Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | May 23, 2023 | Sep. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2023 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39510 | ||
Entity Registrant Name | STEPSTONE GROUP INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-3868757 | ||
Entity Address, Address Line One | 450 Lexington Avenue | ||
Entity Address, Address Line Two | 31st Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10017 | ||
City Area Code | 212 | ||
Local Phone Number | 351-6100 | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | ||
Trading Symbol | STEP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,195.5 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement relating to its 2023 annual meeting of stockholders (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001796022 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 62,834,791 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 46,420,141 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Los Angeles, CA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | |
Assets | |||
Restricted cash | $ 955 | $ 1,063 | |
Fees and accounts receivable | 44,450 | 34,141 | |
Due from affiliates | 54,322 | 19,369 | |
Investments: | |||
Investments in funds | 115,187 | 107,045 | |
Accrued carried interest allocations | 1,227,173 | 1,480,515 | |
Legacy Greenspring investments in funds and accrued carried interest allocations | [1] | 770,652 | 1,334,581 |
Deferred income tax assets | 44,358 | 27,866 | |
Lease right-of-use assets, net | 101,130 | 61,065 | |
Intangibles, net | 354,645 | 398,126 | |
Goodwill | 580,542 | 580,542 | |
Total assets | 3,497,403 | 4,188,125 | |
Liabilities and stockholders’ equity | |||
Accrued compensation and benefits | 66,614 | 46,397 | |
Accrued carried interest-related compensation | 644,517 | 763,557 | |
Legacy Greenspring accrued carried interest-related compensation | [1] | 617,994 | 1,140,101 |
Due to affiliates | 205,424 | 199,355 | |
Lease liabilities | 121,224 | 70,965 | |
Debt obligations | 98,351 | 62,879 | |
Total liabilities | 1,844,086 | 2,363,795 | |
Commitments and contingencies (Note 16) | |||
Redeemable non-controlling interests in Consolidated Funds | 24,530 | 0 | |
Stockholders’ equity: | |||
Additional paid-in capital | 610,567 | 587,243 | |
Retained earnings | 160,430 | 229,615 | |
Accumulated other comprehensive income | 461 | 658 | |
Total StepStone Group Inc. stockholders’ equity | 771,567 | 817,625 | |
Total stockholders’ equity | 1,628,787 | 1,824,330 | |
Total liabilities and stockholders’ equity | 3,497,403 | 4,188,125 | |
Consolidated Entity, Excluding Consolidated VIE | |||
Assets | |||
Cash and cash equivalents | 102,565 | 116,386 | |
Investments: | |||
Other assets and receivables | 44,060 | 27,426 | |
Liabilities and stockholders’ equity | |||
Accounts payable, accrued expenses and other liabilities | 89,396 | 80,541 | |
Consolidated funds | |||
Assets | |||
Restricted cash | 955 | 1,063 | |
Fees and accounts receivable | 39,996 | 29,060 | |
Due from affiliates | 14,061 | 5,252 | |
Investments: | |||
Investments in funds | 31,569 | 22,808 | |
Legacy Greenspring investments in funds and accrued carried interest allocations | 770,652 | 1,334,581 | |
Deferred income tax assets | 451 | 301 | |
Lease right-of-use assets, net | 15,084 | 17,206 | |
Total assets | 964,192 | 1,435,245 | |
Liabilities and stockholders’ equity | |||
Accrued compensation and benefits | 29,869 | 14,806 | |
Legacy Greenspring accrued carried interest-related compensation | 617,994 | 1,140,101 | |
Due to affiliates | 4,962 | 190 | |
Lease liabilities | 15,883 | 17,593 | |
Total liabilities | 682,718 | 1,181,238 | |
Consolidated funds | Consolidated Funds | |||
Assets | |||
Cash and cash equivalents | 25,997 | 0 | |
Investments: | |||
Investments, at fair value | 30,595 | 0 | |
Other assets and receivables | 772 | 0 | |
Liabilities and stockholders’ equity | |||
Other liabilities | 566 | 0 | |
Consolidated funds | Excluding Consolidated Funds | |||
Assets | |||
Cash and cash equivalents | 25,959 | 19,386 | |
Investments: | |||
Other assets and receivables | 8,101 | 5,588 | |
Liabilities and stockholders’ equity | |||
Accounts payable, accrued expenses and other liabilities | 13,444 | 8,548 | |
Non-Controlling Interests in Subsidiaries | |||
Stockholders’ equity: | |||
Non-controlling interests | 36,380 | 32,063 | |
Non-Controlling Interests in Legacy Greenspring Entities | |||
Stockholders’ equity: | |||
Non-controlling interests | 152,658 | 194,480 | |
Non-Controlling Interests in the Partnership | |||
Stockholders’ equity: | |||
Non-controlling interests | 668,182 | 780,162 | |
Class A common stock, $0.001 par value, 650,000,000 authorized; 62,834,791 and 61,141,306 issued and outstanding as of March 31, 2023 and 2022, respectively | |||
Stockholders’ equity: | |||
Common stock | 63 | 61 | |
Class B common stock, $0.001 par value, 125,000,000 authorized; 46,420,141 and 47,149,673 issued and outstanding as of March 31, 2023 and 2022, respectively | |||
Stockholders’ equity: | |||
Common stock | $ 46 | $ 48 | |
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 5 and 15 for more information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 650,000,000 | 650,000,000 |
Common stock, shares issued (in shares) | 62,834,791 | 61,141,306 |
Common stock, shares outstanding (in shares) | 62,834,791 | 61,141,306 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 46,420,141 | 47,149,673 |
Common stock, shares outstanding (in shares) | 46,420,141 | 47,149,673 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Carried interest allocations: | ||||
Total revenues | $ (67,574) | $ 1,365,525 | $ 787,716 | |
Compensation and benefits: | ||||
Cash-based compensation | 252,180 | 197,482 | 157,123 | |
Equity-based compensation | 24,940 | 13,996 | 7,899 | |
Performance fee-related compensation: | ||||
Realized | 79,846 | 91,208 | 30,532 | |
Unrealized | (119,039) | 312,903 | 215,508 | |
Total performance fee-related compensation | (39,193) | 404,111 | 246,040 | |
Legacy Greenspring performance fee-related compensation | [1] | (452,163) | 187,106 | 0 |
Total compensation and benefits | (214,236) | 802,695 | 411,062 | |
General, administrative and other | 147,159 | 110,468 | 48,485 | |
Total expenses | (67,077) | 913,163 | 459,547 | |
Other income (expense) | ||||
Investment income (loss) | (2,509) | 26,160 | 16,407 | |
Legacy Greenspring investment income (loss) | [1] | (44,075) | 32,586 | 0 |
Unrealized investment income of Consolidated Funds | 9,315 | 0 | 0 | |
Interest income | 1,921 | 337 | 413 | |
Interest expense | (4,189) | (1,113) | (7,360) | |
Other income (loss) | (1,420) | 2,249 | 220 | |
Total other income (expense) | (40,957) | 60,219 | 9,680 | |
Total income (loss) before income tax | (41,454) | 512,581 | 337,849 | |
Income tax expense | 3,821 | 28,300 | 23,256 | |
Net income (loss) | (45,275) | 484,281 | 314,593 | |
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds | 1,776 | 0 | 0 | |
Net income (loss) attributable to StepStone Group Inc. | $ (18,398) | $ 193,885 | $ 62,634 | |
Net income (loss) per share of Class A common stock: | ||||
Basic (in dollars per share) | $ (0.30) | $ 3.89 | $ 2.11 | |
Diluted (in dollars per share) | $ (0.30) | $ 3.84 | $ 2.06 | |
Weighted-average shares of Class A common stock: | ||||
Basic (in shares) | 61,884,671 | 49,833,760 | 29,657,805 | |
Diluted (in shares) | 61,884,671 | 53,600,250 | 33,274,804 | |
Dividends declared per share of Class A common stock (in dollars per share) | $ 0.80 | $ 0.44 | $ 0.07 | |
Non-Controlling Interests in Subsidiaries | ||||
Other income (expense) | ||||
Less: Net income attributable to non-controlling interests | $ 35,194 | $ 26,608 | $ 23,176 | |
Non-Controlling Interests in Legacy Greenspring Entities | ||||
Performance fee-related compensation: | ||||
Unrealized | (526,837) | 94,944 | 0 | |
Other income (expense) | ||||
Less: Net income attributable to non-controlling interests | [1] | (44,075) | 32,586 | 0 |
Non-Controlling Interests in the Partnership | ||||
Other income (expense) | ||||
Less: Net income attributable to non-controlling interests | (19,772) | 231,202 | 228,783 | |
Management and advisory fees, net | ||||
Revenues | ||||
Service fees | 497,179 | 380,257 | 285,462 | |
Incentive fees | ||||
Revenues | ||||
Service fees | 9,663 | 11,593 | 5,474 | |
Carried Interest Allocations | ||||
Carried interest allocations: | ||||
Total carried interest allocations | (122,253) | 786,569 | 496,780 | |
Realized | ||||
Carried interest allocations: | ||||
Total carried interest allocations | 131,089 | 200,718 | 62,953 | |
Unrealized | ||||
Carried interest allocations: | ||||
Total carried interest allocations | (253,342) | 585,851 | 433,827 | |
Legacy Greenspring Carried Interest Allocations | ||||
Carried interest allocations: | ||||
Total carried interest allocations | [1] | $ (452,163) | $ 187,106 | $ 0 |
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 3, 5 and 15 for more information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net income (loss) | $ (45,275) | $ 484,281 | $ 314,593 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (181) | 329 | 1,619 |
Unrealized gain (loss) on defined benefit plan, net | (506) | 1,365 | (244) |
Total other comprehensive income (loss) | (687) | 1,694 | 1,375 |
Comprehensive income (loss) before non-controlling interests | (45,962) | 485,975 | 315,968 |
Less: Comprehensive income attributable to redeemable non-controlling interests in Consolidated Funds | 1,776 | 0 | 0 |
Comprehensive income (loss) attributable to StepStone Group Inc. | (18,594) | 194,334 | 62,752 |
Non-Controlling Interests in Subsidiaries | |||
Other comprehensive income (loss): | |||
Less: Comprehensive income attributable to non-controlling interests | 34,856 | 27,446 | 23,877 |
Non-Controlling Interests in Legacy Greenspring Entities | |||
Other comprehensive income (loss): | |||
Less: Comprehensive income attributable to non-controlling interests | (44,075) | 32,586 | 0 |
Non-Controlling Interests in the Partnership | |||
Other comprehensive income (loss): | |||
Less: Comprehensive income attributable to non-controlling interests | $ (19,925) | $ 231,609 | $ 229,339 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class C common stock | Partners’ Capital | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Class A Common Stock | Additional Paid-in Capital Class C common stock | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest Non-Controlling Interests in Subsidiaries | Noncontrolling Interest Non-Controlling Interests in Legacy Greenspring Entities | Noncontrolling Interest Non-Controlling Interests in the Partnership | Noncontrolling Interest Class A Common Stock Non-Controlling Interests in the Partnership | Noncontrolling Interest Class C common stock Non-Controlling Interests in the Partnership | |
Partners' capital, beginning balance at Mar. 31, 2020 | $ 236,967 | $ 216,051 | $ 178 | $ 20,738 | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||
Other comprehensive income (loss) | 1,375 | ||||||||||||||||
Partners' capital, ending balance at Mar. 31, 2021 | $ 0 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | 314,593 | ||||||||||||||||
Other comprehensive income (loss) | 1,375 | ||||||||||||||||
Total stockholders' equity, ending balance at Mar. 31, 2021 | 659,693 | $ 38 | $ 57 | $ 188,751 | $ 60,407 | 155 | 25,885 | $ 0 | $ 384,400 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||
Net income | 484,281 | 193,885 | 26,608 | 32,586 | 231,202 | ||||||||||||
Other comprehensive income (loss) | 1,694 | 449 | 838 | 407 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | 484,281 | ||||||||||||||||
Other comprehensive income (loss) | 1,694 | 449 | 838 | 407 | |||||||||||||
Contributed capital | 15,161 | 15,078 | 83 | ||||||||||||||
Equity-based compensation | 13,996 | 6,686 | 12 | 7,298 | |||||||||||||
Distributions prior to Reorganization and IPO | (118,796) | (20,692) | (11,326) | (86,778) | |||||||||||||
Distributions | (118,796) | (20,692) | (11,326) | (86,778) | |||||||||||||
Purchase of non-controlling interests | (3,046) | (657) | (1,502) | (887) | |||||||||||||
Deferred offering costs | (653) | (357) | (296) | ||||||||||||||
Dividends declared | (24,677) | (24,677) | |||||||||||||||
Vesting of RSUs, net of shares withheld for employee taxes | 0 | 1 | (1) | ||||||||||||||
Stock/units issued for Greenspring acquisition | $ 558,598 | $ 135,239 | 13 | $ 267,842 | $ 64,847 | $ 290,743 | $ 70,392 | ||||||||||
Exchange of units for Class A common stock and redemption of corresponding Class B common shares | (9) | 9 | (9) | (9) | |||||||||||||
Initial consolidation of legacy Greenspring general partner entities | 158,142 | 158,142 | |||||||||||||||
Equity reallocation between controlling and non-controlling interests | 0 | 115,434 | 54 | 914 | (116,402) | ||||||||||||
Deferred tax effect resulting from transactions affecting ownership in the Partnership, including net amounts payable under Tax Receivable Agreements | [1] | (55,293) | (55,293) | ||||||||||||||
Total stockholders' equity, ending balance at Mar. 31, 2022 | 1,824,330 | 61 | 48 | 587,243 | 229,615 | 658 | 32,063 | 194,480 | 780,162 | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||
Net income | (47,051) | (18,398) | 35,194 | (44,075) | (19,772) | ||||||||||||
Other comprehensive income (loss) | (687) | (196) | (338) | (153) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | (45,275) | ||||||||||||||||
Other comprehensive income (loss) | (687) | (196) | (338) | (153) | |||||||||||||
Contributed capital | 13,566 | 142 | 13,387 | 37 | |||||||||||||
Equity-based compensation | 16,389 | 8,889 | 388 | 7,112 | |||||||||||||
Distributions prior to Reorganization and IPO | (120,643) | (31,070) | (11,134) | (78,439) | |||||||||||||
Distributions | (120,643) | (31,070) | (11,134) | (78,439) | |||||||||||||
Dividends declared | (50,787) | (50,787) | |||||||||||||||
Vesting of RSUs, net of shares withheld for employee taxes | (2,743) | (1,524) | (1,219) | ||||||||||||||
Exchange of units for Class A common stock and redemption of corresponding Class B common shares | (1) | 2 | (2) | (1) | |||||||||||||
Equity reallocation between controlling and non-controlling interests | 0 | 19,546 | (1) | 1 | (19,546) | ||||||||||||
Deferred tax effect resulting from transactions affecting ownership in the Partnership, including net amounts payable under Tax Receivable Agreements | [1] | (3,586) | (3,586) | ||||||||||||||
Total stockholders' equity, ending balance at Mar. 31, 2023 | $ 1,628,787 | $ 63 | $ 46 | $ 610,567 | $ 160,430 | $ 461 | $ 36,380 | $ 152,658 | $ 668,182 | ||||||||
[1]See notes 11, 14 and 15 for more information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) | $ (45,275) | $ 484,281 | $ 314,593 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 47,443 | 26,977 | 5,495 |
Unrealized performance fee-related compensation | (119,039) | 312,903 | 215,508 |
Amortization of deferred financing costs | 472 | 236 | 3,856 |
Equity-based compensation | 24,940 | 13,996 | 7,899 |
Change in deferred income taxes | (12,692) | 6,216 | 15,913 |
Fair value adjustment for acquisition-related contingent consideration | 9,361 | 9,600 | 1,608 |
Gain on remeasurement of lease liabilities | (2,709) | 0 | 0 |
Other non-cash activities | 40 | (3,034) | 70 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities of Consolidated Funds: | |||
Unrealized investment income of Consolidated Funds | (9,312) | 0 | 0 |
Purchases of investments of Consolidated Funds | (21,287) | 0 | 0 |
Proceeds from sale of investments of Consolidated Funds | 4 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Fees and accounts receivable | (10,309) | (1,774) | (6,975) |
Due from affiliates | (30,222) | (11,490) | 2,216 |
Accounts payable, accrued expenses and other liabilities | (1,216) | 6,663 | 9,767 |
Accrued compensation and benefits | 11,160 | (1,445) | 23,439 |
Due to affiliates | (765) | (2,259) | 872 |
Lease right-of-use assets, net and lease liabilities | 2,006 | (413) | 0 |
Changes in operating assets and liabilities of Consolidated Funds: | |||
Net cash provided by operating activities | 151,183 | 214,281 | 149,299 |
Cash flows from investing activities | |||
Cash paid for Greenspring acquisition, net of cash acquired | 0 | (181,529) | 0 |
Purchases of property and equipment | (5,627) | (2,103) | (1,258) |
Other investing activities | 1 | 35 | 7 |
Net cash used in investing activities | (30,807) | (210,241) | (11,166) |
Cash flows from financing activities | |||
Proceeds from capital contributions from non-controlling interests | 179 | 83 | 2,776 |
Proceeds from IPO, net of underwriting discount | 0 | 0 | 337,798 |
Proceeds from revolving credit facility | 35,000 | 185,000 | 0 |
Deferred financing costs | 0 | (2,356) | 0 |
Purchase of non-controlling interests | 0 | (3,046) | (131,294) |
Payment of deferred offering costs | 0 | (1,732) | (10,142) |
Principal payments on term loan | 0 | 0 | (147,000) |
Payments on revolving credit facility | 0 | (120,000) | 0 |
Dividends paid to common stockholders | (49,973) | (23,874) | (2,047) |
Payments for employee taxes related to net settlement of RSUs | (2,743) | 0 | 0 |
Payments to related parties under Tax Receivable Agreements | (5,981) | (787) | 0 |
Other financing activities | (1) | (9) | (1,029) |
Contributions from redeemable non-controlling interests in Consolidated Funds | |||
Net cash used in financing activities | (108,021) | (70,439) | (45,306) |
Effect of foreign currency exchange rate changes | (287) | (15) | 1,097 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 12,068 | (66,414) | 93,924 |
Cash, cash equivalents and restricted cash at beginning of period | 117,449 | 183,863 | 89,939 |
Cash, cash equivalents and restricted cash at end of period | 129,517 | 117,449 | 183,863 |
Supplemental disclosures: | |||
Interest paid | 3,551 | 829 | 3,491 |
Taxes paid | 29,487 | 11,688 | 3,413 |
Non-cash operating, investing, and financing activities: | |||
Accrued dividends | 814 | 803 | 180 |
Deferred tax effect resulting from transactions affecting ownership in the Partnership, including net amounts payable under Tax Receivable Agreements | (3,586) | (55,293) | (2,596) |
Accrued deferred offering costs | 0 | 0 | 1,079 |
Establishment of lease liabilities in exchange for lease right-of-use assets | 77,347 | 79,688 | 0 |
Remeasurement of lease liabilities | (18,166) | 0 | 0 |
Class A common stock issued for Greenspring acquisition | 0 | 558,598 | 0 |
Class C Partnership units issued for Greenspring acquisition | 0 | 135,239 | 0 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Restricted cash | 955 | 1,063 | 3,977 |
Total cash, cash equivalents and restricted cash | 129,517 | 117,449 | 183,863 |
Consolidated Entities, Excluding Legacy Entities | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Unrealized carried interest allocations and investment (income) loss | 261,354 | (603,513) | (444,893) |
Unrealized performance fee-related compensation | (119,039) | 312,903 | 215,508 |
Cash flows from investing activities | |||
Contributions to investments | (21,637) | (24,571) | (14,047) |
Distributions received from investments | 5,280 | 9,510 | 4,132 |
Cash flows from financing activities | |||
Distributions to non-controlling interests | (109,509) | (107,470) | (97,676) |
Non-Controlling Interests in Legacy Greenspring Entities | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Unrealized carried interest allocations and investment (income) loss | 577,484 | (119,698) | 0 |
Unrealized performance fee-related compensation | (526,837) | 94,944 | 0 |
Cash flows from investing activities | |||
Contributions to investments | (13,387) | (15,078) | 0 |
Distributions received from investments | 4,563 | 3,495 | 0 |
Cash flows from financing activities | |||
Distributions to non-controlling interests | (11,134) | (11,326) | 0 |
Proceeds from capital contributions to legacy Greenspring entities | 13,387 | 15,078 | 0 |
Consolidated funds | |||
Changes in operating assets and liabilities: | |||
Other assets and receivables | (772) | 0 | 0 |
Changes in operating assets and liabilities of Consolidated Funds: | |||
Other assets and receivables | (772) | 0 | 0 |
Other liabilities and payables | 566 | 0 | 0 |
Cash flows from financing activities | |||
Sale of non-controlling interests | 22,754 | 0 | 0 |
Contributions from redeemable non-controlling interests in Consolidated Funds | |||
Contributions from redeemable non-controlling interests in Consolidated Funds | 22,754 | 0 | 0 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Restricted cash | 955 | 1,063 | |
Consolidated funds | Consolidated Funds | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 25,997 | 0 | 0 |
Consolidated Entity, Excluding Consolidated VIE | |||
Changes in operating assets and liabilities: | |||
Other assets and receivables | (3,212) | 2,091 | (69) |
Changes in operating assets and liabilities of Consolidated Funds: | |||
Other assets and receivables | (3,212) | 2,091 | (69) |
Cash flows from financing activities | |||
Sale of non-controlling interests | 0 | 0 | 3,308 |
Contributions from redeemable non-controlling interests in Consolidated Funds | |||
Contributions from redeemable non-controlling interests in Consolidated Funds | 0 | 0 | 3,308 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | $ 102,565 | $ 116,386 | $ 179,886 |
Organization
Organization | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization StepStone Group Inc. (“SSG”) was incorporated in the state of Delaware on November 20, 2019. The company was formed for the purpose of completing an initial public offering (“IPO”) in order to conduct the business of StepStone Group LP (the “Partnership”) as a publicly-traded entity. SSG is the sole managing member of StepStone Group Holdings LLC (the “General Partner”), the general partner of the Partnership. Unless otherwise specified, “StepStone” or the “Company” refers to SSG and its consolidated subsidiaries, including the Partnership, following the Reorganization and IPO, and to the Partnership and its consolidated subsidiaries prior to the Reorganization and IPO, throughout the remainder of these notes to the consolidated financial statements. The Company is a global private markets investment firm focused on providing customized investment solutions and advisory, data and administrative services to its clients. The Company’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, including high-net-worth and mass affluent individuals. The Company partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes. These portfolios utilize several types of synergistic investment strategies with third-party fund managers, including commitments to funds (“primaries”), acquiring stakes in existing funds on the secondary market (“secondaries”) and investing directly into companies (“co-investments”). The Company, through its subsidiaries, acts as the investment advisor and general partner or managing member to separately managed accounts (“SMAs”) and focused commingled funds, including acquired Greenspring funds (collectively, the “StepStone Funds”). Reorganization In connection with the IPO, the Company completed certain transactions as part of a corporate reorganization (the “Reorganization”), which are described below: • SSG amended and restated its certificate of incorporation to, among other things, provide for Class A common stock and Class B common stock. • The Partnership amended its limited partnership agreement to, among other things, provide for Class A units and Class B units. • The General Partner amended and restated its limited liability company agreement to, among other things, appoint SSG as the sole managing member of the General Partner. • SSG redeemed its 100 shares of common stock outstanding. • The Partnership effectuated a series of transactions such that certain blocker entities in which certain pre-IPO institutional investors that held partnership units in the Partnership merged with and into SSG, with SSG surviving. As a result of the mergers, the 100% owners of the blocker entities acquired 9,112,500 shares of newly issued Class A common stock of SSG. • The Partnership classified the partnership units acquired by SSG as Class A units and reclassified the partnership units held by the continuing limited partners of the Partnership as Class B units. • SSG issued to the remaining Class B unitholders one share of Class B common stock for each Class B unit that they owned in exchange for their interests in the General Partner. • Certain of the Class B stockholders entered into a stockholders agreement pursuant to which they agreed to vote all their shares of voting stock, including Class A common stock and Class B common stock, together and in accordance with the instructions of the Class B Committee, which comprises certain members of senior management. Initial Public Offering and Greenspring Acquisition On September 18, 2020, SSG issued 20,125,000 shares of Class A common stock in the IPO at a price of $18.00 per share. The net proceeds from the offering totaled $337.8 million, net of underwriting discounts of $24.5 million and before offering costs of $9.7 million that were incurred by the Partnership. SSG used approximately $209.8 million of the net proceeds from the offering to acquire 12,500,000 newly issued Class A units of the Partnership and approximately $128.0 million to purchase 7,625,000 Class B units from certain of the Partnership’s existing unitholders, including certain members of senior management. In connection with the Greenspring acquisition (see note 15), the Company issued 12,686,756 shares of its Class A common stock and the Partnership issued 3,071,519 newly created Class C units of the Partnership, each of which is exchangeable into one share of Class A common stock, in each case subject to certain adjustments and restrictions (see note 14). Following the Reorganization and IPO, SSG became a holding company whose principal asset is a controlling financial interest in the Partnership through its ownership of all of the Partnership’s Class A units and 100% of the membership interests in the General Partner of the Partnership. SSG acts as the sole managing member of the General Partner of the Partnership and, as a result, indirectly operates and controls all of the Partnership’s business and affairs. As a result, SSG consolidates the financial results of the Partnership and reports non-controlling interests related to the Class B and Class C units of the Partnership which are not owned by SSG. The assets and liabilities of the Partnership represent substantially all of SSG’s consolidated assets and liabilities, with the exception of certain deferred income taxes and payables due to affiliates pursuant to tax receivable agreements (see note 11). Each share of Class A common stock is entitled to one vote and each share of Class B common stock is entitled to five votes. As of March 31, 2023, SSG held approximately 56.2% of the economic interest in the Partnership. As the Partnership’s limited partners exchange their Class B and Class C units into SSG’s Class A common stock in the future, SSG’s economic interest in the Partnership will increase relative to that of the Class B and Class C unitholders. The Reorganization was considered a transaction between entities under common control. As a result, the consolidated financial statements for periods prior to the Reorganization and IPO are the consolidated financial statements of the Partnership as the predecessor to SSG for accounting and reporting purposes. Greenspring Acquisition On September 20, 2021, the Company completed the acquisition of 100% of the equity of Greenspring Associates, Inc. and certain of its affiliates (collectively, “Greenspring”). The results of Greenspring’s operations have been included in the condensed consolidated financial statements effective September 20, 2021. In connection with the Greenspring acquisition, the Company issued 12,686,756 shares of its Class A common stock and the Partnership issued 3,071,519 newly created Class C units of the Partnership, with each such unit exchangeable into one share of Class A common stock, subject to certain adjustments and restrictions. See notes 14 and 15 for more information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Certain of the StepStone Funds are investment companies that follow specialized accounting under GAAP and reflect their investments at estimated fair value. Accordingly, the carrying value of the Company’s equity method investments in such entities retains the specialized accounting. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management’s estimates and assumptions are based on historical experience and other factors, and these estimates and assumptions require management to exercise judgment in the process of applying the Company’s accounting policies. Factors that may affect or influence management’s estimates and assumptions could include expectations related to future events that management has deemed reasonable under the circumstances. Assumptions and estimates related to the valuation of investments, which directly affect carried interest allocations, carried interest related compensation, and the carrying amount of the Company’s equity in affiliated companies, involve a higher degree of judgment and complexity, and these assumptions and estimates may significantly affect the consolidated financial statements. Actual results could differ from these estimates and those differences may be material. Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation. Amounts relating to unpaid realized carried interest-related compensation that were previously reported within accrued carried interest-related compensation have been presented within accrued compensation and benefits in the consolidated balance sheets. In addition, payments to related parties under Tax Receivable Agreements has been presented separately within cash flows from financing activities in the consolidated statements of cash flows, and was previously included within due to affiliates within cash flows from operating activities. Consolidation The Company consolidates all entities that it controls through a majority voting interest or as the primary beneficiary of a variable interest entity (“VIE”). Under the VIE model, management first assesses whether the Company has a variable interest in an entity. In evaluating whether the Company holds a variable interest, fees received as a decision maker or in exchange for services (including management fees, incentive fees and carried interest allocations) that are customary and commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, are not considered variable interests. If the Company has a variable interest in an entity, management further assesses whether that entity is a VIE, and if so, whether the Company is the primary beneficiary under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation under the voting interest model. The consolidation analysis can generally be performed qualitatively; however, in certain situations a quantitative analysis may also be performed. Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective StepStone Funds that are VIEs could affect the entity’s status as a VIE or the determination of the primary beneficiary. Under the VIE model, an entity is deemed to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly affect the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Management determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. When assessing whether the Company is the primary beneficiary of a VIE, management evaluates whether the Company’s involvement, through holding interests directly or indirectly in an entity or contractually through other variable interests, would give the Company a controlling financial interest. This analysis includes an evaluation of the Company’s control rights, as well as the economic interests that the Company holds in the VIE, including indirectly through related parties. The Company provides investment advisory services to the StepStone Funds, which have third-party clients. These funds are investment companies and are typically organized as limited partnerships or limited liability companies for which the Company, through its operating subsidiaries, acts as the general partner or managing member. A limited partnership or similar entity is a VIE if the unaffiliated limited partners or members do not have substantive rights to terminate or liquidate the fund or remove the general partner or substantive rights to participate. Certain StepStone Funds are VIEs because they have not granted unaffiliated limited partners or members substantive rights to terminate the fund or remove the general partner or substantive rights to participate. The Company does not consolidate these StepStone Funds because it is not the primary beneficiary of those funds, primarily because it does not hold an interest in those funds that is considered more than insignificant and its fee arrangements are considered customary and commensurate. The Company has determined that certain of its operating subsidiaries, StepStone Group Real Assets LP (“SRA”), StepStone Group Real Estate LP (“SRE”), Swiss Capital Alternative Investments AG (“Swiss Capital”), and StepStone Group Private Wealth LLC (“SPW”) and certain StepStone Funds are VIEs, and that the Company is the primary beneficiary of each entity because it has a controlling financial interest in each entity; accordingly, the Company consolidates these entities. The assets and liabilities of the consolidated VIEs are presented gross in the consolidated balance sheets. The assets of the consolidated VIEs may only be used to settle obligations of the consolidated VIEs. See note 4 for more information on both consolidated and unconsolidated VIEs. In connection with the Greenspring acquisition, the Company, indirectly through its subsidiaries, became the sole and/or managing member of certain entities, each of which is the general partner of an investment fund (“legacy Greenspring general partner entities”). The Company did not acquire any direct economic interests attributable to the legacy Greenspring general partner entities, including legacy Greenspring investments in funds and carried interest allocations. However, certain arrangements negotiated as part of the acquisition represent variable interests that could be significant. The Company determined that the legacy Greenspring general partner entities are VIEs and it is the primary beneficiary of each such entity because it has a controlling financial interest in each entity. As a result, the Company consolidates these entities. The Company and its subsidiaries manages or controls certain entities that constitute client investment funds that have been consolidated in the accompanying consolidated financial statements (“Consolidated Funds”). Including the results of the Consolidated Funds increases the reported amounts of the assets, liabilities, expenses and cash flows in the accompanying consolidated financial statements, and amounts related to economic interests held by third-party investors are reflected as redeemable non-controlling interests in Consolidated Funds. The revenues earned by the Company as investment manager of the Consolidated Funds are eliminated in consolidation and generally have no direct effect on the net income attributable to SSG or to Stockholders' Equity. Non-Controlling Interests Non-controlling interests (“NCI”) reflect the portion of income or loss and the corresponding equity attributable to third-party equity holders and employees in certain consolidated subsidiaries that are not 100% owned by the Company. Non-controlling interests are presented as separate components of stockholders’ equity on the Company’s consolidated balance sheets to clearly distinguish between the Company’s interests and the economic interests of third parties and employees in those entities. Net income (loss) attributable to SSG, as reported in the consolidated statements of income, is presented net of the portion of net income (loss) attributable to holders of non-controlling interests. See note 14 for more information on ownership interests in the Company. Non-controlling interests in subsidiaries represent the economic interests in SRA, SRE, and Swiss Capital (the variable interest entities included in the Company’s consolidated financial statements) held by third parties and employees in those entities. Non-controlling interests in subsidiaries are allocated a share of income or loss in the respective consolidated subsidiary in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. Non-controlling interests in legacy Greenspring entities represent the economic interests in the legacy Greenspring general partner entities. The Company did not acquire any direct economic interests in the legacy Greenspring general partner entities. As a result, all of the net income or loss related to the legacy Greenspring general partner entities is allocated to non-controlling interests in legacy Greenspring entities. Non-controlling interests in the Partnership represent the economic interests related to the Class B and Class C units of the Partnership which are not owned by SSG. Non-controlling interests in the Partnership are allocated a share of income or loss in the Partnership in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. Redeemable non-controlling interests in Consolidated Funds represent the economic interests in the Consolidated Funds which are not held by SSG, but are held by the client investors in the funds. These interests are presented as redeemable non-controlling interests in Consolidated Funds within the consolidated balance sheets, outside of permanent capital as the investors in these funds generally have the right to withdraw their capital, subject to the terms of the respective contractual agreements. Redeemable non-controlling interests in Consolidated Funds are allocated a share of income or loss in the respective fund in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. Accounting for Differing Fiscal Periods The StepStone Funds primarily have a fiscal year end as of December 31. The Company accounts for its investments in the StepStone Funds on a three-month lag due to the timing of receipt of financial information from the investments held by the StepStone Funds. The StepStone Funds primarily invest in private markets funds that generally require at least 90 days following the calendar year end to provide audited financial statements. As a result, the Company uses the December 31 audited financial statements of the StepStone Funds, which reflect the underlying private markets funds as of December 31 to record its investments (including any carried interest allocated by those investments) for its fiscal year-end consolidated financial statements as of March 31. The Company further adjusts the reported carrying values of its investments in the StepStone Funds for its share of capital contributions to and distributions from the StepStone Funds during the three-month lag period. The Company does not account for management and advisory fees or incentive fees on a three-month lag. To the extent that management becomes aware of any material events that affect the StepStone Funds during the three-month lag period, the effect of the events would be disclosed in the notes to the consolidated financial statements. Current Events In 2022, financial markets experienced increased volatility amid rising interest rates, slowing economic growth, persistently high inflation and the ongoing Russia-Ukraine conflict. Central banks around the world pursued monetary policy tightening in an effort to bring down inflation to target rates, stoking recession fears. In the first quarter of 2023, signs of slowing inflation coupled with a strong labor market contributed to a rebound in financial markets despite the banking system volatility as recession fears receded in anticipation that interest rates may not rise as much as previously expected. The Company is continuing to closely monitor developments related to COVID-19, inflation, rising interest rates, the ongoing Russia-Ukraine conflict and the banking crisis, and assess the impact on financial markets and the Company’s business. The Company’s results and the overall industry results have been and may continue to be adversely affected by slowdowns in fundraising activity and the pace of capital deployment, which have resulted in, and may continue to result in, delayed or decreased management fees. Further, fund managers have been unable or less able to profitably exit existing investments, such conditions have resulted in, and may continue to result in, delayed or decreased performance fee revenues. It is currently not possible to predict the ultimate effects of these events on the financial markets, overall economy and the Company’s consolidated financial statements. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in banks, money market funds and highly-liquid investments with original maturities of three months or less at the time of purchase. Restricted cash consists of cash that the Company is contractually obligated to maintain to secure its letters of credit used primarily related to its office facilities and other obligations. Fees and Accounts Receivable Fees and accounts receivable represent contractual amounts due to the Company for management, advisory and incentive fees, net of allowances as applicable. The Company considers fees and accounts receivable to be fully collectible. Accordingly, no allowance for doubtful accounts has been established as of March 31, 2023 and 2022. If any accounts or portion thereof are deemed uncollectible, such amounts are expensed when that determination is made. Due from Affiliates Due from affiliates primarily relates to fees and accounts receivable from the StepStone Funds, advances made on behalf of the StepStone Funds for the payment of certain organization and operating costs and expenses for which the Company is subsequently reimbursed, amounts due from employees and loans due from affiliated entities. See note 13 for further disclosure of related party transactions. Fair Value Measurements GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace – including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and therefore a lesser degree of judgment is used in measuring their fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of their fair values, as follows: • Level I – Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. • Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments classified in this category include less liquid securities traded in active markets and securities traded in other than active markets. • Level III – Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the financial instrument. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for financial instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may result in transfers between Levels I, II, and III. The Company considers its cash, cash equivalents, restricted cash, fees and accounts receivable, accounts payable, investments, revolving credit facility and contingent consideration obligation balances to be financial instruments. The carrying amounts of cash, cash equivalents, restricted cash, fees and accounts receivable and accounts payable equal or approximate their fair values due to their nature and/or the relatively short period over which they are held. See note 6 for additional details regarding the fair value of the Company’s contingent consideration obligations balance and note 9 for additional details regarding the fair value of the Company’s revolving credit facility balance. Investments Investments primarily include the Company’s ownership interests in the StepStone Funds, as general partner or managing member of such funds. The Company accounts for all investments in which it has or is otherwise presumed to have significant influence, but not control, including the StepStone Funds, using the equity method of accounting. The carrying value of these equity method investments is determined based on amounts invested by the Company, adjusted for the Company’s share in the earnings or losses of each investee, after consideration of contractual arrangements that govern allocations of income or loss (including carried interest allocations), less distributions received. Investments include the Company’s cumulative accrued carried interest allocations from the StepStone Funds, which primarily represent performance-based capital allocations, assuming the StepStone Funds were liquidated as of each reporting date in accordance with the funds’ governing documents. Legacy Greenspring investments in funds and accrued carried interest allocations represent the economic interests held by the legacy Greenspring general partner entities in certain funds for which the Company does not have any direct economic interests. All of the economics in respect of such interests are payable to employees and are therefore reflected as non-controlling interests in legacy Greenspring entities and legacy Greenspring performance fee-related compensation. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Management's determination of fair value for investments in the underlying funds includes various valuation techniques. These techniques may include a market approach, recent transaction price, net asset value approach, or discounted cash flows, and may use one or more significant unobservable inputs such as EBITDA, revenue multiples, discount rates, weighted average cost of capital, exit multiples, or terminal growth rates. Investments of Consolidated Funds The Company’s Consolidated Funds are investment companies under GAAP and reflect their investments at estimated fair value. The Company has retained the specialized investment company accounting for the Consolidated Funds under GAAP. Investments of the Consolidated Funds are recorded at fair value and the unrealized appreciation (depreciation) in fair value is recognized in the consolidated statements of income. In addition, the Consolidated Funds do not consolidate their majority-owned and controlled investments in underlying portfolio companies. Leases The Company determines whether an arrangement contains a lease at inception of the arrangement. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines the classification as either an operating or finance lease. The Company’s identified leases primarily consist of operating lease agreements for office space and certain equipment, as the lessee. Operating leases are included in lease right-of-use-assets, net and lease liabilities in the consolidated balance sheets. Certain leases include lease and non-lease components, which the Company accounts for as a single lease component. Lease right-of-use (“ROU”) assets and lease liabilities are measured based on the present value of future minimum lease payments over the lease term at the commencement date. Lease ROU assets include initial direct costs incurred by the Company and are presented net of deferred rent and lease incentives. The Company uses its incremental borrowing rate in determining the present value of future minimum lease payments. The Company’s lease terms may include options to extend or terminate the lease, which are included in the measurement of ROU assets and lease liabilities when it is reasonably certain that the Company will exercise those options. Operating lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term in general, administrative and other expenses in the consolidated statements of income. Minimum lease payments for leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. See note 16 for more information. Property and Equipment Property and equipment primarily consist of leasehold improvements, furniture, equipment, computer hardware and software and are stated at cost, less accumulated depreciation and amortization, with the net carrying amount included in other assets and receivables in the consolidated balance sheets. Property and equipment are depreciated over their estimated useful lives using the straight-line method, and the corresponding depreciation expense is included in general, administrative and other expenses in the consolidated statements of income. Property and equipment are depreciated over a period of five Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The Company did not recognize any impairment charges related to property and equipment during each of the fiscal years ended March 31, 2023, 2022 and 2021. Foreign Currency The Company consolidates certain entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated using the exchange rates prevailing at the end of each reporting period and income and expenses are translated using the weighted-average exchange rate for each reporting period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated entities are included in other comprehensive income (loss) within the consolidated financial statements until realized. Gains and losses resulting from foreign-currency transactions denominated in a currency other than an entity’s functional currency are reported in other income (loss) in the consolidated statements of income. These transaction gains and (losses) totaled $(1.6) million, $(1.1) million and $0.6 million for the years ended March 31, 2023, 2022 and 2021, respectively. Business Combinations The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of an acquisition is allocated to the assets acquired and liabilities assumed based on their fair values, as determined by management at the acquisition date. Contingent consideration obligations that are elements of consideration transferred are recognized at the acquisition date as part of the fair value transferred in exchange for the acquired business. Contingent consideration arrangements are revalued to fair value each reporting period. Examples of critical estimates in valuing certain of the intangible assets acquired include, but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life, discount rates and income tax rates. Acquisition-related costs incurred in connection with a business combination are expensed as incurred and are included in general, administrative and other expenses in the consolidated statements of income. Intangibles and Goodwill The Company’s finite-lived intangible assets consist of acquired contractual rights to earn future management and advisory fee income and client relationships. Finite-lived intangible assets are amortized over their estimated useful lives, which range from 8 to 10 years. The Company did not have any intangible assets that were deemed to have an indefinite life as of March 31, 2023. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. There were no impairment charges related to the Company’s finite-lived intangible assets during the years ended March 31, 2023, 2022 and 2021. Goodwill represents the excess amount of consideration transferred in a business combination above the fair value of the identifiable net assets. Goodwill is assessed for impairment at least annually using a qualitative and, if necessary, a quantitative approach. The Company performs its annual goodwill impairment test as of January 1, or more frequently, if events and circumstances indicate that an impairment may exist. Goodwill is tested for impairment at the reporting unit level. The initial assessment for impairment under the qualitative approach is to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than the carrying amount, a quantitative assessment is performed to measure the amount of impairment loss, if any. The quantitative assessment includes comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized equal to the lesser of (a) the difference between the carrying amount of the reporting unit and its fair value and (b) the total carrying amount of the reporting unit’s goodwill. The Company performed annual goodwill impairment assessments as of January 1, 2023 and 2022 and determined that there was no impairment of goodwill as of either date. Revenues The Company recognizes revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers . Revenue is recognized in a manner that depicts the transfer of promised goods or services to customers and for an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The application of ASC 606 requires an entity to identify its contract(s) with a customer, identify the performance obligations in a contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, variable consideration is included only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company has elected to apply the variable consideration allocation exception for its fee arrangements with its customers. Management and Advisory Fees, Net The Company earns management fees for services provided to its SMAs and focused commingled funds. The Company earns advisory fees for services provided to advisory clients where the Company does not have discretion over investment decisions. The Company considers its performance obligations in its customer contracts from which it earns management and advisory fees to be one or more of the following, based on the services promised: asset management services, advisory services and/or the arrangement of administrative services. The Company recognizes revenues from asset management services and advisory services when control of the promised services is transferred to customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. SMAs are generally contractual arrangements involving an investment management agreement between the Company and a single client, and are typically structured as a partnership or limited liability company for which a subsidiary of SSG serves as the general partner or managing member. Focused commingled funds are structured as limited partnerships or limited liability companies with multiple clients, for which a subsidiary of the Company serves as the general partner or managing member. The Company determined that the individual client or single limited partner or member is the customer with respect to SMAs and advisory clients, while the investment fund is generally considered to be the customer for arrangements with focused commingled funds. When asset management services and the arrangement of administrative services are the performance obligations promised in a contract, the Company satisfies these performance obligations over time because the customer simultaneously receives and consumes the benefits of the services as they are performed. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. Management fees earned from these contracts where the Company has discretion over investment decisions are generally calculated based on a percentage of unaffiliated committed capital or net invested capital, and these amounts are typically billed quarterly. For certain investment funds, management fees are initially based on committed capital during t |
Revenues
Revenues | 12 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following presents revenues disaggregated by product offering, which aligns with the Company’s performance obligations and the basis for calculating each amount: Year Ended March 31, Management and Advisory Fees, Net 2023 2022 2021 Focused commingled funds $ 227,003 $ 148,725 $ 97,223 SMAs 210,187 174,318 135,784 Advisory and other services 56,244 55,523 52,217 Fund reimbursement revenues 3,745 1,691 238 Total management and advisory fees, net $ 497,179 $ 380,257 $ 285,462 Year Ended March 31, Incentive Fees 2023 2022 2021 SMAs $ 6,606 $ 11,441 $ 5,446 Focused commingled funds 3,057 152 28 Total incentive fees $ 9,663 $ 11,593 $ 5,474 Year Ended March 31, Carried Interest Allocations 2023 2022 2021 SMAs $ (110,020) $ 555,449 $ 359,703 Focused commingled funds (12,233) 231,120 137,077 Total carried interest allocations $ (122,253) $ 786,569 $ 496,780 Year Ended March 31, Legacy Greenspring Carried Interest Allocations 2023 2022 2021 SMAs $ — $ — $ — Focused commingled funds (1) (452,163) 187,106 — Total legacy Greenspring carried interest allocations $ (452,163) $ 187,106 $ — _______________________________ (1) The years ended March 31, 2023 and 2022 reflect the net effect of gross realized carried interest allocations of $74.7 million and $92.2 million, respectively, and the reversal of such amounts in unrealized carried interest allocations for the period. The decrease in carried interest allocations and legacy Greenspring carried interest allocations for the year ended March 31, 2023 as compared to the year ended March 31, 2022 was primarily attributable to net unrealized depreciation in the fair value of certain underlying fund investments. The increase in carried interest allocations for the year ended March 31, 2022 as compared to the year ended March 31, 2021 was primarily attributable to net unrealized appreciation in the fair value of certain underlying fund investments. See note 2 for a discussion of the Company’s accounting policy for investments on a three-month lag. The Company derives revenues from clients located in both the United States and other countries. The table below presents the Company’s revenues by geographic location: Year Ended March 31, Revenues (1) 2023 2022 2021 United States $ (238,441) $ 428,282 $ 166,719 Non-U.S. countries 170,867 937,243 620,997 _______________________________ (1) Revenues are attributed to countries based on client location for SMAs and advisory and other services, or location of investment vehicle for focused commingled funds. For the years ended March 31, 2023, 2022 and 2021, no individual client represented 10% or more of the Company’s net management and advisory fees. As of March 31, 2023 and 2022, the Company had $21.6 million and $19.0 million, respectively, of deferred revenues, which is included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets. During the year ended March 31, 2023, the Company had recognized $4.9 million as revenue from amounts included in the deferred revenue balance as of March 31, 2022. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Consolidated VIEs The Company consolidates certain VIEs for which it is the primary beneficiary. Such VIEs consist of certain operating entities not wholly-owned by the Company (e.g., Swiss Capital, SRA and SRE), SPW, legacy Greenspring general partner entities and certain StepStone Funds. See note 2 for more information on the Company’s accounting policies related to the consolidation of VIEs. The assets of the consolidated VIEs totaled $964.2 million and $1,435.2 million as of March 31, 2023 and 2022, respectively. The liabilities of the consolidated VIEs totaled $682.7 million and $1,181.2 million as of March 31, 2023 and 2022, respectively. The assets of the consolidated VIEs may only be used to settle obligations of the same VIE. In addition, there is no recourse to the Company for the consolidated VIEs’ liabilities, except for certain entities in which there could be a clawback of previously distributed carried interest. As of March 31, 2023 and 2022, no material amounts previously distributed have been accrued for clawback liabilities. Unconsolidated VIEs The Company holds variable interests in the form of direct equity interests in certain VIEs that are not consolidated because the Company is not the primary beneficiary. The Company’s maximum exposure to loss is limited to the potential loss of assets recognized by the Company relating to these unconsolidated entities. The carrying value of the assets and liabilities recognized in the consolidated balance sheets with respect to the Company’s interests in VIEs that were not consolidated is set forth below: As of March 31, 2023 2022 Investments in funds $ 115,187 $ 107,045 Legacy Greenspring investments in funds 152,658 194,480 Due from affiliates, net 29,017 18,830 Less: Amounts attributable to non-controlling interests in subsidiaries 19,432 13,832 Less: Amounts attributable to non-controlling interests in legacy Greenspring entities 152,658 194,480 Maximum exposure to loss $ 124,772 $ 112,043 |
Investments
Investments | 12 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments The Company’s investments consist of equity method investments primarily related to (i) investments in the StepStone Funds for which it serves as general partner or managing member but does not have a controlling financial interest and (ii) investments of Consolidated Funds. The Company’s equity interest in its equity method investments in the StepStone Funds typically does not exceed 1% in each fund. The Company’s share of the underlying net income or loss attributable to its equity interest in the funds is recorded in investment income in the consolidated statements of income. Investment income attributable to the Consolidated Funds is recorded in investment income of Consolidated Funds. Investment income attributable to investments in certain legacy Greenspring funds for which the Company has no direct economic interests are recorded in legacy Greenspring investment income in the consolidated statements of income. The Company’s equity method investments consist of the following: As of March 31, 2023 2022 Investments in funds (1) 115,187 107,045 Accrued carried interest allocations 1,227,173 1,480,515 Legacy Greenspring investments in funds and accrued carried interest allocations (2) 770,652 1,334,581 Total equity method investments 2,113,012 2,922,141 Total investments $ 2,143,607 $ 2,922,141 _______________________________ (1) The Company’s investments in funds was $147.5 million as of March 31, 2023. The consolidation of the Consolidated Funds results in the elimination of the Company’s investments in such funds. No funds were consolidated as of March 31, 2022. (2) Reflects investments in funds of $152.7 million and $194.5 million and carried interest allocations of $618.0 million and $1,140.1 million as of March 31, 2023 and 2022, respectively. Equity Method Investments The Company recognized equity method income (loss) of the following: Year Ended March 31, 2023 2022 2021 Carried interest allocations $ (122,253) $ 786,569 $ 496,780 Investment income (loss) (2,509) 26,160 16,407 Legacy Greenspring carried interest allocations (452,163) 187,106 — Legacy Greenspring investment income (loss) (44,075) 32,586 — Total equity method income (loss) $ (621,000) $ 1,032,421 $ 513,187 The decrease in carried interest allocations for the year ended March 31, 2023 as compared to the prior year periods was primarily attributable to unrealized depreciation in the fair value of the underlying investments in the Company’s private equity funds. See note 2 for a discussion of the Company’s accounting policy for investments on a three-month lag. As of March 31, 2023 and 2022, the Company’s investments in two SMAs each individually represented 10% or more of the total accrued carried interest allocations balance, and in the aggregate represented approximately 24% and 25%, respectively, of the total accrued carried interest allocations balance as of those dates. As of March 31, 2023 and 2022, the Company’s investments in two and three, respectively, commingled funds each individually represented 10% or more of the total legacy Greenspring accrued carried interest allocations balance, and in the aggregate represented approximately 24% and 39%, respectively, of the total legacy Greenspring accrued carried interest allocations balances as of those dates. Of the total accrued carried interest allocations balance as of March 31, 2023 and 2022, $644.5 million and $763.6 million, respectively, were payable to affiliates and is included in accrued carried interest-related compensation in the consolidated balance sheets. Of the total legacy Greenspring investments in funds and accrued carried interest allocations balance as of March 31, 2023 and 2022, $618.0 million and $1,140.1 million, respectively, were payable to employees who are considered affiliates of the Company and is included in legacy Greenspring accrued carried interest-related compensation in the consolidated balance sheets and $152.7 million and $194.5 million, respectively, are reflected as non-controlling interests in legacy Greenspring entities in the consolidated balance sheets. The Company evaluates each of its equity method investments to determine if any are considered significant as defined by the SEC. As of March 31, 2023 and 2022 and for the years ended March 31, 2023, 2022 and 2021, no individual equity method investment held by the Company met the significance criteria. As a result, the Company is not required to provide separate financial statements for any of its equity method investments. Summarized financial information for the Company’s equity method investments reflected below represents the financial position as of March 31, 2023 and 2022, and the results of operations for the years ended March 31, 2023, 2022 and 2021, which are reported on a three-month lag. Assets are primarily comprised of the investments held by the StepStone Funds. As of March 31, 2023 2022 Assets $ 65,536,494 $ 62,297,224 Liabilities 1,806,252 944,519 Equity $ 63,730,242 $ 61,352,705 Year Ended March 31, 2023 2022 2021 Investment income $ 115,092 $ 84,279 $ 46,889 Expenses (446,413) (382,704) (224,611) Net realized and unrealized gain (loss) on investments (4,966,901) 16,868,454 6,369,649 Income tax expense (12,261) (10,875) (5,994) Net income (loss) $ (5,310,483) $ 16,559,154 $ 6,185,933 Investments of Consolidated Funds The Company consolidates funds and entities when it is deemed to hold a controlling financial interest. Beginning in the quarter ended December 31, 2022, the Company consolidated one investment fund for which it is deemed to have a controlling financial interest. The activity of the Consolidated Funds is reflected within the consolidated financial statements. Investments held by the Consolidated Funds are summarized below: Fair Value as of March 31, Percentage of Total Investments as of March 31, 2023 2022 2023 2022 Investments of Consolidated Funds: Partnership and LLC interests (cost of $21.3 million and $— million as of March 31, 2023 and 2022, respectively) $ 30,595 $ — 100 % — % Total investments of Consolidated Funds $ 30,595 $ — 100 % — % As of March 31, 2023 and 2022, no individual investment had a fair value greater than 5% of the Company’s total assets. The following table summarizes net gains from investment activities of the Consolidated Funds: Year Ended March 31, 2023 Net Realized Gains on Investments Net Unrealized Gains on Investments Investments of Consolidated Funds: Partnership and LLC interests $ 3 $ 9,312 Total investments of Consolidated Funds $ 3 $ 9,312 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain assets and liabilities at fair value on a recurring basis. The following tables provide details regarding the classification of these assets and liabilities within the fair value hierarchy as of the dates presented: Financial Instruments of the Company As of March 31, 2023 Level I Level II Level III Total Liabilities Contingent consideration obligations $ — $ — $ 36,745 $ 36,745 Total liabilities $ — $ — $ 36,745 $ 36,745 As of March 31, 2022 Level I Level II Level III Total Liabilities Contingent consideration obligations $ — $ — $ 28,025 $ 28,025 Total liabilities $ — $ — $ 28,025 $ 28,025 For the liabilities presented in the tables above, there were no changes in fair value hierarchy levels during the years ended March 31, 2023 and 2022. The changes in the fair value of Level III financial instruments of the Company are set forth below: Year Ended March 31, Contingent consideration obligations 2023 2022 Balance, beginning of year: $ 28,025 $ 1,541 Additions — 17,769 Change in fair value 9,361 9,600 Settlements (641) (885) Balance, end of year: $ 36,745 $ 28,025 Changes in unrealized losses included in earnings related to financial liabilities still held at the reporting date $ 9,361 $ 9,600 Contingent Consideration In connection with the Greenspring acquisition, the Company recorded a contingent consideration liability of $17.8 million during the three months ended September 30, 2021. See note 15 for more information. The fair value of the contingent consideration liabilities are based on a discounted cash flow analysis using a probability-weighted average estimate of certain performance targets, including revenue levels. The assumptions used in the analysis are inherently subjective; therefore, the ultimate amount of the contingent consideration liability may differ materially from the current estimate. The significant unobservable inputs required to value the contingent consideration liabilities primarily relate to the future expected revenues and the discount rates applied to the expected future revenues and payments of obligations, which ranged from 8% to 10% as of March 31, 2023. The contingent consideration liabilities are included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets. Changes in the fair value of the liabilities are included in general, administrative and other expenses in the consolidated statements of income. In February 2022, the Company amended the contingent consideration arrangement in respect of the Greenspring acquisition whereby a portion of the contingent consideration liability otherwise payable to the sellers will be used to fund compensation arrangements with certain employees of the Company, which will be payable following the end of the earn-out period. As a result, the contingent consideration liability is recorded net of the fair value of amounts payable to certain employees. Financial Instruments of Consolidated Funds As of March 31, 2023 Level I Level II Level III Total Assets Partnership and LLC interests $ — $ — $ 6,901 $ 6,901 Total assets $ — $ — $ 6,901 $ 6,901 Investment Funds The Company generally values its investment funds, which are organized as partnership and LLC interests, using the NAV per share equivalent calculated by the investment manager as a practical expedient in determining an independent fair value. The Company does not categorize within the fair value hierarchy investments where fair value is measured using the net asset value per share practical expedient. As of March 31, 2023, investments with a combined fair value of $23.7 million are excluded from presentation in the fair value hierarchy as the fair value of these investments were measured at net asset value. As of March 31, 2023, investments with a combined fair value of $6.9 million were classified as level III investments that were purchased during fiscal 2023. There were no unrealized gains or losses related to these investments as of March 31, 2023. The significant unobservable input used to value these investments are the discounts to recent transaction prices. For these investments, there were no changes in fair value hierarchy levels during the year ended March 31, 2023. There were no financial instruments held by Consolidated Funds as of March 31, 2022. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is included in other assets and receivables in the consolidated balance sheets and consists of the following: As of March 31, Property and equipment: 2023 2022 Office furniture $ 7,053 $ 6,217 Computer equipment and software 4,418 3,517 Leasehold improvements 17,246 12,306 Property and equipment, gross 28,717 22,040 Less: Accumulated depreciation (12,876) (9,278) Property and equipment, net $ 15,841 $ 12,762 Depreciation expense related to property and equipment totaled $4.0 million, $2.5 million and $2.2 million for the years ended March 31, 2023, 2022 and 2021, respectively, and is included in general, administrative and other expenses in the consolidated statements of income. |
Intangibles and Goodwill
Intangibles and Goodwill | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles and Goodwill | Intangibles and Goodwill Intangible assets consist of management contracts providing economic rights to management and advisory fees and client relationships related to future fundraising, as obtained through the Company’s acquisitions of other businesses. Intangible assets, net consists of the following: As of March 31, 2023 2022 Management contracts $ 352,002 $ 352,002 Client relationships 96,650 96,650 Service agreements 9,537 9,537 Less: Accumulated amortization (103,544) (60,063) Intangible assets, net $ 354,645 $ 398,126 Amortization expense related to intangible assets was $43.5 million, $24.5 million and $3.3 million for the years ended March 31, 2023, 2022 and 2021, respectively. These amounts are included in general, administrative and other expenses in the consolidated statements of income. The expected future amortization of finite-lived intangible assets is as follows: Fiscal year ending March 31, 2024 $ 42,645 2025 41,955 2026 41,764 2027 41,730 2028 41,713 Thereafter 144,838 Total $ 354,645 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations The Company is party to a credit agreement with various lenders (the “Credit Agreement”) that was arranged by JPMorgan Chase Bank, N.A., as the administrative agent, and provides for a $225.0 million multicurrency revolving credit facility (the “Revolver”) with a five-year maturity. As of March 31, 2023, the Company had $98.4 million outstanding on the Revolver, net of debt issuance costs. The Company’s debt obligations consist of the following: As of March 31, 2023 2022 Revolver $ 100,000 $ 65,000 Less: Debt issuance costs (1,649) (2,121) Total debt obligations $ 98,351 $ 62,879 Borrowings under the Revolver bear interest at a variable rate per annum. The Company may designate each borrowing as (i) in the case of any borrowing in U.S. dollars, a base rate loan or a LIBOR rate loan, (ii) in the case of any borrowing denominated in Euros, a EURIBOR rate loan, (iii) in the case of any borrowing denominated in British Pounds Sterling, a Sterling Overnight Index Average (“SONIA”) loan, (iv) in the case of any borrowing denominated in Swiss Francs, a Swiss Average Rate Overnight (“SARON”) loan, and (v) in the case of any borrowing denominated in Australian dollars, an AUD rate loan. Borrowings bear interest equal to (i) in the case of base rate loans, 1.00% plus the greatest of (a) the Prime Rate, (b) the New York Federal Reserve Bank Rate plus 0.50% and (c) the 1 month LIBOR, multiplied by the Statutory Reserve Rate (as defined in the Credit Agreement), plus 1.00%, (ii) in the case of a LIBOR rate loan, the LIBOR rate multiplied by the Statutory Reserve Rate plus 2.00%, (iii) in the case of a EURIBOR rate loan, the EURIBOR rate multiplied by the Statutory Reserve Rate plus 2.00%, (iv) in the case of a SONIA loan, the Sterling Overnight Index Average plus 2.03%, (v) in the case of a SARON loan, the Swiss Average Rate Overnight plus 2.00%, and (vi) in the case of an AUD rate loan, the AUD Screen Rate (as defined in the Credit Agreement) multiplied by the Statutory Reserve Rate plus 2.20%. The weighted-average interest rate in effect for the Revolver as of March 31, 2023 was 6.86%. Borrowings under the Revolver may be repaid at any time during the term of the Credit Agreement and, subject to certain terms and conditions, may be reborrowed prior to the maturity date. Any outstanding principal amounts, together with any accrued interest thereon, shall be due and payable on the maturity date. The maturity date for the Revolver is September 20, 2026. The Revolver bears a fee on undrawn commitments equal to 0.25% per annum if total utilization of revolving commitments is equal to or greater than 50% and 0.35% per annum if total utilization of revolving commitments is less than 50%. The carrying value of the Revolver approximates fair value, as the loan is subject to variable interest rates that adjust with changes in market rates and market conditions and the current interest rate approximates that which would be available under similar financial arrangements. Under the terms of the Credit Agreement, certain of the Company’s assets serve as pledged collateral. In addition, the Credit Agreement contains covenants that, among other things: limit the Company’s ability to incur indebtedness; create, incur or allow liens; transfer or dispose of assets; merge with other companies; make certain investments; pay dividends or make distributions; engage in new or different lines of business; and engage in transactions with affiliates. The Credit Agreement also contains financial covenants requiring the Company to maintain a total net leverage ratio and a minimum total of fee-earning assets under management. As of March 31, 2023, the Company was in compliance with the total net leverage ratio and minimum fee-earning assets under management covenants. The Company can use available funding capacity under the Revolver to satisfy letters of credit in amounts up to $10.0 million. Amounts used to satisfy the letters of credit reduce the available capacity under the Revolver. As of March 31, 2023, the Company had outstanding letters of credit totaling $7.8 million. In April 2023, the Company amended the Credit Agreement such that any request for borrowing of, continuation of, or conversion to a Eurocurrency Loan, as applicable, shall be deemed to be a request for borrowing of, continuation of, or conversion to, as applicable, a loan bearing interest at the adjusted term Secured Overnight Financing Rate (“SOFR”). All Eurocurrency Loans outstanding as of March 31, 2023 shall continue to bear interest at the adjusted LIBOR Rate (as defined in the Credit Agreement) and remain outstanding as Eurocurrency Loans until the expiration of the current interest period (as defined in the Credit Agreement). |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation 2020 Long-Term Incentive Plan The Company has adopted its 2020 Long-Term Incentive Plan (“LTIP”), which allows for the granting of stock options, stock appreciation rights, restricted stock awards, RSUs and performance stock awards to employees, directors and consultants. As of March 31, 2023, there were 17,644,444 shares of Class A common stock available to grant under the LTIP. Restricted Stock Units RSUs represent the right to receive payment on the date of vesting in the form of one share of Class A common stock for each RSU. Holders of unvested RSUs do not have the right to vote with the underlying shares of Class A common stock, but are entitled to accrue dividend equivalents which are generally paid in cash when such RSUs vest. The RSUs granted generally vest over four years in equal annual installments. Upon vesting, the Company will typically withhold or cause the participant to sell the number of shares to satisfy the statutory withholding tax obligation and deliver the net number of resulting shares vested. The change in unvested RSUs is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of March 31, 2022 2,087,324 $ 20.40 Granted 384,200 $ 28.97 Vested (660,796) $ (20.03) Forfeited (34,996) $ (22.06) Balance as of March 31, 2023 1,775,732 $ 22.46 The weighted-average grant-date fair value of RSUs granted during the years ended March 31, 2023, 2022, and 2021 was $28.97, $35.18, and $18.53, respectively. The total fair value as of the respective vesting dates of RSUs vested during the years ended March 31, 2023 and 2022 was $16.5 million and $27.5 million. No RSUs vested during the year ended March 31, 2021. In November 2022, one the Company’s non-wholly owned subsidiaries issued new partnership interests to certain employees with a grant date fair value of $6.1 million, vesting over six years. The issuance did not impact the Company’s fully diluted interest in the subsidiary. Unvested Partnership Units In June 2018, the Company issued an aggregate of 5.2% of profits interests (the “Class B2 Interests”) in the Company to certain key employees. These Class B2 Interests provide the recipients with an opportunity to participate in the profits of the Company and proceeds of certain capital events. The Class B2 Interests vest over a period of six years from the grant date, subject to an employee’s continuous service with the Company through the applicable vesting date. Under the terms of the Fifth Amended and Restated Limited Partnership Agreement dated March 8, 2018, the vesting of the awards will occur as follows: (i) 0% during the first three years from the date of issuance, (ii) 30.0% on the third anniversary of the date of issuance, and (iii) 5.8% for each fiscal quarter after the third anniversary of the date of issuance (fully vested on the sixth anniversary of the date of issuance, or June 2024). Upon the final vesting date, all of the Class B2 units will automatically convert into Class B units and unitholders will be entitled to purchase from the Company one share of Class B common stock for each Class B unit at its par value. Prior to vesting, holders of Class B2 units do not have the right to receive any distributions from the Partnership, other than tax-related distributions. The Class B2 Interests are classified as equity-based awards, and the associated equity-based compensation expense is recognized on a straight-line basis over the vesting period, with a corresponding increase to stockholders’ equity in the Company’s consolidated balance sheets. As of March 31, 2023, there were 2,566,566 Class B2 units outstanding. During the year ended March 31, 2023, none of the outstanding Class B2 units were forfeited. As of March 31, 2023, 748,582 Class B2 units were unvested and 1,817,984 Class B2 units were vested. As of March 31, 2023, $41.1 million of unrecognized non-cash compensation expense in respect of equity-based awards remained to be recognized over a weighted-average period of approximately 3.8 years. The Company recognized tax benefits related to equity-based awards of $1.8 million and $7.4 million for the years ended March 31, 2023 and 2022, respectively. No tax benefits were recognized for the year ended March 31, 2021. Liability Classified Awards In November 2022, the Company issued a profits interest in SPW to certain employees of the SPW team and concurrently entered into an option agreement which provides that, (i) StepStone has the right to acquire the profits interest at the end of any fiscal quarter after June 30, 2027, in exchange for payment of a call price and (ii) the SPW management team, through an entity named CH Equity Partners, LLC (formerly known as Conversus Holdings LLC), has the right to put the profits interest to StepStone on June 30, 2026 or at the end of any fiscal quarter thereafter, in exchange for payment of a put price. The applicable call or put price is, in certain circumstances, subject to an earn-out or earn-down. The call or put price will be payable in cash unless the Company elects to pay a portion of the consideration in units of the Partnership, each to be exchangeable into shares of the Company’s Class A common stock, and, in either case, rights under one or more tax receivable agreements. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income (loss) before income tax consisted of the following: Year Ended March 31, 2023 2022 2021 Domestic income (loss) before income tax $ (102,560) $ 471,247 $ 307,396 Foreign income before income tax 61,106 41,334 30,453 Total income (loss) before income tax $ (41,454) $ 512,581 $ 337,849 The following table presents the components of the Company’s provision for income taxes: Year Ended March 31, 2023 2022 2021 Current: Federal $ 6,933 $ 13,340 $ 2,929 State and local 1,726 2,714 1,141 Foreign 7,653 6,383 3,381 Total current income tax expense 16,312 22,437 7,451 Deferred: Federal (10,570) 4,897 14,752 State and local (1,921) 966 1,074 Foreign — — (21) Total deferred income tax expense (benefit) (12,491) 5,863 15,805 Total income tax expense $ 3,821 $ 28,300 $ 23,256 A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended March 31, 2023 2022 2021 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income tax 0.8 0.8 0.6 Income passed through to limited partners (13.6) (11.9) (15.7) Foreign income tax (18.5) 1.2 1.0 Valuation allowance 4.7 (5.3) 0.0 Return to provision (3.7) (0.1) 0.0 Other 0.1 (0.2) 0.0 Effective tax rate (9.2) % 5.5 % 6.9 % The Company’s effective tax rate is dependent on many factors, including the estimated amount of income subject to tax. Consequently, the effective tax rate can vary from period to period. The Company’s overall effective tax rate in each of the periods above is less than the statutory rate primarily because a portion of income is allocated to non-controlling interests, as the tax liability on such income is borne by the holders of such non-controlling interests. The following table presents the components of the Company’s deferred income tax assets and liabilities: As of March 31, 2023 2022 Deferred tax assets: Investment in the Partnership $ 54,941 $ 39,720 Other 1,769 1,568 Total deferred tax assets before valuation allowance 56,710 41,288 Valuation allowance (12,352) (13,422) Total net deferred tax assets 44,358 27,866 Deferred tax liabilities: Total deferred tax liabilities 353 1,529 Net deferred tax assets $ 44,005 $ 26,337 In connection with the exchanges of Class B units and Class C units of the Partnership for Class A common stock by certain limited partners of the Partnership during fiscal 2023, the Company recorded an overall increase to deferred tax assets as of March 31, 2023 of $6.5 million, and a net decrease in the valuation allowance of $0.2 million. Additionally, in connection with the exchange transactions, the Company recorded a corresponding Tax Receivable Agreements liability of $8.5 million, representing 85% of the incremental net cash tax savings for the Company due to the exchanging limited partners. The Company made payments of $6.0 million and $0.8 million during the years ended March 31, 2023 and 2022, respectively, under the Tax Receivable Agreements. No payments were made under the Tax Receivable Agreements during the year ended March 31, 2021. As of March 31, 2023, the Company’s total Tax Receivable Agreements liability was $199.3 million. See notes 13 and 14 for more information. The Company evaluates the realizability of its deferred tax assets on a quarterly basis and adjusts the valuation allowance when it is more-likely-than-not that all or a portion of the deferred tax assets may not be realized. The total ending valuation allowance for the year ended March 31, 2023 was $12.4 million. Apart from the valuation allowance, the Company believes that the remaining deferred tax assets will be realized in full. A summary of the change in valuation allowance by year is as follows: Valuation Allowance Balance at March 31, 2021 $ 30,537 Income tax decrease (27,413) Equity decrease (5,006) Equity increase 15,304 Balance at March 31, 2022 13,422 Income tax decrease (1,975) Equity increase 905 Balance at March 31, 2023 $ 12,352 As of March 31, 2023, the Company has not recorded any unrecognized tax benefits and does not expect there to be any material changes to uncertain tax positions within the next 12 months. The Company files income tax returns as required by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company may be subject to examination by U.S. federal and certain state and local tax authorities. Management has analyzed the Company’s tax positions taken with respect to all applicable income tax issues, for all open tax years, and for all jurisdictions in which the Company is required to file tax returns and has concluded that no provision for income taxes related to uncertain tax positions is required in the Company’s consolidated financial statements for the years ended March 31, 2023, 2022 and 2021. The Company files U.S. federal, state, local and foreign tax returns on a calendar-year basis. With limited exception, returns filed prior to 2019 are no longer subject to examination by the applicable taxing authorities. There are currently no material examinations being conducted of the Company by tax authorities. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic and diluted earnings per share of Class A common stock are presented for the years ended March 31, 2023 and 2022, and from September 16, 2020 through March 31, 2021, the period following the Reorganization and IPO. There were no shares of Class A common stock outstanding prior to September 16, 2020, therefore no earnings per share information has been presented for any period prior to that date. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Year Ended March 31, 2023 Year Ended March 31, 2022 Period from IPO date to March 31, 2021 (in thousands, except share and per share amounts) Numerator: Net income (loss) attributable to StepStone Group Inc. – Basic $ (18,398) $ 193,885 $ 62,634 Incremental income from assumed vesting of RSUs — 4,043 1,854 Incremental income from assumed vesting and exchange of Class B2 units — 7,689 3,923 Net income (loss) attributable to StepStone Group Inc. – Diluted $ (18,398) $ 205,617 $ 68,411 Denominator: Weighted-average shares of Class A common stock outstanding – Basic 61,884,671 49,833,760 29,657,805 Assumed vesting of RSUs — 1,289,809 1,151,579 Assumed vesting and exchange of Class B2 units — 2,476,681 2,465,420 Weighted-average shares of Class A common stock outstanding – Diluted 61,884,671 53,600,250 33,274,804 Net income (loss) per share of Class A common stock: Basic $ (0.30) $ 3.89 $ 2.11 Diluted $ (0.30) $ 3.84 $ 2.06 Diluted earnings per share of Class A common stock is computed by dividing net income (loss) attributable to SSG, giving consideration to the reallocation of net income between holders of Class A common stock and non-controlling interests, by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities, if any. Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to SSG and therefore are not participating securities. As a result, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included. The calculation of diluted earnings per share excludes 46,420,141 Class B units and 2,514,085 Class C units of the Partnership outstanding as of March 31, 2023, 47,149,673 Class B units and 2,928,824 Class C units of the Partnership outstanding as of March 31, 2022, and 56,378,831 shares of Class B units of the Partnership outstanding as of March 31, 2021, which are exchangeable into Class A common stock under the if-converted method, as the inclusion of such shares would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company considers its senior executives, employees and equity method investments to be related parties. A substantial portion of the Company’s management and advisory fees and carried interest allocations is earned from various StepStone Funds that are considered equity method investments. The Company earned net management and advisory fees from the StepStone Funds of $335.6 million, $241.0 million and $171.0 million for the years ended March 31, 2023, 2022 and 2021, respectively. Carried intere st allocation revenues earned from the StepStone Funds totaled $(122.3) million, $786.6 million and $496.8 million for the years ended March 31, 2023, 2022 and 2021, respectively. Legacy Greenspring carried intere st allocation revenues earned from certain legacy Greenspring funds for which the Company has no direct economic interests totaled $(452.2) million and $187.1 million for the years ended March 31, 2023 and 2022, respectively. There were no legacy Greenspring carried interest allocation revenues for the year ended March 31, 2021, which was prior to the date of the Greenspring acquisition. Due from affiliates in the consolidated balance sheets consists primarily of fees and accounts receivable from the StepStone Funds, advances made on behalf of the StepStone Funds for the payment of certain organization and operating costs and expenses for which the Company is subsequently reimbursed, amounts due from employees and loans due from affiliated entities, as set forth below. As of March 31, 2023 2022 Amounts receivable from StepStone Funds $ 33,813 $ 19,027 Amounts receivable from employees 7,016 342 Amounts receivable from loans 13,493 — Total due from affiliates $ 54,322 $ 19,369 Due to affiliates in the consolidated balance sheets consists primarily of amounts payable to certain non-controlling interest holders in connection with the Tax Receivable Agreements, amounts payable to the StepStone Funds and distributions payable to certain employee equity holders of consolidated subsidiaries, as set forth below. As of March 31, 2023 2022 Amounts payable to non-controlling interest holders in connection with Tax Receivable Agreements $ 199,307 $ 197,204 Amounts payable to StepStone Funds 4,796 198 Distributions payable to certain employee equity holders of consolidated subsidiaries 1,321 1,953 Total due to affiliates $ 205,424 $ 199,355 The Company made payments of $6.0 million and $0.8 million during the years ended March 31, 2023 and 2022, respectively, under the Tax Receivable Agreements. No payments were made under the Tax Receivable Agreements during the year ended March 31, 2021. |
Stockholders' Equity and Redeem
Stockholders' Equity and Redeemable Interests | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity and Redeemable Interests | Stockholders’ Equity and Redeemable Interests Stockholders’ Equity The Company has two classes of common stock outstanding, Class A common stock and Class B common stock. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval. Holders of Class A common stock are entitled to receive dividends when and if declared by the board of directors. Holders of the Class B common stock are not entitled to dividends in respect of their shares of Class B common stock. In connection with the Greenspring acquisition, the limited partnership agreement of the Partnership was amended to create new Class C limited partnership interests and to admit the new limited partners that received Class C units as consideration for the Greenspring acquisition. The Class C limited partnership interests of the Partnership have substantially the same rights and obligations as are applicable to the existing holders of Class B units of the Partnership. The Company has no ownership interest in the Class C units, which are held by certain employees of the Company. The Company also entered into an agreement with the Class C limited partners of the Partnership to allow for the exchange of Class C units to shares of Class A common stock of the Company on a one-for-one basis, subject to certain restrictions. The following table shows a rollforward of the Company’s shares of common stock outstanding since March 31, 2022: Class A Common Stock Class B Common Stock March 31, 2022 61,141,306 47,149,673 Class A common stock issued in exchange for Class B Partnership units 729,532 (729,532) Class A common stock issued in exchange for Class C Partnership units 414,739 — Class A common stock issued for vesting of RSUs, net of shares withheld for employee taxes 549,214 — March 31, 2023 62,834,791 46,420,141 The Company has 25,000,000 authorized shares of preferred stock, par value of $0.001 per share, and as of March 31, 2023, no shares of preferred stock were issued or outstanding. The Company records a reallocation adjustment between SSG stockholders’ equity, non-controlling interests in the Partnership and non-controlling interests in subsidiaries to reflect the impact of changes in economic ownership percentages during the period and adjust previously recorded equity transactions to the economic ownership percentage as of the end of each reporting period. In December 2022, the Company issued 296,756 shares of Class A common stock to certain limited partners of the Partnership in exchange for 296,756 Class B units in accordance with the elective exchange notices submitted pursuant to an agreement with the Class B limited partners (the “Class B Exchange Agreement”) to allow for exchange of Class B units of the Partnership to shares of Class A common stock of the Company on a one-for-one basis, subject to certain restrictions. A corresponding number of shares of Class B common stock were automatically redeemed at par value and canceled in connection with such exchange and a corresponding number of Class A units of the Partnership were issued to the Company. On the same date, the Company also issued 414,739 shares of Class A common stock to certain limited partners of the Partnership in exchange for 414,739 Class C units in accordance with the elective exchange notices submitted pursuant to an agreement with the Class C limited partners (the “Class C Exchange Agreement”) to allow for exchange of Class C units of the Partnership to shares of Class A common stock of the Company on a one-for-one basis, subject to certain restrictions. In September 2022, the Company issued 175,000 shares of Class A common stock to certain limited partners of the Partnership in exchange for 175,000 Class B units in accordance with the elective exchange notices submitted pursuant to the Class B Exchange Agreement. A corresponding number of shares of Class B common stock were automatically redeemed at par value and canceled in connection with such exchange and a corresponding number of Class A units of the Partnership were issued to the Company. In June 2022, the Company issued 257,776 shares of Class A common stock to certain limited partners of the Partnership in exchange for 257,776 Class B units in accordance with the elective exchange notices submitted pursuant to the Class B Exchange Agreement. A corresponding number of shares of Class B common stock were automatically redeemed at par value and canceled in connection with such exchange and a corresponding number of Class A units of the Partnership were issued to the Company. Dividends and Distributions Dividends and distributions are reflected in the consolidated statements of stockholders’ equity when declared by the board of directors. Dividends are made to Class A common stockholders and distributions are made to limited partners of the Partnership and holders of non-controlling interests in subsidiaries. The following table presents information regarding quarterly dividends on Class A common shares for the periods indicated: Quarterly Fiscal Period 1 Dividend Payment Date Dividend Per Share of Class A Common Stock First quarter N/A Second quarter N/A Third quarter N/A Fourth quarter March 12, 2021 $ 0.07 Total dividends paid in FY2021 $ 0.07 First quarter July 15, 2021 $ 0.07 Second quarter September 15, 2021 0.07 Third quarter December 15, 2021 0.15 Fourth quarter March 15, 2022 0.15 Total dividends paid in FY2022 $ 0.44 First quarter June 30, 2022 $ 0.20 Second quarter September 15, 2022 0.20 Third quarter December 15, 2022 0.20 Fourth quarter March 15, 2023 0.20 Total dividends paid in FY2023 $ 0.80 _______________________________ (1) Prior to the Company’s IPO on September 16, 2020, it was a wholly-owned subsidiary of the Partnership, had a single class of common stock and did not pay dividends. As such, there is no quarterly dividend information reported for the quarter ended September 30, 2020 or any periods prior. Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned. Redeemable Non-Controlling Interests The following table summarizes the activities associated with the redeemable non-controlling interests in Consolidated Funds: Year Ended March 31, 2023 Beginning balance $ — Contributions 22,754 Net income 1,776 Ending balance $ 24,530 |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Greenspring Acquisition On September 20, 2021, the Company completed the acquisition of 100% of the equity of Greenspring Associates, Inc. and certain of its affiliates (collectively, “Greenspring”) in exchange for (i) cash consideration of approximately $185 million, net of an agreed upon adjustment based upon Greenspring’s net working capital balance at the closing date, (ii) 12,686,756 shares of Class A common stock and (iii) 3,071,519 newly issued Class C units of the Partnership (the “Greenspring acquisition”). The transaction agreement also provides for the payment of an earn-out of up to $75 million that is payable in 2025 subject to the achievement of certain management fee revenue targets for calendar year 2024. The results of Greenspring’s operations have been included in the consolidated financial statements effective September 20, 2021. The acquisition of Greenspring expanded the Company’s leadership in private markets solutions, providing added scale in venture capital and growth equity, and offering clients expanded access to the global innovation economy. The aggregate purchase price for the acquisition of Greenspring and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date were as follows: Acquisition date fair value of consideration transferred: Cash consideration $ 186,577 Class A common stock 558,598 Class C units of the Partnership 135,239 Contingent consideration 17,769 Total purchase price $ 898,183 Estimated fair value of assets acquired and liabilities assumed: Cash and short-term receivables $ 5,725 Legacy Greenspring investments in funds and accrued carried interest allocations (1) 1,203,299 Lease right-of-use assets, net 2,585 Other assets and receivables 2,146 Finite-lived intangible assets—contractual rights: management contracts 310,944 Finite-lived intangible assets—client relationships 96,650 Finite-lived intangible assets—contractual rights: service agreements 9,537 Goodwill 573,750 Deferred income taxes (95,884) Accrued expenses and other liabilities (4,685) Legacy Greenspring accrued carried interest-related compensation (1) (1,045,157) Lease liabilities (2,585) Non-controlling interests in legacy Greenspring entities (1) (158,142) Total $ 898,183 _______________________________ (1) Represents investments in funds and carried interest allocations attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. Such amounts are attributable to employees and therefore have been reflected as non-controlling interests in legacy Greenspring entities and legacy Greenspring accrued carried interest-related compensation, respectively. For the year ended March 31, 2022, the Company incurred $13.8 million of acquisition-related costs that were expensed as incurred and included in general, administrative and other expenses in the consolidated statements of income. The Company allocated $320.5 million and $96.7 million of the purchase price to the fair value of contractual rights and client relationships, respectively, which is being amortized over a weighted-average amortization period of 10.0 years. The $573.8 million of goodwill primarily related to Greenspring’s assembled workforce and business synergies expected to be realized from the transaction. This goodwill is not deductible for tax purposes. The amount of revenues and net income of Greenspring (including amounts attributable to legacy Greenspring entities) from the acquisition date of September 20, 2021 to March 31, 2022 were approximately $230 million and $54 million, respectively. The following supplemental unaudited pro forma information assumes the Greenspring acquisition, as well as the Reorganization and IPO, had been consummated as of April 1, 2020: Year Ended March 31, 2022 2021 Revenues $ 1,866,986 $ 1,362,067 Net income attributable to StepStone Group Inc. 168,653 80,743 The Company’s fiscal year ends on March 31, and prior to the transaction, Greenspring’s fiscal year ended on December 31. To comply with SEC rules and regulations for companies with different fiscal year ends, the pro forma combined financial information has been prepared utilizing periods that differ by less than 93 days. The unaudited pro forma information for the year ended March 31, 2022 combines the Company’s historical audited consolidated statement of income for the year ended March 31, 2022 and Greenspring’s historical unaudited combined statement of income for the 12 months ended March 31, 2022. The unaudited pro forma information for the year ended March 31, 2021 combines the Company’s historical audited consolidated statement of income for the year ended March 31, 2021 and Greenspring’s historical audited combined statement of income for the fiscal year ended December 31, 2020. The supplemental unaudited pro forma information is based on estimates and assumptions believed reasonable and are not necessarily indicative of the Company’s consolidated results in future periods or the results that actually would have been realized had the Greenspring acquisition been completed to create a combined entity during the periods presented. The pro forma amounts have been calculated after reflecting the following adjustments that were directly attributable to the Reorganization, IPO, Greenspring acquisition and the related debt issuance used to fund a portion of the cash consideration, as if the transactions were consummated on April 1, 2020: Reorganization and IPO • adjustments to include compensation expense associated with the 2.5 million RSUs issued in connection with the IPO; • adjustments on interest expense to reflect the repayment of outstanding debt using a portion of the IPO proceeds; • adjustments to include federal and state income taxes for the Company’s share of taxable income generated by the Partnership; and • adjustments to reflect the pro-rata economic ownership attributable to the Company. Debt Financing • adjustments to include interest expense related to the Revolver used to fund a portion of the cash consideration. Greenspring Acquisition • adjustments to include the impact of additional amortization of acquired intangible assets that would have been charged; • adjustments to include the issuance of Class A common stock of the Company and Class C units of the Partnership as consideration for the transaction; • adjustments to reflect the pro-rata economic ownership attributable to the Company; • adjustments to reflect the tax effects of the Greenspring acquisition and including Greenspring in the Company’s results; and • adjustments to include acquisition-related transaction costs in earnings for the year ended March 31, 2021. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, and from time to time, the Company may be subject to various legal, regulatory and/or administrative proceedings. The Company accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such proceedings, based on information known by management, the Company does not expect a potential liability related to any current legal proceedings or claims that would individually or in the aggregate materially affect its consolidated financial statements as of March 31, 2023. Lease Commitments The Company leases offices in 25 cities in North America, South America, Europe, Asia and Australia, and certain equipment subject to operating lease agreements expiring through 2039, some of which may include options to extend or terminate the lease. As of March 31, 2023, there were no finance leases outstanding. The components of lease expense included in general, administrative and other expenses in the consolidated statements of income were as follows: Year Ended March 31, 2023 2022 Operating lease cost (1)(2) $ 10,983 $ 11,098 Variable lease cost 1,375 957 Sublease income (1,778) (1,679) Total lease cost $ 10,580 $ 10,376 _______________________________ (1) Operating lease cost includes an immaterial amount of short-term leases. (2) The year ended March 31, 2023 includes a gain of $2.7 million related to lease remeasurement adjustments due to a reduction in lease terms. Occupancy expense related to office facility operating leases totaled $9.3 million for the year ended March 31, 2021. Supplemental cash flow information related to leases was as follows: Year Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 10,613 $ 10,319 Weighted-average remaining lease term for operating leases (in years) 12.1 7.7 Weighted-average discount rate for operating leases 4.6 % 2.7 % As of March 31, 2023, maturities of operating lease liabilities were as follows: FY2024 $ 12,337 FY2025 14,062 FY2026 15,179 FY2027 14,362 FY2028 12,474 Thereafter 96,504 Total lease liabilities 164,918 Less: Imputed interest (43,694) Total operating lease liabilities $ 121,224 Unfunded Capital Commitments As of March 31, 2023 and 2022, the Company, generally in its capacity as general partner or managing member of the StepStone Funds, had unfunded commitments totaling $88.7 million and $68.2 million, respectively. The $88.7 million and $68.2 million of unfunded commitments as of March 31, 2023 and 2022, respectively, excludes $50.6 million and $40.5 million, respectively, related to commitments held by the legacy Greenspring general partner entities in legacy Greenspring funds for which the Company does not hold any direct economic interests. Carried Interest Allocations Carried interest allocations are subject to reversal in the event of future losses, to the extent of the cumulative revenues recognized by the Company in income to date. Additionally, if the Company has received net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement, the Company may be obligated to repay previously distributed carried interest that exceeds the amounts to which the Company is ultimately entitled. In these situations, a liability is accrued for the potential clawback obligation if amounts previously distributed to the Company would require repayment to a fund if such fund were to be liquidated based on the current fair value of their underlying investments as of the reporting date. Actual repayment obligations generally do not become realized until the end of a fund’s life. As of March 31, 2023 and 2022, no material amounts for potential clawback obligations had been accrued. This contingent obligation is normally reduced by income taxes that the Company has paid related to the carried interest allocations. As of March 31, 2023, the maximum amount of carried interest allocations (excluding legacy Greenspring carried interest allocations) attributable to the Company subject to contingent repayment was an estimated $264.1 million, net of tax, assuming the fair value of all investments was zero, a possibility that the Company views as remote. Indemnification Arrangements In the normal course of business and consistent with standard business practices, the Company has provided general indemnifications to its limited partners, officers and directors when they act in good faith in the performance of their duties for the Company. The terms of these indemnities vary from contract to contract. The Company’s maximum exposure under these arrangements cannot be determined as these indemnities relate to future claims that may be made against the Company or related parties, but which have not yet occurred. No liability related to these indemnities has been recorded in the consolidated balance sheets as of March 31, 2023 and 2022. Based on past experience, management believes that the risk of loss related to these indemnities is remote. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company provides defined contribution plans covering employees subject to minimum age and service guidelines. Eligible employees may contribute a percentage of their annual compensation subject to statutory guidelines. The Company makes non-discretionary contributions to the plans, which amounted to $4.6 million, $4.3 million and $3.2 million for the years ended March 31, 2023, 2022 and 2021, respectively, and are included in cash-based compensation in the consolidated statements of income. One of the Company’s subsidiaries with non-U.S. operations maintains a defined benefit pension plan (the “Plan”). The Plan covers certain non-U.S. employees and provides benefits to such employees upon retirement, disability and/or death. As of March 31, 2023 and 2022, the Plan’s assets totaled $27.4 million and $23.8 million, respectively. As of March 31, 2023 and 2022, the underfunded pension obligation, based on the latest actuarial determination, was $2.8 million and $2.2 million, respectively, and is included in accrued compensation and benefits in the consolidated balance sheets. Net period benefit cost recognized was $0.5 million, $1.1 million and $0.9 million for the years ended March 31, 2023, 2022 and 2021, respectively, which is included in cash-based compensation in the consolidated statements of income. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn May 24, 2023, the Company announced a quarterly cash dividend of $0.20 per share of Class A common stock and a supplemental cash dividend of $0.25 per share of Class A common stock, both payable on June 30, 2023 to holders of record as of the close of business on June 15, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. All intercompany balances and transactions have been eliminated in consolidation. Certain of the StepStone Funds are investment companies that follow specialized accounting under GAAP and reflect their investments at estimated fair value. Accordingly, the carrying value of the Company’s equity method investments in such entities retains the specialized accounting. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management’s estimates and assumptions are based on historical experience and other factors, and these estimates and assumptions require management to exercise judgment in the process of applying the Company’s accounting policies. Factors that may affect or influence management’s estimates and assumptions could include expectations related to future events that management has deemed reasonable under the circumstances. Assumptions and estimates related to the valuation of investments, which directly affect carried interest allocations, carried interest related compensation, and the carrying amount of the Company’s equity in affiliated companies, involve a higher degree of judgment and complexity, and these assumptions and estimates may significantly affect the consolidated financial statements. Actual results could differ from these estimates and those differences may be material. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation. Amounts relating to unpaid realized carried interest-related compensation that were previously reported within accrued carried interest-related compensation have been presented within accrued compensation and benefits in the consolidated balance sheets. In addition, payments to related parties under Tax Receivable Agreements has been presented separately within cash flows from financing activities in the consolidated statements of cash flows, and was previously included within due to affiliates within cash flows from operating activities. |
Consolidation | Consolidation The Company consolidates all entities that it controls through a majority voting interest or as the primary beneficiary of a variable interest entity (“VIE”). Under the VIE model, management first assesses whether the Company has a variable interest in an entity. In evaluating whether the Company holds a variable interest, fees received as a decision maker or in exchange for services (including management fees, incentive fees and carried interest allocations) that are customary and commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, are not considered variable interests. If the Company has a variable interest in an entity, management further assesses whether that entity is a VIE, and if so, whether the Company is the primary beneficiary under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation under the voting interest model. The consolidation analysis can generally be performed qualitatively; however, in certain situations a quantitative analysis may also be performed. Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective StepStone Funds that are VIEs could affect the entity’s status as a VIE or the determination of the primary beneficiary. Under the VIE model, an entity is deemed to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly affect the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Management determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. When assessing whether the Company is the primary beneficiary of a VIE, management evaluates whether the Company’s involvement, through holding interests directly or indirectly in an entity or contractually through other variable interests, would give the Company a controlling financial interest. This analysis includes an evaluation of the Company’s control rights, as well as the economic interests that the Company holds in the VIE, including indirectly through related parties. The Company provides investment advisory services to the StepStone Funds, which have third-party clients. These funds are investment companies and are typically organized as limited partnerships or limited liability companies for which the Company, through its operating subsidiaries, acts as the general partner or managing member. A limited partnership or similar entity is a VIE if the unaffiliated limited partners or members do not have substantive rights to terminate or liquidate the fund or remove the general partner or substantive rights to participate. Certain StepStone Funds are VIEs because they have not granted unaffiliated limited partners or members substantive rights to terminate the fund or remove the general partner or substantive rights to participate. The Company does not consolidate these StepStone Funds because it is not the primary beneficiary of those funds, primarily because it does not hold an interest in those funds that is considered more than insignificant and its fee arrangements are considered customary and commensurate. The Company has determined that certain of its operating subsidiaries, StepStone Group Real Assets LP (“SRA”), StepStone Group Real Estate LP (“SRE”), Swiss Capital Alternative Investments AG (“Swiss Capital”), and StepStone Group Private Wealth LLC (“SPW”) and certain StepStone Funds are VIEs, and that the Company is the primary beneficiary of each entity because it has a controlling financial interest in each entity; accordingly, the Company consolidates these entities. The assets and liabilities of the consolidated VIEs are presented gross in the consolidated balance sheets. The assets of the consolidated VIEs may only be used to settle obligations of the consolidated VIEs. See note 4 for more information on both consolidated and unconsolidated VIEs. In connection with the Greenspring acquisition, the Company, indirectly through its subsidiaries, became the sole and/or managing member of certain entities, each of which is the general partner of an investment fund (“legacy Greenspring general partner entities”). The Company did not acquire any direct economic interests attributable to the legacy Greenspring general partner entities, including legacy Greenspring investments in funds and carried interest allocations. However, certain arrangements negotiated as part of the acquisition represent variable interests that could be significant. The Company determined that the legacy Greenspring general partner entities are VIEs and it is the primary beneficiary of each such entity because it has a controlling financial interest in each entity. As a result, the Company consolidates these entities. The Company and its subsidiaries manages or controls certain entities that constitute client investment funds that have been consolidated in the accompanying consolidated financial statements (“Consolidated Funds”). Including the results of the Consolidated Funds increases the reported amounts of the assets, liabilities, expenses and cash flows in the accompanying consolidated financial statements, and amounts related to economic interests held by third-party investors are reflected as redeemable non-controlling interests in Consolidated Funds. The revenues earned by the Company as investment manager of the Consolidated Funds are eliminated in consolidation and generally have no direct effect on the net income attributable to SSG or to Stockholders' Equity. |
Non-Controlling Interests | Non-Controlling Interests Non-controlling interests (“NCI”) reflect the portion of income or loss and the corresponding equity attributable to third-party equity holders and employees in certain consolidated subsidiaries that are not 100% owned by the Company. Non-controlling interests are presented as separate components of stockholders’ equity on the Company’s consolidated balance sheets to clearly distinguish between the Company’s interests and the economic interests of third parties and employees in those entities. Net income (loss) attributable to SSG, as reported in the consolidated statements of income, is presented net of the portion of net income (loss) attributable to holders of non-controlling interests. See note 14 for more information on ownership interests in the Company. Non-controlling interests in subsidiaries represent the economic interests in SRA, SRE, and Swiss Capital (the variable interest entities included in the Company’s consolidated financial statements) held by third parties and employees in those entities. Non-controlling interests in subsidiaries are allocated a share of income or loss in the respective consolidated subsidiary in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. Non-controlling interests in legacy Greenspring entities represent the economic interests in the legacy Greenspring general partner entities. The Company did not acquire any direct economic interests in the legacy Greenspring general partner entities. As a result, all of the net income or loss related to the legacy Greenspring general partner entities is allocated to non-controlling interests in legacy Greenspring entities. Non-controlling interests in the Partnership represent the economic interests related to the Class B and Class C units of the Partnership which are not owned by SSG. Non-controlling interests in the Partnership are allocated a share of income or loss in the Partnership in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. Redeemable non-controlling interests in Consolidated Funds represent the economic interests in the Consolidated Funds which are not held by SSG, but are held by the client investors in the funds. These interests are presented as redeemable non-controlling interests in Consolidated Funds within the consolidated balance sheets, outside of permanent capital as the investors in these funds generally have the right to withdraw their capital, subject to the terms of the respective contractual agreements. Redeemable non-controlling interests in Consolidated Funds are allocated a share of income or loss in the respective fund in proportion to their relative ownership interests, after consideration of contractual arrangements that govern allocations of income or loss. |
Accounting for Differing Fiscal Periods | Accounting for Differing Fiscal Periods The StepStone Funds primarily have a fiscal year end as of December 31. The Company accounts for its investments in the StepStone Funds on a three-month lag due to the timing of receipt of financial information from the investments held by the StepStone Funds. The StepStone Funds primarily invest in private markets funds that generally require at least 90 days following the calendar year end to provide audited financial statements. As a result, the Company uses the December 31 audited financial statements of the StepStone Funds, which reflect the underlying private markets funds as of December 31 to record its investments (including any carried interest allocated by those investments) for its fiscal year-end consolidated financial statements as of March 31. The Company further adjusts the reported carrying values of its investments in the StepStone Funds for its share of capital contributions to and distributions from the StepStone Funds during the three-month lag period. The Company does not account for management and advisory fees or incentive fees on a three-month lag. To the extent that management becomes aware of any material events that affect the StepStone Funds during the three-month lag period, the effect of the events would be disclosed in the notes to the consolidated financial statements. |
Current Events | Current Events In 2022, financial markets experienced increased volatility amid rising interest rates, slowing economic growth, persistently high inflation and the ongoing Russia-Ukraine conflict. Central banks around the world pursued monetary policy tightening in an effort to bring down inflation to target rates, stoking recession fears. In the first quarter of 2023, signs of slowing inflation coupled with a strong labor market contributed to a rebound in financial markets despite the banking system volatility as recession fears receded in anticipation that interest rates may not rise as much as previously expected. The Company is continuing to closely monitor developments related to COVID-19, inflation, rising interest rates, the ongoing Russia-Ukraine conflict and the banking crisis, and assess the impact on financial markets and the Company’s business. The Company’s results and the overall industry results have been and may continue to be adversely affected by slowdowns in fundraising activity and the pace of capital deployment, which have resulted in, and may continue to result in, delayed or decreased management fees. Further, fund managers have been unable or less able to profitably exit existing investments, such conditions have resulted in, and may continue to result in, delayed or decreased performance fee revenues. It is currently not possible to predict the ultimate effects of these events on the financial markets, overall economy and the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in banks, money market funds and highly-liquid investments with original maturities of three months or less at the time of purchase. Restricted cash consists of cash that the Company is contractually obligated to maintain to secure its letters of credit used primarily related to its office facilities and other obligations. |
Fees and Accounts Receivable | Fees and Accounts Receivable Fees and accounts receivable represent contractual amounts due to the Company for management, advisory and incentive fees, net of allowances as applicable. The Company considers fees and accounts receivable to be fully collectible. Accordingly, no allowance for doubtful accounts has been established as of March 31, 2023 and 2022. If any accounts or portion thereof are deemed uncollectible, such amounts are expensed when that determination is made. |
Due from Affiliates | Due from AffiliatesDue from affiliates primarily relates to fees and accounts receivable from the StepStone Funds, advances made on behalf of the StepStone Funds for the payment of certain organization and operating costs and expenses for which the Company is subsequently reimbursed, amounts due from employees and loans due from affiliated entities. |
Fair Value Measurements | Fair Value Measurements GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace – including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and therefore a lesser degree of judgment is used in measuring their fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of their fair values, as follows: • Level I – Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. • Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments classified in this category include less liquid securities traded in active markets and securities traded in other than active markets. • Level III – Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the financial instrument. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for financial instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may result in transfers between Levels I, II, and III. |
Investments | Investments Investments primarily include the Company’s ownership interests in the StepStone Funds, as general partner or managing member of such funds. The Company accounts for all investments in which it has or is otherwise presumed to have significant influence, but not control, including the StepStone Funds, using the equity method of accounting. The carrying value of these equity method investments is determined based on amounts invested by the Company, adjusted for the Company’s share in the earnings or losses of each investee, after consideration of contractual arrangements that govern allocations of income or loss (including carried interest allocations), less distributions received. Investments include the Company’s cumulative accrued carried interest allocations from the StepStone Funds, which primarily represent performance-based capital allocations, assuming the StepStone Funds were liquidated as of each reporting date in accordance with the funds’ governing documents. Legacy Greenspring investments in funds and accrued carried interest allocations represent the economic interests held by the legacy Greenspring general partner entities in certain funds for which the Company does not have any direct economic interests. All of the economics in respect of such interests are payable to employees and are therefore reflected as non-controlling interests in legacy Greenspring entities and legacy Greenspring performance fee-related compensation. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Management's determination of fair value for investments in the underlying funds includes various valuation techniques. These techniques may include a market approach, recent transaction price, net asset value approach, or discounted cash flows, and may use one or more significant unobservable inputs such as EBITDA, revenue multiples, discount rates, weighted average cost of capital, exit multiples, or terminal growth rates. Investments of Consolidated Funds The Company’s Consolidated Funds are investment companies under GAAP and reflect their investments at estimated fair value. The Company has retained the specialized investment company accounting for the Consolidated Funds under GAAP. Investments of the Consolidated Funds are recorded at fair value and the unrealized appreciation (depreciation) in fair value is recognized in the consolidated statements of income. In addition, the Consolidated Funds do not consolidate their majority-owned and controlled investments in underlying portfolio companies. |
Leases | Leases The Company determines whether an arrangement contains a lease at inception of the arrangement. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines the classification as either an operating or finance lease. The Company’s identified leases primarily consist of operating lease agreements for office space and certain equipment, as the lessee. Operating leases are included in lease right-of-use-assets, net and lease liabilities in the consolidated balance sheets. Certain leases include lease and non-lease components, which the Company accounts for as a single lease component. Lease right-of-use (“ROU”) assets and lease liabilities are measured based on the present value of future minimum lease payments over the lease term at the commencement date. Lease ROU assets include initial direct costs incurred by the Company and are presented net of deferred rent and lease incentives. The Company uses its incremental borrowing rate in determining the present value of future minimum lease payments. The Company’s lease terms may include options to extend or terminate the lease, which are included in the measurement of ROU assets and lease liabilities when it is reasonably certain that the Company will exercise those options. Operating lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term in general, administrative and other expenses in the consolidated statements of income. Minimum lease payments for leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets. See note 16 for more information. |
Property and Equipment | Property and Equipment Property and equipment primarily consist of leasehold improvements, furniture, equipment, computer hardware and software and are stated at cost, less accumulated depreciation and amortization, with the net carrying amount included in other assets and receivables in the consolidated balance sheets. Property and equipment are depreciated over their estimated useful lives using the straight-line method, and the corresponding depreciation expense is included in general, administrative and other expenses in the consolidated statements of income. Property and equipment are depreciated over a period of five Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The Company did not recognize any impairment charges related to property and equipment during each of the fiscal years ended March 31, 2023, 2022 and 2021. |
Foreign Currency | Foreign CurrencyThe Company consolidates certain entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated using the exchange rates prevailing at the end of each reporting period and income and expenses are translated using the weighted-average exchange rate for each reporting period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated entities are included in other comprehensive income (loss) within the consolidated financial statements until realized. Gains and losses resulting from foreign-currency transactions denominated in a currency other than an entity’s functional currency are reported in other income (loss) in the consolidated statements of income. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of an acquisition is allocated to the assets acquired and liabilities assumed based on their fair values, as determined by management at the acquisition date. Contingent consideration obligations that are elements of consideration transferred are recognized at the acquisition date as part of the fair value transferred in exchange for the acquired business. Contingent consideration arrangements are revalued to fair value each reporting period. Examples of critical estimates in valuing certain of the intangible assets acquired include, but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life, discount rates and income tax rates. Acquisition-related costs incurred in connection with a business combination are expensed as incurred and are included in general, administrative and other expenses in the consolidated statements of income. |
Intangibles and Goodwill | Intangibles and Goodwill The Company’s finite-lived intangible assets consist of acquired contractual rights to earn future management and advisory fee income and client relationships. Finite-lived intangible assets are amortized over their estimated useful lives, which range from 8 to 10 years. The Company did not have any intangible assets that were deemed to have an indefinite life as of March 31, 2023. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. There were no impairment charges related to the Company’s finite-lived intangible assets during the years ended March 31, 2023, 2022 and 2021. Goodwill represents the excess amount of consideration transferred in a business combination above the fair value of the identifiable net assets. Goodwill is assessed for impairment at least annually using a qualitative and, if necessary, a quantitative approach. The Company performs its annual goodwill impairment test as of January 1, or more frequently, if events and circumstances indicate that an impairment may exist. Goodwill is tested for impairment at the reporting unit level. The initial assessment for impairment under the qualitative approach is to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than the carrying amount, a quantitative assessment is performed to measure the amount of impairment loss, if any. The quantitative assessment includes comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized equal to the lesser of (a) the difference between the carrying amount of the reporting unit and its fair value and (b) the total carrying amount of the reporting unit’s goodwill. The Company performed annual goodwill impairment assessments as of January 1, 2023 and 2022 and determined that there was no impairment of goodwill as of either date. |
Revenues | Revenues The Company recognizes revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers . Revenue is recognized in a manner that depicts the transfer of promised goods or services to customers and for an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The application of ASC 606 requires an entity to identify its contract(s) with a customer, identify the performance obligations in a contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, variable consideration is included only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company has elected to apply the variable consideration allocation exception for its fee arrangements with its customers. Management and Advisory Fees, Net The Company earns management fees for services provided to its SMAs and focused commingled funds. The Company earns advisory fees for services provided to advisory clients where the Company does not have discretion over investment decisions. The Company considers its performance obligations in its customer contracts from which it earns management and advisory fees to be one or more of the following, based on the services promised: asset management services, advisory services and/or the arrangement of administrative services. The Company recognizes revenues from asset management services and advisory services when control of the promised services is transferred to customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. SMAs are generally contractual arrangements involving an investment management agreement between the Company and a single client, and are typically structured as a partnership or limited liability company for which a subsidiary of SSG serves as the general partner or managing member. Focused commingled funds are structured as limited partnerships or limited liability companies with multiple clients, for which a subsidiary of the Company serves as the general partner or managing member. The Company determined that the individual client or single limited partner or member is the customer with respect to SMAs and advisory clients, while the investment fund is generally considered to be the customer for arrangements with focused commingled funds. When asset management services and the arrangement of administrative services are the performance obligations promised in a contract, the Company satisfies these performance obligations over time because the customer simultaneously receives and consumes the benefits of the services as they are performed. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. Management fees earned from these contracts where the Company has discretion over investment decisions are generally calculated based on a percentage of unaffiliated committed capital or net invested capital, and these amounts are typically billed quarterly. For certain investment funds, management fees are initially based on committed capital during the investment period and on net invested capital through the remainder of the fund’s term. In addition, the management fee rate charged may also be reduced for certain investment funds depending on the contractual arrangement. The management fee basis is subject to factors outside of the Company’s control. Therefore, estimates of future period management fees are not included in the transaction price because those estimates would be considered constrained. Advisory fees from contracts where the Company does not have discretion over investment decisions are generally based on fixed amounts and typically billed quarterly. Management fees generally exclude reimbursements for expenses paid by the Company on behalf of its customers, including amounts related to certain professional fees and other fund administrative expenses pursuant to the fund’s governing documents. For professional and administrative services that the Company arranges to be performed by third parties on behalf of investment funds, management has concluded that the nature of its promise is to arrange for the services to be provided and, accordingly, the Company does not control the services provided by the third parties before they are transferred to the customer. Therefore, the Company is acting as an agent, and the reimbursements for these professional fees paid on behalf of the investment funds are generally presented on a net basis. The Company and certain investment funds that it manages have distribution and service agreements with third-party financial institutions, whereby the Company pays a portion of the fees it receives to such institutions for ongoing distribution and servicing of customer accounts. Management has concluded that the Company does not act as principal for the third-party services, as the Company does not control the services provided by the third parties before they are transferred to the customer. Therefore, the Company is acting as an agent, and the management fees are recorded net of these service fees. The Company may incur certain costs in connection with satisfying its performance obligations for investment management services – primarily employee travel costs and certain professional fees – for which it receives reimbursements from its customers. For reimbursable employee travel costs and certain professional fees, the Company concluded it controls the services provided by its employees and other parties and, therefore, is acting as principal. Accordingly, the Company records the reimbursement for these costs incurred on a gross basis – that is, as revenue in management and advisory fees, net and expense in general, administrative and other expenses in the consolidated statements of income. For reimbursable costs incurred in connection with satisfying its performance obligations for administration services, the Company concluded it does not control the services provided by its employees and other parties and, therefore, is acting as agent. Accordingly, the Company records the reimbursement for these costs incurred on a net basis. Performance Fees The Company earns two types of performance fee revenues: incentive fees and carried interest allocations, as described below. Incentive fees are generally calculated as a percentage of the profits (up to 15%) earned in respect of certain accounts, including certain permanent capital vehicles, for which the Company is the investment adviser, subject to the achievement of minimum return levels or performance benchmarks. Incentive fees are a form of variable consideration and represent contractual fee arrangements in the Company’s contracts with its customers. Incentive fees are typically subject to reversal until the end of a defined performance period, as these fees are affected by changes in the fair value of the assets under management or advisement over such performance period. Moreover, incentive fees that are received prior to the end of the defined performance period are typically subject to clawback, net of tax. The Company recognizes incentive fee revenue only when these amounts are realized and no longer subject to significant risk of reversal, which is typically at the end of a defined performance period and/or upon expiration of the associated clawback period (i.e., crystallization). However, clawback terms for incentive fees received prior to crystallization only require the return of amounts on a net of tax basis. Accordingly, the tax-related portion of incentive fees received in advance of crystallization is not subject to clawback and is therefore recognized as revenue immediately upon receipt. Incentive fees received in advance of crystallization that remain subject to clawback are recorded as deferred incentive fee revenue and included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets. Carried interest allocations include the allocation of performance-based fees, commonly referred to as carried interest, to the Company from unaffiliated limited partners in the StepStone Funds in which the Company holds an equity interest. The Company is entitled to a carried interest allocation (typically 5% to 15%) based on cumulative fund or account performance to date, irrespective of whether such amounts have been realized. These carried interest allocations are subject to the achievement of minimum return levels (typically 5% to 10%) in accordance with the terms set forth in each respective fund’s governing documents. The Company accounts for its investment balances in the StepStone Funds, including carried interest allocations, under the equity method of accounting because it is presumed to have significant influence as the general partner or managing member. Accordingly, carried interest allocations are not deemed to be within the scope of ASC 606. Legacy Greenspring carried interest allocations reflect the allocation of carried interest to legacy Greenspring general partner entities from limited partners in certain legacy Greenspring funds in which the legacy Greenspring general partner entities hold an equity interest. The legacy Greenspring general partner entities are entitled to a carried interest allocation (typically 5% to 20%) based on cumulative fund or account performance to date, irrespective of whether such amounts have been realized. The Company accounts for the investment balances in the legacy Greenspring funds, including carried interest allocations, under the equity method of accounting because it is presumed to have significant influence as the general partner or managing member. Accordingly, legacy Greenspring carried interest allocations are not deemed to be within the scope of ASC 606. The Company does not hold any direct economic interests in the legacy Greenspring general partner entities and thus is not entitled to any carried interest allocation from the legacy funds. All of the carried interest allocations in respect of the legacy Greenspring funds are payable to employees who are considered affiliates of the Company and are therefore reflected as legacy Greenspring performance fee-related compensation in the consolidated statements of income. The Company recognizes revenue attributable to carried interest allocations from a fund based on the amount that would be due to the Company pursuant to the fund’s governing documents, assuming the fund was liquidated based on the current fair value of its underlying investments as of that date. Accordingly, the amount recognized as carried interest allocation revenue reflects the Company’s share of the gains and losses of the associated fund’s underlying investments measured at their then-fair values, relative to the fair values as of the end of the prior period. The Company records the amount of carried interest allocated to the Company as of each period end as accrued carried interest allocations receivable, which is included as a component of investments in the consolidated balance sheets. Management's determination of fair value for investments in the underlying funds includes various valuation techniques. These techniques may include a market approach, recent transaction price, net asset value approach, or discounted cash flows, and may use one or more significant unobservable inputs such as EBITDA, revenue multiples, discount rates, weighted average cost of capital, exit multiples, or terminal growth rates. |
Compensation and Benefits | Compensation and Benefits Cash-based compensation expense primarily includes salaries, bonuses, employee benefits and employer-related payroll taxes. Bonuses are accrued over the service period in which they are earned. Equity-based compensation represents grants of equity-based awards or arrangements to certain employees and directors. The Company accounts for grants of equity-based awards, including restricted stock units (“RSUs”), to certain employees and directors at fair value as of the grant date. The Company recognizes non-cash compensation expense attributable to these grants on a straight-line basis over the requisite service period, which is generally the vesting period. Expense related to grants of equity-based awards is recognized as equity-based compensation expense in the consolidated statements of income. The fair value of RSUs is determined by the closing stock price on the grant date. Forfeitures of equity-based awards are recognized as they occur. Awards classified as liabilities are remeasured at the end of each reporting period until settlement. See note 10 for additional information regarding the Company’s accounting for equity-based awards. Performance fee-related compensation represents the portion of carried interest allocation revenue and incentive fees that have been awarded to employees as a form of long-term incentive compensation. Performance fee-related compensation is generally tied to the investment performance of the StepStone Funds. Approximately 50% of carried interest allocation revenue is awarded to employees as part of the Company’s long-term incentive compensation plan. Carried interest-related compensation is accounted for as compensation expense in conjunction with the related carried interest allocation revenue and, until paid, is recorded as a component of accrued carried interest-related compensation in the consolidated balance sheets. Carried interest-related compensation expense also includes the portion of net carried interest allocation revenue attributable to equity holders of the Company’s consolidated subsidiaries that are not 100% owned. Amounts presented as realized indicate the amounts paid or payable to employees based on the receipt of carried interest allocation revenue from realized investment activity. Carried interest-related compensation expense may be subject to reversal to the extent that the related carried interest allocation revenue is reversed. Carried interest-related compensation paid to employees may be subject to clawback on an after-tax basis under certain scenarios. To date, no material amounts of realized carried interest-related compensation have been reversed. Incentive fee-related compensation is accrued as compensation expense when it is probable and estimable that payment will be made in accordance with the applicable governing agreement. Legacy Greenspring performance fee-related compensation represents the legacy Greenspring carried interest allocations, which is entirely payable to certain employees. Legacy Greenspring carried interest-related compensation is accounted for as compensation expense in conjunction with the related legacy Greenspring carried interest allocation revenue and, until paid, is recorded as a component of legacy Greenspring accrued carried interest-related compensation in the consolidated balance sheets. Legacy Greenspring carried interest-related compensation expense may be subject to reversal to the extent that the related legacy Greenspring carried interest allocation revenue is reversed. However, none of the legacy Greenspring carried interest allocation revenue is attributable to the Company. |
General, Administrative and Other | General, Administrative and Other General, administrative and other includes occupancy, travel and related costs, insurance, legal and other professional fees, depreciation, amortization of intangible assets, system-related costs, and other general costs associated with operating the Company’s business. |
Other Income (Expense) | Other Income (Expense) Investment income (loss) primarily represents the share of earnings (losses) from the investments the Company makes in its SMAs and focused commingled funds. The Company, either directly or through its subsidiaries, generally has a general partner interest in the StepStone Funds, which invest in primary funds, secondary funds and co-investment funds, or a combination thereof. Investment income will increase or decrease based on the earnings of the StepStone Funds, which are primarily driven by net realized and unrealized gains (losses) on the underlying investments held by the funds. The Company’s co-investment funds invest in underlying portfolio companies and therefore their valuation changes from period to period are more influenced by individual companies than the Company’s primary and secondary funds, which have exposures across multiple portfolio companies in underlying private markets funds. The Company’s SMAs and focused commingled funds invest across various industries, strategies and geographies. Consequently, the Company’s general partner investments do not include any significant concentrations in a specific sector or geography outside the United States. Investment income excludes carried interest allocations, which are presented as revenues as described above. Legacy Greenspring investment income (loss) represents the share of earnings (losses) from the investments the Company makes in certain legacy Greenspring funds through the legacy Greenspring general partner entities. The Company has no direct economic interests in the legacy Greenspring general partner entities. As a result, all such income is reflected as non-controlling interests in legacy Greenspring entities. Legacy Greenspring investment income will increase or decrease based on the earnings of such legacy Greenspring funds, which are primarily driven by net realized and unrealized gains (losses) on the underlying investments held by the funds. Interest income consists of income earned on cash, cash equivalents, restricted cash and certificates of deposit. Beginning in the quarter ended December 31, 2022, interest income includes amounts associated with the Consolidated Funds. Interest expense primarily consists of the interest expense on the Revolver and the Company’s previously outstanding term loan, as well as the related amortization of deferred financing costs and amortization of original issue discount. The year ended March 31, 2021 includes a $3.5 million charge related to the write-off of unamortized debt issuance costs and discount in connection with the full repayment of the Company’s outstanding term loan in connection with the IPO in September 2020. Other income (loss) includes foreign currency transaction gains and losses and non-operating activities. Beginning in the quarter ended December 31, 2022, other income (loss) includes amounts associated with the Consolidated Funds. |
Income Taxes | Income Taxes SSG is a corporation for U.S. federal income tax purposes and therefore is subject to U.S. federal and state income taxes on its share of taxable income generated by the Partnership. The Partnership is treated as a pass-through entity for U.S. federal and state income tax purposes. As such, income generated by the Partnership flows through to its limited partners, including SSG, and is generally not subject to U.S. federal or state income tax at the Partnership level. The Partnership’s non-U.S. subsidiaries generally operate as corporate entities in non-U.S. jurisdictions, with certain of these entities subject to non-U.S. income taxes. Additionally, certain subsidiaries are subject to local jurisdiction taxes at the entity level, which are reflected within income tax expense in the consolidated statements of income. As a result, the Partnership does not record U.S. federal and state income taxes on income in the Partnership or its subsidiaries, except for certain local and foreign income taxes discussed above. Taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases, using tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period when the change is enacted. Deferred tax liabilities are included within accounts payable, accrued expenses and other liabilities in the consolidated balance sheets. The principal items giving rise to temporary differences are certain basis differences resulting from exchanges of Partnership units. See Tax Receivable Agreements below. Deferred tax assets are reduced by a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent on the amount, timing and character of the Company’s future taxable income. When evaluating the realizability of deferred tax assets, all evidence – both positive and negative – is considered. This evidence includes, but is not limited to, expectations regarding future earnings, future reversals of existing temporary tax differences and tax planning strategies. The Company is subject to the provisions of ASC Subtopic 740-10, Accounting for Uncertainty in Income Taxes . This standard establishes consistent thresholds as it relates to accounting for income taxes. It defines the threshold for recognizing the benefits of tax return positions in the financial statements as more-likely-than-not to be sustained by the relevant taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50% likely to be realized. If upon performance of an assessment pursuant to this subtopic, management determines that uncertainties in tax positions exist that do not meet the minimum threshold for recognition of the related tax benefit, a liability is recorded in the consolidated financial statements. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as interest expense and general, administrative and other expenses, respectively, in the consolidated statements of income. See note 11 for more information. The Company has elected to account for global intangible low-taxed income (“GILTI”) earned by foreign subsidiaries in the period the tax is incurred. |
Tax Receivable Agreements | Tax Receivable AgreementsSSG has entered into an Exchanges Tax Receivable Agreement (the “Exchanges Tax Receivable Agreement”) with the partners of the Partnership as of the date of the IPO and a Reorganization Tax Receivable Agreement with certain pre-IPO institutional investors (together, with the Exchanges Tax Receivable Agreement, the “Tax Receivable Agreements”). The Tax Receivable Agreements provide for payment by SSG to such partners and pre-IPO institutional investors of the Partnership of 85% of the amount of the net cash tax savings, if any, that SSG realizes (or, under certain circumstances, is deemed to realize) as a result of increases in tax basis (and utilization of certain other tax benefits) resulting from (i) SSG’s acquisition of such partners’ and institutional investors’ Partnership units and (ii) in the case of the Exchanges Tax Receivable Agreement, any payments SSG makes under the Exchanges Tax Receivable Agreement (including tax benefits related to imputed interest). SSG will retain the benefit of the remaining 15% of these net cash tax savings under both Tax Receivable Agreements. In connection with the Greenspring acquisition, the sellers receiving Class C units of the Partnership became parties to the Exchanges Tax Receivable Agreement. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeThe Company’s accumulated other comprehensive income consists of foreign currency translation adjustments and unrealized gains and losses on the defined benefit plan sponsored by one of its subsidiaries. |
Segments | Segments The Company operates as one business, a fully-integrated private markets solution provider. The Company’s chief operating decision maker, who is the Company’s chief executive officer, utilizes a consolidated approach to assess the performance of and allocate resources to the business. Accordingly, management has concluded that the Company consists of a single operating segment and single reportable segment for accounting and financial reporting purposes. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject the Company to concentrations of credit risk or other risks consist principally of cash, cash equivalents, restricted cash, investments and fees receivable. The majority of the Company’s cash, cash equivalents and restricted cash is held in large, high credit quality financial institutions. Substantially all cash amounts on deposit with these large financial institutions exceeded federally insured limits at March 31, 2023 and 2022. The Company actively monitors its banking relationships and periodically performs an assessment of the financial condition and the reputations of these financial institutions. Based on these results, management believes that the Company’s exposure to credit risk is remote. The concentration of credit risk related to fees receivable is generally reduced by the relatively short payment terms extended to the Company’s clients. Amounts due to the Company in the form of carried interest allocations, which are reported as a component of investments in the consolidated balance sheets, remain subject to investment performance risk. In certain cases, carried interest allocations that have been distributed to the Company may remain subject to clawback, pursuant to the terms of the governing documents of the related funds. Refer to the discussion of carried interest above in this note 2 for additional details regarding the investment performance and clawback risk associated with carried interest allocations that have been recognized in income by the Company and/or recorded as accrued carried interest allocations in the consolidated balance sheets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs issued during the current period not listed below were assessed and determined to either be not applicable to the Company, or not expected to have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which amends current guidance to provide optional practical expedients and exceptions, if certain criteria are met, for applying GAAP to contracts, hedging relationships and other transactions that are affected by the reference rate reform. The expedients and exceptions in this update apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”). Initially the update did not apply to contract modifications or hedging relationships entered into after December 31, 2022, but in December 2022, the FASB issued ASU 2022-06, which defers the sunset date for applying reference rate reform relief in ASC 848 to December 31, 2024. This guidance is effective for adoption anytime after March 12, 2020, but must be adopted prior to December 31, 2024. The Company is currently evaluating the impact on the consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The Company adopted this guidance on April 1, 2022 under the modified retrospective approach. The Company has changed its accounting policy to reflect the updated equity classification of contracts in an entity’s own equity, and has accounted for freestanding instruments that are indexed to and settled in the Company’s own equity at fair value with changes in fair value recognized in earnings. Adoption of this guidance did not have a material effect on the consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments , which modifies ASC 842 to amend the lease classification requirements for lessors to align with practice under ASC Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if the lease would have been classified as a sales-type lease or a direct financing lease under ASC 842, and the lessor would have otherwise recognized a day-one loss on the investment in the lease. This guidance is effective for annual periods beginning after December 15, 2021 and interim periods within those annual periods. The Company adopted this guidance on April 1, 2022. Adoption of this guidance did not have a material effect on the consolidated financial statements. In November 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which modifies ASC 805 to require an acquiring entity in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. This guidance is effective for annual and interim periods beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance on April 1, 2022, and will apply the guidance prospectively to business combinations that occur after this date. The guidance had no effect on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income were as follows: As of March 31, 2023 2022 Foreign currency translation adjustments $ 280 $ 331 Unrealized gain on defined benefit plan, net 181 327 Accumulated other comprehensive income $ 461 $ 658 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following presents revenues disaggregated by product offering, which aligns with the Company’s performance obligations and the basis for calculating each amount: Year Ended March 31, Management and Advisory Fees, Net 2023 2022 2021 Focused commingled funds $ 227,003 $ 148,725 $ 97,223 SMAs 210,187 174,318 135,784 Advisory and other services 56,244 55,523 52,217 Fund reimbursement revenues 3,745 1,691 238 Total management and advisory fees, net $ 497,179 $ 380,257 $ 285,462 Year Ended March 31, Incentive Fees 2023 2022 2021 SMAs $ 6,606 $ 11,441 $ 5,446 Focused commingled funds 3,057 152 28 Total incentive fees $ 9,663 $ 11,593 $ 5,474 Year Ended March 31, Carried Interest Allocations 2023 2022 2021 SMAs $ (110,020) $ 555,449 $ 359,703 Focused commingled funds (12,233) 231,120 137,077 Total carried interest allocations $ (122,253) $ 786,569 $ 496,780 Year Ended March 31, Legacy Greenspring Carried Interest Allocations 2023 2022 2021 SMAs $ — $ — $ — Focused commingled funds (1) (452,163) 187,106 — Total legacy Greenspring carried interest allocations $ (452,163) $ 187,106 $ — _______________________________ (1) The years ended March 31, 2023 and 2022 reflect the net effect of gross realized carried interest allocations of $74.7 million and $92.2 million, respectively, and the reversal of such amounts in unrealized carried interest allocations for the period. |
Revenue from External Customers by Geographic Areas | The Company derives revenues from clients located in both the United States and other countries. The table below presents the Company’s revenues by geographic location: Year Ended March 31, Revenues (1) 2023 2022 2021 United States $ (238,441) $ 428,282 $ 166,719 Non-U.S. countries 170,867 937,243 620,997 _______________________________ (1) Revenues are attributed to countries based on client location for SMAs and advisory and other services, or location of investment vehicle for focused commingled funds. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Carrying Value of the Assets and Liabilities of the Company's Variable Interest Entities | The carrying value of the assets and liabilities recognized in the consolidated balance sheets with respect to the Company’s interests in VIEs that were not consolidated is set forth below: As of March 31, 2023 2022 Investments in funds $ 115,187 $ 107,045 Legacy Greenspring investments in funds 152,658 194,480 Due from affiliates, net 29,017 18,830 Less: Amounts attributable to non-controlling interests in subsidiaries 19,432 13,832 Less: Amounts attributable to non-controlling interests in legacy Greenspring entities 152,658 194,480 Maximum exposure to loss $ 124,772 $ 112,043 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | The Company’s equity method investments consist of the following: As of March 31, 2023 2022 Investments in funds (1) 115,187 107,045 Accrued carried interest allocations 1,227,173 1,480,515 Legacy Greenspring investments in funds and accrued carried interest allocations (2) 770,652 1,334,581 Total equity method investments 2,113,012 2,922,141 Total investments $ 2,143,607 $ 2,922,141 _______________________________ (1) The Company’s investments in funds was $147.5 million as of March 31, 2023. The consolidation of the Consolidated Funds results in the elimination of the Company’s investments in such funds. No funds were consolidated as of March 31, 2022. (2) Reflects investments in funds of $152.7 million and $194.5 million and carried interest allocations of $618.0 million and $1,140.1 million as of March 31, 2023 and 2022, respectively. Equity Method Investments The Company recognized equity method income (loss) of the following: Year Ended March 31, 2023 2022 2021 Carried interest allocations $ (122,253) $ 786,569 $ 496,780 Investment income (loss) (2,509) 26,160 16,407 Legacy Greenspring carried interest allocations (452,163) 187,106 — Legacy Greenspring investment income (loss) (44,075) 32,586 — Total equity method income (loss) $ (621,000) $ 1,032,421 $ 513,187 Summarized financial information for the Company’s equity method investments reflected below represents the financial position as of March 31, 2023 and 2022, and the results of operations for the years ended March 31, 2023, 2022 and 2021, which are reported on a three-month lag. Assets are primarily comprised of the investments held by the StepStone Funds. As of March 31, 2023 2022 Assets $ 65,536,494 $ 62,297,224 Liabilities 1,806,252 944,519 Equity $ 63,730,242 $ 61,352,705 Year Ended March 31, 2023 2022 2021 Investment income $ 115,092 $ 84,279 $ 46,889 Expenses (446,413) (382,704) (224,611) Net realized and unrealized gain (loss) on investments (4,966,901) 16,868,454 6,369,649 Income tax expense (12,261) (10,875) (5,994) Net income (loss) $ (5,310,483) $ 16,559,154 $ 6,185,933 |
Schedule of Consolidated Funds | Investments held by the Consolidated Funds are summarized below: Fair Value as of March 31, Percentage of Total Investments as of March 31, 2023 2022 2023 2022 Investments of Consolidated Funds: Partnership and LLC interests (cost of $21.3 million and $— million as of March 31, 2023 and 2022, respectively) $ 30,595 $ — 100 % — % Total investments of Consolidated Funds $ 30,595 $ — 100 % — % The following table summarizes net gains from investment activities of the Consolidated Funds: Year Ended March 31, 2023 Net Realized Gains on Investments Net Unrealized Gains on Investments Investments of Consolidated Funds: Partnership and LLC interests $ 3 $ 9,312 Total investments of Consolidated Funds $ 3 $ 9,312 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Liabilities and Assets | The Company measures certain assets and liabilities at fair value on a recurring basis. The following tables provide details regarding the classification of these assets and liabilities within the fair value hierarchy as of the dates presented: Financial Instruments of the Company As of March 31, 2023 Level I Level II Level III Total Liabilities Contingent consideration obligations $ — $ — $ 36,745 $ 36,745 Total liabilities $ — $ — $ 36,745 $ 36,745 As of March 31, 2022 Level I Level II Level III Total Liabilities Contingent consideration obligations $ — $ — $ 28,025 $ 28,025 Total liabilities $ — $ — $ 28,025 $ 28,025 Financial Instruments of Consolidated Funds As of March 31, 2023 Level I Level II Level III Total Assets Partnership and LLC interests $ — $ — $ 6,901 $ 6,901 Total assets $ — $ — $ 6,901 $ 6,901 |
Schedule of Changes in the Fair Value of Level III Financial Instruments | The changes in the fair value of Level III financial instruments of the Company are set forth below: Year Ended March 31, Contingent consideration obligations 2023 2022 Balance, beginning of year: $ 28,025 $ 1,541 Additions — 17,769 Change in fair value 9,361 9,600 Settlements (641) (885) Balance, end of year: $ 36,745 $ 28,025 Changes in unrealized losses included in earnings related to financial liabilities still held at the reporting date $ 9,361 $ 9,600 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment is included in other assets and receivables in the consolidated balance sheets and consists of the following: As of March 31, Property and equipment: 2023 2022 Office furniture $ 7,053 $ 6,217 Computer equipment and software 4,418 3,517 Leasehold improvements 17,246 12,306 Property and equipment, gross 28,717 22,040 Less: Accumulated depreciation (12,876) (9,278) Property and equipment, net $ 15,841 $ 12,762 |
Intangibles and Goodwill (Table
Intangibles and Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consists of the following: As of March 31, 2023 2022 Management contracts $ 352,002 $ 352,002 Client relationships 96,650 96,650 Service agreements 9,537 9,537 Less: Accumulated amortization (103,544) (60,063) Intangible assets, net $ 354,645 $ 398,126 |
Schedule of Future Amortization of Finite-lived Intangible Assets | The expected future amortization of finite-lived intangible assets is as follows: Fiscal year ending March 31, 2024 $ 42,645 2025 41,955 2026 41,764 2027 41,730 2028 41,713 Thereafter 144,838 Total $ 354,645 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The Company’s debt obligations consist of the following: As of March 31, 2023 2022 Revolver $ 100,000 $ 65,000 Less: Debt issuance costs (1,649) (2,121) Total debt obligations $ 98,351 $ 62,879 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unvested Restricted Stock Units Activity | The change in unvested RSUs is as follows: Number of RSUs Weighted-Average Grant-Date Fair Value Per RSU Balance as of March 31, 2022 2,087,324 $ 20.40 Granted 384,200 $ 28.97 Vested (660,796) $ (20.03) Forfeited (34,996) $ (22.06) Balance as of March 31, 2023 1,775,732 $ 22.46 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income before income tax | The Company’s income (loss) before income tax consisted of the following: Year Ended March 31, 2023 2022 2021 Domestic income (loss) before income tax $ (102,560) $ 471,247 $ 307,396 Foreign income before income tax 61,106 41,334 30,453 Total income (loss) before income tax $ (41,454) $ 512,581 $ 337,849 |
Components of provision for income taxes | The following table presents the components of the Company’s provision for income taxes: Year Ended March 31, 2023 2022 2021 Current: Federal $ 6,933 $ 13,340 $ 2,929 State and local 1,726 2,714 1,141 Foreign 7,653 6,383 3,381 Total current income tax expense 16,312 22,437 7,451 Deferred: Federal (10,570) 4,897 14,752 State and local (1,921) 966 1,074 Foreign — — (21) Total deferred income tax expense (benefit) (12,491) 5,863 15,805 Total income tax expense $ 3,821 $ 28,300 $ 23,256 |
Reconciliation of the U.S. federal statutory income tax rate to the effective tax rate | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows: Year Ended March 31, 2023 2022 2021 Federal tax at statutory rate 21.0 % 21.0 % 21.0 % State and local income tax 0.8 0.8 0.6 Income passed through to limited partners (13.6) (11.9) (15.7) Foreign income tax (18.5) 1.2 1.0 Valuation allowance 4.7 (5.3) 0.0 Return to provision (3.7) (0.1) 0.0 Other 0.1 (0.2) 0.0 Effective tax rate (9.2) % 5.5 % 6.9 % |
Components of deferred tax assets and liabilities | The following table presents the components of the Company’s deferred income tax assets and liabilities: As of March 31, 2023 2022 Deferred tax assets: Investment in the Partnership $ 54,941 $ 39,720 Other 1,769 1,568 Total deferred tax assets before valuation allowance 56,710 41,288 Valuation allowance (12,352) (13,422) Total net deferred tax assets 44,358 27,866 Deferred tax liabilities: Total deferred tax liabilities 353 1,529 Net deferred tax assets $ 44,005 $ 26,337 |
Change in valuation allowance | A summary of the change in valuation allowance by year is as follows: Valuation Allowance Balance at March 31, 2021 $ 30,537 Income tax decrease (27,413) Equity decrease (5,006) Equity increase 15,304 Balance at March 31, 2022 13,422 Income tax decrease (1,975) Equity increase 905 Balance at March 31, 2023 $ 12,352 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliations of Basic and Diluted Earnings Per Share of Class A Common Stock | The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock: Year Ended March 31, 2023 Year Ended March 31, 2022 Period from IPO date to March 31, 2021 (in thousands, except share and per share amounts) Numerator: Net income (loss) attributable to StepStone Group Inc. – Basic $ (18,398) $ 193,885 $ 62,634 Incremental income from assumed vesting of RSUs — 4,043 1,854 Incremental income from assumed vesting and exchange of Class B2 units — 7,689 3,923 Net income (loss) attributable to StepStone Group Inc. – Diluted $ (18,398) $ 205,617 $ 68,411 Denominator: Weighted-average shares of Class A common stock outstanding – Basic 61,884,671 49,833,760 29,657,805 Assumed vesting of RSUs — 1,289,809 1,151,579 Assumed vesting and exchange of Class B2 units — 2,476,681 2,465,420 Weighted-average shares of Class A common stock outstanding – Diluted 61,884,671 53,600,250 33,274,804 Net income (loss) per share of Class A common stock: Basic $ (0.30) $ 3.89 $ 2.11 Diluted $ (0.30) $ 3.84 $ 2.06 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Due from affiliates in the consolidated balance sheets consists primarily of fees and accounts receivable from the StepStone Funds, advances made on behalf of the StepStone Funds for the payment of certain organization and operating costs and expenses for which the Company is subsequently reimbursed, amounts due from employees and loans due from affiliated entities, as set forth below. As of March 31, 2023 2022 Amounts receivable from StepStone Funds $ 33,813 $ 19,027 Amounts receivable from employees 7,016 342 Amounts receivable from loans 13,493 — Total due from affiliates $ 54,322 $ 19,369 Due to affiliates in the consolidated balance sheets consists primarily of amounts payable to certain non-controlling interest holders in connection with the Tax Receivable Agreements, amounts payable to the StepStone Funds and distributions payable to certain employee equity holders of consolidated subsidiaries, as set forth below. As of March 31, 2023 2022 Amounts payable to non-controlling interest holders in connection with Tax Receivable Agreements $ 199,307 $ 197,204 Amounts payable to StepStone Funds 4,796 198 Distributions payable to certain employee equity holders of consolidated subsidiaries 1,321 1,953 Total due to affiliates $ 205,424 $ 199,355 |
Stockholders' Equity and Rede_2
Stockholders' Equity and Redeemable Interests (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Rollforward of the Company's Shares of Common Stock Outstanding Since IPO | The following table shows a rollforward of the Company’s shares of common stock outstanding since March 31, 2022: Class A Common Stock Class B Common Stock March 31, 2022 61,141,306 47,149,673 Class A common stock issued in exchange for Class B Partnership units 729,532 (729,532) Class A common stock issued in exchange for Class C Partnership units 414,739 — Class A common stock issued for vesting of RSUs, net of shares withheld for employee taxes 549,214 — March 31, 2023 62,834,791 46,420,141 |
Schedule of Dividends | The following table presents information regarding quarterly dividends on Class A common shares for the periods indicated: Quarterly Fiscal Period 1 Dividend Payment Date Dividend Per Share of Class A Common Stock First quarter N/A Second quarter N/A Third quarter N/A Fourth quarter March 12, 2021 $ 0.07 Total dividends paid in FY2021 $ 0.07 First quarter July 15, 2021 $ 0.07 Second quarter September 15, 2021 0.07 Third quarter December 15, 2021 0.15 Fourth quarter March 15, 2022 0.15 Total dividends paid in FY2022 $ 0.44 First quarter June 30, 2022 $ 0.20 Second quarter September 15, 2022 0.20 Third quarter December 15, 2022 0.20 Fourth quarter March 15, 2023 0.20 Total dividends paid in FY2023 $ 0.80 _______________________________ (1) Prior to the Company’s IPO on September 16, 2020, it was a wholly-owned subsidiary of the Partnership, had a single class of common stock and did not pay dividends. As such, there is no quarterly dividend information reported for the quarter ended September 30, 2020 or any periods prior. Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned. |
Redeemable Noncontrolling Interest | The following table summarizes the activities associated with the redeemable non-controlling interests in Consolidated Funds: Year Ended March 31, 2023 Beginning balance $ — Contributions 22,754 Net income 1,776 Ending balance $ 24,530 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Aggregate Purchase Price and Estimated Fair Values of Assets Acquired and Liabilities Assumed | The aggregate purchase price for the acquisition of Greenspring and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date were as follows: Acquisition date fair value of consideration transferred: Cash consideration $ 186,577 Class A common stock 558,598 Class C units of the Partnership 135,239 Contingent consideration 17,769 Total purchase price $ 898,183 Estimated fair value of assets acquired and liabilities assumed: Cash and short-term receivables $ 5,725 Legacy Greenspring investments in funds and accrued carried interest allocations (1) 1,203,299 Lease right-of-use assets, net 2,585 Other assets and receivables 2,146 Finite-lived intangible assets—contractual rights: management contracts 310,944 Finite-lived intangible assets—client relationships 96,650 Finite-lived intangible assets—contractual rights: service agreements 9,537 Goodwill 573,750 Deferred income taxes (95,884) Accrued expenses and other liabilities (4,685) Legacy Greenspring accrued carried interest-related compensation (1) (1,045,157) Lease liabilities (2,585) Non-controlling interests in legacy Greenspring entities (1) (158,142) Total $ 898,183 _______________________________ (1) Represents investments in funds and carried interest allocations attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. Such amounts are attributable to employees and therefore have been reflected as non-controlling interests in legacy Greenspring entities and legacy Greenspring accrued carried interest-related compensation, respectively. |
Pro Forma Effect | The following supplemental unaudited pro forma information assumes the Greenspring acquisition, as well as the Reorganization and IPO, had been consummated as of April 1, 2020: Year Ended March 31, 2022 2021 Revenues $ 1,866,986 $ 1,362,067 Net income attributable to StepStone Group Inc. 168,653 80,743 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense included in general, administrative and other expenses in the consolidated statements of income were as follows: Year Ended March 31, 2023 2022 Operating lease cost (1)(2) $ 10,983 $ 11,098 Variable lease cost 1,375 957 Sublease income (1,778) (1,679) Total lease cost $ 10,580 $ 10,376 _______________________________ (1) Operating lease cost includes an immaterial amount of short-term leases. (2) The year ended March 31, 2023 includes a gain of $2.7 million related to lease remeasurement adjustments due to a reduction in lease terms. Supplemental cash flow information related to leases was as follows: Year Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 10,613 $ 10,319 Weighted-average remaining lease term for operating leases (in years) 12.1 7.7 Weighted-average discount rate for operating leases 4.6 % 2.7 % |
Schedule of Maturities of Operating Lease Liabilities | As of March 31, 2023, maturities of operating lease liabilities were as follows: FY2024 $ 12,337 FY2025 14,062 FY2026 15,179 FY2027 14,362 FY2028 12,474 Thereafter 96,504 Total lease liabilities 164,918 Less: Imputed interest (43,694) Total operating lease liabilities $ 121,224 |
Organization (Details)
Organization (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2022 | Sep. 20, 2021 shares | Sep. 18, 2020 USD ($) vote $ / shares shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares redeemed (in shares) | 100 | |||||
Offering costs | $ | $ 0 | $ 1,732 | $ 10,142 | |||
Purchase of non-controlling interests | $ | $ 0 | $ 3,046 | $ 131,294 | |||
Greenspring | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Ownership percentage acquired | 100% | |||||
Conversion of Class B Units to Class B Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of stock (in shares) | 1 | |||||
Blocker Entities | Owners | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Ownership percentage | 100% | |||||
Partnership | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Membership ownership percentage | 56.20% | |||||
Class A Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, number of votes | vote | 1 | |||||
Class A Common Stock | Greenspring | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares issued in acquisition (in shares) | 12,686,756 | |||||
Class A Common Stock | Non-Controlling Interests in the Partnership | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Purchase of non-controlling interests | $ | $ 209,800 | |||||
Number of partnership units acquired (in shares) | 12,500,000 | |||||
Class A Common Stock | Blocker Entities | Owners | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares owned after all transactions (in shares) | 9,112,500 | |||||
Class B Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, number of votes | vote | 5 | |||||
Class B Common Stock | Non-Controlling Interests in the Partnership | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Purchase of non-controlling interests | $ | $ 128,000 | |||||
Number of partnership units acquired (in shares) | 7,625,000 | |||||
Class C common stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of stock, conversion basis (in shares) | 1 | |||||
Class C common stock | Greenspring | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares issued in acquisition (in shares) | 3,071,519 | |||||
Conversion of stock, conversion basis (in shares) | 1 | |||||
General Partner | Partnership | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Membership ownership percentage | 100% | |||||
IPO | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Net proceeds from stock offering | $ | $ 337,800 | |||||
Offering costs | $ | 24,500 | |||||
IPO | Partnership | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Offering costs | $ | $ 9,700 | |||||
IPO | Class A Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares sold in offering (in shares) | 20,125,000 | |||||
Offering price per share (in dollars per share) | $ / shares | $ 18 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||||
Jan. 01, 2021 USD ($) | Jan. 01, 2020 USD ($) | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Foreign currency translation gains (losses) | $ (1,600,000) | $ (1,100,000) | $ 600,000 | ||
Impairment charges, finite-lived intangible assets | $ 0 | $ 0 | 0 | ||
Impairment of goodwill | $ 0 | $ 0 | |||
Incentive fees as percentage of profits | 15% | ||||
Amortization of deferred financing costs | $ 3,500,000 | ||||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Finite-lived intangible assets, estimated useful lives | 8 years | ||||
Carried interest allocation as percentage of cumulative fund or account performance | 5% | ||||
Revenue, carried interest allocation, minimum return levels required | 5% | ||||
Legacy carried interest allocation as percentage of cumulative fund or account performance | 5% | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property and equipment, estimated useful lives | 7 years | ||||
Finite-lived intangible assets, estimated useful lives | 10 years | ||||
Carried interest allocation as percentage of cumulative fund or account performance | 15% | ||||
Revenue, carried interest allocation, minimum return levels required | 10% | ||||
Legacy carried interest allocation as percentage of cumulative fund or account performance | 20% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - AOCI (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity | $ 1,628,787 | $ 1,824,330 | $ 659,693 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity | 280 | 331 | |
Unrealized gain on defined benefit plan, net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity | 181 | 327 | |
Accumulated other comprehensive income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Equity | $ 461 | $ 658 | $ 155 |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue by Product Offering (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Management and advisory fees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 497,179 | $ 380,257 | $ 285,462 | |
Focused commingled funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 227,003 | 148,725 | 97,223 | |
SMAs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 210,187 | 174,318 | 135,784 | |
Advisory and other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,244 | 55,523 | 52,217 | |
Fund reimbursement revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,745 | 1,691 | 238 | |
Incentive Fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,663 | 11,593 | 5,474 | |
SMAs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,606 | 11,441 | 5,446 | |
Focused commingled funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,057 | 152 | 28 | |
Carried Interest Allocations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | (122,253) | 786,569 | 496,780 | |
SMAs | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | (110,020) | 555,449 | 359,703 | |
Focused commingled funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | (12,233) | 231,120 | 137,077 | |
Legacy Greenspring Carried Interest Allocations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | [1] | (452,163) | 187,106 | 0 |
SMAs | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | 0 | 0 | 0 | |
Legacy carried interest allocation, focused comingled funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | (452,163) | 187,106 | $ 0 | |
Legacy gross carried interest allocation, focused comingled funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total carried interest allocations | $ 74,700 | $ 92,200 | ||
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 3, 5 and 15 for more information. |
Revenues - Schedule of Disagg_2
Revenues - Schedule of Disaggregation of Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ (67,574) | $ 1,365,525 | $ 787,716 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | (238,441) | 428,282 | 166,719 |
Non-U.S. countries | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 170,867 | $ 937,243 | $ 620,997 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 21.6 | $ 19 |
Deferred revenue, revenue recognized | $ 4.9 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Assets | $ 3,497,403 | $ 4,188,125 |
Liabilities | 1,844,086 | 2,363,795 |
Consolidated funds | ||
Variable Interest Entity [Line Items] | ||
Assets | 964,192 | 1,435,245 |
Liabilities | $ 682,718 | $ 1,181,238 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments in funds | $ 115,187 | $ 107,045 |
Legacy Greenspring investments in funds | 152,700 | 194,500 |
Due from affiliates | 54,322 | 19,369 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in funds | 115,187 | 107,045 |
Legacy Greenspring investments in funds | 152,658 | 194,480 |
Due from affiliates | 29,017 | 18,830 |
Maximum exposure to loss | 124,772 | 112,043 |
Variable Interest Entity, Not Primary Beneficiary, Subsidiaries | ||
Variable Interest Entity [Line Items] | ||
Less: Amounts attributable to non-controlling interests in subsidiaries | 19,432 | 13,832 |
Variable Interest Entity, Not Primary Beneficiary, Legacy Entities | ||
Variable Interest Entity [Line Items] | ||
Less: Amounts attributable to non-controlling interests in subsidiaries | $ 152,658 | $ 194,480 |
Investments - Equity Method Inv
Investments - Equity Method Investments (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Investments of Consolidated Funds | $ 30,595,000 | $ 0 | |
Equity method investments: | |||
Investments in funds | 115,187,000 | 107,045,000 | |
Accrued carried interest allocations | 1,227,173,000 | 1,480,515,000 | |
Legacy Greenspring investments in funds and accrued carried interest allocations | [1] | 770,652,000 | 1,334,581,000 |
Total equity method investments | 2,113,012,000 | 2,922,141,000 | |
Total investments | 2,143,607,000 | 2,922,141,000 | |
Investment in fund, before eliminations | 147,500,000 | ||
Legacy Greenspring investments in funds | 152,700,000 | 194,500,000 | |
Legacy Greenspring accrued carried interest allocations | $ 618,000,000 | $ 1,140,100,000 | |
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 5 and 15 for more information. |
Investments - Equity Method Inc
Investments - Equity Method Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investment income (loss) | $ (2,509) | $ 26,160 | $ 16,407 | |
Legacy Greenspring investment income (loss) | [1] | (44,075) | 32,586 | 0 |
Total equity method income (loss) | (621,000) | 1,032,421 | 513,187 | |
Carried Interest Allocations | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total carried interest allocations | (122,253) | 786,569 | 496,780 | |
Legacy Greenspring Carried Interest Allocations | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total carried interest allocations | [1] | $ (452,163) | $ 187,106 | $ 0 |
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 3, 5 and 15 for more information. |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Product Information [Line Items] | |||
Accrued carried interest-related compensation | $ 644,517 | $ 763,557 | |
Legacy Greenspring investments in funds and accrued carried interest allocations | [1] | 770,652 | 1,334,581 |
Non-Controlling Interests in Legacy Greenspring Entities | |||
Product Information [Line Items] | |||
Non-controlling interests | 152,658 | 194,480 | |
Affiliated Entity | |||
Product Information [Line Items] | |||
Accrued carried interest-related compensation | 644,500 | 763,600 | |
Legacy Greenspring investments in funds and accrued carried interest allocations | $ 618,000 | $ 1,140,100 | |
Revenue Benchmark | Separately Managed Account Concentration Risk | Two Investments | |||
Product Information [Line Items] | |||
Equity method investment, total accrued carried interest allocation percentage | 24% | 25% | |
Revenue Benchmark | Comingled Funds Concentration Risk | Two Investments | |||
Product Information [Line Items] | |||
Equity method investment, total accrued carried interest allocation percentage | 24% | ||
Revenue Benchmark | Comingled Funds Concentration Risk | Three Investments | |||
Product Information [Line Items] | |||
Equity method investment, total accrued carried interest allocation percentage | 39% | ||
[1]Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests. See notes 5 and 15 for more information. |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Financial Position | ||||
Assets | $ 3,497,403 | $ 4,188,125 | ||
Liabilities | 1,844,086 | 2,363,795 | ||
Equity | $ 659,693 | 1,628,787 | 1,824,330 | $ 659,693 |
Results of Operations | ||||
Expenses | 67,077 | (913,163) | (459,547) | |
Income tax expense | (3,821) | (28,300) | (23,256) | |
Net income (loss) | $ 256,900 | (45,275) | 484,281 | 314,593 |
Equity method investments | ||||
Financial Position | ||||
Assets | 65,536,494 | 62,297,224 | ||
Liabilities | 1,806,252 | 944,519 | ||
Equity | 63,730,242 | 61,352,705 | ||
Results of Operations | ||||
Investment income | 115,092 | 84,279 | 46,889 | |
Expenses | (446,413) | (382,704) | (224,611) | |
Net realized and unrealized gain (loss) on investments | (4,966,901) | 16,868,454 | 6,369,649 | |
Income tax expense | (12,261) | (10,875) | (5,994) | |
Net income (loss) | $ (5,310,483) | $ 16,559,154 | $ 6,185,933 |
Investments - Schedule of Conso
Investments - Schedule of Consolidated Funds (Details) | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Investments of consolidated funds, cost | $ 21,300,000 | $ 0 |
Investments of Consolidated Funds | $ 30,595,000 | $ 0 |
Investments of consolidated funds, percent of total investments | 1 | 0 |
Net Realized Gains on Investments | $ 3,000 | |
Net Unrealized Gains on Investments | 9,312,000 | |
Partnership and LLC Interests | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments of Consolidated Funds | $ 30,595,000 | $ 0 |
Investments of consolidated funds, percent of total investments | 1 | 0 |
Net Realized Gains on Investments | $ 3,000 | |
Net Unrealized Gains on Investments | $ 9,312,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Liabilities and Assets (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Partnership and LLC interests | $ 30,595,000 | $ 0 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Partnership and LLC interests | 6,900,000 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligations | 36,745,000 | 28,025,000 |
Total liabilities | 36,745,000 | 28,025,000 |
Partnership and LLC interests | 6,901,000 | |
Total assets | 6,901,000 | |
Fair Value, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Partnership and LLC interests | 0 | |
Total assets | 0 | |
Fair Value, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligations | 0 | 0 |
Total liabilities | 0 | 0 |
Partnership and LLC interests | 0 | |
Total assets | 0 | |
Fair Value, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligations | 36,745,000 | 28,025,000 |
Total liabilities | 36,745,000 | $ 28,025,000 |
Partnership and LLC interests | 6,901,000 | |
Total assets | $ 6,901,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in the Fair Value of Level III Financial Instruments (Details) - Contingent consideration obligations - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period: | $ 28,025 | $ 1,541 |
Additions | 0 | 17,769 |
Change in fair value | 9,361 | 9,600 |
Settlements | (641) | (885) |
Balance, end of period: | 36,745 | 28,025 |
Changes in unrealized losses included in earnings related to financial liabilities still held at the reporting date | $ 9,361 | $ 9,600 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 20, 2021 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Changes in fair value hierarchy levels | $ 0 | $ 0 | ||
Investments of Consolidated Funds | 30,595,000 | $ 0 | ||
Changes in fair value hierarchy levels | 0 | |||
Fair Value Measured at Net Asset Value Per Share | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Investments of Consolidated Funds | 23,700,000 | |||
Level III | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Investments of Consolidated Funds | $ 6,900,000 | |||
Greenspring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | $ 17,769,000 | $ 17,800,000 | ||
Measurement Input, Discount Rate | Minimum | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Business combination, contingent consideration, liability, measurement input | 0.08 | |||
Measurement Input, Discount Rate | Maximum | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Business combination, contingent consideration, liability, measurement input | 0.10 |
Property and Equipment - Schedu
Property and Equipment - Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 28,717 | $ 22,040 |
Less: Accumulated depreciation | (12,876) | (9,278) |
Property and equipment, net | 15,841 | 12,762 |
Office furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,053 | 6,217 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,418 | 3,517 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 17,246 | $ 12,306 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 4 | $ 2.5 | $ 2.2 |
Intangibles and Goodwill - Sche
Intangibles and Goodwill - Schedule of Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated amortization | $ (103,544) | $ (60,063) |
Intangible assets, net | 354,645 | 398,126 |
Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 352,002 | 352,002 |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 96,650 | 96,650 |
Service agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 9,537 | $ 9,537 |
Intangibles and Goodwill - Narr
Intangibles and Goodwill - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 43,500,000 | $ 24,500,000 | $ 3,300,000 |
Goodwill | 580,542,000 | 580,542,000 | |
Goodwill, impairment loss | $ 0 | $ 0 |
Intangibles and Goodwill - Sc_2
Intangibles and Goodwill - Schedule of Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 42,645 | |
2025 | 41,955 | |
2026 | 41,764 | |
2027 | 41,730 | |
2028 | 41,713 | |
Thereafter | 144,838 | |
Intangible assets, net | $ 354,645 | $ 398,126 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Line of Credit Facility [Line Items] | |||
Debt obligations outstanding | $ 98,351,000 | $ 62,879,000 | |
Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Letters of credit outstanding | 7,800,000 | ||
Revolving credit facility | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 225,000,000 | ||
Term | 5 years | ||
Debt obligations outstanding | $ 98,400,000 | ||
Base interest rate | 1% | ||
Interest rate in effect | 6.86% | ||
Spread on base commitment fee percentage if utilization greater than 50% | 0.25% | ||
Spread on base commitment fee percentage if utilization less than 50% | 0.35% | ||
Revolving credit facility | Credit Agreement | New York Federal Reserve Bank Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 0.50% | ||
Revolving credit facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 1% | ||
Revolving credit facility | Credit Agreement | LIBOR Rate Multiplied By Statutory Reserve Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 2% | ||
Revolving credit facility | Credit Agreement | EURIBOR Rate Multiplied By Statutory Reserve Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 2% | ||
Revolving credit facility | Credit Agreement | Sterling Overnight Index Average | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 2.03% | ||
Revolving credit facility | Credit Agreement | Swiss Average Rate Overnight | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 2% | ||
Revolving credit facility | Credit Agreement | AUD Screen Rate Multiplied By Statutory Reserve Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 2.20% | ||
Letters of credit | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 10,000,000 |
Debt Obligations (Details)
Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Disclosure [Abstract] | ||
Revolver | $ 100,000 | $ 65,000 |
Less: Debt issuance costs | (1,649) | (2,121) |
Debt obligations | $ 98,351 | $ 62,879 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 | Jun. 30, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Apr. 18, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested (in shares) | 1,817,984 | |||||
Unrecognized non-cash compensation | $ 41,100,000 | |||||
Unrecognized non-cash compensation, period of recognition | 3 years 9 months 18 days | |||||
Tax benefits related to equity-based awards | $ 1,800,000 | $ 7,400,000 | $ 0 | |||
Equity-based compensation | $ 24,940,000 | $ 13,996,000 | $ 7,899,000 | |||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 6 years | 4 years | ||||
Weighted-average grant-date fair value of awards granted (in dollars per share) | $ 28.97 | $ 35.18 | $ 18.53 | |||
Partnership interests grant date fair value (in dollars) | $ 6,100,000 | |||||
Fair value of awards vested | $ 16,500,000 | $ 27,500,000 | $ 0 | |||
Forfeited (in shares) | 34,996 | |||||
Unvested (in shares) | 1,775,732 | 2,087,324 | 2,500,000 | |||
Class A2 Interests | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 6 years | |||||
Profits interests percent | 5.20% | |||||
Class A2 Interests | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 0% | |||||
Class A2 Interests | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 30% | |||||
Class A2 Interests | Share-based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 5.80% | |||||
Liability classified awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity-based compensation | $ 8,600,000 | |||||
Amounts paid to settle liability classified awards | $ 0 | $ 0 | $ 0 | |||
Class B2 units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of stock, conversion basis (in shares) | 1 | |||||
Class B2 units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding (in shares) | 2,566,566 | |||||
Forfeited (in shares) | 0 | |||||
Unvested (in shares) | 748,582 | |||||
LTIP | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | 17,644,444 |
Equity-Based Compensation - Unv
Equity-Based Compensation - Unvested RSUs (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Number of RSUs | |||
RSUs, beginning balance (in shares) | 2,087,324 | ||
Granted (in shares) | 384,200 | ||
Vested (in shares) | (660,796) | ||
Forfeited (in shares) | (34,996) | ||
RSUs, ending balance (in shares) | 1,775,732 | 2,087,324 | |
Weighted-Average Grant-Date Fair Value Per RSU | |||
Beginning balance (in dollars per share) | $ 20.40 | ||
Granted (in dollars per share) | 28.97 | $ 35.18 | $ 18.53 |
Vested (in dollars per share) | (20.03) | ||
Forfeited (in dollars per share) | (22.06) | ||
Ending balance (in dollars per share) | $ 22.46 | $ 20.40 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic income (loss) before income tax | $ (102,560) | $ 471,247 | $ 307,396 |
Foreign income before income tax | 61,106 | 41,334 | 30,453 |
Total income (loss) before income tax | $ (41,454) | $ 512,581 | $ 337,849 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Current: | |||
Federal | $ 6,933 | $ 13,340 | $ 2,929 |
State and local | 1,726 | 2,714 | 1,141 |
Foreign | 7,653 | 6,383 | 3,381 |
Total current income tax expense | 16,312 | 22,437 | 7,451 |
Deferred: | |||
Federal | (10,570) | 4,897 | 14,752 |
State and local | (1,921) | 966 | 1,074 |
Foreign | 0 | 0 | (21) |
Total deferred income tax expense (benefit) | (12,491) | 5,863 | 15,805 |
Total income tax expense | $ 3,821 | $ 28,300 | $ 23,256 |
Income Taxes - Reconciliation T
Income Taxes - Reconciliation To Effective Tax Rate (Details) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | 21% | 21% | 21% |
State and local income tax | 0.80% | 0.80% | 0.60% |
Income passed through to limited partners | (13.60%) | (11.90%) | (15.70%) |
Foreign income tax | (18.50%) | 1.20% | 1% |
Valuation allowance | 4.70% | (5.30%) | 0% |
Return to provision | (3.70%) | (0.10%) | 0% |
Other | 0.10% | (0.20%) | 0% |
Effective tax rate | (9.20%) | 5.50% | 6.90% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | |||
Investment in the Partnership | $ 54,941 | $ 39,720 | |
Other | 1,769 | 1,568 | |
Total deferred tax assets before valuation allowance | 56,710 | 41,288 | |
Valuation allowance | (12,352) | (13,422) | $ (30,537) |
Total net deferred tax assets | 44,358 | 27,866 | |
Deferred tax liabilities: | |||
Total deferred tax liabilities | 353 | 1,529 | |
Net deferred tax assets | $ 44,005 | $ 26,337 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Decrease in valuation allowance recognized through equity | $ 5,006,000 | |||
Decrease in valuation allowance, income tax benefit | $ 1,975,000 | 27,413,000 | ||
Increase in deferred tax assets | 6,500,000 | |||
Decrease in valuation allowance | 200,000 | |||
Increase in due to related parties, tax receivable agreements | $ 8,500,000 | |||
Due to related parties, tax receivable agreements | 199,300,000 | |||
Deferred tax assets, valuation allowance | 12,352,000 | $ 13,422,000 | $ 30,537,000 | |
Unrecognized tax benefits | 0 | |||
Changes to uncertain tax positions | $ 0 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Valuation Allowance [Roll Forward] | ||
Beginning balance | $ 13,422 | $ 30,537 |
Income tax decrease | (1,975) | (27,413) |
Equity decrease | (5,006) | |
Equity increase | 905 | 15,304 |
Ending balance | $ 12,352 | $ 13,422 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||||
Net income (loss) attributable to StepStone Group Inc. – Basic | $ 62,634 | $ (18,398) | $ 193,885 | $ 62,634 |
Net income (loss) attributable to StepStone Group Inc. – Diluted | $ 68,411 | $ (18,398) | $ 205,617 | |
Denominator: | ||||
Weighted-average shares of Class A common stock outstanding – Basic (in shares) | 29,657,805 | 61,884,671 | 49,833,760 | 29,657,805 |
Weighted-average shares of Class A common stock outstanding - Diluted (in shares) | 33,274,804 | 61,884,671 | 53,600,250 | 33,274,804 |
Net income per share of Class A common stock: | ||||
Basic (in dollars per share) | $ 2.11 | $ (0.30) | $ 3.89 | $ 2.11 |
Diluted (in dollars per share) | $ 2.06 | $ (0.30) | $ 3.84 | $ 2.06 |
Restricted Stock Units (RSUs) | ||||
Numerator: | ||||
Incremental income from assumed vesting of units | $ 1,854 | $ 0 | $ 4,043 | |
Denominator: | ||||
Assumed vesting and exchange of restricted share units and Class B units (in shares) | 1,151,579 | 0 | 1,289,809 | |
Class B2 units | ||||
Numerator: | ||||
Incremental income from assumed vesting of units | $ 3,923 | $ 0 | $ 7,689 | |
Denominator: | ||||
Assumed vesting and exchange of restricted share units and Class B units (in shares) | 2,465,420 | 0 | 2,476,681 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,775,732 | ||
Class B2 units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,566,566 | ||
Class B Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 23,418 | ||
Class B Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, shares outstanding (in shares) | 46,420,141 | 47,149,673 | 56,378,831 |
Class C common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, shares outstanding (in shares) | 2,514,085 | 2,928,824 |
Related Party Disclosures - Nar
Related Party Disclosures - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Management and advisory fees, net | Stepstone Funds | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 335,600,000 | $ 241,000,000 | $ 171,000,000 |
Carried interest allocation revenues | Stepstone Funds | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | (122,300,000) | 786,600,000 | 496,800,000 |
Carried interest allocations, no economic interest | Stepstone Funds | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | (452,200,000) | 187,100,000 | 0 |
Tax Receivable Agreement | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payments to related parties | $ 6,000,000 | $ 800,000 | $ 0 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due from affiliates | $ 54,322 | $ 19,369 |
Due to affiliates | 205,424 | 199,355 |
Stepstone Funds | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 33,813 | 19,027 |
Due to affiliates | 4,796 | 198 |
Employees | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 7,016 | 342 |
Due to affiliates | 1,321 | 1,953 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Due from affiliates | 13,493 | 0 |
Due to affiliates | $ 199,307 | $ 197,204 |
Stockholders' Equity and Rede_3
Stockholders' Equity and Redeemable Interests - Narrative (Details) | 1 Months Ended | |||
Dec. 31, 2022 shares | Sep. 30, 2022 shares | Jun. 30, 2022 shares | Mar. 31, 2023 classOfStock $ / shares shares | |
Equity [Abstract] | ||||
Number of classes of common stock outstanding | classOfStock | 2 | |||
Preferred stock, authorized (in shares) | 25,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||
Preferred stock, issued (in shares) | 0 | |||
Preferred stock, outstanding (in shares) | 0 | |||
Class A Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued (in shares) | 296,756 | |||
Class B Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares exchanged (in shares) | 296,756 | |||
Exchange One | Class A Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued (in shares) | 414,739 | |||
Exchange One | Class C common stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares exchanged (in shares) | 414,739 | |||
Exchange Two | Class A Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued (in shares) | 175,000 | |||
Exchange Two | Class B Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares exchanged (in shares) | 175,000 | |||
Exchange Three | Class A Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued (in shares) | 257,776 | |||
Exchange Three | Class B Common Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares exchanged (in shares) | 257,776 |
Stockholders' Equity and Rede_4
Stockholders' Equity and Redeemable Interests - Schedule of Rollforward of the Company's Shares of Common Stock Outstanding Since IPO (Details) | 12 Months Ended |
Mar. 31, 2023 shares | |
Class A Common Stock | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Common stock, shares outstanding, beginning balance (in shares) | 61,141,306 |
Class A common stock issued for vesting of RSUs (in shares) | 549,214 |
Common stock, shares outstanding, ending balance (in shares) | 62,834,791 |
Class A Common Stock | Class B Partnership Unit | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Class A common stock issued in exchange for Class B and Class C partnership units (in shares) | 729,532 |
Class A Common Stock | Class C Partnership Unit | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Class A common stock issued in exchange for Class B and Class C partnership units (in shares) | 414,739 |
Class B Common Stock | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Common stock, shares outstanding, beginning balance (in shares) | 47,149,673 |
Class A common stock issued for vesting of RSUs (in shares) | 0 |
Common stock, shares outstanding, ending balance (in shares) | 46,420,141 |
Class B Common Stock | Class B Partnership Unit | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Class A common stock issued in exchange for Class B and Class C partnership units (in shares) | (729,532) |
Class B Common Stock | Class C Partnership Unit | |
Schedule of Common Stock Outstanding [Roll Forward] | |
Class A common stock issued in exchange for Class B and Class C partnership units (in shares) | 0 |
Stockholders' Equity and Rede_5
Stockholders' Equity and Redeemable Interests - Dividends (Details) - $ / shares | 12 Months Ended | |||||||||||
Mar. 15, 2023 | Dec. 15, 2022 | Sep. 15, 2022 | Jun. 30, 2022 | Mar. 15, 2022 | Dec. 15, 2021 | Sep. 15, 2021 | Jul. 15, 2021 | Mar. 12, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||||||||||||
Dividend per share of Class A common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.15 | $ 0.15 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.80 | $ 0.44 | $ 0.07 |
Stockholder's Equity and Redeem
Stockholder's Equity and Redeemable Interests - Redeemable Non-Controlling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 0 | ||
Contributions | 22,754 | ||
Net income | 1,776 | $ 0 | $ 0 |
Ending balance | $ 24,530 | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Sep. 20, 2021 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | Apr. 18, 2020 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 580,542 | $ 580,542 | $ 580,542 | ||
Restricted Stock Units (RSUs) | |||||
Business Acquisition [Line Items] | |||||
Unvested awards (in shares) | 2,087,324 | 2,087,324 | 1,775,732 | 2,500,000 | |
Greenspring | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage acquired | 100% | ||||
Cash consideration, net of working capital adjustment | $ 185,000 | ||||
Earn-out (up to) | 75,000 | ||||
Acquisition-related costs | $ 13,800 | ||||
Goodwill | 573,750 | ||||
Revenue since acquisition date | $ 230,000 | ||||
Earnings since acquisition date | $ 54,000 | ||||
Greenspring | Contractual rights | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 320,500 | ||||
Weighted-average amortization period | 10 years | ||||
Greenspring | Client relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 96,650 | ||||
Greenspring | Class A Common Stock | |||||
Business Acquisition [Line Items] | |||||
Stock issued for acquisition (in shares) | 12,686,756 | ||||
Greenspring | Class C common stock | |||||
Business Acquisition [Line Items] | |||||
Stock issued for acquisition (in shares) | 3,071,519 |
Business Combinations - Aggrega
Business Combinations - Aggregate Purchase Price (Details) - Greenspring - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 20, 2021 | Sep. 30, 2021 | |
Acquisition date fair value of consideration transferred: | ||
Cash consideration | $ 186,577 | |
Contingent consideration | 17,769 | $ 17,800 |
Total purchase price | 898,183 | |
Class A Common Stock | ||
Acquisition date fair value of consideration transferred: | ||
Common stock and units | 558,598 | |
Class C common stock | ||
Acquisition date fair value of consideration transferred: | ||
Common stock and units | $ 135,239 |
Business Combinations - Estimat
Business Combinations - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 20, 2021 |
Estimated fair value of assets acquired and liabilities assumed: | |||
Goodwill | $ 580,542 | $ 580,542 | |
Greenspring | |||
Estimated fair value of assets acquired and liabilities assumed: | |||
Cash and short-term receivables | $ 5,725 | ||
Legacy Greenspring investments in funds and accrued carried interest allocations | 1,203,299 | ||
Lease right-of-use assets, net | 2,585 | ||
Other assets and receivables | 2,146 | ||
Goodwill | 573,750 | ||
Deferred income taxes | (95,884) | ||
Accrued expenses and other liabilities | (4,685) | ||
Legacy Greenspring accrued carried interest-related compensation | (1,045,157) | ||
Lease liabilities | (2,585) | ||
Non-controlling interests in legacy Greenspring entities | (158,142) | ||
Total | 898,183 | ||
Greenspring | Contractual rights: management contracts | |||
Estimated fair value of assets acquired and liabilities assumed: | |||
Finite-lived intangible assets | 310,944 | ||
Greenspring | Client relationships | |||
Estimated fair value of assets acquired and liabilities assumed: | |||
Finite-lived intangible assets | 96,650 | ||
Greenspring | Contractual rights: service agreements | |||
Estimated fair value of assets acquired and liabilities assumed: | |||
Finite-lived intangible assets | $ 9,537 |
Business Combinations - Pro For
Business Combinations - Pro Forma Effect (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenues | $ 1,866,986 | $ 1,362,067 |
Net income attributable to StepStone Group Inc. | $ 168,653 | $ 80,743 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 USD ($) city | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Other Commitments [Line Items] | |||
Number of cities for leased offices | city | 25 | ||
Gain on remeasurement of lease liabilities | $ 2,709 | $ 0 | $ 0 |
Occupancy expense | $ 9,300 | ||
Unfunded capital commitments | 88,700 | 68,200 | |
Carried interest, contingent repayment obligations | 264,100 | ||
Legacy Funds | |||
Other Commitments [Line Items] | |||
Unfunded capital commitments | $ 50,600 | $ 40,500 |
Commitment and Contingencies _2
Commitment and Contingencies - Components of Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 10,983 | $ 11,098 |
Variable lease cost | 1,375 | 957 |
Sublease income | (1,778) | (1,679) |
Total lease cost | 10,580 | 10,376 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used for operating leases | $ 10,613 | $ 10,319 |
Weighted-average remaining lease term for operating leases (in years) | 12 years 1 month 6 days | 7 years 8 months 12 days |
Weighted-average discount rate for operating leases | 4.60% | 2.70% |
Commitment and Contingencies _3
Commitment and Contingencies - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
FY2024 | $ 12,337 | |
FY2025 | 14,062 | |
FY2026 | 15,179 | |
FY2027 | 14,362 | |
FY2028 | 12,474 | |
Thereafter | 96,504 | |
Total lease liabilities | 164,918 | |
Less: Imputed interest | (43,694) | |
Total operating lease liabilities | $ 121,224 | $ 70,965 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Non-discretionary contributions | $ 4.6 | $ 4.3 | $ 3.2 |
Plan assets | 27.4 | 23.8 | |
Underfunded pension obligation | 2.8 | 2.2 | |
Net periodic benefit cost | $ 0.5 | $ 1.1 | $ 0.9 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | May 24, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.20 |
Supplemental annual cash dividend (in dollars per share) | $ 0.25 |
Uncategorized Items - step-2023
Label | Element | Value |
Stock Issued During Period, Value, Exchange Of Securities And New Issues | step_StockIssuedDuringPeriodValueExchangeOfSecuritiesAndNewIssues | $ (9,000) |
Adjustments To Additional Paid In Capital, Deferred Tax Effect | step_AdjustmentsToAdditionalPaidInCapitalDeferredTaxEffect | 2,596,000 |
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | 0 |
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | 0 |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | 0 |
Dividends | us-gaap_Dividends | 2,227,000 |
Partners' Capital Account, Unit-Based Payment Arrangement, Amount | us-gaap_PartnersCapitalAccountUnitBasedCompensation | 725,000 |
Noncontrolling Interest, Increase From Contributions | step_NoncontrollingInterestIncreaseFromContributions | 2,749,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 63,585,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 34,091,000 |
Partners' Capital Account, Sale of Units | us-gaap_PartnersCapitalAccountSaleOfUnits | 3,308,000 |
Adjustments To Additional Paid In Capital, Purchase Of Partnership Interests | step_AdjustmentsToAdditionalPaidInCapitalPurchaseOfPartnershipInterests | 127,986,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 11,221,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 7,174,000 |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 337,798,000 |
Partners' Capital Account, Contributions | us-gaap_PartnersCapitalAccountContributions | 27,000 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | us-gaap_NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterest | 57,693,000 |
Partners' Capital Account, Treasury Units, Purchased | us-gaap_PartnersCapitalAccountTreasuryUnitsPurchases | 3,308,000 |
Retained Earnings [Member] | ||
Dividends | us-gaap_Dividends | 2,227,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 62,634,000 |
AOCI Attributable to Parent [Member] | ||
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | 37,000 |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | (513,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 335,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 118,000 |
Partners' Capital [Member] | ||
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | 252,000 |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | (211,894,000) |
Partners' Capital Account, Unit-Based Payment Arrangement, Amount | us-gaap_PartnersCapitalAccountUnitBasedCompensation | 723,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 50,424,000 |
Partners' Capital Account, Contributions | us-gaap_PartnersCapitalAccountContributions | 27,000 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | us-gaap_NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterest | 45,265,000 |
Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, Exchange Of Securities And New Issues | step_StockIssuedDuringPeriodValueExchangeOfSecuritiesAndNewIssues | (9,000) |
Adjustments To Additional Paid In Capital, Deferred Tax Effect | step_AdjustmentsToAdditionalPaidInCapitalDeferredTaxEffect | 2,596,000 |
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | (40,503,000) |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | 23,432,000 |
Adjustments To Additional Paid In Capital, Purchase Of Partnership Interests | step_AdjustmentsToAdditionalPaidInCapitalPurchaseOfPartnershipInterests | 127,979,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 3,611,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 2,239,000 |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 337,778,000 |
Partnership Of Subsidiary [Member] | Noncontrolling Interest [Member] | ||
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | 40,466,000 |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | 188,893,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 221,000 |
Noncontrolling Interest, Increase From Contributions | step_NoncontrollingInterestIncreaseFromContributions | 40,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 26,051,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 183,518,000 |
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts | 7,610,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 4,923,000 |
Subsidiaries [Member] | Noncontrolling Interest [Member] | ||
Partners' Capital Account, Reallocation Between Controlling And Non-Controlling Interest | step_PartnersCapitalAccountReallocationBetweenControllingAndNonControllingInterest | (252,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 351,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 350,000 |
Partners' Capital Account, Unit-Based Payment Arrangement, Amount | us-gaap_PartnersCapitalAccountUnitBasedCompensation | 2,000 |
Noncontrolling Interest, Increase From Contributions | step_NoncontrollingInterestIncreaseFromContributions | 2,709,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 13,161,000 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | us-gaap_MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders | 8,040,000 |
Partners' Capital Account, Sale of Units | us-gaap_PartnersCapitalAccountSaleOfUnits | 3,308,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 10,748,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 12,000 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | us-gaap_NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterest | 12,428,000 |
Partners' Capital Account, Treasury Units, Purchased | us-gaap_PartnersCapitalAccountTreasuryUnitsPurchases | 3,308,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Exchange Of Securities And New Issues | step_StockIssuedDuringPeriodValueExchangeOfSecuritiesAndNewIssues | 9,000 |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | 9,000 |
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 20,000 |
Common Class B [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, Exchange Of Securities And New Issues | step_StockIssuedDuringPeriodValueExchangeOfSecuritiesAndNewIssues | (9,000) |
Stockholders' Equity, Effect Of Reorganization | step_StockholdersEquityEffectOfReorganization | 73,000 |
Adjustments To Additional Paid In Capital, Purchase Of Partnership Interests | step_AdjustmentsToAdditionalPaidInCapitalPurchaseOfPartnershipInterests | $ 7,000 |