StepStone closes USD2.1bn secondary private equity fund
StepStone Group (StepStone) has held the final closing of its secondary private equity fund, StepStone Secondary Opportunities Fund IV (SSOF IV), raising USD2.1 billion of commitments.
The fund surpassed its original target of USD1.25 billion. Together with capital from separately managed accounts, StepStone has raised over USD2.4 billion for its differentiated secondary private equity strategy.
Limited partners in the fund consist of both existing and new investors from around the world, including sovereign wealth funds, public and corporate pension plans, insurance companies, endowments and foundations, family offices, and financial services and advisory firms.
SSOF IV’s investment strategy focuses on the inefficient segments of the secondaries market, where StepStone believes it can acquire high quality assets to drive attractive returns. The fund is managed by the co-heads of StepStone’s secondaries practice, Thomas A Bradley and Mark T Maruszewski, together with 25 members of StepStone’s global secondaries team. Since StepStone’s inception, these professionals have committed USD4 billion across 114 transactions in the secondary private equity market.
Maruszewski says: “We are fortunate to have a sophisticated, diversified group of global investors as limited partners. They have shown unyielding support for our secondaries strategy—one that seeks to capture attractive risk-adjusted returns by utilising StepStone’s global platform to construct diversified portfolios of high-quality assets that can outperform without the use of leverage.”
Bradley says: “We are pleased to have welcomed to our final close limited partners prior to the recent market disruption. With significant fresh capital to deploy from this new fund, we believe our investors in secondaries will benefit from a greater need for liquidity and a more favorable pricing environment than we have seen in the recent past.”