From the shrinking public equity universe to innovative evergreen funds, learn how new strategies are reshaping the way we invest in the private markets.
StepStone Private Wealth’s CEO, Bob Long, discusses the intriguing world of private markets. Discover why we believe individual investors should focus on private equity to access the potential premium returns and diversification benefits this asset class can offer.
Important Information
StepStone Group’s largest institutions it invests on behalf of is based on Preqin, as of January 2023, public disclosures and StepStone research. Note that there are no comprehensive ranking sources for these activities. Independent private LPs defined as investors that are not an affiliate of a government or financial institution. Represents StepStone’s position among independent private LPs by comparing our annual fund commitments on behalf of discretionary and non-discretionary advisory clients to LP allocations in Preqin’s LP database. StepStone’s total capital responsibility equals Assets Under Management (AUM) plus Assets Under Advisement (AUA). AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets. $659B in total capital responsibility includes $149B in AUM and $510B in AUA. Reflects final data for the prior period (September 30, 2023), adjusted for net new client account activity through December 31, 2023. Does not include post-period investment valuation or cash activity. NAV data for underlying investments as of September 30, 2023, as reported by underlying managers up to the business day occurring on or after 100 days following September 30, 2023. When NAV data is not available by the business day occurring on or after 100 days following September 30, 2023, such NAVs are adjusted for cash activity following the last available reported NAV.
Before investing you should carefully consider the Funds’ investment objectives, risks, charges and expenses. This and other information is in the StepStone Private Markets Fund (SPRIM), StepStone Private Venture and Growth Fund (SPRING), and StepStone Private Infrastructure Fund (STRUCTURE) prospectuses, copies of which may be obtained from StepStone Private Wealth at 704.215.4300 or by visiting stepstonepw.com. An investor should read each prospectus carefully before investing.
An investment in the Funds involve risks. The Funds should be considered speculative investments that entail substantial risks, and a prospective investor should invest in the Funds only if it can sustain a complete loss of its investment. Fund fees and expenses may offset trading profits. Fund shares are illiquid and appropriate only as a long-term investment. There is no secondary market for the Funds’ Shares and the Funds expect that no secondary market will develop in the foreseeable future. The risks of investing in venture capital and growth equity companies are generally greater than the risks of investing in public companies that may be at a later stage of development. Secondary investments may be acquired by the Funds as a member of a purchasing syndicate, and they may be exposed to additional risks such as (i) counterparty risk, (ii) reputation risk, (iii) breach of confidentiality by a syndicate member, and (iv) execution risk. Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including economic slowdown, supply and demand volatility, increased competition, fluctuations in usage, expenses, and revenue, lack of fuel availability, energy conservation policies, technological obsolescence and changes in interest rates, regulations, or fiscal and monetary policy. Property values may fall due to in-creasing vacancies or declining rents resulting from unanticipated economic, legal, cultural or technological developments. There is no regular market for interest in infrastructure assets, which typically must be sold in privately negotiated transactions that can occur at a discount to the stated NAV.
Investments may consist of loans to small and/or less well-established privately held companies that have reduced access to the capital markets, resulting in diminished capital resources and the ability to withstand financial distress. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than a diversified fund. Though valuations of Fund investments are ordinarily made quarterly, the Funds will provide valuations, and will issue shares, on a more frequent basis. Fund investments will be fair valued and are subject to adjustment. Fund acquisitions may be negotiated based on incomplete or imperfect information which could impact performance. The Funds may maintain a sizeable cash position in anticipation of funding capital calls. Holding a portion of the investment portfolio in cash or cash equivalents may have a negative effect on overall performance. The Fund’s “over-commitment” strategy could result in an insufficient cash supply to fund unfunded commitments to investment funds resulting in negative impacts to the Fund. Please see the prospectuses for details of these and other risks.
While the Funds provides transparent disclosure of structure, strategy, holdings, and financial condition, the valuation of the Fund’s investments in Private Markets Investment Funds is ordinarily determined based upon valuations provided by the Investment Managers on a quarterly basis. A large percentage of these securities do not have a readily ascertainable market price and are fair valued by the Investment Manager subject to future adjustment or revision. No assurances can be given regarding accuracy of the valuation methodology or the sufficiency of systems utilized by any Investment Manager, and an Investment Manager’s valuation of the securities may fail to match the amount ultimately realized with respect to the disposition of such securities.
The statements and opinions expressed are those of the presenter(s). Any discussion of investments and investment strategies represents the presenter’s views as of the date created and are subject to change without notice. Information presented is for general purposes only and is not intended to provide specific advice or recommendations for any individual. Diversification does not assure a profit nor protect against loss in a declining market.
Mutual funds, private funds, equities, bonds, and other asset classes have different investment strategies and risk profiles, which should be considered when investing. All investments contain risk and may lose value. Tax features of the products will vary based on an individual circumstances. Public and private securities have different investment strategies and risk profiles, which should be considered when investing. Differences may include objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features. Investment objectives will vary greatly among all structures and directly impact the volatility of any given fund, however private market funds are generally expected to be more speculative than registered funds due to the differences in regulatory oversight requirements. While mutual funds are limited in the amount of illiquid and derivative investments they may make, closed-end funds have less limitations, and private funds generally have no restrictions on such holdings. The performance of private market funds is difficult to measure and therefore such measurements may not be as reliable as performance information for other investment products. In addition to the transactional fees and ongoing operating expenses contained within most fund structures, many private market funds often include an additional performance fee applicable to investors.
In addition to shareholder specific fees, investors are also subject to annual Fund operating expenses which can be found in the prospectus.
On a quarterly basis, at the discretion of the Board of Trustees, the Funds offer a share repurchase program of up to 5% for SPRIM and up to 2.5% for SPRING of the Funds’ outstanding Shares per quarter subject to limitations. The Funds are not obligated to redeem any shares, and the Board may modify, suspend or terminate the plan. On a quarterly basis, the STRUCTURE will conduct offers at net asset value to repurchase between 5% and 25% of outstanding Shares, unless such offer is suspended or postponed in accordance with regulatory requirements. In connection with any given quarterly repurchase offer, the Fund currently intends to repurchase 5% of its outstanding Shares. It is possible that a repurchase offer may be oversubscribed, with the result that Shareholders may only be able to have a portion of their Shares repurchased.
Investment in SPRIM and STRUCTURE may be made only by investors who represent that they are an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act. Investment in SPRING may be made only by investors who represent that they are a “qualified client” within the meaning of Rule 205-3 under the Advisers Act and an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act).
The StepStone Funds are distributed by UMB Distribution Services, LLC which is not affiliated with StepStone Group or any other entity discussed in the recording.
SPRING was formed in 2022 and has limited performance history that Shareholders can use to evaluate the Fund. STRUCTURE is a newly formed investment company with no operating or performance history that Shareholders can use to evaluate the Fund.
