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Fund Investments | Co-Investments | Secondary Investments

Secondary Purchases

StepStone actively invests in attractive private equity investments through secondary transactions. Our senior investment professionals have completed hundreds of limited partnerhsip transfers across multiple economic cycles.

Secondary Strategy

StepStone’s secondary investment strategy derives from the firm’s culture of rigorous analytical research and direct investment experience. StepStone seeks to purchase healthy, performing fund portfolios by focusing on company-level value. StepStone places particular attention on investment opportunities in single limited partner interests where the Firm has unfettered access to company-level data. StepStone has been able to gain access to this critical data due to our long history and vast experience of working with and advising the leading private equity limited partners.

Secondary Process

StepStone has developed a unique investment process to provide our clients with superior service. StepStone has fully integrated our secondaries investment process across the broad private equity platform, drawing on the strengths of our sector-focused research platform and our high concentration of direct investment expertise. StepStone is the first advisor to streamline its investment activities in order to build integrated secondary separate accounts into our clients’ portfolios. Thus, our clients benefit from early identification and allocation of “customized” secondary investment opportunities.

Portfolio Benefits

StepStone believes that a well-constructed private equity portfolio includes exposure to the secondary market, particularly during cyclical down-turns in the private equity market. Secondary investments provide unique diversification and cash flow benefits, particularly for newer private equity portfolios. Secondary purchases can provide instant diversification by vintage year, manager, sub-sector strategy and geography. StepStone uses secondaries tactically to assist its clients in reaching their strategic objectives and maximizing long-term risk adjusted portfolio returns.