StepStone Group (STEP) Morgan Stanley US Financials Conference 2026 summary

Business model and differentiation

• Operates a global, diversified private markets platform with $220B AUM and $800B capital responsibility, spanning private equity, venture, infrastructure, credit, and real estate.

• Emphasizes a client-centric, solutions-oriented approach, evolving from customized portfolios to comprehensive fund families and data partnerships.

• Maintains a global presence with 31 offices and derives a significant portion of revenue from non-U.S. clients, though U.S. wealth business is growing.

• Solutions model has evolved to address needs of various investor classes, including private wealth and insurance, supported by recent strategic hires.

• Platform diversification and adaptability are seen as underappreciated strengths supporting ongoing growth.

Growth drivers and financial performance

• Achieved a record $38B in capital formation in fiscal 2026, split between managed accounts and commingled funds.

• Managed accounts benefit from a 90% re-up rate, with expansions often increasing account size by 30%.

• All flagship commingled funds are in the market, representing $20B in potential new capital.

• Private wealth flows reached a record $2.3B in a quarter, with a sustainable $2B+ quarterly run rate.

• Operating margins expanded from 24% at IPO to 38%, with further margin expansion anticipated as scale increases.

Private wealth strategy and opportunities

• Offers five fund families across asset classes, focusing on expanding platform access and deepening relationships with over 700 partners.

• Cross-selling and further penetration with existing partners are key growth levers, with significant room for expansion.

• Technology and strategies are being adapted for model portfolios and retirement solutions, with international expansion underway.