StepStone has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company intends to price its 17.5 million shares in the range of $15 to $17 apiece, with an overallotment option for an additional 2.625. At the maximum price, the entire offering is valued up to $342.125 million. The company intends to list its shares on the Nasdaq under the symbol STEP.
The underwriters for the offering are JPMorgan, Goldman Sachs, Morgan Stanley, Barclays and UBS Investment Bank.
This global private markets investment firm is focused on providing customized investment solutions and advisory and data services to its clients. Some of these clients are 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.
The firm 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, acquiring stakes in existing funds on the secondary market and investing directly into companies.
At the end of June, StepStone oversaw $292 billion of private markets allocations, including $66 billion of assets under management and $226 billion of assets under advisement, reflecting a compound annualized growth rate of 61% since 2007.
Between fiscal 2018 and fiscal 2020, total revenues increased 69% to $447 million, net income increased 62% to $132 million, adjusted revenues increased 63% to $286 million and adjusted net income increased 41% to $63 million.
The company intends to use the net proceeds from the offering to purchase newly issued partnership units, as well as Class B units from certain partnership unitholders. The remainder will be used to pay down debt, as well as for working capital and general corporate purposes.