Summit Partners

Private Equity And Venture Capital
For Growth Companies

Growth Equity

Growth equity allows businesses to expand more rapidly or to take advantage of opportunities that require immediate capital.

Have you identified opportunities to expand your business organically, but lack the capital on your balance sheet to execute them? Would you benefit from a larger salesforce or marketing team? Has your product development team created a new product that you would like to roll out? Do you see the chance to build your business by acquiring competitors? Would you like to expand internationally? If any of these situations apply to you, then a growth equity investment may be the right option.

Growth equity is used to fund product development, operations upgrades, new marketing or sales initiatives, geographic expansion, and other growth objectives. Your company can use this capital to strengthen its balance sheet, pay down debt, or finance internal and acquisition-based growth strategies. By purchasing competing or complementary businesses, you can round out your product offering or expand into new markets.

Management retains strategic and operational control of the business, while tapping new resources that can take the company to the next level. Typically, Summit Partners will take a minority ownership position in the company.

Here are some examples:

  • Financing from Summit enabled American Dental Partners Inc. to acquire assets in large group dental practices and become one of the largest providers of dental practice management services in the United States.
  • RightNow Technologies Inc. used growth financing from Summit to expand into Europe, reach critical mass through dominant market share, and prepare for an eventual initial public offering.
  • With Summit’s financing, B&W Loudspeakers Ltd. strengthened its balance sheet and acquired distribution businesses in major markets across Europe, North America and the Pacific Rim, enhancing its ability to compete globally.