Presentation of the Manager Summit Partners
Summary
Written transcription
Summit Partners is one of the leading Growth Equity & Growth Buyout firms in North America. It's a firm I know well since I first invested with them in 2008, so I've known them for 16 years.
Like TA Associates - one of the managers of our 2023 vintage - Summit Partners is a pioneer in the direct sourcing approach known as "cold calling", which consists of proactively contacting the management of fast-growing companies to develop a strong relationship with them, so that Summit is their first choice the day they decide to sell a minority or majority stake in their capital. Summit invests in companies that are typically growing at around 50% a year, so their value creation is based on very strong organic growth, plus external growth. Target sectors are primarily technology and healthcare, but also services and consumer goods.
The team is made up of 19 partners who have been with the firm for an average of over 18 years - one of the most stable teams on the market, with a senior management team that is both highly experienced and still young.
Finally, they have a 40-year track record of excellent performance. The mature Summit Partners Growth Equity funds generated an average return of 2.9x net investment and 33% net IRR. If we remove the best-performing fund and the worst-performing fund from our scope of calculation, the average performance remains high, at 2.5x net stake and 27% net IRR.
Altaroc Odyssey 2024 has committed to the Summit Partners Growth Equity Fund XII with a target size of $9 billion.
