About Growth Equity

About Summit Partners

1. How long has Summit Partners been in business? How many investments have you made?
2. What industries do you target?
3. Where are you located, and where do you focus your investment activity?
4. How many investment professionals work at Summit Partners?
5. What is your investment range?
6. How long does it take to close an investment?
7. How often do you partner with other investors?
8. What is Summit Partners' role after investing?
9. What is the duration of a typical Summit Partners investment?
10. How do you typically exit investments?
11. How many funds have you raised?
12. Are you actively investing now?
13. Who are your investors?
14. How do I introduce a prospective portfolio company investment opportunity to you?
15. What are your industry affiliations? 

About Growth Equity

1. What is growth equity?
   
   Growth equity is financing that helps exceptional companies accelerate their growth. By providing capital, strategic guidance at the board level, and operational support, growth equity investors can help companies realize their full revenue, profit and market-value potential. Many growth equity investors will make minority investments, and prefer that current managers continue running their businesses. Back to top
2. How does growth equity differ from conventional venture capital and leveraged buyouts?
   
   Growth equity investors focus on rapidly growing companies with proven business models. Unlike venture capital firms, they generally avoid investing in early-stage companies with unproven ideas. Growth equity investors also differ from buyout specialists in that they seek to earn returns from growing the business, rather than through financial engineering, restructuring or cutting costs. Growth equity investors succeed when their portfolio companies succeed because everyone's interests and incentives are aligned. Back to top
3. Why do business owners seek growth equity?
   
   Many successful business owners reach an inflection point where they identify growth opportunities—such as geographic expansion, acquisition strategies and product development—but to pursue these opportunities, they require capital beyond their existing resources. Additionally, if business owners and key shareholders decide that too much of their personal wealth is tied up in the company, they may want to take money off the table—without an outright sale of the business. Back to top
4. My business is already profitable—why should I take on a growth equity partner?
   
   Beyond financing, an experienced growth equity investor can add value by offering strategic and operational guidance at the board level in areas including:

   • recruiting and developing the management team
   • building a strong board
   • performing operations and logistics assessments
   • identifying revenue enhancement opportunities
   • preparing for an IPO or merger
   • advising on corporate infrastructure and best practices
   • developing new products
   • expanding geographically
   • forming and executing an acquisition strategy
   • creating executive dashboards

   Because of their vast experience with businesses through stages of growth, growth equity investors can also offer insights on strategies or approaches that have worked at other companies—either inside or outside your industry. Back to top
5. Will I lose control of my business if I receive a growth equity investment?
   
   Growth equity investors prefer, and sometimes require, that owners continue to take an active role in their companies. Growth equity investors act as partners, participate at the board level and advise on key strategic issues, and typically do not become involved in day-to-day operating decisions—regardless of the size of their investment in the company. Their role varies depending on the unique needs and capabilities of each company. Back to top
6. How are growth equity transactions structured?
   
   Growth equity investments can be either minority or majority, and are structured with little or no debt because excessive interest and principal payments can constrain a company's ability to grow. Some growth equity investors have their own subordinated debt funds, so they can complete transactions where debt makes sense without arranging bank financing. Back to top

About Summit Partners

1. How long has Summit Partners been in business? How many investments have you made?
   
   Summit Partners was founded in 1984 and has made growth equity investments in more than 340 growing companies across a broad range of industries and geographies. Back to top
2. What industries do you target?
   
   We provide growth equity to companies across many industry categories. The primary industries that we have targeted to date include: business services, communications technology and services, consumer, education, energy, financial technology and services, healthcare and life sciences, industrial, Internet and new media, semiconductors and electronics, and software. Back to top
3. Where are you located, and where do you focus your investment activity?
   
   Summit Partners has offices in Boston, Palo Alto and London, with investment teams dedicated to opportunities in North America, Europe, India and Asia Pacific. Our portfolio companies are headquartered in the United States, Canada and Europe, with major operations in India, China, Australia, Eastern Europe, Indonesia, Malaysia, Japan, Singapore, Russia, South Korea and other countries. Back to top
4. How many investment professionals work at Summit Partners?
   
   With more than 75 investment professionals, Summit Partners has one of the largest teams in the business, offering considerable depth and expertise across numerous industries and around the globe. Our managing directors collectively bring more than 250 years of private equity and venture capital experience with Summit, and individually average more than 12 years. Back to top
5. What is your investment range?
   
   We will invest from as little as $5 million to more than $500 million per company in combined equity and subordinated debt. Back to top
6. How long does it take to close an investment?
   
   While Summit Partners often builds relationships with entrepreneurs for many years, we can move quickly to close an investment when the time is right. Comprising one of the largest teams in the industry, our investment and finance professionals are responsive and nimble. We can close in about 45 days, depending on the audit and legal requirements. Back to top
7. How often do you partner with other investors?
   
   We do invest in partnership with others. Most frequently, Summit Partners is the lead—and often the sole—investor. We are equally comfortable investing for minority or majority positions. Back to top
8. What is Summit Partners' role after investing?
   
   We view ourselves as an investment partner that provides strategic and operational guidance to help proven, existing management teams reach their companies' full-growth potential. In addition, we can tap a deep network spanning numerous industries and the globe to assist with recruiting key management and board directors, establishing strategic partnerships and executing acquisitions. Back to top
9. What is the duration of a typical Summit Partners investment?
   
   This depends on the portfolio company's long-term goals, and may vary from as little as one year to more than ten. On average, we hold a stake in a portfolio company for approximately three to five years. Back to top
10. How do you typically exit investments?
    
    Summit Partners works with management teams to determine an exit strategy that not only makes sense for the business, but also maximizes the value of the business for all parties involved. Since our founding, we have helped our portfolio companies complete more than 125 public offerings, while in excess of 130 have been acquired through strategic mergers and sales. Back to top
    
11. How many funds have you raised?
    
    We have raised 12 equity funds and four subordinated debt funds, together totaling more than $14 billion. Back to top
    
12. Are you actively investing now?
    
    Yes, we are currently investing a €1.05 billion Europe equity fund, $6.63 billion in U.S.-focused equity funds, and an $840 million subordinated debt fund. Back to top
    
13. Who are your investors?
    
    We have one of the broadest institutional investor bases in the industry. This includes advisors, corporate and public pension funds, entrepreneurs we've previously financed, family offices, financial institutions, foundations and universities, as well as funds of funds. Back to top
    
14. How do I introduce a prospective portfolio company investment opportunity to you?
    
    Please submit a business plan or contact one of our offices located in Boston, Palo Alto and London. Back to top
15. What are your industry affiliations?
    We are members of the Private Equity Foundation (PEF) and the National Venture Capital Association (NVCA). PEF is a UK-based venture philanthropy fund which works with carefully selected charities to empower young people to reach their full potential. The NVCA fosters greater understanding of the importance of venture capital in the U.S. economy and supports entrepreneurial activity and innovation. Back to top