NEW YORK - StepStone Group Inc. (NASDAQ:STEP), a global private markets investment firm, today announced its plan to conduct an underwritten offering of 4,099,997 shares of its Class A common stock. The company aims to use the net proceeds from this offering to purchase Class A common stock from certain shareholders and to pay cash upon the exchange of Class B and C units.
Goldman Sachs (NYSE:GS) & Co. LLC is serving as the sole book-running manager for the offering. StepStone has stated that the offering is expected to be non-dilutive to current stockholders, as it will not retain any net proceeds from the sale.
The offering will be conducted through a prospectus supplement and an accompanying prospectus filed with the Securities and Exchange Commission (SEC). Interested parties can obtain these documents for free by visiting the SEC's EDGAR website.
As of June 30, 2024, StepStone manages approximately $701 billion of total capital, which includes $169 billion of assets under management. The firm's clientele encompasses a range of investors, including pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and private wealth clients.
The announcement includes forward-looking statements that involve inherent risks and uncertainties. StepStone cautions that these statements are not guarantees of future performance, and actual results may differ materially from those projected.
This news is based on a press release statement from StepStone Group Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities will only be made by means of the prospectus supplement and the accompanying prospectus.
In other recent news, StepStone Group has reported noteworthy earnings and revenue results, surpassing expectations. The company's first-quarter 2024 earnings reported an Adjusted Net Income per Share of $0.33, outperforming both the Bloomberg LP Street consensus of $0.28 and JPMorgan (NYSE:JPM)'s estimate of $0.27. This performance was largely due to higher-than-expected fee-related revenues and realized carry. Additionally, StepStone reported robust fourth-quarter fiscal 2024 results, with a GAAP net income of $82.5 million and net income attributable to StepStone Group Inc. at $30.8 million, or $0.48 per share.
Analysts have responded to these positive developments. Oppenheimer has adjusted its stock price target for StepStone Group, raising it slightly from $57.00 to $58.00, maintaining its Outperform rating on the company's shares. Similarly, JPMorgan has raised its price target for StepStone shares to $51.00 from $49.00, maintaining an Overweight rating. These adjustments indicate confidence in StepStone Group's future earnings.
In other company news, StepStone's management has reported approximately $6 billion in new funds, split between $4 billion in Separately Managed Accounts and $2 billion in Commingled Funds. These are recent developments that reflect the continued growth and strong performance of StepStone Group.
InvestingPro Insights
As StepStone Group Inc. (NASDAQ:STEP) proceeds with its public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, StepStone boasts a robust market capitalization of $6.14 billion, reflecting significant investor confidence in the firm's value and prospects. The company's revenue growth is particularly impressive, with a staggering 283.69% increase in the last twelve months as of Q1 2025, indicating a strong capacity for scaling its operations and expanding its market reach.
InvestingPro Tips highlight that StepStone has increased its dividend for three consecutive years, showcasing a commitment to returning value to shareholders. This is a positive sign for investors looking for stable income streams. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, suggesting that the firm's financial results may outperform previous estimates, providing a potentially optimistic outlook for the stock's future performance.
For investors seeking more detailed analysis and additional InvestingPro Tips, there are 11 more tips available on the platform. These insights could offer a deeper understanding of StepStone's financial health and help inform investment decisions.
StepStone's recent financial metrics and analyst revisions underscore the company's promising financial trajectory as it embarks on its latest offering. Investors considering participating in the offering or holding StepStone shares may find these insights from InvestingPro valuable in assessing the firm's potential for growth and profitability.
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