Partner, Head of Research and Portfolio Management & Director, Stonex
Search every verified Thomas Keck interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. In a September 2021 distinguished speaker series at the University of Chicago Booth School of Business, Tom Keck, a partner and head of research and portfolio management at StepStone Group, discussed the firm's approach to responsible investing and ESG (environmental, social, and governance) practices. Keck described ESG as a framework for analyzing risks and opportunities in any business, noting that the U.S. lags behind Europe and Australia in ESG adoption. He acknowledged that "greenwashing" is a significant problem and said that measurement, transparency, and disclosure are aimed at addressing that issue. Keck also discussed StepStone's efforts to lower entry barriers for smaller investors accessing private funds, describing a new product that uses data and techniques to intermediate small investors and create liquidity. Keck commented on market trends, stating that SPACs (special purpose acquisition companies) are "interesting" but that he is "not a big SPAC investor," noting that while SPAC economics are "amazing for sponsors," terms remain "egregious" for investors. He observed that margins in investment management have been declining, particularly in public markets due to passive strategies, while private markets have held margins better due to inefficiencies. Regarding hiring, Keck said StepStone has broadened its funnel to seek candidates with harder-to-teach skills like dealing with ambiguity, and that the firm teaches easier technical skills internally. He also identified industries where information technology has not yet taken hold, such as agriculture, as areas of opportunity.
“When the pandemic originally hit, we had been working on going public for a number of years. We had originally planned to do it in April of 2020, but then thought that was it for 2020. However, as capital markets recovered, we realized there was an opportunity to turn it back on. Knowing what I know now, I wouldn't hav...”
“Greenwashing is definitely a big problem. Measurement, transparency, and disclosure are aimed exactly at that issue. To the extent that we can avoid situations that are effectively greenwashing, that's value added to our clients. We spend a lot of time thinking about this risk.”
“ESG applies to everything, from evaluating a coal-fired power plant to a wind farm. It's a framework for analyzing risks and opportunities in any business. Responsible investing incorporates ESG practices and impact investing, which aims to provide positive impact, not just avoid negative impact.”
“The US is way behind Europe and Australia in ESG adoption. There are too many standards trying to be developed, and they need to coalesce into something investors buy into. StepStone is working hard to help that come about because that's the future of investing.”
“We have recently launched a product to lower entry barriers for smaller investors accessing private funds. We address regulatory, liquidity, and cost barriers. Using data and techniques, we can intermediate many small investors and private investments to create liquidity and reduce costs, improving access over the next...”
“SPACs are a big trend with about 400 in registration. Our portfolio companies fit well into the typical SPAC size. While SPAC economics are amazing for sponsors and terms have improved for investors, they remain egregious. GPs know their bread is buttered on private funds, which are larger and more lucrative, so SPACs...”
“Margins in investment management have been coming down dramatically, especially in public markets due to passive strategies. Private markets have held margins better due to inefficiencies that can be arbitraged. However, these inefficiencies are evolving, so sustaining margins requires adapting to new market conditions...”
“We look for analytic horsepower and intellectual curiosity in new hires. They need to cope with ambiguity and be open to being wrong. It's important they can explain their experiences critically and learn from mistakes to improve continuously.”
“Over the last 10 years, we've broadened our hiring funnel to bring in people from diverse backgrounds with harder-to-teach skills like dealing with ambiguity and being self-starters. We teach the easier technical skills internally to build a more diverse and capable workforce.”
“There's tremendous opportunity in industries where information technology hasn't yet taken hold, like agriculture. Feeding 10 billion people sustainably is a huge challenge, and businesses addressing such big problems are likely growth areas.”
In this event, Dean Rajan spoke with Tom Keck, '97, partner and head of research and portfolio management at StepStone Group ...
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