StepStone Group Inc. (NASDAQ:STEP) Q2 2024 Earnings Call Transcript

Scott Hart: Sure, I think so much of what we’ve talked about over the last — call it 18 months has been the denominator effect and the fact that it was really more of an issue of being over allocated. But as the slowdown in distributions has continued now for roughly 18 or so months and you had a period of time which is still true today, where both capital calls and distributions are down relative to where they had been over the last several years. However, I would say that distributions are down meaningfully more meaning that, most LPs are experiencing more capital calls than distributions. And I think you’re right that for some, it will start to create some liquidity pressure leading LPs to either tap the secondaries market themselves as a source of liquidity, and as a source of realizations or certainly actively talking to their GPs maybe not so much putting pressure to sell, but letting them know that before they can commit to new funds, they need to start to see some liquidity coming off of their portfolio.

And so I think that is a dynamic that is starting to take place in the market place for sure.

Michael Cyprys: Thank you.

Operator: Thank you. That concludes the question-and-answer session. At this time, I would like to turn the call back to Scott Hart, CEO for closing remarks.

Scott Hart: Great. Well, thanks everyone for joining the call today and for your continued interest in the StepStone story. We look forward to continue the conversation in the quarters ahead. Thank you.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.