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Summit Partners Surpasses $20 Billion in AUM with a Focus on Software/SaaS

Private equity firm Summit Partners was founded in 1984 by Stephen Woodsum and E. Roe Stamps. The founders, who formerly worked together at TA Associates and First Chicago Investment Corporation (now Madison Dearborn Partners), were later joined by Greg Avis, who opened the firm’s first California office in the 90s.

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Over the past three decades plus, Summit has grown to a team of over 100 investment professionals and 30 Managing Directors located across its offices in Boston, London and Menlo Park. The firm which invests across the world, with portfolio companies in North and South America, Europe, Asia, Australia and Africa, has managed combined assets of over $20 billion, through 18 equity and fixed income funds. Peter Y. Chung, the current Chief Executive Officer and a Managing Director at Summit, focuses on deals in tech verticals and is a director at various companies including A10 Networks, Acacia Communications, Empower RF Systems and MACOM.

Summit focuses on investments in the technology, healthcare and life sciences, and growth products and services sectors. Some of the firm’s most notable technology investments include McAfee, Jamba AG, AVAST, Answers.com, Wildfire Interactive, Finisar, E-TEK Dynamics and WebEx. As Summit’s AUM mushroomed over the years, its heightened focus on software/SaaS has fueled its growth.

In April 2017, the firm which ranks among the world’s 50 largest private equity firms, announced the close of two funds at a combined total of $4 billion. A whopping $3.3 billion went to Summit’s ninth growth equity fund while $730 million was allocated to its fourth venture fund.

In 2014, Summit raised $1.05 billion for Summit Partners Credit Fund II. About two years’ prior, the firm raked in $2.7 billion for its eighth growth equity fund, $550 million for its third venture capital fund and $520 million for its first credit fund.

According to the California State Teachers’ Retirement System, Summit Partners Growth Equity VIII-A generated an IRR of 18.02% as of September 30th, 2016. Summit Venture Capital III-A reportedly secured an IRR of 19.79% over the same time period, while Summit Equity Partners Credit Fund B-2, L.P. generated an IRR of 9.09%.