a proactive team allow continued strong investment without the need to limit new assets.
• Worthington (JPMorgan) asked why management expects only modest growth in upcoming fund vintages despite recent success. Hart clarified that recent large increases in fund size warrant a more measured approach, focusing on aligning fundraising with real opportunities and balancing re-ups with new client expansion.
• John Dunn (Evercore ISI) sought insight into regional fundraising trends and demand by strategy. Hart reported strong institutional interest in Asia, Europe, and the Middle East, with infrastructure and private credit strategies showing particular traction in those regions.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace of fundraising in new and existing evergreen and private wealth funds, (2) StepStone’s ability to expand syndicate partnerships and distribution in international markets, and (3) how the firm manages both risk and opportunity from AI-driven changes in portfolio companies. Progress on these fronts will indicate the company’s ability to sustain growth and adapt to a changing investment landscape.

StepStone Group currently trades at $59.29, in line with $59.17 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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