The Next Wave of Alternatives

Core Insights - The shift towards evergreen funds is expected to lead to allocations reaching up to 90% of total private asset investments in the next three to five years, driven by the removal of barriers such as high minimum commitments and long lock-up periods [1][3] - The introduction of new investment vehicles has made private market investments more flexible, transparent, and administratively efficient for wealth managers [2] Industry Trends - There is a significant increase in individual investors' appetite for private markets in Europe, particularly with the emergence of semi-liquid structures like ELTIF 2.0 [3] - Regulatory evolution, product innovation, and rising investor demand are converging to create new pathways for accessing private markets [3][4] Company Overview - StepStone Group manages $723 billion in total capital and is one of the largest private market investors globally, providing tailored portfolios across various asset classes to meet individual investor goals [4][5] - StepStone Private Wealth Solutions aims to address the generational shift in investment access, focusing on performance and practicality [5] Investment Strategies - The growing popularity of private credit, especially in direct lending, is highlighted as a compelling opportunity due to traditional banks retreating from the market [10] - StepStone emphasizes the importance of liquidity in product design, offering funds like SPRIM Lux with 5% quarterly liquidity to meet wealth investors' needs [7][8] Diversification and Risk Management - StepStone's approach to diversification includes access to over 100 general partners (GPs) and opportunities across various strategies, which helps mitigate risk [11][12] - The firm employs rigorous evaluation processes for investments, ensuring high-quality deal flow and reducing concentration risk [13][14] Technology and Future Outlook - Technology plays a crucial role in bridging gaps in alternative investments, with StepStone's SPI platform providing wealth managers access to critical data and investment opportunities [14] - The private markets sector is expected to continue evolving, with StepStone positioned to redefine how wealth clients engage with these markets, leveraging its institutional-grade platform [15]