StepStone Group (STEP) Barclays 22nd Annual Global Financial Services Conference summary

Macro environment and client allocations

• Appetite for new commitments improved in 2024, contrasting with a sluggish 2023.

• Clients' long-term allocations to private markets remain stable or growing, especially in private credit and infrastructure.

• Fundraising environment is bifurcated; success depends on strategy fit, LP support, and track record.

• International markets, especially Asia, Middle East, and Europe, are key growth drivers for new client flows.

Fundraising performance and drivers

• Achieved record fundraising: nearly $13B in last quarter, $28B over the last twelve months.

• Largest venture capital secondaries fund closed at $3.3B; private equity secondaries fund exceeded $4B.

• Growth in managed accounts mainly from existing clients, with 90% re-up rates and 30% account expansion.

• About two-thirds of managed account growth comes from the installed client base.

Product pipeline and future fundraising

• Wrapping up flagship private equity and real estate secondaries funds; infrastructure co-investment and growth equity funds in market.

• Upcoming launches include a flagship co-investment fund, infrastructure secondaries fund, and multi-strategy venture capital fund.

• Private credit vehicles and BDCs remain a constant fundraising focus.