Nine Months Ended December 31, 2020 Compared to Nine Months Ended December 31,
2019
Total expenses increased $52.1 million, or 26%, to $254.4 million for the nine months ended December 31, 2020 as
compared to the nine months ended December 31, 2019, due to increases in performance fee-related compensation, cash-based compensation and equity-based compensation, partially offset by decreases in
general, administrative and other expenses.
Cash-based compensation increased $19.1 million, or 20%, to $113.9 million for the
nine months ended December 31, 2020 as compared to the nine months ended December 31, 2019, due to increased staffing and compensation levels, as well as $4.1 million in severance costs. Our full-time headcount increased 14% from
December 31, 2019 to December 31, 2020.
Equity-based compensation increased $3.2 million, or 224%, to $4.6 million
for the nine months ended December 31, 2020 as compared to the nine months ended December 31, 2019. The increase was attributable to the grant of RSUs made to certain employees and directors in connection with our IPO in September 2020.
Performance fee-related compensation expense increased $33.3 million, or 49%, to
$101.4 million for the nine months ended December 31, 2020 as compared to the nine months ended December 31, 2019, primarily reflecting the increase in carried interest allocation revenue. Realized performance fee-related compensation decreased $6.6 million, or 27%, to $18.0 million for the nine months ended December 31, 2020 as compared to the nine months ended December 31, 2019, primarily reflecting
lower realization activity.
General, administrative and other expenses decreased $3.5 million, or 9%, to $34.5 million for the
nine months ended December 31, 2020 as compared to the nine months ended December 31, 2019. The decrease primarily reflected declines of $5.5 million in travel and associated costs for investment evaluation and client service,
$1.6 million in marketing expenses, $1.5 million in amortization expense for intangibles, and other general operating expenses, partially offset by an increase of $2.8 million in legal and professional fees, $1.8 million in
information and technology expenses and $1.6 million in insurance costs. We anticipate travel and other expenses will return to prior levels as the COVID-19 situation improves, and that costs associated with being a public company will be
reflected in our expenses going forward.
Other Income (Expense)
Three Months Ended December 31, 2020 Compared to Three Months Ended December 31, 2019
Investment income increased $4.7 million, or 667%, to $5.4 million for the three months ended December 31, 2020 as compared to
the three months ended December 31, 2019, primarily reflecting overall changes in the valuations of the underlying investments in the StepStone Funds.
Interest income decreased $0.3 million, or 79%, to $0.1 million for the three months ended December 31, 2020 as compared to the
three months ended December 31, 2019.
Interest expense decreased $2.4 million, or 99%, to $26 thousand for the three
months ended December 31, 2020 as compared to the three months ended December 31, 2019. The decrease was primarily due to the full repayment of our previously outstanding senior secured term loan (Term Loan B) in connection
with the IPO in September 2020.
Other income (loss) increased $1.0 million to income of $0.8 million for the three months ended
December 31, 2020 as compared to the three months ended December 31, 2019, primarily reflecting favorable foreign currency translation.
Nine Months Ended December 31, 2020 Compared to Nine Months Ended December 31, 2019
Investment income increased $2.6 million, or 66%, to $6.5 million for the nine months ended December 31, 2020 as compared to the
nine months ended December 31, 2019, primarily reflecting overall changes in the valuations of the underlying investments in the StepStone Funds.
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