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StepStone Group (Nasdaq: STEP) agreed to buy Greenspring Associates, a Baltimore-based direct and indirect VC and growth equity investor.

Why it matters: This is part of a burgeoning boom in "private equity" firms going public, either directly or via merger. And, yes, the last time this happened was right before the financial crisis.

Details: The deal includes $185 million in cash, $540 million in stock and an earnout of up to $75 million. Greenspring's portfolio includes companies like Scopely and TripActions, plus funds managed by firms like Accel and Benchmark.

The bottom line: Greenspring, which ran a bank process, is betting on a flywheel effect whereby direct VC deals lead to fund stakes which lead to secondaries.

StepStone Group to buy Greenspring Associates

The deal includes $185 million in cash, $540 million in stock and an earnout of up to $75 million.

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Private equity

StepStone Group (Nasdaq: STEP) agreed to buy Greenspring Associates, a Baltimore-based direct and indirect VC and growth equity investor.Why it matters: This is part of a burgeoning boom in &quot;private equity&quot; firms going public, either directly or via merger. And, yes, the last time this happened was right before the financial crisis.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

StepStone Group to buy Greenspring Associates

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