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StepStone closes its first credit opportunities fund, beating target

Manager raises more than $600 million for stressed, dislocated and distressed vehicle.

StepStone Group has held a final close on more than $600 million for its first credit opportunities fund, the manager said in a news release. The fund beat its target of $500 million, a spokesman said.

StepStone Credit Opportunities Fund I will invest in both liquid and illiquid credit in stressed, dislocated, distressed and opportunistic situations across asset classes, industries and geographies. It was launched in December 2020, and will not use leverage, the spokesman said.

“Unlike the global financial crisis, which was perhaps more limited in scope, the pandemic has affected virtually every segment of the market,” StepStone private debt partner Meinrad Wyser said in the statement, adding that the opportunity set was unfolding across multiple sectors.

StepStone said a diverse group of limited partners from around the world invested in the fund, but did not provide further details.

Owing to StepStone’s scale and relationships, the Fund expects to see a robust pipeline of transactions, including secondary and co-investment opportunities.

“Our ability to source investments from around the globe while offering secondary and co-investment opportunities provides investors with a value proposition that is hard to replicate,” said Marcel Schindler, head of StepStone private debt. “When coupled with our team’s experience, which spans multiple credit cycles, we are enthusiastic about this strategy, which has the potential to expand the role private debt can play in investors’ portfolios.”

StepStone is a global private markets investment firm focused on providing customised investment solutions to its clients, as well as advisory and data services. As of 31 December 2021, StepStone oversaw approximately $548 billion of private markets allocations, including $127 billion of assets under management.