StepStone Group has launched a core/core-plus real estate platform to expand its private markets offerings. The New York-based investment firm appointed a former UBS executive to lead the global business, signaling a strategic push into stable, income-generating property assets. This move diversifies StepStone's portfolio beyond its traditional private equity and credit focus.

The platform targets institutional investors seeking lower-volatility real estate exposure. Core and core-plus strategies typically involve stabilized properties with long-term leases, offering predictable cash flows. This launch comes as investors recalibrate portfolios amid higher interest rates, shifting capital from opportunistic deals toward resilient assets.

StepStone's expansion reflects broader industry trends where large alternative asset managers build out dedicated real estate arms. Competitors like Blackstone and KKR have long-established property divisions. The firm's hiring of a UBS veteran suggests an intent to leverage deep banking relationships for deal sourcing and client distribution.