Summit Partners has closed $1 billion for its second credit fund. The target was $750 million. The fund’s LPs include public and private pension plans, insurance companies, funds of funds, family offices, endowments and foundations.
BOSTON, MA and MENLO PARK, CA and LONDON, UNITED KINGDOM, Jul 15, 2014 (Marketwired via COMTEX) — Summit Partners announced today that it has raised $1 billion for its second credit fund, Summit Partners Credit Fund II, to address the borrowing needs of growing middle-market companies. This brings Summit’s total equity and fixed income capital base to more than $16 billion. The fund will be run from Boston by Managing Directors Todd Hearle and Jamie Freeland and Summit’s dedicated credit team.
Surpassing its initial goal of $750 million, Summit Partners Credit Fund II will target credit investments in profitable companies with proven business models, a record of stable growth, and the leadership capable of sustaining that growth. Often these companies are looking for a partner that can provide the capital necessary to complete an acquisition, buy out a partner, or finance an objective specific to achieving the goals of the company.
Fixed income investing has been an active component of Summit Partners’ investment platform since 1994. Summit has funded a total of more than $1.8 billion fixed income investments, including subordinated debt investments in conjunction with its equity investments and stand-alone credit investments. In total, Summit has raised $3.3 billion in combined fixed income assets.
Investors participating in the fund include public and private pension plans, insurance companies, funds of funds, family offices, endowments and foundations.
Tom Roberts, Managing Director at Summit Partners, said, “All of us at Summit appreciate the investor support we’ve received from new and existing limited partners for our Credit Fund II. The high level of demand reflects the appeal of our credit capability, our leading position in the middle market and our differentiated sourcing model.”
Summit Partners’ Todd Hearle commented, “We are pleased with the collective strength of our limited partners and our continued flexibility to serve middle market borrowers with tailored capital solutions and high certainty to close.” Added Jamie Freeland, “Every year, Summit Partners speaks with thousands of companies around the globe about their growth strategies. Our credit fund leverages this proprietary outreach model and allows us to provide customized, innovative capital solutions to a wider range of businesses.”
Summit’s dedicated team of credit investment professionals will focus on growing companies across many industries, including technology, healthcare & life sciences, financial technology & services, consumer and industrial. The team has extensive experience in leveraged finance and private loan origination, and brings experience in both public and private markets.
About Summit Partners
Founded in 1984, Summit Partners has raised more than $16 billion in capital and provides equity and fixed income for growth, recapitalizations, and management buyouts. Summit has invested in more than 395 companies in technology, healthcare, and other growth sectors. These companies have completed more than 135 public offerings, and more than 150 have been acquired through strategic mergers and sales. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.