StepStone reaches $450m close on secondaries fund

According to a regulatory filing, Taiwan-based Cathay Life Insurance invested $20 million in the fund.

"In a difficult fundraising environment, we are appreciative of the support and confidence that our Limited Partners have shown in our differentiated secondaries strategy - one which seeks to generate alpha by building a more concentrated portfolio of high quality assets, purchased at attractive prices, leveraging the global StepStone platform," said Tom Bradley, one of the Fund's co-managers. "We have generated significant momentum as a result of our recent investment activity and will seek to continue to build upon the success of our secondaries strategy."

The StepStone fund's investment strategy focuses on the smaller end of the secondaries market, as the firm believes it can capture market inefficiencies to drive returns.

Several sizeable funds have attracted capital in recent months. In February, LGT Capital Partners reached a final close on its third global secondaries fund, Crown Global Secondaries III (CGS III), at $2 billion. Meanwhile, Deutsche Bank reached a final close of $614 million on its second global secondaries fund.

Last year, Partners Group hit the hard cap of EUR2 billion ($2.6 billion) for its most recent fund in December and Coller Capital reached a final close of $5.5 billion on its latest vehicle in July. The largest secondaries vehicle ever raised remains Lexington Partners' seventh fund, which closed at $7 billion in 2011.

StepStone currently has more than US$50 billion of private equity allocations, including about US$10 billion of assets under management.

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• Topics
• Secondaries
• LPs
• Stepstone
• LGT Capital Partners
• Deutsche Bank
• Coller Capital
• Lexington Partners