BOSTON and PALO ALTO, Calif., June 6, 2006 (PRIMEZONE) -- A recent Dow Jones News Service article describes Summit Partners, a private equity and venture capital firm, as "fussy about the companies it invests in - and when." Written by Marietta Cauchi, the article notes, "Of the 20,000 companies it looks at each year, the private equity investor limits itself to a dozen or so, focusing on those that have revenue, have reached profitability, and in which it can be the first financial investor."
The company's private equity investments range from $25 million to $500 million, and its later-stage venture capital investments range from $5 million to $25 million. Companies use the investments to provide founders and shareholders with additional liquidity, as well as to fuel new growth.
The feature quotes Bruce Evans, a managing partner in Summit Partners' Boston office, about the benefits of this additional liquidity: "The founders will have a large portion of their net worth tied up in the business. With our capital they can reduce their share, use the cash to diversify their investments and are much more prepared to be aggressive for the company's growth with their smaller slice because there is less risk."
Summit Partners recently published a white paper, Unlocking the Wealth Trapped in Your Company: Options for Achieving Partial Liquidity While Remaining CEO. It explores several options for entrepreneurs who want to increase their liquidity while maintaining management control, including private equity or venture capital financing. Entrepreneurs with profitable, growing companies are encouraged to download a copy of the white paper at www.summitpartners.com/sp/whitepaper.
About Summit Partners
Since its founding in 1984, private equity and venture capital firm Summit Partners has raised nearly $9 billion in capital and invested in more than 280 growing companies. These companies have completed more than 100 public offerings and in excess of 100 strategic sales or mergers.
Summit Partners seeks outstanding entrepreneurs and management teams that have self-financed their companies to profitability and market leadership in a broad range of emerging growth industries. Notable companies financed by Summit Partners include E-TEK Dynamics, iPayment, Keystone RV Company, Lincare, McAfee, optionsXpress, Pediatrix Medical Group, and RightNow Technologies, and in Europe, B&W Loudspeakers and Jamba!
The business of Summit Partners in the UK is regulated by the Financial Services Authority. In the U.S., Summit Partners operates as an SEC-registered investment advisor. This document is intended solely to provide information regarding Summit Partners' potential financing capabilities for prospective portfolio companies.