TLDR:
- StepStone Group Inc. has raised $3.3 billion for their StepStone VC Secondaries Fund VI, L.P. making it the largest fund for venture capital secondaries
- Assets under management in venture capital have grown significantly over the past decade
StepStone Group Inc. has announced the closure of their largest-ever venture capital secondaries fund, StepStone VC Secondaries Fund VI, L.P. The firm raised $3.3 billion for this fund, which focuses on opportunities in the venture capital asset class. The oversubscribed fund saw strong participation from existing investors as well as new limited partners, making it the largest fund exclusively pursuing venture capital secondaries to date.
Assets under management in venture capital have seen significant growth over the past decade, expanding from $600 billion in 2014 to around $3.3 trillion by the end of 2023. This growth is attributed to strong performance in the industry over the last decade, coupled with limited liquidity in recent years. StepStone Group’s venture capital platform spans fund and direct investments on both primary and secondary bases, allowing the firm to capitalize on the integrated approach and provide liquidity to founders and early investors in mature venture-backed companies.
John Avirett, a Partner at StepStone, noted that the perception of venture capital as a cradle-to-grave industry is changing, with shareholders, limited partners, and fund managers increasingly turning to the secondary market for interim liquidity. The closure of StepStone’s largest venture capital secondaries fund reflects the evolving landscape of the industry and the growing demand for liquidity solutions in the venture capital space.
