From Consulting to Fund Management, StepStone Buys Greenspring Associates

Posted on 07/07/2021

StepStone Group Inc. (Nasdaq: STEP) agreed to buy Baltimore-based Greenspring Associates, a direct and indirect venture capital and growth equity investor. StepStone is a listed company, armed with capital. StepStone will pay US$ 185 million in cash, US$ 540 million in stock, and an earnout of up to US$ 75 million – payable in 2025. The purchase does not include any accrued or future carried interest for the legacy Greenspring funds. The transaction is expected to close by the end of the year, subject to customary closing conditions, including regulatory approvals and receipt of requisite fund investor consents. This transaction is part of the continued growth of StepStone’s private markets capabilities across asset classes and geographies.

Greenspring is one of the largest venture capital and growth equity specialists with more than US$ 17 billion of assets under management and US$ 9 billion of fee-earning assets under management, as of March 31, 2021. The company was founded in 2000.

J.P. Morgan Securities LLC served as exclusive financial advisor and Gibson, Dunn & Crutcher LLP acted as legal advisor to StepStone.

Morgan Stanley & Co. LLC served as exclusive financial advisor and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP and Proskauer Rose LLP each acted as legal advisor to Greenspring.

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