StepStone Group raised $2.36 billion in commitments for its fifth co-investment fund as interest picks up across the firm’s global investor base.
StepStone Capital Partners Fund V (SCP V) will include co-investments alongside leading private equity firms, according to their areas of expertise. The diversified portfolio will invest in buyout, growth equity and recapitalization transactions across a diverse set of managers, geographies, industries, vintage years and sizes.
“Based on current market conditions, rising interest rates, and valuations of private companies across industries, we believe this is an opportune time to invest in quality assets at attractive valuations,” said StepStone Partner and Co-Head of Co-Investments Lindsay Creedon.
The firm has $137 billion in assets under management across private markets, including private equity and secondaries. Officials say that it’s relationships with top-tier managers around the world including via its $588 billion advisory business, will support a robust pipeline of transactions.
According to Darren Friedman, partner and co-head of Co-Investments at the New York firm, the new fund is a cost-effective way for investors to obtain diversified private equity exposure while leveraging StepStone’s competitive advantages.
“StepStone’s extensive manager relationships, coupled with our in-house expertise, will enhance the opportunities available to us and allow us to build on the success of our predecessor funds,” said Friedman.
Currently, StepStone manages over $23 billion in co-investment buyouts. The firm’s previous co-investment fund, SCP IV, closed at $1.3 billion in 2018.