StepStone Real Estate (SRE), the real estate arm of StepStone Group, said Monday it had reached the final closing of StepStone Real Estate Partners V (SREP V), its fifth flagship fund dedicated to GP-led secondaries and recapitalizations of real estate vehicles. With $3.77 billion in primary commitments, SREP V represents the largest real estate secondaries fund raised to date, according to SRE. Including co-investments completed and discretionary vehicles raised to invest alongside the fund, the total investment program exceeds $4.5 billion in capacity.

Notwithstanding what SRE called “challenging market conditions” and a slowdown in fundraising across the real estate sector, the new fund was significantly oversubscribed. To date, SREP V and related separate accounts have committed $1.7 billion across eight investments, with a large pipeline of transactions currently closing.

“We believe the combination of value declines, historically low transaction volume, increased borrowing costs, and a slow fundraising environment has created unprecedented illiquidity across real estate markets,” said Jeff Giller, partner and head of SRE. “Our strategy—providing liquidity solutions to real estate vehicles and investors when traditional liquidity avenues are challenged—has proven resilient through all phases of the market cycle, and it’s especially compelling today.”

Latham & Watkins LLP advised on the formation of the fund. Threadmark Partners Limited provided placement agent services.

Pictured: StepStone headquarters in Midtown Manhattan.