StepStone Group has plans to acquire the remaining stakes in each of its infrastructure, private debt and real estate businesses over the coming years, said Seth Weiss, head of investor relations, in a transcript of the third quarter 2024 earnings call.
StepStone currently owns 100 percent of its private equity business and roughly 50 percent of the infrastructure, private debt and real estate asset classes. The firm announced a systematic buy-in of the interests that StepStone does not own over the coming years.
“We deliberately structured this as a gradual exchange to ensure our teams remain incentivized to grow their asset classes. The primary consideration for these buy-ins will be StepStone equity, thereby maintaining an important alignment of interest with a smaller portion in cash,” said Mike McCabe, head of strategy.
The first exchange is expected to take place this summer, subject to customary closing conditions, and will account for approximately a