StepStone Real Estate closes fourth fund at $1.4bn

StepStone Real Estate closes fourth fund at $1.4bn

StepStone Real Estate announced the final closing of StepStone Real Estate Partners IV (SREP IV), its fourth in a series of funds focused on special situations secondaries and recapitalizations of real estate vehicles, at $1.4 billion, exceeding its $1 billion target.

SREP IV is double the size of its predecessor, SREP III, which had its final closing in February 2017 with $700 million in primary commitments and invested capital of approximately $1.2 billion, including capital from co-investors.

“SREP IV has a diverse, global investor base consisting of sovereign wealth funds, pension funds, financial institutions, university foundations and endowments, and family offices from North America, the Middle East, Europe, Asia, and Latin America,” said Jeffrey Giller, Partner and Head of StepStone Real Estate.

StepStone said, SREP IV is a continuation of a strategy pioneered by SRE’s partners during the global financial crisis of 2008 (GFC) and subsequent recovery period.

According to Mr. Giller, “the special situations secondaries and recapitalization strategy that we focused on during the GFC and recovery period was a win for our investors, a win for the limited partners that benefitted from liquidity at a time they really needed it, and a win for the managers that we partnered with to address both challenges in their existing portfolios and positive opportunities in the market. We are optimistic that the period of disruption caused by the COVID-19 pandemic may create a similar investment environment for SREP IV.”