Summit Partners, the global private equity firm based in Boston, has raised €1 billion ($1.57 billion) for its first European equity fund, reaching its hard cap, according to Scott Collins, a managing director at Summit.
It has also closed an $825 million subordinated debt fund, its fourth, which will provide equity and mezzanine debt financing to companies in North America, Europe and Asia.
Summit targets equity injections of $5 million to $500 million per transaction and has the ability to invest more than $800 million in combined equity and subordinated debt in a company. The subordinated debt fund can co-invest alonside all Summit funds.
Summit opened its UK office in 2001 and has made eight investments across seven European countries. In 2007, the firm invested undisclosed amounts in Vente-Privee.com, a French on-line retailer, and Welltec International, a Danish oil and gas robotics company. European companies account for more than 30 percent of Summit’s invested capital. The firm has 15-strong European team, which it plans to expand.
Since 1984 Summit has raised ten equity funds and four subordinated debt funds with combined assets of more than $11 billion.
Martin Mannion, a managing director at Summit, said the firm had raised the latest funds in just a few months.
Nearly 80 percent of the capital raised in the new funds was provided by existing investors. Investors in the European fund include BP Investment Management, the asset management arm of the oil company, HarbourVest Partners and LGT Capital Partners, the funds of funds. Investments in the subordinated debt fund came from limited partners such as California State Teachers’ Retirement System, Minnesota State Board of Investment and Virginia Retirement System, the US pension funds.
Summit’s third subordinated debt fund raised $465 million in 2004.