StepStone (STEP) investor relations material

Private markets outlook and LP allocations

• Appetite for private markets remains strong, with most investors maintaining or increasing allocations despite some being over-allocated relative to targets, causing temporary deployment slowdowns.

• Private credit and infrastructure are areas with more room for allocation growth compared to other asset classes.

• Innovation is being driven by questions around the realization cycle, with increased demand for secondaries and GP-led strategies.

Fundraising trends and growth drivers

• Growth is fueled by high re-up rates (over 90%) in separate accounts, with clients increasing account sizes by 30% on average at re-up.

• 40% of gross AUM flows came from new relationships or expansion into new strategies, showing a healthy balance between existing and new clients.

• All major asset classes contribute to growth, with two-thirds of revenue from clients outside the U.S., and significant international expansion potential.

Co-mingled funds and scaling strategy

• Co-mingled funds represent over $60 billion of AUM, with $10 billion raised in the past year, a 21% YoY growth.

• Multiple asset classes have their own fund families, with new flagship and secondary funds launched across private equity, venture, infrastructure, credit, and real estate.

• Fund sizes are kept modest ($2–6 billion), allowing for scalable growth without the constraints of mega-funds.