StepStone Whitepapers | Fight the Urge (To Cut Back on Small Buyouts)


When the economy shrinks, consumers respond by paying down debt, saving more, and spending less on nonessential goods. Institutional investors, on the other hand, adjust the “tilts” of their portfolios. They allocate more to defensive assets like private debt and real assets and seek reassurance from larger, more familiar 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.

This report explores this tendency to cut back on small-market buyouts (SBO) and makes the case for why now may be the time to lean in.

StepStone Group
StepStone Group

StepStone Group (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to our clients. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

W. Casey Gildea
Managing Director
450 Lexington Avenue, 31st Floor
New York, NY 10017

View the contributor page

Related Articles

Register for Insurance AUM Journal

Register today to confirm your status as an institutional investor and gain access to the latest thought leadership in the industry.

  • Thought leadership delivered to your inbox
  • Confirm your status as an Institutional Investor
  • Complete CFA Continuous Professional Development requirements

By clicking submit you confirm that you qualify as an institutional investor and you consent to allow Insurance AUM to store and process the personal information submitted above.

Lost password