Latham & Watkins Advises StepStone Real Estate on $3.77B SREP V Close.

Latham & Watkins LLP has advised StepStone Real Estate (SRE), the real estate investment arm of StepStone Group (Nasdaq: STEP), on the final closing of StepStone Real Estate Partners V (SREP V).

The fund secured $3.77 billion in primary commitments, making it the largest real estate secondaries fund ever raised.

Including co-investments and discretionary vehicles raised alongside SREP V, the total investment program exceeds $4.5 billion in capacity.

Despite a challenging market environment and a broad slowdown in real estate fundraising, SREP V was significantly oversubscribed, reflecting strong investor confidence in SRE’s specialized secondaries strategy and track record.

To date, SREP V and related separate accounts have already committed $1.7 billion across 8 investments, with a strong pipeline of additional transactions in progress.

Founded in 2009 by Jeff Giller (Partner and Head of StepStone Real Estate), Josh Cleveland (Partner and Head of EMEA), and Brendan MacDonald (Partner and Chief Operating Officer), SRE focuses on providing liquidity solutions to real estate funds and investors, particularly during periods of market dislocation.

“We believe the combination of value declines, historically low transaction volume, increased borrowing costs, and a slow fundraising environment has created unprecedented illiquidity across real estate markets.Our strategy—providing liquidity solutions to real estate vehicles and investors when traditional liquidity avenues are challenged—has proven resilient through all phases of the market cycle, and it’s especially compelling today.” said Mr. Giller.

According to Josh Cleveland, SREP V attracted a diverse, global investor base, including sovereign wealth funds, pension funds, insurance companies, and wealth management platforms.

Notably, SREP V saw higher participation from North American institutions than in prior fund vintages, along with increased commitments from investors across Europe, Asia, the Middle East, and Latin America.

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm headquartered in New York City. Established in 2006, the firm specializes in providing customized investment solutions, advisory services, and data analytics across private equity, infrastructure, private debt, and real estate asset classes. With a presence in 16 countries and 26 offices worldwide, StepStone manages approximately $179 billion in assets under management as of December 2024. The firm’s approach combines deep data analytics, a collaborative culture, and a global footprint to uncover and capitalize on private market opportunities for a diverse client base, including pension funds, sovereign wealth funds, and family offices.

Latham & Watkins, founded in 1934, is a global law firm with more than 3,000 lawyers across major business and financial centers. The firm advises top companies, investors, and institutions on high-stakes transactions, regulatory matters, and litigation. Known for its collaborative culture and deep industry knowledge, Latham delivers practical, strategic legal solutions worldwide.

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