About StepStone

• Founded: 2007

• Headquarters: La Jolla, California, United States

• AUM: $650bn as of 2024

• Strategy: Multi-strategy alternatives platform, including private equity, infrastructure, private debt, real estate, and venture capital secondaries

• Leadership: Scott Hart (CEO), Jason Ment (Global Head of Private Markets Solutions)

StepStone closed its dedicated venture capital secondaries fund at over $1bn, reflecting increased LP demand for liquidity in venture portfolios. The fund targets secondary purchases of VC fund stakes and direct company positions, providing exit options for existing investors while maintaining exposure to underlying assets. The close marks a shift in LP appetite as venture exit timelines extend beyond historical norms and traditional IPO windows remain constrained.

The $1bn raise signals sustained buyer interest in venture secondaries despite pricing uncertainty in the asset class. Recent transactions have shown discounts ranging from 20% to 40% on net asset value for late-stage venture positions, creating entry points for secondaries buyers willing to absorb extended hold periods. Coller Capital and Lexington Partners have also expanded venture secondaries allocations over the past 18 months, with aggregate capital raised for the strategy exceeding $15bn since 2022.

LP participation in VC secondaries funds reflects a tactical rebalancing rather than structural distress. Many institutional investors remain overweight venture following markups in 2020–2021 and now seek modest reductions without full liquidation. The key tension is pricing alignment: sellers require valuations that preserve DPI performance, while buyers demand discounts that compensate for illiquidity and downside scenarios where portfolio companies fail to reach projected exit multiples. Transaction volume in 2025 will test whether the $1bn deployment pace can be sustained if bid-ask spreads widen further.

Source: Venture Capital Journal