Private equity firm StepStone Group Inc., advised by Fried Frank Harris Shriver & Jacobson LLP, announced Friday the successful closing of its fifth secondaries opportunities fund, raising a total of $7.4 billion in investor commitments.

StepStone Secondary Opportunities Fund V

The primary component of the capital raise, StepStone Secondary Opportunities Fund V LP, secured $4.8 billion in aggregate commitments. The fund received backing from a global network of institutional investors, including sovereign wealth funds, public and corporate pension funds, endowments, foundations, and family offices.

“We are extremely pleased to have received such strong investor support,” said Thomas Bradley, co-head of private equity secondaries at StepStone and one of the fund’s managers. Bradley attributed the success to StepStone’s proven track record and the current market demand for secondary liquidity.

StepStone $7.4B Secondaries Fund : Investment Strategy and Market Focus

StepStone plans to allocate more than half of the fund’s capital, targeting less efficient areas of the private equity secondaries market. The firm believes its information advantages will help isolate high-quality assets in those segments. "This newly raised capital will allow us to continue to take advantage of the best risk-adjusted opportunities while partnering with best-in-class managers,” Bradley said.

The fund will be managed by Bradley alongside co-head Mark Maruszewski and supported by a 37-person team, including Adam Johnston and John Kettnich.

StepStone $7.4B Secondaries Fund : Growth Compared to Previous Fund

This fifth fund marks a significant increase in size compared to StepStone Secondary Opportunities Fund IV, which closed in 2020 with $2.1 billion in commitments, more than doubling its predecessor. The fourth fund had initially set a $1.25 billion target, eventually ranking as the ninth-largest fund closure in the second quarter of 2020.

StepStone’s Leading Role in Private Equity Secondaries

StepStone has established itself as a leader in secondary liquidity solutions, deploying more than $14 billion across 210 private equity secondaries transactions. As of June 30, the firm managed approximately $170 billion in assets, with $27 billion specifically dedicated to secondary solutions. Overall, StepStone oversees $701 billion in total capital.

Legal Advisors

The Fried Frank legal team advising on the fund was led by corporate partner Jeffrey Schatz, with contributions from corporate partner Kenneth Rosh, tax partner Rodney Hill, and executive compensation and ERISA partner Andrea Pollak.