StepStone Real Estate Invests in Virtus Portfolio

NEW YORK–(BUSINESS WIRE)–StepStone Group Real Estate LP (“StepStone Real Estate”) announced today
that it recently completed a $28 million investment in a portfolio of
senior living, student housing, self-storage, and medical office
properties managed by Virtus Real Estate Capital.

Virtus, based in Austin, Texas, was founded in 2003 and manages a series
of funds focused exclusively on “recession resistant” property types
across healthcare, affordable housing, education and storage. “We
believe our strategy of investing exclusively in higher yielding
cycle-resistant property types with value-add upside is especially
relevant in this part of the cycle,” said Terrell Gates, founder and CEO
of Virtus.

“In the Virtus transaction, we made a direct investment into a portfolio
of senior living properties, alongside an investment into Virtus’
2012-vintage fund, Virtus Real Estate Capital,” said Brendan MacDonald,
a StepStone Real Estate founder and partner. “We think Virtus’ deep
expertise and hands-on approach in these niche and operationally
intensive product-types is unique,” said MacDonald, “and we look forward
to exploring partnerships with Virtus on future opportunities.”

About StepStone

StepStone Real Estate is part of StepStone Group (“StepStone”), a
leading private markets firm that oversees US$70 billion of private
capital allocations, including approximately US$12 billion of assets
under management. StepStone creates customized and targeted portfolios
for the world’s most sophisticated investors using a highly disciplined
research-focused approach that integrates primaries, secondaries, and
co-investments across private equity, real estate, infrastructure, real
assets and credit. It is a global firm with offices in Beijing, Hong
Kong, La Jolla, London, New York, Perth, San Francisco, São Paulo,
Seoul, Sydney and Tokyo.

About Virtus

Virtus Real Estate Capital was founded in 2003 to seek superior
risk-adjusted returns by investing exclusively in property types aimed
at offering greater resilience during economic downturns and enhanced
upside through value-add as compared to traditional real estate property
types. Over the last 12 years, Virtus has invested in 180 properties for
a combined acquisition value of over $2.5 billion. Virtus recently
launched its seventh fund, is headquartered in Austin, TX, and invests
throughout the U.S.

Contacts

For StepStone
Owen Blicksilver Public
Relations
Caroline Luz, 203-656-2829
Caroline@blicksilverpr.com
or
For
Virtus
Zach Mallow, 512-891-1208
zmallow@virtusre.com