StepStone Group Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
STEP$47.45+10.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001796022-25-000060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001628280-25-050217
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 300 previous paragraphs and 329 current paragraphs.
214 unchanged; 76 reworded; 30 added; 10 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
On July 4, 2025, the One Big Beautiful Bill Act was enacted in the United States, which includes extensive amendments to existing tax laws applicable to businesses. The relevant provisions were included in our income tax provision for the three and six months ended September 30, 2025 and did not have a significant impact on our condensed consolidated financial statements. We will continue to evaluate the effect of the new legislation but do not expect the legislation to have a significant effect on the condensed consolidated financial statements for the full year ending March 31, 2026.
Current report
On October 1, 2025, the U.S. government entered a shutdown, which is ongoing. A prolonged U.S. federal government shutdown could adversely affect our operations, investments, regulatory approvals, and financial performance and could cause volatility in the capital markets which may interrupt our access to capital. We currently do not expect the shutdown to have a significant impact on our condensed consolidated financial statements.
Current report
In September 2025, we issued 370,470 shares of Class A common stock to certain limited partners of the Partnership in exchange for 370,470 Class B units of the Partnership 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 us. We also issued 16,658 shares of Class A common stock to certain limited partners of the Partnership in exchange for 16,658 Class C units of the Partnership in accordance with the elective exchange notices submitted pursuant to the Class C Exchange Agreement, and a corresponding number of Class A units of the Partnership were issued to us. We also issued 135,697 shares of Class A common stock to certain limited partners of the Partnership in exchange for 135,697 Class D units of the Partnership in accordance with the elective exchange notices submitted pursuant to the Class D Exchange Agreement, and a corresponding number of Class A units of the Partnership were issued to us.
Current report
Prior to September 18, 2025, holders of our Class B common stock controlled a majority of the voting power of our outstanding common stock because (i) each share of our Class B common stock entitled its holder to five votes on all matters to be voted on by stockholders generally, until the earliest to occur of certain ownership changes or September 18, 2025 as set forth in our then current Amended and Restated Certificate of Incorporation (the “Sunset”) and (ii) under our Amended and Restated Stockholders Agreement, dated as of September 20, 2021 (the “Stockholders Agreement”), certain Class A stockholders, Class B stockholders and Class C unitholders in the Partnership agreed to vote all of their shares of voting stock together and in accordance with the Class B Committee (as defined in the Stockholders Agreement). As a result, prior to the Sunset, we qualified as a “controlled company” within the meaning of the corporate governance rules of The Nasdaq Global Select Market LLC (“Nasdaq”). Under these rules, a listed company of which more than 50% of the voting power with respect to the election of directors is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements. Consistent with this, until the occurrence of the Sunset, we elected not to comply with certain corporate governance requirements, including the requirements that (i) a majority of our board of directors consist of independent directors, (ii) director nominees be selected or recommended to the board entirely by independent directors and (iii) the compensation committee be composed entirely of independent directors.
Current report
However, since the occurrence of the Sunset and expiration of the Stockholders Agreement on September 18, 2025, each share of Class A common stock and Class B common stock is entitled to one vote, and we no longer qualify as a “controlled company” within the meaning of the Nasdaq rules. Under the Nasdaq rules, the Company may continue to rely on exemptions from certain corporate governance requirements during a one year “phase-in” period. The Company has taken all action necessary to comply with the Nasdaq rules that apply to non-controlled companies, including transitioning our board of directors to being composed of a majority of independent directors by September 18, 2026 (the end of the permitted “phase-in” period following loss of controlled company status under the Nasdaq rules). Additionally, as of September 18, 2025, the Compensation Committee and Nominating and Corporate Governance Committee of our board of directors each consist of a majority of independent directors. On or before September 18, 2026, we plan for these committees to be composed entirely of independent directors, and for a majority of our board of directors to consist of independent directors. Until the Company is fully subject to these requirements, stockholders may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements under the Nasdaq rules.
Current report
Total revenues increased $360.4 million, or 79%, to $818.5 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The overall increase was driven by higher carried interest allocations, higher management and advisory fees, net, higher legacy Greenspring carried interest allocations, and higher incentive fees, in each case, as described below.
Current report
Incentive fees increased $1.1 million, or 27%, to $5.1 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, largely due to higher realization activity and higher incentive fees generated by certain private wealth funds.
Current report
Legacy Greenspring carried interest allocation revenues increased $62.0 million to $66.8 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024 as a result of higher net unrealized appreciation in the fair value of certain underlying fund investments in the current year period as compared to the prior year period. The six months ended September 30, 2025 reflect gross realized carried interest allocations of $18.2 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $48.6 million. The six months ended September 30, 2024 reflect gross realized carried interest allocations of $18.6 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $(13.7) million.
Current report
Cash-based compensation increased $17.5 million, or 21%, to $100.3 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, due to 16% higher average headcount and increased compensation levels from merit increases in the current year period as compared to the prior year period.
Current report
General, administrative and other expenses decreased $4.8 million, or 10%, to $45.3 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The overall decrease primarily reflected a $10.8 million lower expense for change in fair value for contingent consideration obligation as compared to the prior period, partially offset by increases of $1.8 million in marketing and conference expenses, $1.2 million in travel and associated costs for investment evaluation and client service, $1.0 million in professional fees and other general operating expenses.
Current report
Total expenses increased $1,240.3 million, or 345%, to $1,600.3 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The overall increase resulted from increases in equity-based compensation, performance fee-related compensation, legacy Greenspring performance fee-related compensation, and cash-based compensation, partially offset by lower general, administrative and other expenses, in each case, as described below.
Current report
Cash-based compensation increased $35.2 million, or 22%, to $196.3 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, due to 13% higher average headcount and increased compensation levels from merit increases in the current year period as compared to the prior year period.
Current report
Total performance fee-related compensation expense increased $129.3 million, or 279%, to $175.8 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting the increase in carried interest allocation revenue. Realized performance fee-related compensation increased $13.1 million, or 44%, to $42.7 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting higher realization activity.
Current report
Legacy Greenspring performance fee-related compensation expense increased $62.0 million to $66.8 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The six months ended September 30, 2025 reflect gross realized performance fee-related compensation expense of $18.2 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $48.6 million. The six months ended September 30, 2024 reflect gross realized performance fee-related compensation expense of $18.6 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $(13.7) million.
Current report
Investment income decreased $3.3 million to loss of $1.2 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments in StepStone Funds.
Current report
Legacy Greenspring investment loss decreased $10.0 million to income of $4.7 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The six months ended September 30, 2025 reflect gross realized investment income of $2.5 million and unrealized investment income, net of the reversal of realized investment income, of $2.2 million. The six months ended September 30, 2024 reflected gross realized investment income of $2.9 million and unrealized investment loss, net of the reversal of realized investment income, of $8.1 million.
Current report
Investment income of Consolidated Funds increased $51.9 million, or 327%, to $67.7 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments of the Consolidated Funds on higher investment balances during the current year period as compared with the prior year period.
Current report
Interest income increased $0.6 million, or 13%, to $5.7 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily due to higher average cash and cash equivalent balances during the current year period as compared with the prior year period. Interest income attributable to Consolidated Funds was $2.3 million in the current year and prior year periods.
Current report
Other income increased $6.3 million, or 763%, to $7.1 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting higher net foreign currency transaction gains in the current year period as compared with the prior year period as well as the inclusion of gains related to adjustments for the Tax Receivable Agreements during the current year period.
Current report
Net income attributable to redeemable non-controlling interests in subsidiaries was $0.4 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, and $1.0 million and $0.7 million for the six months ended September 30, 2025 and 2024, respectively.
Current report
Six Months Ended September 30, 2025
Current report
Adjusted revenues increased $89.9 million, or 21%, to $519.8 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting increases in fee revenues and realized carried interest allocations.
Current report
ANI increased $4.4 million, or 4%, to $115.2 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily due to the increase in FRE as discussed above, higher performance fee-related earnings (adjusted incentive fees, plus realized carried interest allocation revenues, less realized performance fee-related compensation), higher interest income and higher realized investment income. The overall increase was partially offset by a higher allocation of income to non-controlling interests and higher interest expense.
Current report
Financing activities provided (used) $43.4 million and $(23.6) million of cash for the six months ended September 30, 2025 and 2024, respectively, and primarily consisted of the following:
Current report
•distributions to non-controlling interests of $112.9 million and $78.4 million;
Current report
•distributions to non-controlling interests in legacy Greenspring entities of $4.4 million and $9.7 million;
Current report
•payments for taxes related to the net settlement of RSUs of $0 million and $1.1 million;
Current report
•proceeds from issuance of Class A common stock under ESPP of $1.7 million and $1.1 million;
Current report
•proceeds from borrowings on fund credit facility of $17.5 million and $0 million;
Current report
In September 2025, we issued 370,470 shares of Class A common stock to certain limited partners of the Partnership in exchange for 370,470 Class B units of the Partnership 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 us. We also issued 16,658 shares of Class A common stock to certain limited partners of the Partnership in exchange for 16,658 Class C units of the Partnership in accordance with the elective exchange notices submitted pursuant to the Class C Exchange Agreement, and a corresponding number of Class A units of the Partnership were issued to us. We also issued 135,697 shares of Class A common stock to certain limited partners of the Partnership in exchange for 135,697 Class D units of the Partnership in accordance with the elective exchange notices submitted pursuant to the Class D Exchange Agreement, and a corresponding number of Class A units of the Partnership were issued to us.
Removed paragraphs (10)
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States, introducing significant tax reform provisions applicable to businesses. We are currently assessing the potential impact of the legislation on our condensed consolidated financial statements, including any changes to current and deferred tax positions, valuation allowances and future cash tax obligations.
Previous report
As the enactment date occurred after the end of the reporting period, the effects of the OBBBA are not reflected in our results of operations for the three months ended June 30, 2025. We will continue to monitor related regulatory developments and expect to incorporate the impact of the legislation in future reporting periods, as required.
Previous report
The portion of the equity interests expected to be acquired in each annual exchange is set forth in an exchange schedule attached to each Transaction Agreement and is approximately 5% of each Asset Class Entity on each contemplated annual exchange date. The amount of consideration to be delivered is calculated using exchange ratios determined annually derived from a formula that establishes an assumed value of each Asset Class Entity based on its estimated adjusted net income, relative to an adjusted trading multiple for our Class A common stock with respect to our estimated adjusted net income. The Transaction Agreement specifies a minimum adjusted trading multiple required for the exchange to take place. If this threshold is not met for a particular year, the exchange for that year will be skipped and combined with a future exchange in a subsequent year, provided the minimum adjusted trading multiple is met at that time.
Previous report
A “Sunset” is triggered upon the earliest to occur of the following: (i) Monte Brem, Scott Hart, Jason Ment, Jose Fernandez, Johnny Randel, Michael McCabe, Mark Maruszewski, Thomas Keck, Thomas Bradley, David Jeffrey and Darren Friedman (including their respective family trusts and any other permitted transferees, the “Sunset Holders”) collectively cease to maintain direct or indirect beneficial ownership of at least 10% of the outstanding shares of Class A common stock (determined assuming all outstanding Class B units have been exchanged for Class A common stock); (ii) the Sunset Holders cease collectively to maintain direct or indirect beneficial ownership of an aggregate of at least 25% of the aggregate voting power of our outstanding Class A common stock and Class B common stock, before giving effect to a Sunset; and (iii) September 18, 2025. As of June 30, 2025, the Sunset Holders collectively maintained direct or indirect beneficial ownership of approximately 26.9% of the Class A common stock (determined assuming all outstanding Class B units have been exchanged for Class A common stock) and approximately 55.7% of the aggregate voting power of our outstanding Class A common stock and Class B common stock. At this time, we anticipate that the Sunset will occur on September 18, 2025.
Previous report
Cash-based compensation increased $17.8 million, or 23%, to $96.0 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, due to increased staffing and compensation levels. Our average headcount was 14% higher in the current year period as compared to the prior year period.
Previous report
Net income attributable to redeemable non-controlling interests in subsidiaries was $0.6 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively.
Previous report
(9)Other includes all strategies except for direct lending, mezzanine and distressed/non-performing debt.
Previous report
Financing activities used $72.2 million and $22.9 million of cash for the three months ended June 30, 2025 and 2024, respectively, and primarily consisted of the following:
Previous report
•distributions to non-controlling interests of $60.2 million and $30.1 million;
Previous report
•distributions to non-controlling interests in legacy Greenspring entities of $3.0 million and $5.4 million;
Reworded paragraphs (76)
Previous wording
We are a global private markets investment firm focused on providing customized investment solutions and advisory and data services to our clients. Our 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, which include high-net-worth and mass affluent individuals. We partner with our 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”). As of June 30, 2025, we were responsible for approximately $723 billion of total capital, including $199 billion of AUM and $524 billion of AUA.
Current wording
We are a global private markets investment firm focused on providing customized investment solutions and advisory and data services to our clients. Our 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, which include high-net-worth and mass affluent individuals. We partner with our 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”). As of September 30, 2025, we were responsible for approximately $771 billion of total capital, including $209 billion of AUM and $562 billion of AUA.
Previous wording
We are a global firm and believe that our multi-asset class expertise, local knowledge, business relationships, proprietary data and technology, and presence are all critical to securing a competitive edge in the private markets. We deploy a local staffing model, operating from 29 cities across 17 countries on five continents. Our offices are staffed by investment professionals who bring valuable regional insights and language proficiency to enhance existing client relationships and build new client relationships. Since our inception in 2007, we have invested and continue to invest heavily in our platforms to drive growth and expand our investment solutions capabilities and service offerings, including through opportunistic transactions that have helped accelerate the growth of our team and capabilities. As of June 30, 2025, we had 1,160 total employees, including over 385 investment professionals and over 770 employees across our operating team and implementation teams dedicated to sourcing, executing, analyzing and monitoring private markets opportunities.
Current wording
We are a global firm and believe that our multi-asset class expertise, local knowledge, business relationships, proprietary data and technology, and presence are all critical to securing a competitive edge in the private markets. We deploy a local staffing model, operating from 31 cities across 19 countries on five continents. Our offices are staffed by investment professionals who bring valuable regional insights and language proficiency to enhance existing client relationships and build new client relationships. Since our inception in 2007, we have invested and continue to invest heavily in our platforms to drive growth and expand our investment solutions capabilities and service offerings, including through opportunistic transactions that have helped accelerate the growth of our team and capabilities. As of September 30, 2025, we had over 1,240 total employees, including 420 investment professionals and over 820 employees across our operating team and implementation teams dedicated to sourcing, executing, analyzing and monitoring private markets opportunities.
Previous wording
•Separately managed accounts (“SMAs”). Owned by one client and managed according to their specific preferences, SMAs integrate a combination of primaries, secondaries and co-investments across one or more asset classes. SMAs are meant to address clients’ specific portfolio objectives with respect to return, risk tolerance, diversification and liquidity. SMAs, including directly managed assets, comprised $121 billion of our AUM as of June 30, 2025.
Current wording
•Separately managed accounts (“SMAs”). Owned by one client and managed according to their specific preferences, SMAs integrate a combination of primaries, secondaries and co-investments across one or more asset classes. SMAs are meant to address clients’ specific portfolio objectives with respect to return, risk tolerance, diversification and liquidity. SMAs, including directly managed assets, comprised $125 billion of our AUM as of September 30, 2025.
Previous wording
•Focused commingled funds. Owned by multiple clients, our focused commingled funds deploy capital in specific asset classes with defined investment strategies. Focused commingled funds comprised $63 billion of our AUM as of June 30, 2025.
Current wording
•Focused commingled funds. Owned by multiple clients, our focused commingled funds deploy capital in specific asset classes with defined investment strategies. Focused commingled funds comprised $68 billion of our AUM as of September 30, 2025.
Previous wording
•Advisory and data services. These services include one or more of the following for our clients: (i) recurring support of portfolio construction and design; (ii) discrete or project-based due diligence, advice and investment recommendations; (iii) detailed review of existing private markets investments, including portfolio-level repositioning recommendations where appropriate; (iv) consulting on investment pacing, policies, strategic plans, and asset allocation to investment boards and committees; and (v) licensed access to our proprietary data and technology platforms, including StepStone Private Markets Intelligence (“SPI”) Research and our other proprietary tools. Advisory relationships comprised$524 billion of our AUA and $16 billion of our AUM as of June 30, 2025.
Current wording
•Advisory and data services. These services include one or more of the following for our clients: (i) recurring support of portfolio construction and design; (ii) discrete or project-based due diligence, advice and investment recommendations; (iii) detailed review of existing private markets investments, including portfolio-level repositioning recommendations where appropriate; (iv) consulting on investment pacing, policies, strategic plans, and asset allocation to investment boards and committees; and (v) licensed access to our proprietary data and technology platforms, including StepStone Private Markets Intelligence (“SPI”) Research and our other proprietary tools. Advisory relationships comprised$562 billion of our AUA and $16 billion of our AUM as of September 30, 2025.
Previous wording
•Portfolio analytics and reporting. We provide clients with tailored reporting packages, including customized performance benchmarks as well as associated compliance, administrative and tax capabilities. Mandates for portfolio analytics and reporting services typically include licensed access to our proprietary performance monitoring software, SPI Reporting. We provided portfolio analytics and reporting on over $789 billion of client commitments through SPI Reporting as of June 30, 2025.
Current wording
•Portfolio analytics and reporting. We provide clients with tailored reporting packages, including customized performance benchmarks as well as associated compliance, administrative and tax capabilities. Mandates for portfolio analytics and reporting services typically include licensed access to our proprietary performance monitoring software, SPI Reporting. We provided portfolio analytics and reporting on over $829 billion of client commitments through SPI Reporting as of September 30, 2025.
Previous wording
In 2025, financial markets have experienced significant volatility in response to the uncertainty of the economic impact from U.S. trade policy developments including the announcement and implementation of increases on tariffs charged by the U.S. on certain imports and the weakening of the U.S. dollar against several major foreign currencies. Although inflation has remained elevated, unemployment has remained low and the U.S. economy has experienced sustained expansion during calendar 2025 to date.
Current wording
In early 2025, financial markets experienced significant volatility in response to the uncertainty of the economic impact from U.S. trade policy developments including the announcement and implementation of increases on tariffs charged by the U.S. on certain imports and the weakening of the U.S. dollar against several major foreign currencies. Despite persistent elevated inflation, unemployment has remained low, and the U.S. economy has continued to grow throughout calendar year 2025.
Previous wording
•certain members of management, employee owners and outside investors, all of whom own Class B units and an equivalent number of shares of Class B common stock;
Current wording
•certain members of management, employee and former employee owners and outside investors, all of whom own Class B units and an equivalent number of shares of Class B common stock;
Previous wording
(2)Each share of Class A common stock is entitled to one vote and vote together with the Class B common stock as a single class, except as set forth in SSG’s amended and restated certificate of incorporation or as required by law.
Current wording
(2)Each share of Class A common stock is entitled to one vote and votes together with the Class B common stock as a single class, except as set forth in SSG’s amended and restated certificate of incorporation or as required by law.
Previous wording
(3)Each share of Class B common stock is entitled to five votes prior to a Sunset (as defined below). After a Sunset becomes effective, each share of our Class B common stock will then entitle its holder to one vote. The economic rights of our Class B common stock are limited to the right to be redeemed at par value.
Current wording
(3)Each share of Class B common stock is entitled to one vote and votes together with the Class A common stock as a single class, except as set forth in SSG’s amended and restated certificate of incorporation or as required by law. The economic rights of our Class B common stock are limited to the right to be redeemed at par value.
Previous wording
•Management fees from SMAs are generally based on a contractual rate applied to committed capital or net invested capital. These fees will vary over the life of the contract due to changes in the fee basis or contractual rate changes or thresholds, built-in declines in applicable contractual rates, and/or changes in net invested capital balances. The weighted-average management fee rate from SMAs was approximately 0.39% of average FEAUM for both the twelve months ended June 30, 2024 and 2025.
Current wording
•Management fees from SMAs are generally based on a contractual rate applied to committed capital or net invested capital. These fees will vary over the life of the contract due to changes in the fee basis or contractual rate changes or thresholds, built-in declines in applicable contractual rates, and/or changes in net invested capital balances. The weighted-average management fee rate from SMAs was approximately 0.39% and 0.38% of average FEAUM for both the twelve months ended September 30, 2024 and 2025.
Previous wording
•Management fees from focused commingled funds are generally based on a specified fee rate applied against client capital commitments during a defined investment or commitment period. Thereafter, management fees are typically calculated based on a contractual rate applied against net invested capital, or a stepped-down fee rate applied against the initial commitment. The weighted-average management fee rate from focused commingled funds was approximately 0.99% and 1.02% of average FEAUM for the twelve months ended June 30, 2024 and 2025, respectively, and primarily reflected the timing of new funds and growth in our private wealth funds which earn higher fee rates.
Current wording
•Management fees from focused commingled funds are generally based on a specified fee rate applied against client capital commitments during a defined investment or commitment period. Thereafter, management fees are typically calculated based on a contractual rate applied against net invested capital, or a stepped-down fee rate applied against the initial commitment. The weighted-average management fee rate from focused commingled funds was approximately 1.03% and 1.00% of average FEAUM for the twelve months ended September 30, 2024 and 2025, respectively, and primarily reflected the timing of new funds and growth in our private wealth funds which earn higher fee rates.
Previous wording
•The weighted-average management fee rate across SMAs and focused commingled funds was approximately 0.61% and 0.64% of average FEAUM for the twelve months ended June 30, 2024 and 2025, respectively, and primarily reflected the timing of new funds, shifts in mix between SMAs and focused commingled funds and growth in our private wealth funds which earn higher fee rates.
Current wording
•The weighted-average management fee rate across SMAs and focused commingled funds was approximately 0.63% and 0.63% of average FEAUM for the twelve months ended September 30, 2024 and 2025, respectively, and primarily reflected the timing of new funds, shifts in mix between SMAs and focused commingled funds and growth in our private wealth funds which earn higher fee rates.
Previous wording
(1)Reflects amounts attributable to consolidated VIEs for which we did not acquire any direct economic interests. See notes 3 and 5 to our condensed consolidated financial statements included elsewhere in this quarterly report.
Current wording
(1)Reflects amounts attributable to consolidated VIEs for which we did not acquire any direct economic interests. See notes 2, 3 and 5 to our condensed consolidated financial statements included elsewhere in this quarterly report.
Previous wording
Total revenues increased $177.9 million, or 95%, to $364.3 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The overall increase was driven by higher carried interest allocations, positive legacy Greenspring carried interest allocations in the current period as compared to a reversal in the prior year period and higher management and advisory fees, net, partially offset by lower incentive fees, in each case, as described below.
Current wording
Total revenues increased $182.5 million, or 67%, to $454.2 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The overall increase was driven by higher carried interest allocations, higher management and advisory fees, net, higher legacy Greenspring carried interest allocations, and higher incentive fees, in each case, as described below.
Previous wording
Management and advisory fees, net increased $33.2 million, or 19%, to $211.2 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was driven by new client activity and 28% growth in average FEAUM across the platform. The three months ended June 30, 2025 included retroactive fees of $2.9 million from the closings of StepStone’s Real Estate Partners V and infrastructure secondaries funds. The three months ended June 30, 2024 included retroactive fees of $19.1 million from the closings of StepStone’s Secondary Opportunities V, Real Estate Partners V and Infrastructure Co-Investment Partners 2022 funds.
Current wording
Management and advisory fees, net increased $30.7 million, or 17%, to $215.5 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was driven by new client activity and 27% growth in average FEAUM across the platform. The three months ended September 30, 2025 included retroactive fees of $0.3 million from the closings of StepStone’s infrastructure secondaries and micro venture capital primaries funds. The three months ended September 30, 2024 included retroactive fees of $14.9 million from the closings of StepStone’s Secondary Opportunities V, Real Estate Partners V, and Infrastructure Co-Investment Partners 2022 funds.
Previous wording
Incentive fees decreased $0.7 million, or 77%, to $0.2 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, largely due to lower realization activity, partially offset by higher incentive fees generated by certain private wealth funds.
Current wording
Incentive fees increased $1.7 million, or 55%, to $4.9 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, largely due to higher realization activity and higher incentive fees generated by certain private wealth funds.
Previous wording
Realized carried interest allocation revenues decreased $17.4 million, or 42%, to $24.4 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, reflecting lower realization activity within our private equity, infrastructure and real estate funds. Unrealized carried interest allocation revenues include the reversal of realized carried interest allocation revenues. Excluding the reversal of $24.4 million, unrealized carried interest allocation revenues increased $96.7 million to $113.3 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase in unrealized carried interest allocations for the three months ended June 30, 2025 primarily reflected a net increase in the cumulative allocation of gains associated with the underlying portfolios within our private equity funds as compared to a net decrease in the prior year period.
Current wording
Realized carried interest allocation revenues increased $41.2 million, or 234%, to $58.9 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, reflecting higher realization activity within our private equity funds. Unrealized carried interest allocation revenues include the reversal of realized carried interest allocation revenues. Excluding the reversal of $58.9 million, unrealized carried interest allocation revenues increased $136.8 million, or 196%, to $206.7 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase in unrealized carried interest allocations for the three months ended September 30, 2025 primarily reflected a higher net increase in the cumulative allocation of gains associated with the underlying portfolios within our private equity funds.
Previous wording
Legacy Greenspring carried interest allocation revenues increased $48.7 million to $39.6 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 as a result of net unrealized appreciation in the fair value of certain underlying fund investments in the current year period as compared to net unrealized depreciation in the prior year period. The three months ended June 30, 2025 reflect gross realized carried interest allocations of $4.9 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $34.8 million. The three months ended June 30, 2024 reflect gross realized carried interest allocations of $6.6 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $(15.7) million.
Current wording
Legacy Greenspring carried interest allocation revenues increased $13.2 million, or 95%, to $27.1 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 as a result of higher net unrealized appreciation in the fair value of certain underlying fund investments in the current year period as compared to the prior year period. The three months ended September 30, 2025 reflect gross realized carried interest allocations of $13.3 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $13.8 million. The three months ended September 30, 2024 reflect gross realized carried interest allocations of $11.9 million and unrealized carried interest allocations, net of the reversal of realized carried interest allocations, of $2.0 million.
Previous wording
Total expenses increased $284.1 million, or 204%, to $423.3 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The overall increase resulted from increases in equity-based compensation, legacy Greenspring performance fee-related compensation, performance fee-related compensation, cash-based compensation and general, administrative and other expenses, in each case, as described below.
Current wording
Total expenses increased $956.3 million, or 433%, to $1,177.0 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The overall increase resulted from increases in equity-based compensation, performance fee-related compensation, cash-based compensation and legacy Greenspring performance fee-related compensation, partially offset by lower general, administrative and other expenses, in each case, as described below.
Previous wording
Equity-based compensation increased $169.5 million, or 884%, to $188.7 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily attributable to a $170.5 million increase in expenses for liability classified awards related to the profits interest issued in SPW in the current year period as compared to the prior year period and restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”) granted in the current year period with no comparable expense for these grants in the prior year period. These increases were partially offset by a decrease of $2.5 million in expense due to the final vesting of RSUs issued in connection with our IPO. We expect that there may be additional significant increases in equity-based compensation in future periods due to further increases in the fair value of liability classified awards, which is driven by the performance of SPW. SPW generated profitability in fiscal 2025, and we expect that there will be an increase in the profitability generated by SPW in the future which would increase the fair value of the associated liability for the profits interest issued in SPW. As of June 30, 2025 and March 31, 2025, we had recognized $841.7 million and $663.9 million, respectively, for liability classified awards within accrued compensation and benefits in the condensed consolidated balance sheets.
Current wording
Equity-based compensation increased $847.1 million to $884.5 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily attributable to an $847.7 million increase in expenses for liability classified awards related to the profits interest issued in SPW in the current year period as compared to the prior year period, and restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”) granted in the current year period with no comparable expense for these grants in the prior year period. These increases were partially offset by a decrease of $2.5 million in expense due to the final vesting of RSUs issued in connection with our IPO. We expect that there may be additional significant increases in equity-based compensation in future periods due to further increases in the fair value of liability classified awards, which is driven by the performance of SPW. SPW generated profitability in fiscal 2025 and in fiscal 2026 to date, and we expect that there will be an increase in the profitability generated by SPW in the future which would increase the fair value of the associated liability for the profits interest issued in SPW. As of September 30, 2025 and March 31, 2025, we had recognized $1,712.9 million and $663.9 million, respectively, for liability classified awards within accrued compensation and benefits in the condensed consolidated balance sheets.
Previous wording
Total performance fee-related compensation expense increased $46.1 million, or 465%, to $56.1 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily reflecting the increase in carried interest allocation revenue. Realized performance fee-related compensation decreased $9.1 million, or 44%, to $11.7 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily reflecting lower realization activity.
Current wording
Total performance fee-related compensation expense increased $83.2 million, or 228%, to $119.7 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily reflecting the increase in carried interest allocation revenue. Realized performance fee-related compensation increased $22.2 million, or 254%, to $31.0 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily reflecting higher realization activity.
Previous wording
Legacy Greenspring performance fee-related compensation expense increased $48.7 million to $39.6 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The three months ended June 30, 2025 reflect gross realized performance fee-related compensation expense of $4.9 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $34.8 million. The three months ended June 30, 2024 reflect gross realized performance fee-related compensation expense of $6.6 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $(15.7) million.
Current wording
Legacy Greenspring performance fee-related compensation expense increased $13.2 million, or 95%, to $27.1 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The three months ended September 30, 2025 reflect gross realized performance fee-related compensation expense of $13.3 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $13.8 million. The three months ended September 30, 2024 reflect gross realized performance fee-related compensation expense of $11.9 million and unrealized performance fee-related compensation expense, net of the reversal of realized performance fee-related compensation expense, of $2.0 million.
Previous wording
General, administrative and other expenses increased $1.9 million, or 5%, to $42.9 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The overall increase primarily reflected $2.1 million in professional fees, $0.7 million in information and technology expenses, $0.7 million in marketing and conference expenses, $0.4 million in occupancy costs, $0.3 million in general and administrative expenses for the Consolidated Funds and other general operating expenses, partially offset by a decrease of $2.9 million for lower loss on change in fair value for contingent consideration obligation.
Current wording
General, administrative and other expenses decreased $2.9 million, or 3%, to $88.2 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The overall decrease primarily reflected a $13.7 million lower expense for change in fair value for contingent consideration obligation as compared to the prior period, partially offset by increases of $3.0 million in professional fees, $2.4 million in marketing and conference expenses, $1.5 million in travel and associated costs for investment evaluation and client service, $0.9 million in information and technology expenses and other general operating expenses.
Previous wording
Legacy Greenspring investment income (loss) increased $4.6 million to income of $3.4 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The three months ended June 30, 2025 reflect gross realized investment income of $1.8 million and unrealized investment income, net of the reversal of realized investment income, of $1.6 million. The three months ended June 30, 2024 reflect gross realized investment income of $0.9 million and unrealized investment loss, net of the reversal of realized investment income, of $2.1 million.
Current wording
Legacy Greenspring investment loss decreased $5.3 million to income of $1.3 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The three months ended September 30, 2025 reflect gross realized investment income of $0.8 million and unrealized investment income, net of the reversal of realized investment income, of $0.5 million. The three months ended September 30, 2024 reflect gross realized investment income of $2.0 million and unrealized investment loss, net of the reversal of realized investment income, of $6.0 million.
Previous wording
Investment income of Consolidated Funds increased $14.0 million, or 184%, to $21.7 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments of the Consolidated Funds on higher investment balances during the current year period as compared with the prior year period.
Current wording
Investment income of Consolidated Funds increased $37.8 million, or 461%, to $46.0 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments of the Consolidated Funds on higher investment balances during the current year period as compared with the prior year period.
Previous wording
Interest income increased $0.4 million, or 21%, to $2.5 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to higher average cash and cash equivalent balances during the current year period as compared with the prior year period. Interest income attributable to Consolidated Funds was $1.0 million in the current year period as compared to $0.9 million in the prior year period.
Current wording
Interest income increased $0.2 million, or 7%, to $3.2 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to higher average cash and cash equivalent balances during the current year period as compared with the prior year period. Interest income attributable to Consolidated Funds was $1.3 million in the current year period as compared to $1.4 million in the prior year period.
Previous wording
Interest expense increased $1.5 million, or 52%, to $4.5 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was due to higher average outstanding debt balances during the current year period as compared with the prior year period, partially offset by the lower interest rate on the Notes for the current year period.
Current wording
Interest expense increased $0.9 million, or 26%, to $4.4 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was due to higher average outstanding debt balances during the current year period as compared with the prior year period, partially offset by the lower interest rate on the Notes for the current year period.
Previous wording
Other income (loss) increased $5.5 million to income of $5.2 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily reflecting net foreign currency transaction gains in the current year period as compared with net foreign currency transaction losses in the prior year period.
Current wording
Other income increased $0.8 million, or 68%, to $2.0 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily reflecting the inclusion of gains related to adjustments for the Tax Receivable Agreements during the current year period, partially offset by lower net foreign currency transaction gains in the current year period as compared with the prior year period.
Previous wording
Investment income increased $7.9 million, or 305%, to $10.5 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments in StepStone Funds.
Current wording
Investment income increased $4.7 million, or 100%, to $9.3 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting overall changes in the valuations of the underlying investments in StepStone Funds.
Previous wording
Our effective income tax rate was 41.0% and 12.4% for the three months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate for the three months ended June 30, 2025 as compared to the prior year period was driven, in part, by the additional tax benefit associated with losses that were not allocated to non-controlling interests. For the three months ended June 30, 2024, the lower effective tax rate relative to the statutory rate was primarily due to the allocation of income to non-controlling interests in a period of pre-tax net income, for which the tax liability on such income is borne by the holders of those non-controlling interests.
Current wording
Our effective income tax rate was 14.8% and 8.2% for the three months ended September 30, 2025 and 2024, respectively, and 15.6% and 10.2% for the six months ended September 30, 2025 and 2024, respectively. The overall effective tax rate in each of the periods described above is less than the statutory rate. For the three and six months ended September 30, 2025, this is primarily due to a portion of net loss allocated to non-controlling interests and the related tax benefit being borne by the holders of non-controlling interests. For the three and six months ended September 30, 2024, this is primarily due to a portion of net income allocated to non-controlling interests and the related tax liability being borne by the holders of non-controlling interests. The increase in the effective tax rate for the three and six months ended September 30, 2025 as compared to the prior year period was mainly driven by a decrease in the tax benefit associated with net loss allocated to non-controlling interests in a period of increased pre-tax net loss, as well as an increase in tax benefits associated with the vesting of RSUs for the three and six months ended September 30, 2024.
Previous wording
Income tax expense decreased $15.1 million to a benefit of $8.3 million for the three months ended June 30, 2025 as compared to expense for the three months ended June 30, 2024. The decrease in tax expense was primarily driven by a tax benefit associated with income allocated to non-controlling interests, which had a greater impact in the current year period due to pre-tax net loss for the three months ended June 30, 2025 as compared to pre-tax net income for the three months ended June 30, 2024.
Current wording
Income tax expense decreased $105.1 million to a benefit of $100.3 million for the three months ended September 30, 2025 as compared to expense for the three months ended September 30, 2024. The decrease in tax expense was primarily driven by pre-tax net loss for the three months ended September 30, 2025 as compared to pre-tax net income for the three months ended September 30, 2024.
Previous wording
Net income attributable to non-controlling interests in subsidiaries increased $12.0 million, or 72%, to $28.6 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily attributable to an increase in income generated by our consolidated subsidiaries not wholly-owned by us, partially offset by an increase in our economic interests in the Asset Class Entities as a result of the Transaction Agreements resulting in a lower rate of allocation of net income to non-controlling interests in subsidiaries.
Current wording
Net income attributable to non-controlling interests in subsidiaries increased $2.1 million, or 6%, to $37.9 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The increase was primarily attributable to an increase in income generated by our consolidated subsidiaries not wholly-owned by us, partially offset by an increase in our economic interests in the Asset Class Entities as a result of the Transaction Agreements resulting in a lower rate of allocation of net income to non-controlling interests in subsidiaries.
Previous wording
Net income (loss) attributable to non-controlling interests in legacy Greenspring entities represents the net income or loss attributable to the interests held by the legacy Greenspring general partner entities. We 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. Net income (loss) attributable to non-controlling interests in legacy Greenspring entities was $3.4 million and $(1.3) million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Net income (loss) attributable to non-controlling interests in legacy Greenspring entities represents the net income or loss attributable to the interests held by the legacy Greenspring general partner entities. We 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. Net income (loss) attributable to non-controlling interests in legacy Greenspring entities was $1.3 million and $(4.0) million for the three months ended September 30, 2025 and 2024, respectively, and $4.7 million and $(5.3) million for the six months ended September 30, 2025 and 2024, respectively.
Previous wording
Net income (loss) attributable to non-controlling interests in the Partnership represents the portion of net income or loss attributable to the interests held by the Class B, Class C and Class D unitholders of the Partnership. Net income (loss) attributable to non-controlling interests in the Partnership was $(27.1) million and $13.3 million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Net income (loss) attributable to non-controlling interests in the Partnership represents the portion of net income or loss attributable to the interests held by the Class B, Class C and Class D unitholders of the Partnership. Net income (loss) attributable to non-controlling interests in the Partnership was $(259.9) million and $13.6 million for the three months ended September 30, 2025 and 2024, respectively, and $(287.1) million and $26.9 million for the six months ended September 30, 2025 and 2024, respectively.
Previous wording
Net income attributable to redeemable non-controlling interests in Consolidated Funds represents income of the Consolidated Funds attributable to third-party investors. Net income attributable to redeemable non-controlling interests in Consolidated Funds was $21.0 million and $5.7 million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Net income attributable to redeemable non-controlling interests in Consolidated Funds represents income of the Consolidated Funds attributable to third-party investors. Net income attributable to redeemable non-controlling interests in Consolidated Funds was $39.7 million and $6.5 million for the three months ended September 30, 2025 and 2024, respectively, and $60.6 million and $12.2 million for the six months ended September 30, 2025 and 2024, respectively.
Previous wording
AUM was $199 billion as of June 30, 2025, $189 billion as of March 31, 2025 and $169 billion as of June 30, 2024.
Current wording
AUM was $209 billion as of September 30, 2025, $189 billion as of March 31, 2025 and $176 billion as of September 30, 2024.
Previous wording
Assets related to our advisory accounts were $524 billion as of June 30, 2025, $520 billion as of March 31, 2025 and $531 billion as of June 30, 2024.
Current wording
Assets related to our advisory accounts were $562 billion as of September 30, 2025, $520 billion as of March 31, 2025 and $506 billion as of September 30, 2024.
Previous wording
FEAUM increased approximately $5.8 billion to $127.2 billion as of June 30, 2025 as compared to March 31, 2025. During the period, FEAUM from SMAs increased approximately $3.5 billion and FEAUM from commingled funds increased approximately $2.3 billion.
Current wording
FEAUM increased approximately $5.6 billion to $132.8 billion as of September 30, 2025 as compared to June 30, 2025. During the period, FEAUM from SMAs increased approximately $1.5 billion and FEAUM from commingled funds increased approximately $4.1 billion.
Previous wording
As of June 30, 2025, we had $28.7 billion of undeployed fee-earning capital, which will generate management fee revenue once invested or activated.
Current wording
As of September 30, 2025, we had $29.8 billion of undeployed fee-earning capital, which will generate management fee revenue once invested or activated.
Showing the first 40 of 76 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Management and advisory fees, net increased $63.9 million, or 18%, to $426.7 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The increase was driven by new client activity and 28% growth in average FEAUM across the platform. The six months ended September 30, 2025 included retroactive fees of $3.1 million from the closings of StepStone’s Real Estate Partners V, infrastructure secondaries, and micro venture capital primaries funds. The six months ended September 30, 2024 included retroactive fees of $31.5 million from the closings of StepStone’s Secondary Opportunities V, Real Estate Partners V, Infrastructure Co-Investment Partners 2022, and VC Global Partners XI funds.
Current report — wording carried from elsewhere
Realized carried interest allocation revenues increased $23.8 million, or 40%, to $83.3 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, reflecting higher realization activity within our private equity funds. Unrealized carried interest allocation revenues include the reversal of realized carried interest allocation revenues. Excluding the reversal of $83.3 million, unrealized carried interest allocation revenues increased $233.5 million, or 270%, to $320.0 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The increase in unrealized carried interest allocations for the six months ended September 30, 2025 primarily reflected a higher net increase in the cumulative allocation of gains associated with the underlying portfolios within our private equity funds.
Current report — wording carried from elsewhere
Equity-based compensation increased $1,016.7 million to $1,073.2 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The increase was primarily attributable to a $1,018.2 million increase in expenses for liability classified awards related to the profits interest issued in SPW in the current year period as compared to the prior year period, and RSUs and PRSUs granted in the current year period with no comparable expense for these grants in the prior year period. These increases were partially offset by a decrease of $5.0 million in expense due to the final vesting of RSUs issued in connection with our IPO.
Current report — wording carried from elsewhere
Interest expense increased $2.5 million, or 38%, to $9.0 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024. The increase was due to higher average outstanding debt balances during the current year period as compared with the prior year period, partially offset by the lower interest rate on the Notes for the current year period.
Current report — wording carried from elsewhere
Income tax expense decreased $120.2 million to a benefit of $108.7 million for the six months ended September 30, 2025 as compared to expense for the six months ended September 30, 2024. The decrease in tax expense was primarily driven by pre-tax net loss for the six months ended September 30, 2025 as compared to pre-tax net income for the six months ended September 30, 2024.
Current report — wording carried from elsewhere
Net income attributable to non-controlling interests in subsidiaries decreased $9.9 million, or 52%, to $9.2 million for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was primarily attributable to a decrease in income generated by our consolidated subsidiaries not wholly-owned by us and an increase in our economic interests in the Asset Class Entities as a result of the Transaction Agreements resulting in a lower rate of allocation of net income to non-controlling interests in subsidiaries.
Current report — wording carried from elsewhere
FEAUM increased approximately $11.4 billion to $132.8 billion as of September 30, 2025 as compared to March 31, 2025. During the period, FEAUM from SMAs increased approximately $5.0 billion and FEAUM from commingled funds increased approximately $6.4 billion.
Current report — wording carried from elsewhere
FRE increased $15.9 million, or 11%, to $159.9 million for the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, primarily reflecting higher fee revenues, partially offset by higher adjusted cash-based compensation, adjusted general, administrative and other expenses, and adjusted equity-based compensation.
Current report — wording carried from elsewhere
(3)Includes (income) expense related to transaction costs ($24 thousand and $0.1 million for the three months ended