Summit targets $3.5bn for dual funds

The firm recently received commitments for both funds from The Texas County and District Retirement System.

Summit Partners has launched its eighth growth equity fund targeting $3 billion and its third venture capital fund targeting $500 million, according to SEC documents.

The firm received commitments for both funds last week from The Texas County and District Retirement System. The $17.6 billion pension committed $50 million to Summit Partners Growth Equity Fund VIII and $25 million to Summit Partners Venture Capital Fund III. Both funds are being placed by Eaton Partners.

Summit added 13 new portfolio companies in 2010. The bulk of these were tech focused, including Accedian Networks, Avast Software, Casa Systems Cloudmark, Netwitness, Wildfire Interactive and Winshuttle.

The firm’s most recent investment came on 1 March when it invested an undisclosed amount for a minority stake in Clearwater Analytics, a web-based investment reporting company. Clearwater reports on more than $600 billion in assets for over 2,500 institutional investors worldwide.

Summit’s previous growth equity and venture capital funds closed on $3 billion and $310 million respectively, in 2005. Fund VII was generating a .37 percent IRR and Fund II was generating a 10.48 percent IRR as of 31 March 2010, according to performance data from the California State Teachers’ Retirement System. 

Founded in 1984, Summit Partners has raised some $11 billion and invested in 300 companies. The firm has 85 staffers worldwide with offices in Boston, Palo Alto and London. The firm manages private equity, venture capital and subordinated debt funds.