When StepStone Group first entered the private wealth space in 2019, the ambition was clear: narrow — if not eliminate — the long-standing pricing and access divide between retail and institutional investors.

Under the direction of Bob Long, the firm’s private wealth unit was built around what was then an uncommon proposition — that retail investors should receive the same deal, at the same price, as large institutions.

“When we launched the [private wealth] business, we did not envision that it would scale quite as rapidly as it has,” said Long, partner and CEO of StepStone Private Wealth Solutions, reflecting on a platform that has since grown to roughly US$15 billion in private wealth AUM, according to the firm’s Q3 earnings results.

The rapid expansion comes amid debate over the ‘retailisation’ of private markets, with some institutional investors wary of retail inflows, citing concerns over return dilution and added operational complexity.

StepStone, however, has doubled down on its pro rata allocation model. “The way we at StepStone see this, we have built our firm quickly by gaining clients and adding asset classes,” Long told Asian Private Banker.

“We’ve always had a pro rata allocation policy, which means that we believe the benefit of increased scale outweighs the dilutive effect of spreading our team and our competitive advantage over a larger pool of capital,” he said.

Although pension plans remain the firm’s “bread and butter,” Long maintains that the rise of private wealth and evergreen structures should not be viewed as inherently disruptive. Within StepStone’s framework, these vehicles are treated as simply another client in the ecosystem.

Asia expansion gathers pace

The NASDAQ-listed private markets firm has been accelerating its footprint across Asia Pacific. Since 2023, it has established distribution networks in Hong Kong, Singapore and Australia, and recently expanded into Thailand.

“We’re in an active partnership discussion across Taiwan, Malaysia, [and] Indonesia. In 2025 alone, we added more than 10 distribution partners,” he added. 

Long described the firm’s Asia strategy as an extension of its “client-first” approach, adapting to varied regulatory regimes rather than applying a uniform model. By targeting operational pain points, such as subscription paperwork, StepStone has introduced features like daily valuation to streamline advisor workflows.

He stressed that greater convenience does not come at the expense of institutional quality. Unlike some competitors, StepStone avoids maintaining large, low-yield liquidity sleeves of public securities that could dilute returns in semi-liquid structures.

“We are planning to add more staff in the private wealth division, especially in the Asia market,” said Long, adding that the firm has seen rapid growth in traction in the APAC region, with Australia being a particular point of success. 

Evergreens enter next phase  

Looking ahead, Long sees the next stage of development in private markets as the “institutionalisation” of evergreen funds — drawing parallels with the evolution of ETFs.

He points to three structural drivers behind this shift: regulatory reform — particularly within defined contribution plans — operational enhancements enabling real-time NAV reporting, and greater standardisation of valuation practices across the industry. More notably, he expects the flow dynamic to change, with large-scale institutional allocations gradually replacing small-ticket retail participation.

In that context, Long anticipates a new wave of unregistered evergreen funds tailored for institutions, offering customised terms and volume-based fee discounts, a contrast to more rigid, SEC-registered retail structures.

By 2026, he argues, the integration of evergreen funds into model portfolios will mark the final stage in the industrialisation of private market access. The debate, he suggests, has shifted from “if” these vehicles belong in portfolios to “how” they should be implemented, as reduced operational friction allows them to serve as core “building blocks” alongside stocks and bonds.

That evolution enables advisors to deliver disciplined, risk-based alternative allocations — typically 7–15% — through simplified structures such as the BlackRock-Partners Group SMA, effectively combining institutional-grade exposure with retail-level accessibility.