Summit Partners has closed its latest credit fund on $520m, trouncing its $300m target and placing the private equity firm in a good position to capitalise on the needs of credit-starved mid-market businesses seeking debt financing.
Summit Partners Credit Fund will be run in Boston by managing directors Todd Hearle and Jamie Freeland, who joined the firm two years ago.
The vehicle will target credit investments in profitable companies with proven business models, a record of stable growth, and the leadership capable of sustaining that growth, the firm said.
These companies are often looking for a partner that can provide the capital necessary to complete an acquisition, buy out a partner, or finance an objective specific to achieving its goals.
Credit investing has been an active component of Summit Partners’ investment platform since 1994, when it raised its first subordinated debt fund.
Summit has since raised three more subordinated debt funds and has funded more than 70 credit investments, including subordinated debt investments in conjunction with its equity investments and stand-alone credit investments.
In total, the firm has raised $2.3bn in combined credit assets.
“Every year, we speak with thousands of companies around the globe about their growth strategies,” said Roberts. “The Credit Fund leverages this proprietary outreach model and allows us to provide customised, innovative capital solutions to a wider range of businesses.”
Summit’s team of credit investment professionals will focus on financing companies across many industries, including technology, healthcare & life sciences, financial technology & services, consumer and industrial.
The team has extensive experience in leveraged finance and private loan origination, and brings experience in both public and private markets.
Summit has raised 17 equity and credit funds with combined assets of nearly $15bn since 1984.
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