StepStone Real Estate raises $700 mln for third fund

StepStone Real Estate, which is part of StepStone Group, a private markets firm, has closed its third fund at $700 million, beating its $500 million target.

StepStone Real Estate Partners III will focus on backing “special situations” in the U.S. and Europe. Its limited partners include pension funds, foundations, insurance companies, funds of funds, family offices and high-net worth individuals from the U.S., Europe, Asia, Middle East and Latin America.

According to the firm, SREP III has already made eight investments and committed about 30 percent of its capital.

Funds I and II raised an aggregate of $400 million in 2010 and 2013 respectively before the team integrated Clairvue with StepStone to form StepStone Real Estate, said a source familiar with the firm. SREP III is the first fund to be raised under the StepStone Real Estate banner.

 With offices around the world that include New York, Toronto, London, Zurich, Tokyo and Seoul, StepStone currently oversees over $100 billion in private capital allocations and has $28 billion of assets under management.

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