StepStone Private Wealth Launches Private Credit Fund
StepStone Private Wealth (SPW) has launched the StepStone Private Credit Income Fund (CRDEX), an evergreen interval fund available for daily purchase via the ticker CRDEX. This fund aims to provide current income and long-term capital appreciation by investing in diverse private credit assets. Using a multi-lender approach, CRDEX will employ direct lending and specialty credit strategies, including direct loans and secondaries. CRDEX complements SPW's existing funds like StepStone Private Markets Fund (XPMIX) and StepStone Private Infrastructure Fund (STRUX). Managed by StepStone Private Debt, which oversees $50 billion in capital, CRDEX seeks to offer stability with high yields and inflation protection through floating rate, senior secured loans. The fund is available to U.S. investors with a minimum investment of $25,000 and offers quarterly liquidity.
- Launch of CRDEX provides a new investment option for U.S. investors seeking diversified private credit assets.
- CRDEX offers daily capital raising and quarterly liquidity, enhancing investor flexibility.
- The fund aims for high yields and inflation protection, appealing to income-focused investors.
- Managed by StepStone Private Debt, which oversees $50 billion, adding credibility and experience.
- CRDEX uses a multi-lender approach, diversifying risk and potentially enhancing returns.
- Minimum investment requirement of $25,000 may limit accessibility for smaller investors.
- Quarterly redemptions capped at 5% of NAV could restrict liquidity for investors needing more frequent access to funds.
- Potential volatility in private credit markets could impact fund performance.
- Complex investment strategies may introduce higher management fees, affecting net returns.
Insights
The launch of the StepStone Private Credit Income Fund (CRDEX) is noteworthy as it offers individual investors access to private credit assets, typically reserved for institutional investors. The fund aims to generate both current income and long-term capital appreciation, which can attract investors looking for stable yields and inflation protection. By employing a multi-lender approach and focusing on floating rate, senior secured loans, CRDEX can potentially mitigate the impact of interest rate fluctuations on returns.
From an investor's perspective, the evergreen structure of the fund is significant. Unlike traditional private equity funds that have capital calls, CRDEX allows for daily investments and provides quarterly liquidity, making it more accessible and easier to manage. The use of Form 1099 for tax reporting instead of Schedule K-1 simplifies tax preparation for investors, further enhancing its appeal.
However, investors should be aware of the inherent risks associated with private credit investments, such as credit risk and liquidity risk. While the diversification by manager, borrower and sub-strategy can help mitigate some of these risks, they are not eliminated entirely. Furthermore, the quarterly redemption feature means that liquidity is not instantaneous, which could be a drawback for some investors.
Overall, CRDEX seems to offer a tailored solution for investors seeking exposure to private credit markets with an emphasis on yield and capital appreciation. It provides a unique blend of accessibility and professional management, leveraging StepStone's extensive experience and resources in private debt investments.
StepStone Private Credit Income Fund is an investor-friendly, evergreen private credit fund available to U.S. investors.
NEW YORK, June 06, 2024 (GLOBE NEWSWIRE) -- StepStone Private Wealth (“SPW”) today announced the launch of the StepStone Private Credit Income Fund (“CRDEX”), an evergreen interval fund that can be purchased daily via ticker CRDEX.
CRDEX offers individual investors and institutions exposure to a highly diversified, open-architecture portfolio of private credit assets in a single investment, seeking to generate current income and long-term capital appreciation, mainly by investing in various credit-related strategies. CRDEX will use a “multi-lender” approach to help achieve its objectives and employ both direct lending and specialty credit strategies to construct its portfolio, which will include investments such as direct loans and secondaries.
The launch of CRDEX complements the current SPW investment strategies that can be purchased by a ticker including StepStone Private Markets Fund or SPRIM (ticker: XPMIX), and StepStone Private Infrastructure Fund or STRUCTURE (ticker: STRUX), along with the StepStone Private Venture and Growth Fund or SPRING.
CRDEX’s capital will be invested by StepStone Private Debt, which leverages StepStone’s global platform, scale, and relationships to build portfolios tailored to meet client objectives. StepStone Private Debt’s team of more than 65 private debt investment professionals is responsible for
“CRDEX seeks to provide a stable, attractive yield and inflation protection that will temper the volatility in traditional portfolios by investing primarily in floating rate, senior secured loans,” said Bob Long, CEO of StepStone Private Wealth. “Benefitting from StepStone’s industry leading technology, research, and data capabilities, CRDEX aspires to construct a portfolio that is well diversified by manager, underlying borrower and sub-strategy, similar to our other private wealth funds.”
As an evergreen fund, CRDEX will raise capital daily while providing liquidity through quarterly redemptions of
About StepStone
StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of March 31, 2024, StepStone was responsible for approximately
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Important Information
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from StepStone Private Wealth at 704.215.4300. An investor should read the prospectus carefully before investing.
An investment in the Fund involves risks. The Fund should be considered a speculative investment that entails substantial risks, and a prospective investor should invest in the Fund only if it can sustain a complete loss of its investment. Fund fees and expenses may offset trading profits. Fund shares are illiquid and appropriate only as a long-term investment. There is no secondary market exchange available for shares of the Fund and the Fund does not expect any secondary market will develop for the shares. Use of leverage may increase the Fund’s volatility. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments may consist of loans to small and/or less well-established privately held companies that have reduced access to the capital markets, resulting in diminished capital resources and the ability to withstand financial distress. Please see the prospectus for details of these and other risks.
The Fund is distributed by UMB Distribution Services, LLC which is not affiliated with StepStone Group. CRDEX is a newly formed investment company with no operating or performance history that Shareholders can use to evaluate the Fund.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ACTUAL PERFORMANCE MAY VARY.
FAQ
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