StepStone Alums Launch Advisory Shop to Build Customized Portfolios for Smaller LPs

Why It Matters

By offering tailored portfolio construction, Thirdpath enables smaller LPs to access private markets with risk‑adjusted strategies, potentially expanding capital flows into private equity and credit.

Key Takeaways

• Thirdpath targets institutional investors with assets under $500M.
• Founders Jones and McGuinness previously led StepStone's advisory unit.
• Service offers bespoke private equity and credit portfolio construction.
• Focus on smaller LPs meets rising demand for tailored exposure.
• Platform leverages StepStone network to source diversified deals.

Pulse Analysis

The private‑equity landscape has long been dominated by large institutional investors that can meet high minimum commitments and navigate complex fund structures. In recent years, a wave of mid‑size pension funds, endowments, and family offices—collectively referred to as smaller limited partners—have sought more flexible, customized exposure to private markets. These investors often lack the internal resources to design bespoke allocations, creating a niche for specialist advisory firms that can translate market insight into tailored portfolio solutions.

Enter Thirdpath, founded by Brey Jones and John McGuinness, two veterans who helped build StepStone Group’s advisory platform. Their experience spans deal sourcing, due‑diligence, and portfolio construction across both private equity and private credit. Leveraging the extensive network cultivated at StepStone, Thirdpath intends to assemble diversified, risk‑adjusted portfolios that align with each client’s liquidity profile and return objectives. By focusing exclusively on smaller LPs, the firm can offer a level of personalization that larger multi‑manager platforms typically cannot provide.

The launch signals a broader shift toward fragmentation of private‑market services, where boutique advisors compete with traditional fund managers for capital. If Thirdpath can deliver consistent performance, it may encourage more mid‑size institutions to allocate a greater share of their assets to private equity and credit, deepening market liquidity. Moreover, the firm’s success could prompt other alumni of major firms to spin out similar ventures, intensifying competition and potentially driving innovation in fee structures and reporting transparency across the sector.