Boston private equity firm closes its U.S. growth fund at $8.35bn

Oct 5, 2021 | News

Boston-based private equity firm Summit Partners closed its latest fund at $8.35bn, the firm said on Monday.

Launched in June this year, Summit Partners Growth Equity Fund XI will target minority and majority investments of $75 million to $500 million, primarily in profitable growth companies. The firm’s latest flagship U.S. growth equity fund is the 11th raised by the firm, and brings the total capital raised to more than $10.5 billion since the start of 2020, according to Summit Partners.

The news of the closing comes about a week after Boston growth equity firm PSG closed its latest fund at $4.5 billion, its fifth U.S. flagship fund.

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Summit Partners, which has about 245 employees globally and 165 in the Boston office, is one of the state’s most active private equity investors, with 42 deals closed in 2020. Founded in 1984, it currently manages more than $42 billion in capital.

The firm usually partners with companies in sectors including technology, healthcare, financial technology and services, consumer and e-commerce, and business services.

Notable local companies backed by Summit include Acacia Communications Inc., which was acquired earlier this year for $4.5 billion and taken private by Cisco Systems Inc. (Nasdaq: CSCO); and Klaviyo, which became a so-called “unicorn” with a valuation of over $1 billion last year.

In 2015, Summit Partners also partnered with Braintree-based EngageSmart, which went public in a $338 million IPO less than two weeks ago.

Earlier this year, Summit Partners also launched a special purpose acquisition company, or SPAC, called SPGL Acquisition Corp., which is looking for a target company to acquire in the semiconductor industry.

“With the closing of our latest fund, we will continue to pursue our growth equity strategy, serving as the partner of choice for category-leading growth companies and exceptional entrepreneurs within our sectors of focus,” said Peter Chung, managing director and CEO of Summit Partners, in a statement.

Source: Biz Journals

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