Venture Capital: Summit Partners Wraps Up Two Mega Funds Totalling $2.2B

July 1, 2020 | News, Venture Capital
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The two funds are targeting investments in startups in North America and Europe.

Investment firm Summit Partners announced Tuesday the first and final closings of two mega-funds, targeting startups in North America and Europe, and receiving commitments of $1 billion and €1.1 billion respectively. The firm also announced its appointment of Melanie Whelan, the former CEO of SoulCycle, as a managing director. (TechCrunch)

Summit said it closed its Summit Partners Europe Growth Equity Fund III at its hard cap with €1.1 billion in total commitments. Further, Summit Partners Venture Capital Fund V also closed at its hard cap with $1.0 billion in commitments.

Both funds were “significantly oversubscribed,” Summit said.

Summit Partners gets investors despite COVID

Despite the economic disruption and uncertainty precipitated by the COVID-19 crisis, firms such as Summit appear to find it easy to raise money at will, and that too from top-drawer investors.

According to Pension&Investments, investors in Summit’s current European growth fund include the Texas County & District Retirement System, Austin; Maine Public Employees Retirement System, Augusta; and Sacramento County (Calif.) Employees’ Retirement System.

Investors in Summit Partners Venture Capital Fund V include the Ohio State Teachers Retirement System, Columbus; and the Louisiana Teachers’ Retirement System, Baton Rouge.

“In the midst of tremendous disruption around the world in recent months, we are deeply grateful for the ongoing trust of our limited partners and their steadfast support of the Summit Partners growth equity strategy,” said Peter Chung, Managing Director and Chief Executive Officer of Summit.

Summit has raised over $31 billion since its founding in 1984. Of that, over $7 billion has been raised since the beginning of 2019.

Investing focus

Summit’s new Europe-focused fund will invest growth equity ranging from €20 million to €70 million in European companies.

The new venture capital fund will write checks from $10 million to $60 million in companies in North America.

Summit typically invests in profitable, growth-oriented companies in sectors such as technology, healthcare, financial technology and services, consumer products, and business services.

Melanie Whelan

As a newly appointed Managing Director, Whelan will focus on companies in the high-growth consumer and technology-enabled services.

Previously CEO of SoulCycle, Whelan was recently serving as a member of Summit Partners’ Executive-in-Residence program.

Related Story: What COVID-19 Did To VC Investing in the U.S. (Report)                                                   

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