StepStone Real Estate Partners V closes at $3.77 billion, becoming the largest real estate secondaries fund to date.
Quiver AI Summary
StepStone Real Estate (SRE), part of StepStone Group, announced the closure of StepStone Real Estate Partners V (SREP V), its largest real estate secondaries fund to date, with $3.77 billion in primary commitments. This oversubscribed fund, despite a challenging fundraising climate in real estate, exemplifies strong investor confidence in SRE's strategy. The total investment program exceeds $4.5 billion when including co-investments and discretionary vehicles. SREP V has already committed $1.7 billion across eight investments, indicating robust demand for liquidity solutions from real estate general partners. The fund attracted a diverse global investor base, with notable participation from North American institutions and increased commitments from various regions worldwide. SRE, founded in 2009, aims to provide liquidity during market dislocations and has adopted a strategy focused on GP-led secondaries and recapitalizations since the Global Financial Crisis.
Potential Positives
- SREP V has raised $3.77 billion in primary commitments, making it the largest real estate secondaries fund ever raised, showcasing strong demand for the company’s investment strategy.
- The fund was significantly oversubscribed, indicating strong investor confidence in StepStone Real Estate’s differentiated approach despite challenging market conditions.
- SREP V attracted a diverse and global investor base, which includes notable participation from North American institutions and increased commitments from international investors, enhancing the company's credibility and reach.
- The strategic focus on GP-led secondaries and recapitalizations positions SRE effectively in a market facing unprecedented illiquidity, highlighting the resilience and relevance of their investment strategy.
Potential Negatives
- Despite the successful closing of SREP V, the press release acknowledges "challenging market conditions" and a "slowdown in fundraising across the real estate sector," which may raise concerns about the overall health of the real estate market.
- The statement from Giller highlights "unprecedented illiquidity across real estate markets," indicating broader issues that could impact the company's future performance and investor sentiment.
- The company is adapting its strategy in response to significant challenges, shifting from traditional secondaries to more control-oriented approaches, which may reflect the need to pivot due to prior difficulties in the market.
FAQ
What is StepStone Real Estate Partners V (SREP V)?
SREP V is StepStone's fifth flagship fund focused on GP-led secondaries and recapitalizations in real estate, with $3.77 billion in commitments.
Why is SREP V significant in the real estate market?
SREP V is the largest real estate secondaries fund raised to date, reflecting strong investor confidence despite challenging market conditions.
Who are the primary investors in SREP V?
The fund attracted diverse global investors, including sovereign wealth funds, pension funds, insurance companies, and wealth management platforms.
What strategy does StepStone employ in real estate investments?
StepStone focuses on providing liquidity solutions through GP-led secondaries and recapitalizations, rather than traditional limited partner interests.
How does StepStone's advisory practice contribute to SREP V?
StepStone's advisory practice oversees $170 billion in real estate assets and conducts over 1,000 manager meetings yearly, enhancing deal sourcing and evaluation.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$STEP Insider Trading Activity
$STEP insiders have traded $STEP stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $STEP stock by insiders over the last 6 months:
- SCOTT W HART (Chief Executive Officer) has made 0 purchases and 8 sales selling 70,000 shares for an estimated $4,392,372.
- MICHAEL I MCCABE (Head of Strategy) has made 0 purchases and 2 sales selling 6,200 shares for an estimated $398,548.
- DAVID Y PARK (Chief Financial Officer) sold 3,000 shares for an estimated $204,629
- ANTHONY KEATHLEY (Chief Accounting Officer) has made 0 purchases and 2 sales selling 1,267 shares for an estimated $84,085.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$STEP Hedge Fund Activity
We have seen 154 institutional investors add shares of $STEP stock to their portfolio, and 77 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WELLINGTON MANAGEMENT GROUP LLP removed 2,013,672 shares (-36.6%) from their portfolio in Q4 2024, for an estimated $116,551,335
- PRICE T ROWE ASSOCIATES INC /MD/ added 895,521 shares (+19.0%) to their portfolio in Q4 2024, for an estimated $51,832,755
- BLACKROCK, INC. added 693,198 shares (+7.4%) to their portfolio in Q4 2024, for an estimated $40,122,300
- MASSACHUSETTS FINANCIAL SERVICES CO /MA/ added 558,738 shares (+inf%) to their portfolio in Q4 2024, for an estimated $32,339,755
- AMERIPRISE FINANCIAL INC added 515,760 shares (+353.2%) to their portfolio in Q4 2024, for an estimated $29,852,188
- MILLENNIUM MANAGEMENT LLC removed 434,000 shares (-35.1%) from their portfolio in Q4 2024, for an estimated $25,119,920
- VANGUARD GROUP INC added 411,133 shares (+6.3%) to their portfolio in Q4 2024, for an estimated $23,796,378
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$STEP Analyst Ratings
Wall Street analysts have issued reports on $STEP in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Oppenheimer issued a "Outperform" rating on 04/16/2025
To track analyst ratings and price targets for $STEP, check out Quiver Quantitative's $STEP forecast page.
Full Release
NEW YORK, April 28, 2025 (GLOBE NEWSWIRE) -- StepStone Real Estate (SRE), the real estate arm of StepStone Group (Nasdaq: STEP), today announced the final closing of StepStone Real Estate Partners V (SREP V), its fifth flagship fund dedicated to GP-led secondaries and recapitalizations of real estate vehicles. With $3.77 billion in primary commitments, SREP V represents the largest real estate secondaries fund raised to date. Including co-investments completed and discretionary vehicles raised to invest alongside the fund, the total investment program exceeds $4.5 billion in capacity.
Despite challenging market conditions and a slowdown in fundraising across the real estate sector, SREP V was significantly oversubscribed, reflecting strong investor confidence in SRE’s differentiated strategy and past performance. To date, SREP V and related separate accounts have committed $1.7 billion across 8 investments, with a large pipeline of transactions currently closing, underscoring the significant demand for liquidity solutions from real estate GPs.
Founded in 2009, SRE was established by Jeff Giller, Partner and Head of StepStone Real Estate, Josh Cleveland, Partner and Head of EMEA, and Brendan MacDonald, Partner and Chief Operating Officer. Since inception, the firm has focused on providing liquidity to real estate funds and their investors during times of market dislocation.
“We believe the combination of value declines, historically low transaction volume, increased borrowing costs, and a slow fundraising environment has created unprecedented illiquidity across real estate markets,” said Giller. “Our strategy—providing liquidity solutions to real estate vehicles and investors when traditional liquidity avenues are challenged—has proven resilient through all phases of the market cycle, and it’s especially compelling today.”
“SREP V attracted a diverse global investor base, including sovereign wealth funds, pension funds, insurance companies, and wealth management platforms," said Cleveland. “The fund saw notably higher participation from North American institutions compared to prior vintages, along with increased commitments from investors in Europe, Asia, the Middle East, and Latin America,” he added.
The success of the fundraise was also driven by the strength of SRE’s broader platform. “Our advisory practice, which oversees roughly $170 billion in real estate assets under advisement, continues to play a pivotal role in sourcing and evaluating secondaries transactions,” said MacDonald. “We conduct over 1,000 manager meetings annually and have allocated approximately $17 billion per year across primary investments in funds, secondaries, and co-investments. This level of engagement gives us a distinct vantage point in the market—and a strong edge in deal sourcing and diligence.”
SREP V continues a strategy pioneered by SRE’s founders following the Global Financial Crisis, shifting from traditional secondaries focused on passive limited partner interests to control-oriented, GP-led secondaries and recapitalizations.
Latham & Watkins LLP advised on the formation of the fund and Threadmark Partners Limited provided placement agent services.
About StepStone and StepStone Real Estate
StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2024, StepStone was responsible for $698 billion of total capital, including $179 billion of assets under management. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the real estate, private equity, infrastructure, and private debt asset classes.
Contacts
Shareholder Relations:
Seth Weiss
[email protected]
+1 (212) 351-6106
Media:
Brian Ruby / Chris Gillick / Matt Lettiero, ICR
[email protected]
+1 (203) 682-8268
