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Equity-Based Compensation | 12 Months Ended
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Mar. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Equity-Based Compensation | Equity-Based Compensation 2020 Long-Term Incentive Plan The Company has adopted its 2020 Long-Term Incentive Plan (“LTIP”), which allows for the granting of stock options, stock appreciation rights, restricted stock awards, RSUs and performance stock awards to employees, directors and consultants. As of March 31, 2024, there were 22,787,636 shares of Class A common stock available to grant under the LTIP. Restricted Stock Units RSUs represent the right to receive payment on the date of vesting in the form of one share of Class A common stock for each RSU. Holders of unvested RSUs do not have the right to vote with the underlying shares of Class A common stock, but are entitled to accrue dividend equivalents which are generally paid in cash when such RSUs vest. The RSUs granted generally vest over four years in equal annual installments. Upon vesting, the Company will typically withhold or cause the participant to sell the number of shares to satisfy the statutory withholding tax obligation and deliver the net number of resulting shares vested. The change in unvested RSUs is as follows:
| Number of RSUs |  | Weighted-Average Grant-Date Fair Value Per RSU
Balance as of March 31, 2023 | 1,775,732 |  |  | $ | 22.46 |
Granted | 448,559 |  |  | $ | 35.07 |
Vested | (750,790) |  |  | $ | (21.03) |
Forfeited | (50,843) |  |  | $ | (24.36) |
Balance as of March 31, 2024 | 1,422,658 |  |  | $ | 27.12 |
The weighted-average grant-date fair value of RSUs granted during the years ended March 31, 2024, 2023, and 2022 was $35.07, $28.97, and $35.18, respectively. The total fair value as of the respective vesting dates of RSUs vested during the years ended March 31, 2024, 2023 and 2022 was $24.3 million, $16.5 million and $27.5 million, respectively. In November 2022, one the Company’s non-wholly owned subsidiaries issued new partnership interests to certain employees with a grant date fair value of $6.1 million, vesting over six years. The issuance did not impact the Company’s fully diluted interest in the subsidiary. Unvested Partnership Units In June 2018, the Company issued an aggregate of 5.2% of profits interests (the “Class B2 Interests”) in the Company to certain key employees. These Class B2 Interests provide the recipients with an opportunity to participate in the profits of the Company and proceeds of certain capital events. The Class B2 Interests vest over a period of six years from the grant date, subject to an employee’s continuous service with the Company through the applicable vesting date. Under the terms of the Fifth Amended and Restated Limited Partnership Agreement dated March 8, 2018, the vesting of the awards will occur as follows: (i) 0% during the first three years from the date of issuance, (ii) 30.0% on the third anniversary of the date of issuance, and (iii) 5.8% for each fiscal quarter after the third anniversary of the date of issuance (fully vested on the sixth anniversary of the date of issuance, or June 2024). Upon the final vesting date, all of the Class B2 units will automatically convert into Class B units and unitholders will be entitled to purchase from the Company one share of Class B common stock for each Class B unit at its par value. Prior to vesting, holders of Class B2 units do not have the right to receive any distributions from the Partnership, other than tax-related distributions. The Class B2 Interests are classified as equity-based awards, and the associated equity-based compensation expense is recognized on a straight-line basis over the vesting period, with a corresponding increase to stockholders’ equity in the Company’s consolidated balance sheets. As of March 31, 2024, there were 2,566,566 Class B2 units outstanding. During the year ended March 31, 2024, none of the outstanding Class B2 units were forfeited. As of March 31, 2024, 149,717 Class B2 units were unvested and 2,416,849 Class B2 units were vested. As of March 31, 2024, $40.9 million of unrecognized non-cash compensation expense in respect of equity-based awards remained to be recognized over a weighted-average period of approximately 4.3 years. The Company recognized tax benefits related to equity-based awards of $4.5 million, $1.8 million and $7.4 million for the years ended March 31, 2024, 2023 and 2022, respectively. Liability Classified Awards In November 2022, the Company issued a profits interest in SPW to certain employees of the SPW team and concurrently entered into an option agreement which provides that, (i) StepStone has the right to acquire the profits interest at the end of any fiscal quarter after June 30, 2027, in exchange for payment of a call price and (ii) the SPW management team, through an entity named CH Equity Partners, LLC, has the right to put the profits interest to StepStone on June 30, 2026 or at the end of any fiscal quarter thereafter, in exchange for payment of a put price. The applicable call or put price is, in certain circumstances, subject to an earn-out or earn-down. The call or put price will be payable in cash unless the Company elects to pay a portion of the consideration in units of the Partnership, each to be exchangeable into shares of the Company’s Class A common stock, and, in either case, rights under one or more tax receivable agreements. The Company accounted for the profits interest and option agreement as a single unit of account as a liability classified equity-based award. There are no vesting provisions or service requirements related to the award. For the years ended March 31, 2024 and 2023, the Company recognized $19.8 million and $8.6 million, respectively, of expense related to the fair value of the liability classified awards within equity-based compensation expense in the consolidated statements of income. For the year ended March 31, 2024, the Company paid $3.1 million related to settlement for liability classified awards. For the years ended March 31, 2023 and 2022, no amounts were paid related to settlement for liability classified awards.

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