Stepstone Group Inc. · NASDAQ:STEP
Stepstone — StepStone Private Markets Fund (SPRIM) — Investor Presentation (June 2023)
34 slides from Stepstone's investor presentation, June 2023
Slide 1: StepStone Private Markets Fund (SPRIM)
StepStone Private Markets Fund (“SPRIM™”) FOR ACCREDITED INVESTOR USE ONLY. NOT FOR ONWARD DISTRIBUTION. The descriptions herein reflect Advisers’ current views and expectations and are subject to change and are qualified in their entirety by the Prospectus for the Fund. There can be no assurance th
Slide 2: Disclosures
Disclosures Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from StepStone Private Wealth at 704.215.4300. An investor should read the prospectus carefully b
Slide 3: Uncertainty in the Public Markets is Creating Challenges For Investment Portfolios
Uncertainty in the Public Markets is Creating Challenges For Investment Portfolios Public markets may be challenged to deliver meaningful returns in the years to come Muted Return Volatility Creates We Believe Traditional Expectations in the Concern for Allocations Need to Public Markets1 Investors2
Slide 4: Comprehensive Private Markets Approach
Comprehensive Private Markets Approach StepStone Private Wealth was formed to convert the advantages of private markets enjoyed by institutional investors into potential opportunities for high-net-worth investors and smaller institutions S T EP S TONE SPRIM A POWERFUL COMBINATION A COMPREHENSIVE APP
Slide 5: Why Invest in the Private Markets?
Why Invest in the Private Markets? Much of the growth, value creation and opportunity has taken place in the private vs. public markets NUMBER OF US IPOs CURRENT BLEND OF US PRIVATE PER YEAR1 VS. PUBLIC COMPANIES2 800 700 13% 600 500 400 300 200 100 0 87% 1990 1994 1998 2002 2006 2010 2014 2018 2022
Slide 6: How Are the Most Sophisticated Institutions Investing?
How Are the Most Sophisticated Institutions Investing? Institutional investors maintain significant private markets allocations CURRENT TARGET ALLOCATION TO PRIVATE MARKET ALTERNATIVES 45% 40% 37% 38% 35% 34% 31% 30% 28% 25% 20% 15% 10% 5% 0% Sovereign Wealth Funds Public Pension Funds Foundations E
Slide 7: Private Market Performance Requires Access and Information
Private Market Performance Requires Access and Information In private markets, a commitment to open architecture, data intelligence and a network of relationships provides access to who we believe are top performing managers that may have a distinct advantage RETURN DISPERSION 20 Year Return - Quart
Slide 8: About StepStone
About StepStone StepStone is one of the largest private market investment managers in the world with unparalleled access to deal flow TOTAL CAPITAL RESPONSIBILITY1 ASSETS UNDER MANAGEMENT(AUM)1 ALLOCATED ANNUALLY2 Significant capital allocated to the private markets annually MANAGER MEETINGS3 Deep r
Slide 9: Key Client Relationships
Key Client Relationships $80B of capital deployed into the private markets annually on behalf of some of the world’s largest institutions SELECT STEPSTONE INSTITUTIONAL CLIENTS Villanova University Endowment For illustrative purposes only. This is not a comprehensive representation of StepStone clie
Slide 10: More Data, More Intelligence, Better Decision Making
More Data, More Intelligence, Better Decision Making StepStone utilizes its proprietary suite of integrated data and technology solutions to perform more comprehensive due diligence and make better investment decisions StepStone’s proprietary private markets database, SPITM, tracks information:1 Pri
Slide 11: Why Consider SPRIM?
Why Consider SPRIM? SPRIM is a core private market holding, which may provide high net worth individuals and smaller institutions with fully diversified exposure to the private markets, available via a convenient, efficient and transparent product Globally diversified private market investments in o
Slide 12: SPRIM Investment Strategy
SPRIM Investment Strategy SPRIM’s investment strategy provides global exposure to all major private market asset classes in one open architecture solution Target Asset Class Private Equity PRIVATE EQUITY REAL ASSETS 60%-80% • Secondary Funds • Clean Energy/Renewables • Small Buyout Real Assets 15%-3
Slide 13: SPRIM Portfolio Construction
SPRIM Portfolio Construction By leveraging the advantages of Secondaries, Co-Investments, and Primaries, SPRIM provides a comprehensive private markets solution that offers a diverse range of exposure CO-INVESTMENTS 15% • Directly investing into portfolio companies 15 81 SECONDARIES 81% alongside pr
Slide 14: Accessing the Private Markets Through Secondaries
Accessing the Private Markets Through Secondaries Secondary investors can optimize the investment lifecycle of a fund by accessing private markets at a more attractive entry point, reducing blind pool risk, mitigating the J-curve and benefiting from accelerated distributions that are more evenly dis
Slide 15: Accessing the Private Markets Through Co-Investing
Accessing the Private Markets Through Co-Investing Co-investments involve making an equity investment directly into a single operating company, typically alongside a private equity manager who is also contributing capital to the same company. HYPOTHETICAL ILLUSTRATION OF CO-INVESTMENT TRANSACTIONS G
Slide 16: Challenges Accessing the Private Markets
Challenges Accessing the Private Markets Historically, it has been difficult for high-net-worth individuals and smaller institutions to get diversified exposure to the private markets High Investment Minimums & Suitability Requirements K-1 Complexity & Tax Reporting Delays1 ? Illiquidity & Unpredict
Slide 17: Simplifying the Investor Experience
Simplifying the Investor Experience Investment objectives and fund structure provide features desired by high-net-worth individuals and smaller institutional investors SPRIM INVESTOR FRIENDLY FEATURES SPRIM A COMPREHENSIVE APPROACH QUARTERLY REDEMPTION OFFER1 Complete Exposure to the Private Markets
Slide 18: SPRIM Snapshot
SPRIM Snapshot I M M E D I AT E , C O M P R E H E N S I V E E X P O S U R E T O T H E P R I V AT E M A R K E T S • Investing in an existing, mature, diversified portfolio • Private equity, real assets and private debt via secondaries, direct co-investments and primaries • Open architecture - allocat
Slide 19: Why Invest Now?
Why Invest Now? We believe SPRIM, as a core private markets holding, may provide attractive returns, reduce daily volatility and offer diversification from public market uncertainty1 We believe public A traditional Private Markets Like large market returns are 60%/40% allocation have historically in
Slide 20: Appendix
OSTEPSTONE APPENDIX
Slide 21: Key Terms
Key Terms SPRIM’s intends to invest, directly and indirectly, in a broad cross section of private market assets that will over time achieve long-term capital appreciation, provide regular, current income through semi-annual distributions, INVESTMENT OBJECTIVE offer an investment alternative for inve
Slide 22: Portfolio Composition
Portfolio Composition P R I VAT E D E B T: 1 0 % REAL ASSETS: 16% P R I VAT E E Q U I T Y: 7 4 % OTHER 9.7% VA LU E A D D 2.3% 4.9% 60.4% BUYOUT CORE/CORE+ 8.6% OTHER 1.1% 13.0% GROWTH EQUITY As of April 30, 2023. 22
Slide 23: SPRIM Investment Case Study – A
SPRIM Investment Case Study – A DEAL SUMMARY KEY INVESTMENT HIGHLIGHTS GP-directed and off market secondary transaction alongside strategic Transaction Dynamics primary commitments to the GP’s latest fund. GP contacted StepStone directly regarding the transaction and used the secondary o The GP was
Slide 24: SPRIM Investment Case Study – B
SPRIM Investment Case Study – B DEAL SUMMARY KEY INVESTMENT HIGHLIGHTS GP-led opportunity to invest in a global leader in the Vehicle Glass Transaction Dynamics Repair and Replace (“VGRR”) and Recalibration market alongside a high-quality sponsor, that views StepStone as a strategic partner o Opport
Slide 25: SPRIM Investment Case Study – C
SPRIM Investment Case Study – C DEAL SUMMARY KEY INVESTMENT HIGHLIGHTS SPRIM participated in a co-investment alongside a top ranked global GP to acquire the second largest aviation fixed base operator Transaction Dynamics (FBO) in the U.S. providing a full suite of critical services to the o The GP
Slide 26: Tender Fund Structure Matches SPRIM Investment Strategy
Tender Fund Structure Matches SPRIM Investment Strategy • SPRIM is designed to provide investors with the illiquidity premium1 of private assets in a highly diversified portfolio, which requires substantial utilization of private fund investments2 in addition to co-investments. • The flexibility of
Slide 27: Subscription Process
Subscription Process SPRIM accepts monthly subscriptions from accredited investors which become effective as of the first calendar day of the following month SUBSCRIPTION PROCESS ROADMAP T-5 Days T-3 Days Trade Date Shareholder Funds Trade Date Shareholder Application Shareholder application is subm
Slide 28: Redemption Process
Redemption Process The Board of SPRIM initiates quarterly tender offers at NAV. Investors may elect to participate, subject to a limit of 5% of total shares outstanding1 REDEMPTION PROCESS ROADMAP Quarter End (“QE”) -65 Days QE-35 Days QE-25 Days Shareholder Election Shareholder Withdrawal Date Shar
Slide 29: Risk and Other Considerations
Risk and Other Considerations An investment in the Fund involves material risks. Investing in the shares may be considered speculative and involves a high degree of risk, including the risk of the loss of your investment. The Shares are illiquid and appropriate only as a long-term investment. • The
Slide 30: Risk and Other Considerations (cont.)
Risk and Other Considerations (cont.) Reliance on Managers. The investment will be highly dependent on the capabilities of the underlying investment managers. Risk Associated with Portfolio Companies. The environment in which the investors directly or indirectly invests will sometimes involve a high
Slide 31: Risk and Other Considerations (cont.)
Risk and Other Considerations (cont.) ESG Integration. While StepStone seeks to integrate certain ESG factors into its investment process and firm operations, there is no guarantee that StepStone's ESG strategy will be successfully implemented or that any investments or operations will have a positi
Slide 32: Glossary
Glossary Accredited Investor. As defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933. An "accredited investor" includes a natural person with a net worth (or a joint net worth with that person's spouse), excluding the value of such natural person’s primary residence,
Slide 33: Glossary (cont.)
Glossary (cont.) Defined Benchmarks: S&P 500 Index. The index is an unmanaged capitalization-weighted index consisting of 500 of the largest capitalization U.S. common stocks and is a gauge of the US equity markets. The returns of the S&P 500 include the reinvestment of dividends. Bloomberg Barclays
Slide 34: 128 South Tryon Street, Suite 1600 Charlotte, NC 28202
128 South Tryon Street, Suite 1600 Charlotte, NC 28202
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