First Read: StepStone Group Inc "F4Q26 EPS First Read: High Quality Beat" (Buy)

Research evidence excerpt

First Read: StepStone Group Inc "F4Q26 EPS First Read: High Quality Beat" (Buy)

ue Q1 0.40 0.40

creation. This is standard industry practice that is well understood by the market, Q2 0.54 0.54

particularly in the institutional channel. Importantly, they highlighted that the majority of Q3 0.65 0.65

returns come from post-acquisition asset appreciation, not day-one marks. Q4E 0.50 0.52

03/26E 2.10 2.07

03/27E 2.53 2.52

Defined Contribution Opportunity

03/28E 3.31 3.35

Following the recent announcement of hiring a US DC/401k business head, STEP struck

an upbeat tone on the significant long-term opportunity in defined contribution (401k) Michael Brown

markets. The positive commentary was supported by a favorable Department of Labor Analyst

proposal that enables private markets inclusion via a process-based safe harbor. Given mike.brown@ubs.com

+1-212-713 1387

STEP's relatively small size versus other publicly traded alts, success in the channel could

be more accretive for STEP vs peers. Vijeth Mudalegundi

Analyst

Guidance & Commentary from the Call vijeth.mudalegundi@ubs.com

+1-212-649 8172

Evergreen private wealth subscriptions continue to be strong: ~$800M/month

run-rate recently; May tracking similarly strong Mary Mahrer

Focused commingled funds on the institutional side continued to fundraise well, mary.mahrer@ubs.com

as undeployed fee earning capital grew to ~$40B +1-212-713 9014

PE co-invest fund already activated post-quarter

Highlights (US$m) 03/23 03/24 03/25 03/26E 03/27E 03/28E 03/29E 03/30E

Revenues 564 625 875 1,123 1,356 1,566 1,775 2,049

Pre-tax profit 223 229 417 544 660 748 820 929

Net earnings (reported) 143 143 244 257 318 467 572 661

Net earnings (UBS) 143 143 244 257 318 467 572 661

Tier 1 ratio % - - - - - - - -