What StepStone Group, Inc. told the SEC could break it.

Heightened geopolitical tension in the Taiwan Strait and other regions could significantly disrupt global supply chains — especially semiconductors and other business-critical products — adversely affecting the operations and valuations of the portfolio companies held by StepStone's funds.

“heightened geopolitical tensions in the Taiwan Strait and other regions could result in significant disruption to global supply chains, particularly with respect to semiconductors and other business-critical products, which could adversely affect portfolio company operations and valuations.”

As a private-markets manager whose fees and carried interest depend on portfolio-company performance, StepStone is exposed to U.S. tariffs, retaliatory tariffs, China-trade scrutiny, USMCA renegotiation and investment-restriction/sanction risk, which can lower returns on its funds' investments and, in turn, its revenues.

“The United States has imposed tariffs on various products imported into the United States. These tariffs have resulted in, and may continue to trigger, retaliatory actions by affected countries, including the imposition of tariffs on the United States by other countries. Trade policy has been a central focus, with renewed scrutiny on trade relationships with China and efforts to renegotiate or withdraw from key agreements such as the United States-Mexico-Canada Agreement (USMCA).”