Summit Partners Raises $9.5 Billion for U.S. Growth Equity

Summit Partners has made a significant move in the investment world by raising $9.5 billion for U.S. growth equity.

This massive fundraise is a testament to the firm's reputation and expertise in identifying and investing in high-growth companies.

The $9.5 billion sum is a substantial amount that will undoubtedly make a significant impact on the businesses Summit Partners chooses to invest in.

With this new capital, Summit Partners will be able to support even more innovative companies in their growth journey, helping them scale and achieve their full potential.

Summit Partners is a financial services company that's been around since 1984. They're based in Massachusetts and have a strong presence in Boston.

The company has three main business lines: Growth & Venture, Credit, and Public Equity. These lines help them provide a range of services to their clients.

Summit Partners typically invests in later-stage companies that are looking to grow further. They invest between $30 million and $500 million in private equity, and between $5 million and $30 million in venture capital.

Some notable investments made by Summit Partners include Uber, McAfee, Avast, Infor, Flow Traders, and Arista Networks.

Here are some key facts about Summit Partners:

Summit Partners is known for its investment model centered on high-growth companies. They target established businesses that need additional capital to expand further, focusing on sectors like technology, healthcare, and financial services.

Summit Partners' strategy involves partnering with management teams to provide not only capital but also strategic resources that help businesses navigate complex growth challenges. This approach emphasizes long-term value creation and sustainable growth.

The firm uses a proprietary sourcing approach, which has led to a very high proportion of its dealflow being proprietary. Over 90% of investments have been originated by Summit through its proactive approach, and over 80% of investments were sourced via a top-down approach targeting the firm's preferred sub-sectors.

Here are some key statistics on Summit Partners' investment approach:

We focus on high-growth companies with strong leadership and proven business models.

Summit Partners, a firm with a similar investment approach, targets established companies that need additional capital to expand further. This is a deliberate strategy to help businesses navigate complex growth challenges.

Key sectors for our investment include technology, healthcare, financial services, and business services, areas where we have extensive expertise. We've seen firsthand that having a deep understanding of these sectors can make a significant difference in our investment decisions.

Our strategy involves partnering with management teams to provide not only capital but also strategic resources. This approach emphasizes long-term value creation and sustainable growth.

We look for companies that are positioned for significant growth and are willing to partner with us for the long term. Our historical focus on operational excellence and strategic oversight has allowed us to build a portfolio that consistently outperforms market benchmarks.

Summit Partners' proprietary sourcing approach is a key factor in their success. They've modernized and refined their original pro-active origination approach, which was inspired by cold calling.

Over 90% of Summit's dealflow is generated through this approach, making it a highly effective way to find investment opportunities. This approach has been refined to focus on specific sub-sectors, increasing its efficiency.

Summit's top-down approach targets their preferred sub-sectors, resulting in over 80% of investments being sourced this way. This targeted approach allows them to focus on the most promising areas.

The terms of over 70% of investments are negotiated directly with the founders of the acquired companies, without any financial intermediaries. This direct approach helps Summit build strong relationships with the companies they invest in.

Effective cash flow and fund management are crucial for maximizing returns and minimizing fees. A key approach to achieving this is through recycling, where a portion of fund distributions is reinvested to put more of the client's commitment to work in portfolio companies.

Summit Partners has a proven track record of investing more than 100% of its funds in assets, which means they reinvest a portion of fund distributions to deploy all or more of their clients' commitment.

This approach narrows the gap between gross and net performance, equivalent to a reduction in management fees. In fact, if a Summit fund has a net performance of 2.5x called capital, it's actually 2.8x investors' commitment if the fund has been deployed at 110%, as they have done in the past.

By recycling capital, Summit makes part of the capital work several times over to better amortize management fees.

Growth equity has become a hot commodity, with $70.5 billion raised for the strategy in the first half of the year alone. This influx of capital has led to increased competition in the market.

Summit Partners has successfully closed its twelfth U.S. Growth Equity Fund, raising $9.5 billion. This significant contribution to the growth equity market is a testament to the firm's established reputation in growth equity.

The firm attracted strong support from a diverse base of global investors, including public and corporate pension plans, sovereign wealth funds, family offices, and endowments. This broad base of support is a key factor in the firm's ability to secure such a large fund.

The growth equity market is becoming increasingly crowded, making it more challenging for firms to stand out and secure significant funding.

Summit Partners has a strong track record of successful investments in various sectors, including enterprise software and healthcare services.

The firm has made 458 investments, with its latest investment being in Fundraise Up as part of their Series B on January 06, 2025.

Summit Partners has 71 funds, including the Summit Partners Growth Equity Fund XII, which closed on October 2, 2024, with a fund size of $9,500 million.

The firm's historical focus on operational excellence and strategic oversight has allowed it to build a portfolio that consistently outperforms market benchmarks.

Here's a breakdown of some of Summit Partners' notable funds:

Summit Partners has a long history of successful investments, with a strong track record of making successful investments in a variety of sectors.

The firm has supported a number of high-profile companies, helping them scale through both organic growth and strategic acquisitions.

Summit Partners has made 458 investments, with their latest investment being in Fundraise Up as part of their Series B on January 06, 2025.

The firm's historical focus on operational excellence and strategic oversight has allowed it to build a portfolio that consistently outperforms market benchmarks.

Summit Partners has 71 funds, including Summit Partners Growth Equity Fund XII, which closed on October 2, 2024, with a fund size of $9,500M.

Here are some of the key facts about Summit Partners' fund histories:

The firm's fund histories demonstrate its ability to attract significant investments from a diverse range of sources, including public and corporate pension plans, sovereign wealth funds, family offices, and endowments.

Summit Partners has an impressive track record of successful portfolio exits, with a total of 275 exits under its belt. This is a testament to the firm's expertise in identifying and investing in high-growth companies.

The latest portfolio exit was RELEX, which took place on December 10, 2024. The exact valuation of this exit is not publicly disclosed, but it's clear that it was a significant one.

Summit Partners has consistently demonstrated a disciplined approach to investing, which has helped it secure strong returns for its investors. This approach has also attracted a diverse base of global investors, including public and corporate pension plans, sovereign wealth funds, family offices, and endowments.

Here are some details on the firm's recent portfolio exits:

These exits demonstrate Summit Partners' ability to deliver strong returns for its investors, and its commitment to supporting high-growth companies.

Cathay Life, a Taiwan-based insurance company, has committed $50m to Summit Partners' growth equity fund.

This investment is a significant contribution to Summit Partners' twelfth U.S. Growth Equity Fund, which has raised $9.5 billion in total.

Summit Partners has a long-standing focus on supporting high-growth companies, and this new fund continues that tradition with a disciplined approach and a track record of strong returns.

The capital was secured from a diverse base of global investors, including public and corporate pension plans, sovereign wealth funds, family offices, and endowments.

Merced County Employees' Retirement Association also invested in the fund, committing $8m to Summit Partners Growth Equity Fund XII.