StepStone Group becomes the latest private markets investment company to target an IPO

by Andrés Ramos, Content Marketing Specialist – eVestment Private Markets

On Monday, August 24, 2020, private markets consulting firm StepStone Group filed paperwork with the Securities and Exchange Commission to launch a $100 million IPO. The firm plans to list on Nasdaq under the symbol STEP.

As a consultant and fund manager for many large public pension plan investors, StepStone documents are regularly posted to Market Lens, eVestment’s searchable database of intelligence, documents, and mandates. The platform features documents from more than 8,000 public and corporate pension plans offering insight into investor portfolio allocation strategies, consultant opinions, and competitor presentation decks.

In advance of their planned IPO, we took a look at some of these documents to learn about StepStone, the clients they advise, and the services they offer.

Recent developments

In August 2020, StepStone shared a portfolio update on their 2011 vintage StepStone Secondary Opportunities Fund II with client Tulare County ERA. The presentation featured an in-depth overview of the firm’s recent growth.

At the firm level, StepStone took their headcount to over 500 globally with over 40 hires in 2020 and opened a new office in Charlotte, North Carolina to bring their overall office count to 19 globally. As of March 31, 2020, the firm’s combined assets under management and assets under advisement reached $296 billion. Hover on the chart to see the asset class breakdown of StepStone’s AUM/AUA.

Select Consulting Clients

StepStone’s primary business line in their consulting practice which covers all private markets asset classes. Their consulting clients include:

  • Connecticut Retirement
  • Los Angeles County ERA (LACERA)
  • Los Angeles Water & Power
  • New York State Retirement Systems
  • Pennsylvania SERS
  • San Diego City ERS
  • Texas Municipal

StepStone AUA/AUM by asset class

as of March 31, 2020

Recent Manager Recommendations

A core part of StepStone’s consulting practice is making investment recommendations for their client portfolios. In a presentation from August 2020 to public pension plan Arizona Public Safety, StepStone disclosed that in 2019 they approved and recommended over $40 billion in commitments for their clients. Market Lens features an extensive collection of these investment recommendations. Outlined below are a sampling of the funds StepStone has recommended to clients thus far in 2020:

CVC Capital Partners VIII – Private Equity HPS Mezzanine Partners 2019 – Private Debt
One Rock Capital Partners III – Private Equity Stellex Capital Partners Fund II – Special Situations
Leeds Equity Capital VII – Private Equity Harrison Street European Property Partners III – Real Estate
Hg Saturn 2 – Private Equity Westbrook Real Estate Fund XI – Real Estate

For investors and competitors, intelligence like this has moved from “nice to have” to “need to have.” With direct access to investor documents, Market Lens offers users that intel. Click the link to read more about how the platform gives uses an “unfair advantage” when it comes to investor relations and fundraising.

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