About Our Growth Equity Approach

About Our Credit Approach

1. What is credit? 
2. Why do business owners take credit? 
3. How are credit transactions structured? 
4. What is Summit Partners’ investment range and typical duration for a stand-alone credit investment? 

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. How long does it take to close an investment?
6. What is Summit Partners' role after making an investment?
7. Do you partner with other investors?
8. How many funds have you raised?
9. Are you actively investing now?
10. Who are your investors?
11. How do I introduce a prospective portfolio company investment opportunity to you?
12. What are your industry affiliations? 

About Our Growth Equity Approach

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. Growth equity investors prefer, and sometimes require, that owners continue to take an active role in their companies.Back to top
4. How are growth equity transactions structured?
   Growth equity investments can be either minority or majority, and can be structured with little to no credit in cases where excessive interest and principal payments may 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
5. What is Summit Partners’ investment range and typical duration for a growth equity investment?
   We will invest from as little as $5 million to more than $500 million per company in combined equity and credit. The duration of an equity investment depends on the portfolio company's long-term goals, and may vary from as little as one year to more than ten. On average, Summit Partners will hold a stake in a portfolio company for approximately three to five years. Back to top
6. How does Summit Partners typically exit investments?
   We work 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 130 public offerings, while more than 135 have been acquired through strategic mergers and sales. Back to top
   

About Our Credit Approach

1. What is credit?
   There are three forms of credit: bank debt, subordinated or mezzanine debt, and unitranche debt:
   
   Bank debt—either term or revolving—is typically senior in right of payment, and is secured by company assets. While this is generally the least expensive form of credit, it typically requires hard asset collateral and principal amortization during the term of the loan, with a final maturity within five years.
   
   Subordinated or mezzanine debt  is usually more costly, but is structured so that borrowers pay only interest for the first few years and then repay all of the principal at maturity—five to seven years or longer from the original loan date.
   
   Unitranche debt is a hybrid, which can replace both bank and mezzanine debt with one tranche of debt at a blended price. Unitranche debt can be particularly useful in providing a tailored financing solution while maintaining the flexibility needed to complete an acquisition or a recapitalization, or to provide liquidity.Back to top
   
   
2. Why do business owners take credit?
   Credit is generally less costly than equity capital on an absolute basis. In addition, while the company takes on the fixed costs of interest and principal payments, stockholders do not give up significant equity ownership. Credit is not permanent capital and must be repaid over time. Depending on a company’s goals and objectives, an entrepreneur may choose a stand-alone credit investment or a subordinated debt investment in combination with an equity investment.Back to top
   
   
3. How are credit transactions structured?
   A private credit transaction can be structured in many different ways, depending on the situation.  Some transactions are structured with one tranche of debt at one price while other transactions can have multiple tranches with different pricing and different collateral packages. In addition, subordinated debt can be structured in conjunction with equity and senior debt to satisfy the long-term strategic and financial goals of a company.Back to top 
    
4. What is Summit Partners’ investment range and typical duration for a stand-alone credit investment?
   We have the ability to underwrite up to $70 million in capital. Our transactions typically range in size from $15 million to $40 million, with an average transaction amount of $25 million.  Our investments tend to range from four to seven years, depending on the specific needs of the borrower. We do have the ability to offer shorter duration loans; however, we prefer to hold our investments for at least two years in any given transaction.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 and credit investments in more than 365 companies across a broad range of industries and geographies. Back to top
2. What industries do you target?
   
   We provide growth equity and credit 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, Menlo Park, London and Mumbai, with investment teams dedicated to opportunities in North America, Europe, India and Asia Pacific. Our portfolio companies are headquartered in the United States, Canada, India and Europe, with major operations in countries including Brazil, China, Australia, Indonesia, Japan, Malaysia, Mexico, Singapore, Russia and South Korea. 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 285 years of investment experience with Summit, and individually average more than 13 years with the firm. Back to top
5. 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 typically complete a transaction within 45-90 days, depending on the audit and legal requirements and the complexity of the situation.  Back to top
   
   
6. What is Summit Partners’ role after making an investment?
   For equity and subordinated debt investments, Summit Partners typically participates at the board level and advises on key strategic issues to help proven, existing management teams reach their companies' full-growth potential. We can perform operations and logistics assessments, identify revenue enhancement opportunities, advise on corporate infrastructure and best practices, and create executive dashboards. 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.
   
   For our stand-alone credit investments, our credit professionals remain involved with an investment from beginning to end, regardless of the time horizon. This continuity and cohesiveness create additional value to the company over the long term. As a result, our companies frequently view us as more of a partner than a lender. Back to top
7. 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. How many funds have you raised?
   Since inception, we have raised a total of 17 equity and credit funds with combined assets of nearly $15 billion. Back to top
   
9. Are you actively investing now?
   
   Yes, we are currently investing more than $9 billion in equity and credit funds in North America, Europe and Asia. Back to top
   
10. Who are your investors?
    
    We have one of the broadest institutional investor bases in the industry. This includes advisors, funds of funds, foundations and universities, public pension funds, and financial institutions. Back to top
    
11. How do I introduce a prospective portfolio company investment opportunity to you?
    
    Please contact one of our offices located in Boston, Menlo Park, London or Mumbai. Back to top
12. What are your industry affiliations?
    We are members of the Private Equity Foundation (PEF) and the National Venture Capital Association (NVCA), the British Private Equity and Venture Capital Association (BVCA) and the New England Venture Capital Association (NEVCA).  Back to top