StepStone has developed an investment philosophy that focuses on time-tested investment principles that we believe allow us to consistently maximize risk-adjusted returns. Our team is trained extensively in utilizing this philosophy to perform investment analysis. This philosophy provides a consistent framework for our Investment Committee to assess whether specific investments meet our rigorous standards.

The following is an overview of StepStone’s investment philosophy:

• Focus on risk-adjusted returns
• Be highly selective
• Invest with partners we trust and respect
• Avoid over-diversification
• Favor focused strategies to gain the benefits of specialization
• Seek out investments where interests are strongly aligned
• Do not follow the crowd
• Utilize both macro and manager or asset level analysis
• Be opportunistic
• Search for market inefficiencies that we are positioned to capture due to strategic relationships or access to unique information