Summit Partners collects $4bn in double fund close

The Boston-based firm has raised $3.3bn for its latest growth equity vehicle and $730m for its fourth venture capital fund.

US growth equity firm Summit Partners has raised $4 billion of capital commitments for two of its latest funds, Summit Partners Growth Equity Fund IX and Summit Partners Venture Capital Fund IV, according to a statement.

The firm collected $3.3 billion against a $3 billion target for Growth Equity Fund IX, while it closed Venture Capital Fund IV on $730 million, exceeding its original $600 million target.

The firm began marketing both funds in 2015, according to PEI data.

Summit Partners typically invests between $10 million to over $500 million per transaction and pursues both minority and majority stakes in sectors including technology, healthcare, fintech and services, consumer and industrial.

Limited partners in Fund IX include the Maine Public Employees Retirement System, the Teachers’ Retirement System of Louisiana, and the Minnesota State Board of Investment, with each investor contributing between $60 million to $100 million.

Meanwhile, the Pennsylvania Public School Employees' Retirement System and the Texas County and District Retirement System each committed $50 million to Fund IV, and Maine Public Employees Retirement System committed $40 million, PEI data indicated.

A document from the Pennsylvania Public School Employees’ Retirement System revealed that investments requiring over $60 million in equity will be structured via the ninth growth equity fund, while those requiring under $60 million will be made through the fourth venture capital fund, as previously reported by PEI.

“Over more than three decades as a growth equity investor, Summit has developed deep sector expertise, an extensive global network of relationships, and a track record of supporting the needs of growth companies. We intend to continue to serve as an invaluable partner for entrepreneurs and executive teams with our new growth equity funds,” Peter Y. Chung, managing director and chief executive officer of Summit Partners, said.

The firm manages over $20 billion of assets and has offices in Boston, Menlo Park and London.