Brad Weltler, Partner and Head of US Sales for StepStone Private Wealth, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the growth in private markets and innovations in investment vehicles that might allow access to 401(k) investors.
Today’s private markets industry manages $25 trillion in assets, with growth expectations taking assets to $60 trillion by 2032. StepStone is a $700 billion firm deploying $70 billion each year. This scale provides an advantage through access to information regarding offerings from the largest general partners in the private markets. The StepStone Private Markets Intelligence Database tracks 17,000 general partners, 48,000 funds, and an even larger number of portfolio companies.
Historically, private markets have outperformed public markets while providing diversification to public market portfolios. New structures make it more convenient, efficient, and transparent to access private markets without large minimum investments, capital calls, and K1 tax forms.
Over the last five years, StepStone has launched four investment vehicles as Private Wealth Solutions, including tender offer and interval funds. These vehicles include Core Private Markets (SPRIM), Venture and Growth Equity (SPRING), Infrastructure (STRUCTURE), and Credit (CRDEX). StepStone continues to advance structural innovations, moving SPRIM from a monthly entry vehicle to daily access through a ticker. These types of innovations may eventually lead to the availability of private markets strategies in turnkey asset management programs (TAMPs) and retirement accounts. Newer investors require education on private markets, which is provided through StepStone Academy.
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