Summit Partners has closed its first European private equity fund with EUR 1 billion in capital commitments. It also raised $825 million for its fourth subordinated debt fund.
Summit Partners announced today that it has closed two new funds, a Europe private equity fund with EUR 1 billion of limited partner interests and its fourth subordinated debt fund with $825 million of limited partner interests, bringing its total amount available for investment in growth companies across North America, Europe, and Asia to nearly US$6 billion.
This is Summit Partners' first dedicated Europe private equity fund. It reflects the increasing opportunities that the firm sees in working with entrepreneurial management teams of profitable, growing European companies. The new subordinated debt fund will co-invest with Summit's equity funds, providing a single source of mezzanine and equity financing to meet each company's unique financing needs.
The firm will target equity commitments of $5 million to more than $500 million per transaction, with the ability to invest more than $800 million in combined equity and subordinated debt.
Summit opened its London office in 2001 and has since made eight investments in seven European countries, including two investments in 2007: Vente-Privee.com, and Welltec International. During 2007, European companies accounted for more than 30 percent of the firm's invested capital. Summit plans to expand its current team of 15 London-based investment professionals, who will continue to focus on seeking growth equity opportunities throughout Europe.
Since its inception in 1984, Summit has raised a total of ten equity funds and four subordinated debt funds with combined assets of more than US$11 billion. Summit's team of more than 80 investment professionals — in Boston, Palo Alto, and London — will use the funds to acquire minority and majority positions in successful, growing companies across many industries, including technology, business and financial services, consumer and industrial products, energy, healthcare and life sciences, Internet and information services, as well as media and entertainment.
Martin Mannion, a Managing Director at Summit, said, “The support we've received from both existing and new investors across North America, Europe, and Asia has allowed us to raise these funds in just a few months. This validates our growth equity investing strategy in exceptional companies.”
“The subordinated debt fund allows us to provide companies with a single source of financing for equity and debt financing needs,” added Tom Roberts, a Managing Director at Summit. “This gives entrepreneurs access to two-thirds of the capital structure, excluding senior debt, in a single relationship.”
Scott Collins, a Managing Director in Summit's London office, noted, “We are delighted to close our first European fund. Given our success with investments such as Jamba!, SafeBoot Holdings, and Web Reservations International, we aim to grow our European presence significantly in the coming months and years.”
The investors in Summit's new Europe and subordinated debt funds include public and private pension funds, university endowments, financial institutions, corporations, and entrepreneurs previously financed by Summit Partners. Nearly 80 percent of the capital raised in these funds was provided by investors in previous Summit funds. Representative investors in the Europe fund include BP Investment Management, HarbourVest Partners, Irish National Pensions Reserve Fund and LGT Capital Partners. Representative investors in the subordinated debt fund include California State Teachers' Retirement System, Minnesota State Board of Investment, Performance Equity Management, LLC, and Virginia Retirement System.
About Summit Partners
Summit Partners provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $11 billion in capital and has provided equity, recapitalization, and management buyout financing to nearly 300 growing companies across a range of industries. Of these companies, almost 125 have completed public offerings and more than 110 have been acquired through strategic mergers and sales. The firm has offices in Boston, Palo Alto, and London.
Summit Partners seeks to work with outstanding management teams that have self-financed their companies to profitability and market leadership. Notable investments include E-TEK Dynamics, FleetCor Technologies, Hittite Microwave, Jamba!, Lincare, McAfee, optionsXpress, Physicians Formula, SafeBoot, Vente-Privee.com, and Web Reservations International.
The business of Summit Partners in the UK is regulated by the Financial Services Authority. Summit Partners Limited is registered in England and Wales. The registered number is 4141197, and the registered office is located at 20-22 Bedford Row in London, WC1R 4JS, UK. In the US, Summit Partners operates as an SEC-registered investment advisor. This document is intended solely to provide information regarding Summit Partners' potential financing capabilities for prospective portfolio companies.