RPM - Reflections on Private Markets

In this episode of RPM, Jeff Giller, Partner and Head of Real Estate, and Margaret McKnight, Partner and Head of Portfolio Solutions for StepStone Real Estate, rejoin co-host Maribel Yoo to discuss our Spring 2024 House Views on the state of the real estate market. They cover: Updates from our Fall House Views (1:38); Opportunities in non-core assets and distressed properties (2:41); Property trading volume (5:45); Trends in capital deployment (8:14); and Property type outlooks (10:06). See omnystudio.com/listener for privacy information.

In this episode of RPM, co-host Maribel Yoo hands the mic to Margaret McKnight, Partner and Head of Portfolio Solutions for Real Estate, to interview Jeff Giller, Partner Head of StepStone Real Estate, about our recent whitepaper, Bull market for real estate secondaries. They discuss: Why it is a bull market for RE secondaries (01:22); Comparing GP- and LP-led secondaries (06:50); Why we like GP-led secondaries (10:55). See omnystudio.com/listener for privacy information.

In this episode of RPM, Akhilan Nesaratnam, Thomas Dupont and Carlos Sahuquillo from our private equity team in London join co-host Michael Venne to discuss Europe's private equity landscape. The conversation surrounds common misconceptions about Europe's investment opportunities, unpacking four key European sectors and the topics of our recent papers: European small and middle market buyouts, the Nordic region, European growth equity and European healthcare. They discuss: Our history as European PE managers (02:23); Unpacking Europe's headline risk (08:13); Opportunities in growth investing (09:41); Recent small market outperformance (13:13); The Nordics' growth potential (15:25);  Health investments and digitalization (18:24). See omnystudio.com/listener for privacy information.

In this episode of RPM, Todd Lapenna and Sean Ebsary from our infrastructure team, join co-host Michael Venne to discuss infrastructure's middle market following the release of our recent whitepaper, Infrastructure's Middle Market: An emerging opportunity. They touch on topics including:   Infrastructure's rapid two-decade growth (1:55); Infra's performance as an inflation hedge (3:20); Why to invest through the private markets (6:19); and The advantages of smaller managers (7:09). See omnystudio.com/listener for privacy information.

In this episode of RPM, Jeff Giller, Partner and Head of Real Estate, and Margaret McKnight, Partner and Head of Portfolio Solutions for Real Estate, rejoin co-host Maribel Yoo to discuss our Fall 2023 House Views on the state of the real estate market. They cover: Updates from our Spring House Views (1:49); Impact from liquidity constraints (5:15); Property trading volume (6:52); and Property type outlooks (7:57). See omnystudio.com/listener for privacy information.

In this episode of RPM, Christian Frei, StepStone head of risk joins Michael Venne to discuss some of the main insights from StepStone's recent collaboration with GIC: a whitepaper that provides an overview of private debt investment opportunities and a framework for building an optimal private debt portfolio. They cover a range of topics including:  The genesis of the project (1:53); How investors regard private debt (5:29);  Optimizing for risk and return (7:15);  Stress loss as a risk measure (10:06); Tactical versus strategic considerations (14:11). See omnystudio.com/listener for privacy information.

In this episode of RPM, Michael and Maribel hand the reins to StepStone's natural capital team for a primer on carbon markets and offsetting. Though these markets are imperfect and subject to criticisms—some of which we agree with—ultimately, we believe carbon markets are part of the climate solution. Join StepStone's global head of responsible investment, Suzanne Tavill, and Ryan Ramsey, a principal on StepStone's infrastructure team as they cover a range of topics from:  Defining key terms (1:20);  Carbon neutral versus net zero (6:27);  Compliance and voluntary markets (9:10);  Pricing dynamics (12:02); and   Recent criticisms (17:13).  See omnystudio.com/listener for privacy information.

In this episode of RPM, we're continuing our conversation about the Inflation Reduction Act of 2022 (IRA). More than a year out from the Act's passing, details of the tax laws and mechanisms for deployment are being finalized. Joining co-host Maribel Yoo to revisit this topic is Bhavika Vyas, managing director and member of the responsible investment team at StepStone and special guest Julio Friedmann, Chief Scientist at Carbon Direct. Our guests cover:   A refresher on IRA (01:32); Projects awaiting clarification (04:00); Political durability (11:00) Global landscape and the effects of the IRA (15:35); and Investment opportunity remains (20:00) See omnystudio.com/listener for privacy information.

In this episode of RPM, John Bohill, a partner on our private debt team, joins co-host Michael Venne to discuss the rapid growth and evolution of private debt's secondary market. Among other things, they cover: - Nuances characterizing this market (01:14); - Private debt as a liquidity tool (03:09); - Discounts being half the picture (04:54); - Data's role in mitigating risk (08:59)See omnystudio.com/listener for privacy information.

As bond yields have risen, some investors have been questioning whether direct lending (DL) offers the same value proposition as it once did, but yields are only part of the equation. In this episode of RPM, Fabian Körzendörfer, a Managing Director on our private debt team, joins co-host Maribel Yoo to discuss how direct lending may offer attractive risk-adjusted returns. They discuss:   DL's lower duration risk (01:08); How direct lenders limit credit risk (2:57); Liquidity features of DL (5:36) Volatility of DL (9:40); and DL's drawdowns (11:29) See omny.fm/listener for privacy information.

In this episode of RPM, Jeff Giller, Partner and Head of Real Estate, and Margaret McKnight, Partner and Head of Portfolio Solutions for Real Estate join co-host Maribel Yoo to discuss our recently released Spring 2023 House Views. They discuss: Key takeaways from the House Views (01:26); Opportunities in distressed buys (03:22); The repricing period (04:24); Property types most attractive now (07:56); Attractive vintages ahead (09:22). See omnystudio.com/listener for privacy information.

When the economy shrinks, institutions tend to seek reassurance from larger, more established private equity fund managers. This comes at the expense of small, emerging and by extension, diverse managers, which some regard as riskier than their larger, “more proven” counterparts. In this episode of RPM, Daniel Krikorian, a principal on our private equity team, joins co-host Michael Venne to discuss why investors should fight the urge to cut back on SBO and if anything, lean in. They discuss: Attractive features of SBO (01:35); Market volatility's effect on SBO (11:30); Challenges SBO can present (16:49); and How diversity ties into SBO (19:54) See omnystudio.com/listener for privacy information.

In this episode of RPM, Bhavika Vyas, managing director and member of the Responsible Investing Team, as well as special guest Julio Friedmann, chief scientist at Carbon Direct, join co-host Maribel Yoo to discuss the Inflation Reduction Act of 2022 (IRA). They cover: An overview of the IRA (00:32); Scope and impact (06:51); Transforming business models (10:14) Considerations for investors (17:18); and Future policies and regulation (26:15) See omnystudio.com/listener for privacy information.

In this episode of RPM, Lisa Larsson, managing director on our portfolio management team, joins co-host Michael Venne to discuss the recently trending net asset value (NAV) lending. They discuss: The definition of NAV lending (0:48); Why NAV lending is regaining popularity in recent times (02:36); How the heightened interest rate environment is affecting the performance of these structures (07:48); How potential buyers can get comfortable with taking part in one of these transactions (10:58). See omnystudio.com/listener for privacy information.

Over the next five years, private capital assets under management are projected to grow from $10 trillion to $17 trillion. One of the leading reasons: the individual investor. In this episode of RPM, Bob Long, CEO of StepStone Private Wealth joins Michael Venne to discuss this trend. Among other things they cover:  The historical barriers to entry (3:24); The emergence of tender funds (8:12); An overview of two of our retail products (12:48); and Liquidity management (18:56) See omnystudio.com/listener for privacy information.

In this episode of RPM, Aditya Raina and Laura White, two members of our Private Equity team, join co-host Maribel Yoo to discuss StepStone's 2023 outlook for private equity. They discuss:   Key market observations and its impact on the PE fundraising environment (00:48); PE transaction activity (02:48); Secondary market opportunity for the PE asset class (09:40); ESG considerations and impact investing in PE (12:34); and Opportunities across market cycles (17:32) See omnystudio.com/listener for privacy information.

Nature provides the building blocks for civilization, arable soil, air and water filtration, ore and minerals for extraction, and economic and recreational opportunities. In almost any other context, you would expect to pay for these services. But with nature, we are wont to expect these things for nothing. Hence the title for the white paper we released late last year, “We don't value nature.”As financiers and economists, we are wont to look at nature and try to derive an ROI. And for that reason, institutions have underrated nature—the returns were not competitive with other asset classes. Part of the reason for that is society had not properly placed a price on all the benefits and pleasure it derives from nature. And by doing so, the thinking goes, nature will find a place in investors' portfolios. On this episode of RPM, Susanne Tavill, StepStone's Head of Responsible Investment, discusses nature-based investing. Among other things we discuss: How better pricing can help resolve the nature crisis (9:39); The relationship between climate and nature investing (13:40);  The challenges investors are facing in building a nature-based portfolio (20:32); COP15: where it succeeded and how it can improve (23:12); and How the digital divide has been a two-way street (28:58). See omnystudio.com/listener for privacy information.

In this episode of RPM, Ariel Goldblatt and Mark Tsang, senior members of our private debt team join co-host Maribel Yoo to discuss StepStone's 2023 outlook for private debt. They discuss:   Key drivers impacting the private debt market (00:43); Why invest in private debt in this market (03:33); Factors driving the growth and performance of private credit (05:45) The current investment environment in the next 12 months (07:43); and The difference between defense and offense when it  comes to private debt (10:48) See omnystudio.com/listener for privacy information.

In this episode of RPM, John Avirett, a partner on our venture capital and growth equity team discusses the venture capital ecosystem as we navigate this challenging economic environment. With the right market conditions, and venture capital's ability to navigate volatile markets, perhaps now is the time to take a closer look at this strategy. We discuss: Fundraising trends for the remainder of 2022 into 2023 (0:38); The current environment's impact on investments (4:49) and liquidity (9:46); and Why now is an opportune time to be investing in venture capital (13:47) See omnystudio.com/listener for privacy information.

In this episode of RPM, Qi Liu from our data, science and engineering team discusses one of our newest tools – the daily valuation engine (DVE). Typically, private market investors must wait anywhere from two to four months after quarter end to see how the value of their portfolios has changed; DVE, as the name implies, allows them to make this estimate well before general partners report. Among other things, we discuss:  How DVE's accuracy compares with alternative approaches (3:40); The mathematical principles (8:06) and key data inputs (12:14) that the model relies on; and  Some of the ways in which investors might use DVE, from annual reporting to allocation planning (16:57).   See omnystudio.com/listener for privacy information.

In this episode of RPM, we're talking about growth equity with partner John Coelho. However you define "growth," its champions regard it as a proverbial Goldilocks that offers VC upside with buyout-type risk (1:01). After analyzing 25,000+ private equity deals in SPI, we found that growth delivered a higher multiple than VC and lower loss rates than buyouts (11:05). This was especially true of investments in the software sector, which for several years has been the fastest growing and best performing sector in private equity. Because growth equity companies tend to be profitable and less reliant upon leverage, we find them to be particularly attractive during periods of market uncertainty (13:21). Because growth contains parts of both buyouts and VC, and it is in a strong position to benefit from technological tailwinds, it should be an important part of any well rounded private equity portfolio. See omnystudio.com/listener for privacy information.

The Ukraine crisis has taken a more negative turn than we would have hoped. While it becomes clearer what Russia's objectives may be, considerable uncertainty remains. In our twentieth episode, StepStone Partner and Head of Risk, Christian Frei, discusses this uncertainty and how private markets are faring.  See omnystudio.com/listener for privacy information.

In this episode of RPM, we're talking about one of the oldest industries in the world—Agriculture. From inflation concerns (4:15) and the boom in venture-capital-backed technologies (12:46) to the rise of natural capital (15:40) and the democratization of private markets (21:30), “Ag” is having a moment. Joining us to discuss these topics and more is Ryan Ramsey,  a principal on our infrastructure & real assets team based in Sydney. See omnystudio.com/listener for privacy information.

In the 18th episode of RPM—Reflections on Private Markets, StepStone's Head of Talent Development Nitin Malik joins co-host Michael Venne to discuss the importance of culture in today's white-hot labor market. They discuss a number of topics including what L&D says about a company's culture (2:09); the nexus between L&D and diversity equity & inclusion (4:20); and what HR teams have learned from TikTok (6:03).  See omnystudio.com/listener for privacy information.

In the 17th episode of RPM—Reflections on Private Markets, senior members of our private debt team, Marc-Andre Mittermayer and Marc Lickes join co-host Michael Venne to discuss insurance companies--namely, the reasons they are looking for alternatives to fixed-income investments (2:11); how private markets can help them meet their myriad investment-related goals (5:29); the affect regulatory policy has on an insurer's investment options (7:05); and some of the traits insurers should look for in an investment manager or advisor (9:30).  See omnystudio.com/listener for privacy information.

In the 16th episode of RPM—Reflections on Private Markets, senior members of our private debt team, Ariel Goldblatt and Mark Tsang,  join co-host Graziella Scassillo to discuss the outlook for private debt. They discuss the asset class's performance history (00:31); how managers have responded to fiscal and monetary intervention (2:08); how markets differ region to region (3:06); how liquidity needs of borrowers and lenders alike create investment opportunities (07:04); and tools for navigating the market going forward (10:14). See omnystudio.com/listener for privacy information.

In the 15th episode of RPM—Reflections on Private Markets, Aditya Raina , a principal on our private equity team summarizes the firm's 2022 outlook for private equity. He and co-host Michael Venne discuss the fundraising environment (1:10); the continuous growth of IT and software and the importance of partnering with sector specialists (5:48); how GPs are responding to price inflation (10:00); why we believe valuations are likely to moderate over the short run (14:00); and the importance of manager selection, regardless of private equity's relative outperformance as a whole (15:50). See omnystudio.com/listener for privacy information.

In part four of RPM's climate change special, Suzanne Tavill, StepStone head of responsible investment, hosts Margaret Kuhlow, Global Finance Practise Leader for WWF, to explain why today biodiversity and climate change have to be considered as interrelated systems and why this topic is relevant for our global economy (00:45). Margaret leads us through goals and plans defined by the post-2020 global biodiversity framework (06:53); WWF's perspective on this framework (11:30); and how biodiversity can be incorporated into the evaluation and valuation of financial assets (15:28). To conclude, Margaret explores WWF findings about the abovementioned interrelationships (19:25). You can find reports and studies mentioned in the podcast on our show page. See omnystudio.com/listener for privacy information.

In part three of RPM's climate change special, Jean-Marc Champagne the head of bankable nature solutions at the WWF, joins StepStone's head of responsible investment, Suzanne Tavill, to discuss new ways of bringing private sector capital into the natural capital sector. They discuss why the Taskforce on Nature-related Financial Disclosures could be a gamechanger for biodiversity (4:00); why bankable nature solutions are critical to filling the fund gap in conservation (5:40); concrete examples that prove nature-based solutions entail more than just forestry or sustainable agriculture (11:40); and how the WWF and its partners are redefining the concept of seed financing (16:35). See omnystudio.com/listener for privacy information.

In part two of RPM's climate change special, Carl Prins, the CEO of Pathzero and an expert on carbon footprinting, joins StepStone's head of responsible investment, Suzanne Tavill, to discuss some of the more technical aspects that companies pledging to go net zero will encounter. They cover the types (or "scopes") of emissions and how to measure them (4:00); how measuring portfolio-level emissions helps GPs think about long-term risks (12:12); and why setting a shadow price for carbon is critical for companies that wish to become carbon neutral (19:04). See omnystudio.com/listener for privacy information.

In part one of RPM's climate change special, Linda Romanovska, an expert in sustainable finance and one of the architects of the EU's climate change program, joins StepStone's head of responsible investment, Suzanne Tavill, to discuss the intricacies and finer points of the EU's climate program including its origins (1:50); how the Taxonomy, SFDR disclosure regimes, and various other policy tools work together to create the three "pillars" of the EU's sustainability framework; how the EU defines sustainability (15:18); and how new focus areas in the updated finance program including its data repository will help standardize climate reporting (17:30).  See omnystudio.com/listener for privacy information.

In the 10th episode of RPM—Reflections on Private Markets, StepStone President and Co-COO Jason Ment discusses the history of and outlook for private markets. We discuss the secular trends behind the industry's growth and development (3:27), the ways in which the sponsor community has evolved (4:41) and how regarding LPs as long-term partners and GP-led secondaries have been part of this maturation process (8:15). Finally, he explains why he believes GPs are up to the challenge that greater oversight would entail (13:46). See omnystudio.com/listener for privacy information.

In the 9th episode of RPM—Reflections on Private Markets, head of research and portfolio management Tom Keck summarizes current market conditions (00:30), explains how StepStone is positioned with respect to inflation and interest rate risk (02:08), discusses where the risks and opportunities post-Covid may lie (04:18), and explores what effect higher input prices and interest rates would have on private markets (07:35). See omnystudio.com/listener for privacy information.

In the 8th episode of RPM—Reflections on Private Markets, Private Equity team members Vincent Hsu and Zhiyao Ma join Michael Venne to discuss China's Private Equity healthcare market. We cover how StepStone is organized in China (0:42); changes in the types of investors pursuing China healthcare (4:18); why investors should invest in China healthcare through a private market vehicle (8:50); and how GPs and LPs have responded to this dynamic investment opportunity (10:31). See omnystudio.com/listener for privacy information.

In the 7th episode of RPM—Reflections on Private Markets, Bhavika Vyas a managing director on our responsible investment team joins Graziella Scassillo to discuss one of the hottest trends in financial services—impact investing. We cover our proprietary impact taxonomy, which helps us to build portfolios focusing on the themes that are important to our clients (2:00); how investors' understanding of their role in addressing social and environmental issues has changed (5:30); the benefits to coalescing around existing ESG and impact frameworks (9:24); and why investor interest in Climate Tech has been renewed (13:00). See omnystudio.com/listener for privacy information.

In the sixth episode of RPM—Reflections on Private Markets, partner and head of responsible investment Suzanne Tavill joins Michael Venne to discuss the rise and evolution of responsible investing. We cover the actions asset owners are undertaking to address social inequality and climate change (4:45); what the EU's new Taxonomy means for LPs long term (6:32); similar measures being taken by other countries (9:20); and how governmental actions may figure into LPs' ESG frameworks (11:00).   See omnystudio.com/listener for privacy information.

In our fifth episode, StepStone Partners Christian Frei and Marcel Schindler discuss how Direct Lending as an institutional asset class has successfully passed a significant test in the current scenario and give an update on the Private Debt market. Are things “back to normal” or is it just a first impression? See omnystudio.com/listener for privacy information.

In our fourth episode, StepStone Partners Darren Friedman and Lindsay Creedon discuss Private Equity co-investments – some of the whys and hows including the rationale for co-investments, key ingredients for success and their market insights on current trends. Timestamps: In the fourth episode of RPM, co-heads of StepStone’s co-investment practice Lindsay Creedon and Darren Friedman join co-host Graziella Scassillo to explain why co-investments are gaining favor with investors (0:40); GPs' rationale for offering co-investments (2:54); tips for creating a successful co-investment program (8:41); and the outlook for co-investments in 2021 (11:24). See omnystudio.com/listener for privacy information.

In the third episode of RPM—Reflections on Private Markets, partner Kieran Farrelly joins co-host Michael Venne to discuss some of the characteristics that real estate and private equity secondaries have in common (0:36); our approach to arbitraging inefficiencies (6:00); and real estate secondaries as an all-weather strategy (8:43). See omnystudio.com/listener for privacy information.

In the second episode of RPM—Reflections on Private Markets, StepStone Head of Risk Christian Frei joins co-host Graziella Scassillo to discuss the opportunities and challenges inherent in developing an SAA for private markets (1:02); how SAA can contribute to portfolio performance (3:52); some of the finer statistical points that portfolio managers need to be aware of (9:15); and how LPs are thinking about their portfolios in the context of Covid-19 (11:17). RPM is available on Apple Podcasts, Spotify, Stitcher and anywhere you normally get your podcasts. Subscribe today! See omnystudio.com/listener for privacy information.

In the first episode of RPM—Reflections on Private Markets, StepStone Co-CEO Scott Hart joins co-host Michael Venne to discuss how private markets have performed since the onset of Covid-19 (0:25); the various “shapes” of the recovery (5:55); the diversifying potential of secondaries and co-investments (8:43); and the importance of deal sourcing in a competitive valuation environment (11:11). See omnystudio.com/listener for privacy information.

StepStone Group explores the world of Private Markets through conversations with our thought leaders on key developments across private equity, private debt, real estate, and infrastructure. In each episode a member of StepStone’s investment team will discuss the data, trends, and insights helping shape investors' portfolios. See omnystudio.com/listener for privacy information.