Good day, and welcome to the StepStone Group Q2 fiscal year 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. 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. 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 Q2 of fiscal 2024. Beginning with slide three, we reported GAAP net income of $59.3 million. GAAP net income attributable to StepStone Group, Inc., was $26.2 million, or 42 cents 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 of StepStone's 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 Q2 of fiscal 2023. Finally, we earned $30.2 million in Adjusted Net Income for the quarter, or 26 cents per share. This is down from $37.3 million, or 33 cents per share, in the second fiscal quarter of last year, driven by lower net realizations and partially offset by higher Fee-Related Earnings. I'll now hand the call over to StepStone's CEO, Scott Hart. Thank you, Seth, and good afternoon, everyone. Despite a number of continuing challenges in the macro environment, including volatility in asset prices, higher for longer interest rates, and heightened geopolitical risks, StepStone continues to generate steady results. These results are driven by the breadth of our offering, specialization of our strategies, and positive momentum in areas in which we've invested for growth. Although it is a difficult operating environment for asset managers, we believe we are well-positioned in the industry and that we are setting the stage for strong continued growth in the years ahead. We remain on track to at least double our fee-related earnings within the next five years, as we laid out at our Investor Day this past June. Last month, we hosted the StepStone 360 Conference, our annual event for private markets, clients, and investors. During times like these, our clients have a strong desire to understand the real-time trends and developments that we are seeing in the market and in our portfolios. The 360 Conference gives us the opportunity to share our data and insights, present on our full suite of products and solutions, and importantly, hear directly from many of our clients and prospects. Our clients remain extremely engaged with the private markets and continue to turn to StepStone for help in meeting their long-term investing goals. Secondaries is a strategy that continues to resonate with our clients in today's environment. While a general slow pace of realizations has muted the near-term market appetite for some private market investments, demand for secondaries across asset classes remains very strong and is a key area of differentiation for StepStone. Our deep relationships with general partners supply a large pipeline of investment opportunities, and our superior data and expertise allow us to identify the best of these opportunities, enabling us to buy high-quality assets at attractive prices. We are beginning to see greater willingness of sellers to transact as they adjust to the new valuation environment and as other avenues for realizations continue to lag, which should result in an acceleration of our pace of deployment. During this most recent quarter, we executed a successful first close of approximately $1.25 billion in our Venture Capital Secondaries Fund and an interim close of nearly $400 million in our Private Equity Secondaries Fund. We expect to activate the Venture Capital Secondaries Fund in the H1 of our fiscal 2025, while our Private Equity Secondaries Fund is active and currently generating fees. Shifting to real estate, our flagship commingled product is a special situations GP-led secondaries fund. As we discussed at our Investor Day in June, the rise in interest rates, coupled with a significant volume of expected maturities in the coming years, creates a substantial opportunity for real estate recapitalizations. We are a leader in this market and have access to a significant amount of deal flow, much of which we create ourselves. This enables our investment team to be selective in deploying capital. Encouragingly, we are seeing real estate deployment opportunities begin to accelerate. We have fully committed our prior real estate secondaries fund, and our new fund is now actively investing. This new fund will begin earning fees in the spring after a five-month fee holiday for investors that were part of the first close. To date, we have closed on approximately $1 billion in this fund. Additional fundraising is progressing well, as we believe investors see our special situation strategy as an attractive means to access real estate and one that is particularly well suited for today's environment. The timing of activations in our real estate and venture capital secondaries funds result in relatively modest revenue and fee-earning AUM growth for this current fiscal year, but provides clear visibility into a meaningful step-up in management fees, margin, and fee-related earnings in fiscal 2025. We are also seeing healthy progress in our separately managed accounts. The sales and closing cycle for SMAs can be long, with exact timing difficult to predict, but we have a large pipeline of both new SMAs as well as re-ups that is progressing well. Included in this quarter's gross additions were commitments from separately managed accounts for which we've been engaged in discussion for over two years, a testament to the deep relationship building we engage in when partnering with clients. Inclusion of a multi-strategy venture allocation among these mandates is yet another example of the synergies from our expanded venture capital capabilities and a proof point that our strategies help solve our clients' portfolio goals through market cycles. Shifting to private wealth, the fiscal Q2 was our best quarter ever, with over $350 million of new subscriptions. We've invested heavily in private wealth, and these investments are paying off. We anticipate that this will be a significant contributor to operating leverage over time. As we announced in July, SP RIM, our core private markets evergreen fund, became available for subscription daily by a ticker. This allows investment into the fund without the need for subscription documents, simplifying the onboarding process and eliminating a substantial point of friction. The ticker has contributed to the acceleration of gross inflows, but encouragingly, we are seeing traction across all of our private wealth products and four pillars of distribution. SPRING, our evergreen fund for venture capital and growth equity, continues to gain momentum, and in September, we held an initial close of STRUCTURE, StepStone's registered private infrastructure fund and our third evergreen private wealth family of funds. Finally, I'm pleased to announce that SPRIM has been approved on a second wirehouse, and SPRING has been approved on its first wirehouse, in each case, with initial inflows expected in the coming months. Another area where we continue to invest is technology, and in our data science-driven portfolio management team and our software engineering team. We have spoken previously about our front-end research and back-end reporting platforms. We have rebranded our applications under one unified and interconnected suite, which we are calling SPY by StepStone. The SPY platform offers research, reporting, pacing, and benchmarking applications. This integrated suite is only possible because of the investment we have made in our technology, our people, and our relationships with both LPs and GPs. Before handing the call to Mike, I'd like to thank our CFO, Johnny Randel, for more than a decade of dedication and leadership to StepStone. Johnny will retire at the end of this year. Johnny joined StepStone in 2010, and has been responsible for building and leading a deep and talented finance team. We are thrilled to announce that David Park, our current Chief Accounting Officer, will become Chief Financial Officer on January 1. David is already working closely with Johnny on the transition. David has been StepStone's Chief Accounting Officer since joining the company in 2019. Together with Johnny, David helped guide StepStone through our IPO and is a key leader of our finance team. Johnny, we thank you for your years of dedication, leadership, and strategic vision, and we congratulate you on your retirement. I'll now turn the call over to Mike McCabe to speak about StepStone's fundraising and fee earning asset growth in more detail.. Thanks, Scott, and I'd like to echo your words of appreciation for Johnny Randel and congratulate David Park. Turning to Slide seven, we generated $15 billion of gross AUM inflows during the last 12 months, with $6 billion coming from our commingled funds and $9 billion coming from our separately managed accounts. Slide eight shows our fee-earning AUM by STRUCTURE and asset class. Fee-earning AUM was flat relative to the prior quarter due to a few moving pieces this quarter related to activations, as well as step downs that impact the near-term timing of our fee earning asset growth and management fees, but do not disrupt our long-term growth trajectory. Johnny will provide some commentary on the financial impact, but I would like to take a few minutes to walk through the effect on our fee earning AUM and on our undeployed fee earning capital. First, our Venture Capital Secondaries Fund had a very successful first close of approximately $1.25 billion, which currently resides in our undeployed fee-earning capital balance. This fund is still in market, and we continue to see strong interest. We anticipate further closings over the next six to nine months. We expect that the capital raised this quarter, plus additional funds raised hereafter, will be activated and become fee-paying in the H1 of fiscal 2025. We are encouraged to see transactions pick up in real estate, particularly in the secondary recapitalizations, and we see significant opportunities for future deployment. As Scott mentioned, our prior real estate fund is now fully committed to investments. This triggered a step down in the fee base from committed capital to net invested capital near the end of the quarter. This resulted in a reduction of fee-earning AUM of $700 million, which is included in the distribution line of our fee-earning AUM walk on page 18 of the presentation. Much of the step-down is temporary, driven by the fact that we have committed to, but not yet fully funded, several investments. The unfunded commitments from this prior fund amount to about $400 million and are not yet included in the net invested capital fee base, but are instead included in the undeployed fee-earning capital. As these investments fund through fiscal 2025, the capital will return to our fee-earning asset line. Pivoting to our current real estate vintage, the fund is now actively investing, and fees will turn on in late fiscal 2024. We've closed on approximately $1 billion of this fund to date and anticipate future closings over the next twelve months. We also had a $1.5 billion worth of distributions from our separately managed accounts. As a reminder, distributions include exit activities, expiring mandates, and step-downs in fee base. About $1 billion of this distribution relates to expirations. Occasionally, as was the case this quarter, these are older mandates that pay on committed capital for life. These mandates typically generate revenue at a lower or step-down fee rate, and at expiration, the full capital commitment rolls out of fee-earning assets. In these circumstances, there is a disproportionate impact on fee-earning AUM relative to revenue. For this past quarter, the management fees that we expect to earn on the $1 billion of managed account contributions will more than offset the fees from the $1.5 billion of distributions. For the upcoming quarter, we expect to see expirations similar in size to this past quarter, along with a nominal impact on revenue. These step-downs and expirations are a normal course of our business, and we will let you know ahead of time when we anticipate them to occur. Shifting to private wealth, we have now surpassed $2 billion in assets under management. To put our growth in context, we first launched our private wealth platform in September 2019 and crossed the billion-dollar threshold in November 2022. This was a great result for our product suite and distribution network that we built from the ground up. We are thrilled to have grown the platform by another billion dollars in only 10 months, doubling the net asset value in less than a third of the time it took to raise our first billion dollars. Our success in private wealth is driven by progress across our four distribution pillars: RIAs, independent broker-dealers, wirehouses, and international, and by the launch of additional funds such as SPRING and STRUCTURE. Each subsequent fund launch and each expansion of our distribution syndicate is bolstered by a growing brand awareness and by our strong track record of investment performance. S PRIM has generated a 25% annualized return since inception, and SPRING has yielded a 30% return in its first 11 months. STRUCTURE had its initial close in September and is actively investing. Our undeployed fee-earning capital increased to $18.1 billion, its highest level ever, driven by a strong initial close of our VC secondaries fund and the dynamics around committed, but not fully invested, capital in our prior real estate fund. At least $2 billion of this capital will convert to fee-earning AUM once we activate the current real estate fund and VC secondaries funds in the coming quarters. Slide 9 shows the evolution of our management and advisory fees. We generated a blended management fee rate of 57 basis points over the last twelve months, higher than the 54 basis points for the last fiscal year, as we've benefited from retroactive fees and some favorable mix shift over the last twelve months. We produced over $4.70 per share in management and advisory fees over the last twelve months, representing an annual growth rate of 22% since fiscal year 2019. I'd now like to pass the call to our CFO, Johnny Randall. Thank you, Mike. Before speaking to the quarter, I would like to say a very, very sincere thank you to my colleagues here at StepStone. It has truly been my privilege to work alongside you, and I look forward to seeing what StepStone does next. I want to also add my congratulations to David Park. David has been a great friend, a great partner these past four years, and I know that he will be a fantastic leader of the finance organization going forward. Now, I'd like to turn your attention to slide 11 to speak to our financial highlights. We earned management and advisory fees of $142 million for the quarter, up 19% from the prior year, driven primarily by growth in fee earning AUM. Our FRE margin for the quarter was 31%. Retroactive fees in this quarter had a positive impact on the margin of 100 basis points. For the trailing twelve-month period, we have reported an FRE margin of 31%. Turning to expenses, compensation was up about $5 million sequentially. As we mentioned on the last earnings call, we had relatively limited hiring in our first fiscal quarter, so this quarter reflected some incremental hiring. General and administrative expenses were flat sequentially, but we do expect an uptick the next two quarters, driven by seasonal expenses associated with investor conferences. We just held our StepStone 360 Private Markets conference in October, and we will host our annual Venture Capital conference in early 2024. As Scott and Mike mentioned, the timing of fund activations and step-downs impact the pace of revenue growth and margin expansion for this fiscal year. The step-down in our prior real estate fund will create a headwind on our management fees, while the current vintage fund is on a fee holiday. This headwind, as well as the seasonal increase in G&A expense I mentioned, will create some pressure on our FRE margin in the next two quarters. However, we expect this to be temporary, as commingled fundraises that we have already closed but not yet activated give us clear visibility into a step-up in revenue and margin in fiscal 2025. We currently have approximately $2 billion of capital that has been raised in our real estate and venture secondaries funds that is not yet activated or fee earning. Once these funds are activated, we expect this capital will contribute over $18 million in annual management fees and have a positive impact on the margin of at least 150 basis points. As Scott and Mike mentioned, the real estate fund fees from the initial close will activate in late fiscal 2024, and we anticipate the venture secondaries fund to activate in the H1 of fiscal 2025. Additional fundraising and deployment across our commingled funds, evergreen funds, and separately managed accounts will further contribute to revenue growth and operating leverage in the coming periods. We remain on pace to expand our FRE margin to the mid-30s over the medium to long term, consistent with what we outlined at our Investor Day. Gross realized performance fees were $7 million for the quarter, which is down both year-over-year and sequentially. As we mentioned last quarter, we are seeing some signs that the realization environment is improving. It generally takes a few quarters for transactions to work through the pipeline, so we expect that realized performance fees will remain modest for at least the rest of this fiscal year. As a reminder, we generally do not control the timing of exit on our investment. Moving to Slide 12, adjusted revenue per share is down for the H1 of the fiscal year. We had a 79% decrease in gross realized performance fees per share, partially offset by 18% growth in management and advisory fees per share. Since fiscal 2019, we have grown adjusted revenue per share by a 20% compounded annual rate. Shifting to our profitability on Slide 13, we grew fee-related earnings per share by 17% in our first two quarters. The increase was primarily driven by growth in management and advisory fees. Looking over the longer term, we have generated an annual growth rate in fee-related earnings per share of 29% since fiscal 2019. Our year-to-date ANI per share is down relative to last year, driven by lower performance fees, but has increased at an annual rate of 23% over the long-term period. Moving to the balance sheet on Slide 14, net accrued carry finished the quarter at $634 million, up 4% from the previous quarter, driven by underlying valuation increases for the period ended June 30. As a reminder, our accrued carry balance is reported on a one-quarter lag. Our own investment portfolio ended the quarter at $188 million, unfunded commitments to our investment programs were $98 million as of quarter end. Our pool of performance fee eligible capital has grown to over $67 billion, and this capital is widely diversified across multiple vintage years and approximately 195 programs. 77% of our unrealized carry tied to programs with vintages of 2018 or earlier, which means that these programs are largely out of their investment periods and are in harvest mode. 59% of this unrealized carry is sourced from vehicles with deal-by-deal waterfalls, meaning realized carry may be payable at the time of investment exit. This concludes our prepared remarks. I'll now turn it back over to the operator to open the line for any questions. Thank you. At this time, we'll conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for our first question. Our first question comes from Ben Budish with Barclays. Your line is open. Hi, good evening, and thanks for taking the questions. Maybe first for Scott, you talked a little bit about the pipeline of new SMAs and re-ups, you know, looking robust, but it can take some time to materialize. I wonder if you could unpack that a little bit. You know, what are you seeing kind of real time, and what is sort of the reason for, I don't know, the delay, or what does the pipeline look like, in terms of either investor type or the type of assets they're looking to invest in? Any color around that would be helpful. Thanks. Sure. Thanks, Ben, for the question. So as I mentioned in the prepared remarks, pipeline is building and developing nicely. I think one of the changes that we've seen relative to, you know, COVID and the couple of years since, when much of the SMA activity was really driven by re-ups and expansion of existing client mandates, is there's been a very healthy mix of new relationships and new mandates of late as well, particularly when you look at this current quarter and in the last couple of quarters. So that's obviously encouraging and clearly builds the pipeline of future re-ups. And potential expansion opportunities. So that's certainly one trend that we're seeing. Second, you know, the driver, to your point of, you know, perhaps slight delays and re-ups, is really driven by deployment, right? It's a matter of fully investing the prior vehicle and coming back around to that re-up opportunity. We have made steady progress there and then feel like we have some important re-ups in the pipeline at the moment, and given our continued re-up rate, that has been quite successful, again, you know, north of 90% over time, feel good that that will convert into new commitments. The last thing I would perhaps mention is that, and we made quick reference to it in the prepared remarks, but, you know, the presence of, you know, venture opportunities, which may, you know, come as a bit of a surprise to some of you. I mean, I think it is a continued area of interest among clients, both here in the U.S. and internationally. And so we were excited to have a multi-strategy venture mandate in the mix there as well. So, you know, again, given the number of opportunities that we're pursuing, sometimes hard to generalize, but feel good that there's quite a bit of activity and a building pipeline of both new and existing clients in the SMA pipeline. Great, very helpful. Maybe one follow-up on the retail side. It just seems like things keep trending in the right direction there. You talked about the four kind of channels, RIAs, IBD, wires, and international. Where are you seeing, I guess, the most traction? You know, what is your expectation as some of the funds. I think you mentioned SPRIM is going to be added to another wire, SPRING will be added to its first. You know, what do you think the potential size from those new kind of distribution relationships could add? And what is sort of the mix right now between those various channels? Thank you. Sure. Ben, this is Jason. Thank you for the question. In terms of, I guess, first geographic areas, in terms of the most traction, the team is by far more built out in the US relative to abroad on the dedicated private wealth team, and so, flows are definitely stronger here in the US today. We expect that will balance out over time as we continue to invest in the distribution partners abroad. In terms of the flows between the products, look, S PRIM US is the most seasoned of all the products. It's the largest of all the products to date, and so therefore, there's a bit of size begets size. You're eligible for inclusion by more distribution partners, and so therefore, that's certainly helpful. And when I look at the kind of day zero comparison, SPRIM versus SPRING, SPRING is off to a very strong start. Clearly, the performance there is definitely helpful at 30% since inception. And so we do expect that to continue to scale nicely. STRUCTURE, it's simply too soon to tell. We're just a couple of months in here, but conversations have been positive. Got it. Thanks so much. Appreciate it. One moment for our next question. Our next question comes from Ken Worthington with J.P. Morgan. Your line is open. Hi, good evening. Thanks for taking the question. So, probably along the same lines. So, you announced the release of the daily NAV, ticker for S PRIM. Maybe Scott or Mike, I was hoping you could flesh out more on your prepared remarks and give us some progress you're making in terms of, the marketing of the new structure. How is education going on the new products for the RIAs? And what does the sales cycle seem like it's developing for this, you know, this new product with that sort of pre-existing, customer base? Is this a three-month sales cycle? Is it a year? How long do you think it will take for, you know, the fruits of your labor to really become more apparent in the, in the numbers? Thanks, Ken. This is Mike. I think what I might do is invite Jason Ment to address that a bit more specifically, since he looks after the private wealth channel. Thanks, Mike. Thanks, Ken. On the ticker, I think there it's been welcomed with open arms, certainly by the RIA community in particular. It definitely makes their life materially easier. We expect IBDs to, some of them at least, use the ticker. I think the wires will be the last there to adopt, and don't have a real timeline as to when that might be. In terms of the kind of what, what's called the brand education cross-sell, as we look at the different channels, I would kind of cite the following: If I look at the distribution syndicate for S PRIM, and this will be all kind of US to US. If I look at that syndicate, about a third of those distribution partners have also come in to SPRING. Then conversely, if I look at the SPRING distribution base, over two-thirds of those are S PRIM distribution partners as well. So clearly, the brand awareness helps, and there's a bit of if, you know, if you like the StepStone story across private markets, you're going to like it in Venture and Growth specifically. So again, STRUCTURE is too soon to tell, but we'd expect to see a similar pattern. But certainly, you know, landing that second wire, something you've been asking about for some quarters now, and we were delighted to be able to announce that, this quarter, and we expect to see some acceleration of growth across private wealth with this new partnership in place. Awesome. Thank you. And then on SMAs and fee rates, we saw the elevated distributions. You attributed, some of this or a bunch of it to step downs and some expirations. As you see this migration from, you know, of these committed capital contracts, should we start to see the fee rate on the SMA side also step up? And I don't think we saw it this quarter, the SMA or the fee rate in SMAs is pretty stable. Is that something that we should see in coming quarters as this trend persists? Hey, Ken, it's John, just let me talk a little bit about that. I think what you'll see over time is, you know, any one fund rolling off won't have much of an impact. If we had a series of these over a short period of time, perhaps. But the reality of it is there's just so many SMAs flowing through there, a mixture of rates. It might move a little bit, but we don't expect a dramatic change over time, just given the kind of ongoing pricing of what's in the pipeline and what has been re-upping. So we don't expect a material change. Great. Thank you. One moment for our next question. Our next question comes from Adam Beatty with UBS. Your line is open. Thank you, and good evening. Just wanted to take a quick pulse on the Investor Day target of doubling FRE by 2028. Sounds like, you know, the top line, as both Mike and Johnny mentioned, the top line looks to be in good shape, but the AUM has some puts and takes that seem like they're gonna maybe even out, you know, over the coming quarters. So I guess my question is, over the longer term, say, post calendar 2024, should we look for kind of AUM growth and fee growth to converge maybe in the high teens, given the target for margin expansion? And if so, you know, what areas do you look to be the primary drivers of that through 2028? Thanks. Yeah, Adam, thanks for the question. Maybe I'll start, and Mike may jump in here as well. Obviously, he spent quite a bit of time on this topic during the Investor Day. But a few things. I mean, you referenced some of the step downs and distribution activity that took place this quarter. Obviously, that didn't come as a surprise to us. It doesn't really have an impact on our five-year plans that we laid out. And one of the things that we talked about during the Investor Day was the fact that look, there are multiple ways for us to get there and to achieve those targets. And so as we think about, you know, what we're seeing in the business and really the fact that all of the key building blocks for continued growth as it relates to fundraising, continued strong, you know, re-ups, despite a, you know, a tough market environment, continue to be there. Really, the biggest factor in the near term, and as we look at the business just for the quarter, has been one of deployment, right? And so the slower deployment, really driven by overall market activity, M&A activity, et cetera, being down, has resulted in some of the funds that we've now raised or had first closes for not yet activating. Some of the accounts that have net invested capital, you know, investing in line with the three to five year pace that we've always talked about, but maybe a slower pace than what we had seen over the last few years. Some of those re-ups taking a bit longer to arrive. But when we think about the business over a 5-year timeframe or really the next few years, I would say no, you know, no real change to what we talked about on Investor Day. If anything, feel like with some of the positive news around the private wealth channel, the venture capital fundraising, the progress we've made on different commingled vehicles, feel quite good about the longer term trajectory. But Mike, you may want to jump in with additional thoughts there. That's right. Thanks, Scott. Look, we, we feel really good about the way our gross AUM flow for the H1 of this year has developed, and we have six more months left in this fiscal year to continue to deploy as well as form new capital. So on, on a gross AUM basis, we feel really good about our progress. It's the fee-earning AUM, Adam, that, that you're pointing to, where there are certainly some puts and takes as certain mandates either expire or roll off as we bring new mandates onto the platform. What we're seeing a little bit on the revenue side, as you point out correctly, it still is very healthy and looks good, but there is a little bit of a delay this year, which does, to your point, make fiscal 2025 a really important year for StepStone across all key metrics, as the timing of activations and the timing of deployment really go live, as we enter that fiscal year. I hope that addresses some of your questions here. No, it sure does. And maybe the last thought I would share is, I mean, look, in our view, right, our continued ability to meet those longer term goals is going to have a lot more to do with how successfully we invest on behalf of our clients and the great level of client service that we provide, more so than whether a fund gets activated, you know, this quarter versus next quarter. And so we're going to maintain that very selective approach and that client first approach that has served us so well over the last 15 years here. Yeah, back to StepStone. Makes sense, Scott. Thanks. And then just one follow-up. Scott, actually, you said just a phrase that kind of caught my attention. And congrats, by the way, on the wealth management channel getting on the new platforms. It seems like a lot of the work there is coming to fruition. You talked about it contributing to operating leverage, and I guess maybe I have a prejudice in my mind, but it's... You know, I always think of the wealth management channel as needing a fair bit of sales effort, needing a fair bit of education effort, but I don't think of it as, like, high leverage. But you know, maybe there's something I'm missing that you can help me with. Thanks. Sure. No, that, that, look, while that is certainly true, you know, one of the things that we are also offering to clients in that channel is the ability to invest alongside and with the same, you know, high degree of quality with our institutional clients. And so when you really think about what we're doing from an investment team and from an investment standpoint, it is, you know, really participating alongside of our institutional clients and institutional funds, and that's really where some of the leverage, you know, comes into play, you know, given how much of the, the sort of, you know, fees drop to the bottom line on the investment side there. Perfect. Got it now. Thanks, Scott. One moment for our next question. Our next question comes from Alex Blostein with Goldman Sachs. Your line is open. Hey, good evening, guys. Just maybe I'll piggyback on Adam's question around operating leverage when it comes to the wealth channel. I believe there is a revenue share or kind of equity ownership share agreement within the channel as you sort of build it out. Can you give us a sense at what level of assets or, you know, revenue base does it start to sort of break profitability and contribute more to the bottom line, kind of like on a net basis, sort of like net of minority interest? And are we already there, and kind of how do you expect that to scale and actually add to the kind of net of minority interest and non-controlling interest at FRE? Yeah, I'll start, and then others can add. You know, the reality of it is it kind of varies. I mean, I think we are getting there, given the scale we've seen and the team we've got attached to it. As Scott mentioned, there is, you know, the investment process, which is a big part of what's we think driving the success in terms of the returns that are being produced. That's helped driving the scale. And so when you kind of think about it from a consolidated business perspective, you know, we haven't given specific numbers, but we're kind of in the range. And then from here, you know, that's when you start thinking about kind of that sharing you mentioned. The scale, and as Mike talked about, you know, doubling it in 10 months, and if that continues, then obviously we do think it can have an impact over time. Got it. Okay. All right, we can follow up. My other question, or maybe it should have been my first question. I wanted to talk a little bit about the secondaries business with you guys. And Scott, sounds like you're seeing an increased opportunity for deployment there. You mentioned the urgency maybe on, you know, on the part of the sellers to come to market is greater today than it's been in the past, given that there's not a lot of exits in the primary market. So help us maybe frame how much in dry powder you guys currently have across your secondaries business, perhaps even including the funds that are currently fundraising. How quickly do you expect to put that to work, given the opportunity set? Maybe just help us think about maybe the frequency at which you could start coming back to markets with subsequent vintages, if the opportunity set continues to improve. Yeah. Thanks, Alex. So look, I don't think we've put out there an exact number in terms of dry powder that we have across the secondaries business, but if I just kind of break it down, and I'll maybe stick with some of the commingled vehicles, you know, with some of the incremental closings on the Private Equity Secondaries Fund, you know, that fund has now raised nearly $2.5 billion. It has started to invest, but still, obviously, much of that available in terms of dry powder, and has some overage accounts that sit alongside of it. When you think about the venture business, you know, we mentioned the first close at $1.25 billion, which will all be dry powder. But part of the reason we won't activate that fund until next fiscal year, as we mentioned, is that there is still some remaining dry powder in the $2.6 billion venture fund that we raised shortly after the Greenspring acquisition. In real estate, you know, we've had closings on about $1 billion for the current fund, and as we mentioned during the prepared remarks, the prior vehicle is now fully committed. So that kind of gives you a sense across some of our main dedicated commingled vehicles. Obviously, there's separate account capital both within the private debt and infrastructure businesses that I hadn't referenced, as well as in private equity, that adds to that dry powder number. Now, I think in terms of the pace of deployment, look, one of the things, particularly in this type of market environment, with some of the risks that exist, that we continue to be very focused on is portfolio construction. It's one of the few things that is completely within our control, and so we have taken an approach of wanting to build diversified portfolios across a number of different metrics, including across vintage years. And so I would generally expect that these funds are deployed over a, you know, roughly three-year period in order to achieve that vintage year diversification. So I think that's probably the right way to think about it, recognizing that certain separate accounts may have a shorter or a longer investment period. Maybe the last point I would make, given how much time we've talked about the private wealth business, you know, clearly some of what we are doing in those vehicles is secondary focus as well, which, you know, would further add to that dry powder number. Okay, that's great. Thanks so much. One moment for our next question. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Our next question comes from Michael Cyprys with Morgan Stanley. Your line is open. Good evening. Thanks for taking the question. I just want to ask about private credit. I was hoping you could talk about the opportunity set that you see in private credit today, particularly as banks are pulling back. Which of your strategies would you say are best positioned here, and which strategies might be able to raise meaningful capital as you look out over the next 12-24 months in private credit? I think you also have a retail vehicle launching in the credit space as well, so maybe you can provide an update on that, too. Thank you. Yeah, so, so Mike, thanks for the question. I mean, I think in the private credit space, you know, we continue to see and hear about quite a bit of interest amongst our existing and prospective clients, even during the course of this year. You know, I think the interest as our private debt team travels the world has continued to grow. You know, we clearly view it as a very attractive risk reward when you can think about, you know, not only have base rates increased, but spreads have remained, you know, fairly consistent. And when you're talking about, you know, 12% type gross asset yields, investing at, at, you know, the highest part of the capital structure, and when you look at the performance in past downturns, it's clearly a part of the business and a strategy that we think is quite attractive in today's market. You know, the challenge has been one, you know, like I've talked about across the business, of deployment. With M&A activity down quite meaningfully, deployment has been, you know, slower than we otherwise would have liked, which has meant that we've had to continue to look for alternative deployment methods. That has, in some cases, meant looking beyond, you know, corporate direct lending to areas like real estate and infrastructure, where we think there will be an opportunity. But also, similar to the other asset classes, looking to strategies like secondaries, which is one where similar to private equity and venture capital, we think that our position as one of the leading limited partners and one of the leading primary capital allocators, positions us very well as a replacement LP or as someone to participate in secondary transactions. So that continues to be an active area for our private debt colleagues, as well. Okay, thanks. And maybe just a follow-up question on realization backdrop continues to remain soft. As you mentioned, we've been hearing anecdotes from LPs that is starting to create liquidity challenges on their side. And are you starting to hear of any sort of pressure points that LPs are pushing GPs to want to find liquidity events, maybe even selling assets at prices that GPs may not otherwise necessarily want to pursue an exit? Just curious how you're seeing this all sort of play out here as you kind of look out over the next twelve months or so. Sure. I mean, I think so much of what we've talked about over the last, you know, call it 18 months, has been the denominator effect and the fact that it's really more of an issue of being over-allocated. But as the slowdown in distributions has continued, you know, now for, you know, roughly 18 or so months, and, you know, 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, you know, most LPs are experiencing more capital calls than distributions. 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. You know, 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. I think that is a dynamic that is starting to take place in the marketplace for sure. Thank you. 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. Great. Well, thanks, everyone, for joining the call today and for your continued, you know, interest in the StepStone story. We look forward to continuing the conversation in the quarters ahead. Thank you. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.