StepStone Group LP (NASDAQ:STEP) Q2 2024 Earnings Conference Call November 6, 2023 5:00 PM ET
Company Participants
Seth Weiss - Head, IR
Scott Hart - CEO
Mike McCabe - Head, Strategy
Johnny Randel - CFO
Jason Ment - President & Co-Chief Operating Officer
Conference Call Participants
Ben Budish - Barclays
Ken Worthington - JPMorgan
Adam Beatty - UBS
Alex Blostein - Goldman Sachs
Michael Cyprys - Morgan Stanley
Operator
Good day, and welcome to the StepStone Group Second Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Seth Weiss, Head of Investor Relations. Please go ahead.
Seth Weiss
Thank you. Joining me on today's call are Scott Hart, Chief Executive Officer; Jason Ment, President and Co-Chief Operating Officer; Mike McCabe, Head of Strategy; and Johnny Randel, Chief Financial Officer. During our prepared remarks, we will be referring to a presentation, which is available on our Investor Relations website at shareholders.stepstonegroup.com.
Before we begin, I'd like to remind everyone that this conference call as well as the presentation contains certain forward-looking statements regarding the company's expected operating and financial performance for future periods. Forward-looking statements, reflect management's current plans, estimates and expectations and are inherently uncertain and are subject to various risks, uncertainties and assumptions.
Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements, due to changes in circumstances or a number of risks or other factors, that are described in the Risk Factors section of StepStone's periodic filings. These forward-looking statements are made only as of today and except as required, we undertake no obligation to update or revise any of them.
In addition, today's presentation contains references to non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, our presentation and our filing with the SEC.
Turning to our financial results for the second quarter of fiscal 2024. Beginning with Slide 3, we reported GAAP net income of $59.3 million, GAAP net income attributable to StepStone Group Inc, was $26.2 million or $0.42 per share.
Moving to Slide 4, we generated fee related earnings of $43.8 million up 12% from the prior year quarter. And we generated an FRE margin of 31%. The quarter reflected retroactive fees resulting from interim closings at StepStone private equity secondaries fund and StepStone's multi-strategy global venture capital fund, which in total contributed $3.7 million to revenue, $3.4 million to fee related earnings and pre-tax adjusted net income and 160 basis points to FRE margin. There were no retroactive fees in the second quarter of fiscal 2023.