StepStone Group closed its inaugural opportunistic credit fund with over $600 million of commitments as more allocators are eyeing new credit opportunities.
StepStone Credit Opportunities Fund I will invest in both liquid and illiquid credit at stressed, dislocated, and distressed entry points or opportunistic situations across asset classes, industries and geographies. The fund due to StepStone’s scale and existing relationships is prepared to see a robust pipeline of deals, including secondary and co-investment opportunities. Also a consultant, StepStone currently has $127 billion in assets under management across private market asset classes.
“Unlike the global financial crisis, which was perhaps more limited in scope, the pandemic has affected virtually every segment of the market,” said StepStone Private Debt Partner Meinrad Wyser. “Based on what we’ve seen so far, the opportunity set for the Fund is unfolding across multiple sectors. This may help us provide our investors with diversified exposure to the private debt asset class, which is a cornerstone of our platform.”
StepStone, which has overseen roughly $35 billion in private debt assets within its advisory and asset management practices, is leaning on its own broad coverage of the marketplace and the expertise of its approved managers.
“Our ability to source investments from around the globe while offering secondary and co-investment opportunities provides investors with a value proposition that is hard to replicate,” said Marcel Schindler, head of StepStone Private Debt. “When coupled with our team’s experience, which spans multiple credit cycles, we are enthusiastic about this strategy, which has the potential to expand the role private debt can play in investors’ portfolios.”
The new fund’s flexibility will allow the team to take advantage of timely opportunities and the ability to acquire quality assets at attractive valuations, officials said.