StepStone buys SilverBrook Private Equity

StepStone Group has acquired SilverBrook Private Equity, the group announced today. Stepstone had previously purchased Citigroup Private Equity, and is on a stated mission of “balancing the firm’s US presence between the east and west coasts.” As part of the deal, Thomas Bradley, Mark Maruszewski, and Michael McCabe, the SilverBrook partners, will join StepStone as managing directors based in New York City. The financial terms of the deal were not disclosed.

PRESS RELEASE

San Diego, CA and New York, NY – October 5, 2010 – StepStone Group LLC today announced that it has acquired SilverBrook Private Equity. As part of this acquisition, Thomas Bradley, Mark Maruszewski, and Michael McCabe, the SilverBrook partners, will join StepStone as Managing Directors to be based in its New York City office.

The addition of Mssrs. Bradley, Maruszewski, and McCabe will grow StepStone’s leadership team, expand its East Coast USA presence, and enhance the firm’s investment and transaction sourcing capabilities. Mssrs. Bradley, Maruszewski, and McCabe had recently formed SilverBrook Private Equity, a secondary fund investment and private equity advisory platform.

“We were in the process of building a very similar platform to that of StepStone,” said Mark Maruszewski, speaking on behalf of SilverBrook. “As discussions developed, it became clear that we had the same views on management and firm culture, so the best thing for both firms was to build it together. StepStone provides its investors with unique advantages – it’s independent, it’s partner-owned, and it has market leading global research capabilities in fund investment, co-investment and secondaries. Combining efforts will allow us to greatly accelerate our joint objectives.”

“The addition of Tom, Mark and Mike materially expands the successful secondary program and track record we have established,” said James Gamett, Managing Director of StepStone. “Having worked closely with them on a variety of deals over the past several years, we know they share a similar investment philosophy, have demonstrated a strict investment discipline and have unique access and relationships.”

In combination with the recent addition of investment professionals from its acquisition of Citigroup Private Equity, the addition of the SilverBrook team completes StepStone’s stated goal of balancing the firm’s US presence between the East and the West coasts.

“Over the past year one of our primary strategic initiatives has been to optimize the geographic mix of our staffing, particularly our senior leadership,” said Monte Brem, Chief Executive Officer of StepStone. “The addition of these three highly experienced senior professionals provides the quality and depth of leadership that we have been seeking for our East Coast USA investment activities. I am confident that we now have a level of senior investment talent that will provide StepStone with a competitive advantage for many years to come.”

Thomas A. Bradley
Prior to StepStone, Mr. Bradley co-founded SilverBrook Private Equity, an independent secondary and fund advisory platform. Formerly, Mr. Bradley was a Partner at Pomona Capital, where from 1998 to 2010, he was involved with the firm’s secondary, primary and co-investment practices, representing over $6 billion in total commitments from a diverse group of global investors.

During his tenure at Pomona, Mr. Bradley was responsible for managing U.S. deal origination for secondaries transactions. As a member of the firm’s secondary, co-investment and primary Investment Committees, Mr. Bradley was active in helping deploy over $3 billion in commitments across 12 investment vehicles. He was a member of the firm’s Management Committee and sat on the Advisory Boards of underlying investment partnerships.

From 1993 to 1998, Mr. Bradley was a Vice President at Hambrecht & Quist LLC, a San Francisco based, growth-oriented investment bank. At H&Q, he worked in the Venture Services Group covering venture capital general partners and their underlying limited partners, facilitating public market liquidity for private equity investments.

Mark T. Maruszewski, CFA
Prior to StepStone, Mr. Maruszewski co-founded SilverBrook Private Equity, an independent secondary and fund advisory platform. Formerly, Mr. Maruszewski was a Partner at Pomona Capital, where from 2000 to 2010, he was involved with the firm’s secondary, primary, and co-investment practices, representing over $6 billion in total commitments from a diverse group of global investors.

During his tenure at Pomona, Mr. Maruszewski managed the investment team, oversaw secondary due diligence, underwriting systems and structures, and helped develop internal review and approval processes. As a member of the firm’s secondary, co-investment and primary Investment Committees, Mr. Maruszewski was active in helping deploy over $3 billion in commitments across 10 investment vehicles. He was a member of the firm’s Management Committee and represented limited partners on the Advisory Boards of leveraged buyout and mezzanine funds.

From 1997 to 2000, Mr. Maruszewski was a member of the direct investment team at Stratum Group, a mid-market energy focused private equity platform sponsored by the Beacon Group. At Stratum, Mr. Maruszewski was actively involved in sourcing, analyzing and overseeing various energy portfolio companies based in the U.S. and Canada. Prior to his tenure at Stratum Group, Mr. Maruszewski spent eight years in global commercial banking at Brown Brothers Harriman & Co.

Michael I. McCabe
Prior to StepStone, Mr. McCabe founded Parkes Run, LLC, an independent fund advisory platform that he later merged with SilverBrook Private Equity. Formerly, Mr. McCabe was a Vice President at Hamilton Lane, where from 2005 to 2009 he helped oversee the firm’s secondary and co-investment practices, representing over $3 billion in committed capital from a diverse group of institutional investors.

At Hamilton Lane, Mr. McCabe was responsible for deal origination, underwriting and negotiation of secondaries and co-investments. He helped develop sourcing methods, underwriting practices, and transaction structures while at the firm. He was a member of the co-investment Investment Committee and an active participant in the secondary and primary Investment Committees. Mr. McCabe helped deploy over $1 billion and represented limited partners on the Advisory Boards of underlying investment partnerships.

From 1999 to 2005, Mr. McCabe was a Director at CEMEX SA de C.V., a global building materials company. At CEMEX, he worked in the Corporate Group providing due diligence and analysis for investments in operations, acquisitions, and post merger integrations. Prior to this role, Mr. McCabe worked for FCT, a boutique consulting firm focused on basic industries.

About StepStone Group
StepStone Group LLC is a leading private equity firm that oversees more than $20 billion of private equity allocations through its global offices in San Diego, New York and Beijing. StepStone focuses on building customized private equity portfolios through a combination of fund investments, co-investments and secondaries. StepStone has deep global market coverage and a proprietary research based approach that optimizes exposure to top performing investment strategies, geographies and managers.

For more information about the firm, its philosophy and services please visit www.StepStoneLLC.com.