StepStone Secures $3.1 Billion Secondary Fund with Ares, Barings
Event summary
- StepStone Group closed a structured solutions vehicle for private market secondaries, securing $3.1 billion in commitments.
- This vehicle represents the largest transaction of its kind in the private market secondaries space.
- Ares Management Alternative Credit funds are the primary capital provider, while Barings Portfolio Finance provided rated financing.
- Citi acted as the structuring and placement agent for the deal.
- As of December 31, 2025, StepStone managed approximately $811 billion in total capital, including $220 billion in assets under management.
The big picture
StepStone's structured solutions vehicle demonstrates a growing trend of sophisticated financing arrangements within the private markets, allowing for greater flexibility and access for institutional investors. The $3.1 billion commitment underscores the continued demand for private market secondaries, particularly from investors seeking to deploy capital efficiently. This deal also highlights the increasing role of fund finance providers like Ares and Barings in facilitating private market transactions.
What we're watching
- Capital Flows
- The success of this structure may encourage similar vehicles, potentially diverting capital from direct private equity investments into secondaries.
- Fund Finance
- Continued reliance on fund finance from Ares and Barings signals a sustained appetite for yield in a low-rate environment, but also introduces leverage risk into StepStone's portfolio.
- Competitive Dynamics
- The involvement of Citi as placement agent suggests StepStone is actively seeking to broaden its investor base and may intensify competition for secondary deals.
Related topics