Investment Philosophy

StepStone has developed an investment philosophy that focuses on time-tested investment principles that we believe allow us to consistently maximize risk-adjusted returns. Our team is trained extensively in using this philosophy to perform investment analysis. This philosophy provides a consistent framework for our Investment Committees to assess whether specific investments meet our rigorous standards.

The following is an overview of StepStone’s investment philosophy:

  • Focus on risk-adjusted returns
  • Be highly selective
  • Invest with partners we trust and respect
  • Avoid over-diversification
  • Favor focused strategies to gain the benefits of specialization
  • Seek out investments where interests are strongly aligned
  • Do not follow the crowd
  • Utilize both macro and manager or asset level analysis
  • Be opportunistic
  • Consider the manager’s environmental, social responsibility and corporate governance practices

The Firm leverages the experience and perspective of the entire StepStone team to seek to drive superior decision making and risk management.