Summit Partners, a global private equity firm based here in Boston, has just announced that it closed on its 11th fund. Totaling a massive $8.35 billion, this “significantly oversubscribed” fund brings the firm’s total capital raised to $43 billion — $10.5 billion of which was raised within just the last two years.
Founded in 1984, Summit Partners has spent the better part of 40 years backing growth-stage companies across fintech, healthcare, e-commerce and various other industries around the world. Over the decades it has become one of Boston’s most active and influential private equity firms, with more than 400 investments under its belt, including local standouts like near-decacorn Klaviyo and Acacia Communications, which was acquired by tech giant Cisco for $4.5 billion earlier this year.
Other notable startups like Austin-based Jungle Scout, NYC-based Optimove and LA-based Formative have also gotten investments from Summit this year.
This latest fund comes on the heels of two other growth equity funds the firm closed last year, totaling $2.2 billion in capital. The first was its Europe Growth Equity Fund III, which targets equity investments between €20 and €80 million in European-based companies; the second was its Venture Capital Fund V, which targets equity investments of $10 million to $60 million in growth-stage companies based primarily in North America.
Now, the firm says this eleventh fund will be used to target minority and majority investments of $75 million to $500 million, as it sticks mainly to profitable growth companies here in the United States.
“With the closing of our latest fund, we will continue to pursue our growth equity strategy, serving as the partner of choice of category-leading growth companies and exceptional entrepreneurs within our sectors of focus,” Peter Chung, the managing director and CEO of Summit Partners, said in a statement. “We are deeply grateful for the longstanding support of our limited partners and for their trust and confidence in our team and strategy.”
