StepStone Group's Strategic Position in the Evolving Private Markets Landscape

The collapse of Silicon Valley Bank (SVB) in 2023 sent shockwaves through global private markets, accelerating a shift toward liquidity-driven strategies and reshaping the venture capital and growth equity ecosystems. In this evolving landscape, StepStone Group has emerged as a pivotal player, leveraging its expertise in venture secondaries and growth equity to address the dual challenges of capital constraints and market volatility. By capitalizing on structural shifts in private markets, the firm has positioned itself to benefit from a post-SVB environment marked by increased demand for alternative liquidity solutions.

Navigating the Post-SVB Landscape

The SVB collapse exposed vulnerabilities in traditional banking systems, particularly for tech startups and venture-backed firms reliant on specialized financing. As global equity markets reacted with sharp declines—particularly in Asia, Europe, and Latin America—the incident underscored the need for diversified funding mechanismsThe aftermath of Silicon Valley Bank (SVB) collapse and its global equity market effects^[1]. Private credit and secondary markets, already maturing as core components of corporate finance, gained further prominence. StepStone Group, recognizing these trends, has refined its strategies to focus on venture secondaries and growth equity, offering clients tools to navigate liquidity gaps and regulatory uncertaintiesPrivate Credit^[2].

A key driver of StepStone's approach is the growing appeal of secondary transactions. Between 2023 and 2024, venture secondaries accounted for 14% of the total private equity secondaries market, nearly doubling from the prior yearPrivate equity secondaries on the upswing^[3]. This surge reflects a broader industry recalibration, as limited partners (LPs) and general partners (GPs) seek to unlock value from illiquid assets. StepStone's 2024 performance exemplifies this trend: the firm advised on over $25 billion in transactions, including continuation funds and structured secondaries, solidifying its leadership in the spaceKirkland & Ellis transaction data^[4].

Strategic Innovations and Market Position

StepStone's success stems from its ability to innovate within the secondary market. The firm has championed creative liquidity solutions such as minority interest sales, dividend recapitalizations, and NAV loans—strategies that align with broader industry efforts to address capital return challengesBain & Company’s Private Equity Outlook 2025^[5]. These approaches are particularly relevant in a post-SVB environment, where prolonged exit delays and macroeconomic headwinds have constrained traditional IPO and acquisition routes.

The firm's fundraising prowess further underscores its market position. In mid-2023, StepStone closed a record $3.3 billion fund dedicated to venture capital secondariesThe Hidden Exit Routes^[6]. By Q2 2025, it had surpassed this milestone, raising a $4.8 billion private equity secondaries fund—the largest in its historyStepStone Group’s Q2 2025 performance^[7]. This growth is part of a larger industry shift: secondary transaction volumes in venture capital reached $162 billion in 2024, a 45% increase from 2023Private Equity Mid-Year Report 2025^[8]. StepStone's ability to attract capital reflects investor confidence in its ability to navigate complex transactions and deliver returns amid market fragmentation.

Industry Trends and Competitive Dynamics

The rise of venture secondaries is not merely a response to the SVB crisis but a reflection of deeper structural changes in private markets. As institutional investors over-allocate to private assets—a phenomenon dubbed the “denominator effect”—secondary sales have become critical for portfolio rebalancingMoonfare blog on PE secondaries trends^[9]. StepStone's strategies align with this dynamic, enabling LPs to divest non-core holdings while allowing GPs to retain high-performing assets.

Comparative data highlights the firm's competitive edge. While Ares Private Markets Fund reported net total returns of up to 19.95% in fiscal 2025Ares Private Markets Fund N-CSR filing^[10], StepStone's focus on venture-specific secondaries taps into a niche with higher growth potential. The firm's involvement in high-profile deals, such as the $950 million investment in Peruvian private equity firm EnfocaProskauer Rose transaction details^[11], further demonstrates its capacity to execute large-scale transactions in emerging markets—a differentiator in an increasingly globalized private equity landscape.

Future Outlook and Strategic Implications

Looking ahead, StepStone's position in venture secondaries and growth equity is poised to strengthen. Analysts note that secondary markets will remain central to portfolio optimization as public-to-private exit routes remain constrainedMcKinsey Global Private Markets Report 2025^[12]. The firm's emphasis on structured solutions—such as continuation funds and GP-led transactions—positions it to capitalize on the $4 trillion global VC asset management backlogEuropean Women in VC newsletter^[13].

However, challenges persist. Regulatory scrutiny of private credit and secondary markets has intensified, requiring firms like StepStone to balance innovation with risk managementAcademia.edu Private Credit analysis^[14]. Additionally, macroeconomic uncertainties, including inflation and geopolitical tensions, could impact capital flows. StepStone's ability to adapt its strategies while maintaining its focus on liquidity and diversification will be critical to sustaining its leadership.

Conclusion

StepStone Group's strategic pivot toward venture secondaries and growth equity reflects a nuanced understanding of the post-SVB market. By addressing liquidity gaps, innovating transaction structures, and scaling its fundraising capabilities, the firm has solidified its role as a key player in the evolving private markets landscape. As secondary markets continue to mature, StepStone's ability to navigate regulatory and macroeconomic headwinds will determine its long-term success—and its capacity to deliver value in an increasingly complex financial ecosystem.