Like Hamilton Lane, StepStone Group Files to go Public
Posted on 08/25/2020
The private equity consulting giant StepStone Group Inc., whose roots were from executives at the Pacific Corporate Group, filed for a US$ 100 million initial public offering. StepStone has expanded into other asset classes such as infrastructure, real estate, and private debt. StepStone Group competes with investment consultants such as Hamilton Lane and TorreyCove Partners, as well as fund-of-funds like Harbouvest Partners, Lexington Partners, and Coller Capital. Hamilton Lane already is a listed company and has approximately US$ 516 billion in assets under management and supervision, composed of approximately US$ 68 billion in discretionary assets and over US$ 447 billion in advisory assets, as of June 30, 2020.
StepStone is a global private markets investment firm focused on providing customized investment solutions and advisory and data services. Separately managed accounts, including directly managed assets, comprised US$ 51 billion of the firm’s assets under management as of June 30, 2020.
StepStone Group touts its portfolio analytics product called Omni. StepStone Group also sees that private markets investors have shifted their interest away from generic funds-of-funds toward long term portfolio management through separately-managed accounts.
Tulsa Ties
Founded in 2002, Tulsa-based Argonaut Private Equity, which was founded by billionaire oilman George B. Kaiser, is a major shareholder of StepStone. Argonaut Private Equity controls its shares in StepStone through Argonaut Holdings, LLC. Kaiser is the Chairman of BOK Financial Corporation.
Annual Data for Year Ended March 31st
| Annual Data | 2018 | 2019 | 2020 |
|---|---|---|---|
| Revenues | $264,275,000 | $256,268,000 | $446,611,000 |
| Management and Advisory Fees, Net | $140,952,000 | $190,826,000 | $235,205,000 |
| Carried Interest Allocation | $121,834,000 | $63,902,000 | $207,996,000 |
StepStone Group – Client Contribution to management and advisory fees – Trailing 12 months from June 30, 2020
| Type | Percent | Geography Type | Percent |
|---|---|---|---|
| Pension Funds | 40% | North America | 34% |
| Private Wealth and Defined Contribution Plans | 18% | Asia and Australia | 26% |
| Insurance Companies | 16% | Europe | 18% |
| Sovereign Wealth Funds | 10% | Middle East | 18% |
| Family Offices | 6% | Central and South America | 4% |
| Corporations | 6% | ||
| Endowments and Foundations | 4% |
StepStone Group – AUM and AUA Data
| Region – Assets Under Advice – $226 Billion | Percent | Region – Assets Under Management – $66 Billion | Percent |
|---|---|---|---|
| North America | 71% | North America | 20% |
| Asia and Australia | 13% | Asia and Australia | 25% |
| Middle East | 15% | Middle East | 31% |
| Europe | 1% | Europe | 22% |
| South America | 2% |
Date: June 30, 2020.
Data: SEC Filing.