StepStone Group Inc. reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company experienced a notable increase in total revenues, which reached $271.7 million, a 42% rise from $191.4 million in the same quarter of 2023. This growth was primarily driven by a 30% increase in management and advisory fees, netting $184.8 million compared to $142.1 million in the prior year. Additionally, carried interest allocations rose to $69.8 million, up from $57.0 million in Q3 2023.
Despite the revenue growth, net income attributable to StepStone Group Inc. decreased to $17.6 million from $26.2 million in the same quarter last year. This decline was attributed to a substantial increase in total expenses, which surged to $220.7 million, up from $130.3 million in Q3 2023. The rise in expenses was largely due to increased compensation costs, including a significant jump in equity-based compensation, which rose to $37.3 million from $5.9 million in the previous year.
For the six months ending September 30, 2024, total revenues also increased to $458.1 million, a 24% increase from $369.5 million in the same period of 2023. However, net income for this period fell to $30.96 million from $47.5 million in the prior year, reflecting similar trends in rising expenses.
StepStone's total assets grew to $4.04 billion as of September 30, 2024, up from $3.79 billion at the end of March 2024. Cash and cash equivalents also increased to $179.1 million from $143.4 million during the same timeframe. The company’s investments in funds rose to $155.9 million, while investments at fair value within consolidated funds saw a significant increase to $233.4 million from $131.9 million.
Strategically, StepStone completed a public offering of 4.1 million shares of Class A common stock at $50.00 per share in September 2024, with net proceeds directed towards purchasing additional shares and units from existing holders. The company also announced a quarterly cash dividend of $0.24 per share, reflecting its commitment to returning value to shareholders.
The firm continues to navigate a complex economic landscape, with the Federal Reserve's recent interest rate adjustments and ongoing monitoring of market conditions impacting its operations. As of September 30, 2024, StepStone managed approximately $176 billion in Assets Under Management (AUM) and $506 billion in Assets Under Advisement (AUA), indicating a robust position in the private markets investment sector.
About StepStone Group Inc.
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