StepStone Group has completed the transaction whereby Citi transferred the management of certain of its fund of funds, mezzanine funds, feeder funds, and co-investment business to StepStone.
In connection with this event, StepStone will provide ongoing management and advisory services for certain of CPE’s USD4bn fund of funds, mezzanine, feeder, and co-investment funds.
In addition, Lexington Partners, a private equity sponsor, completed the purchase of a portion of Citi’s proprietary interests in certain fund of funds, mezzanine and co-investment funds.
“We are excited to move forward with this significant expansion of StepStone’s private equity investment management activities and capabilities. We believe the continuity of support from the CPE professionals now on our team will ensure a smooth transition as we assume responsibility for management of the legacy CPE funds,” says Monte Brem, chief executive officer of StepStone. “The CPE businesses are an ideal fit with our fiduciary management, monitoring and reporting services, and will substantially enhance our capabilities in these areas.”
As part of the transaction, a majority of the CPE professionals, including Darren Friedman, former managing partner of CPE; Philip Neidoff, former business development and client relationship director of CPE; Jason Ment, former general counsel of CPE; and Rebecca Ajavananda, former director and head of investor relations of CPE, have joined StepStone and are based in its New York City office. In addition, Blair Jacobson, former partner and head of CPE’s European operations, also joined StepStone to open its London office.
In combination with the recent addition of the senior investment professionals from its acquisition of SilverBrook Private Equity, the addition of the CPE professionals completes StepStone’s goal of balancing the firm’s US presence between the East and the West coasts.
Subsequent to these two transactions, StepStone will have over 50 professionals based in San Diego, New York, London, and Beijing.
“This is an exciting time to join StepStone,” says Friedman, speaking on behalf of the CPE professionals who joined StepStone. “StepStone’s leading reputation in the private equity industry and its deep global research and investment team and capabilities provide the ideal platform to continue to grow the legacy CPE business and to maximize returns for its investment vehicles.”
