Summit Partners, a Boston-headquartered investment firm, has raised $1 billion for its second credit fund, as announced in a statement.
Summit Partners Credit Fund II will target credit investments in growing mid-market companies and has surpassed its initial fundraising goal of $750 million. Investors include public and private pension plans, insurance companies, funds of funds, family offices, endowments and foundations.
Tom Roberts (pictured), managing director at Summit Partners, said: “The high level of demand reflects the appeal of our credit capability, our leading position in the middle market and our differentiated sourcing model.”
Summit Partners also has offices in California and London and focuses on investing in companies in the technology, healthcare and life sciences, consumer and industrial sectors.
Jamie Freeland, managing director, said: “Every year, Summit Partners speaks with thousands of companies around the globe about their growth strategies. Our credit fund leverages this proprietary outreach model and allows us to provide customised, innovative capital solutions to a wider range of businesses.”
Summit has funded more than $1.8 billion in fixed income investments since 1994 including subordinated debt investments, in conjunction with its equity investments and stand-alone credit investments. It has raised $3.3 billion in combined fixed income assets.
The fundraising brings to $16 billion the firm’s total equity and fixed income capital base.