StepStone Real Estate (SRE), the real estate division of StepStone Group, has announced the final closing of StepStone Real Estate Partners V (SREP V), its fifth flagship fund focused on GP-led secondaries and recapitalizations of real estate vehicles. The fund raised $3.77 billion in primary commitments, making it the largest real estate secondaries fund to date. Including co-investments and discretionary vehicles, the total investment capacity exceeds $4.5 billion.
Despite “challenging market conditions” and a slowdown in fundraising across the real estate sector, SREP V was significantly oversubscribed. To date, the fund and related separate accounts have committed $1.7 billion across eight investments, with a substantial pipeline of transactions currently closing.
Jeff Giller, Partner and Head of SRE, commented, “We believe the combination of value declines, historically low transaction volume, increased borrowing costs, and a slow fundraising environment has created unprecedented illiquidity across real estate markets. Our strategy—providing liquidity solutions to real estate vehicles and investors when traditional liquidity avenues are challenged—has proven resilient through all phases of the market cycle, and it’s especially compelling today.”
Latham & Watkins LLP advised on the formation of the fund, while Threadmark Partners Limited provided placement agent services.
This milestone underscores StepStone Real Estate’s continued leadership in the real estate secondaries market, offering innovative liquidity solutions to investors in a complex market environment.
Source:
- Excerpts from connectcre article by By: Paul Bubny
- PitchBook
