Summit Equity is a private equity firm that focuses on growth capital and leveraged buyout investments in the middle market. Founded in 1984 and based in Boston, Summit has over $9 billion of capital under management and has invested in over 130 companies across healthcare, tech, and other sectors. This article will provide an overview of Summit Equity, including its investment strategy, portfolio companies, team, and track record over the past 30+ years investing in the middle market.
Investment Strategy: Targeting Niche Middle Market Leaders
Summit Equity targets profitable, growing companies in healthcare, tech, and other defensive sectors that have between $10-100 million in EBITDA. It looks to partner with exceptional management teams and provide capital and resources to accelerate growth. Specifically, Summit invests $25-150 million of equity per deal into platforms and complements this with add-on acquisitions. Over 90% of its deals have included acquisitions.
Sector Focus: Emphasis on Healthcare and Tech
While open to various sectors, Summit has particular expertise in healthcare and tech. Over 40% of its capital invested has been healthcare related, spanning providers, payors, pharma services, and medical devices. It also has an active practice in tech, with 25+ tech deals closed in sub-verticals like software, IT services, and Internet. Beyond those core sectors, Summit also selectively pursues deals in business services, consumer, and industrials.
Portfolio Companies: 130+ Investments
To date, Summit has invested in over 130 platform and add-on acquisitions. Notable deals include Accumen (healthcare lab services), Exploramed (medical devices), National Spine and Pain (pain management clinics), and Scient (SaaS for clinical research). In tech, SELECT represents a marquee investment in a leading IoT data platform. Other noteworthy tech plays include Cprime (Agile software development services), and MDLIVE (telehealth).
Team: Deep Bench of Investment Pros
What sets Summit apart is its cohesive team of investment pros averaging 15+ years experience each that take a thematic approach to sourcing. Managing Directors lines up with distinct domain expertise across healthcare, tech, and other defensive growth sectors. Further, the firm takes pride in its Executives-in-Residence program that provides portfolio companies with functional support.
Track Record: Top Quartile Over 30+ Year History
Since its founding in 1984, Summit has demonstrated resilient returns across market cycles. Over its 8 private equity funds, the firm has generated a gross IRR of 43% and 30% net to LPs – placing it in the top quartile nationally. This long-term outperformance stems from adherence to its strategy of partnering with exceptional management teams and pursuing niche, defensive growth companies exhibiting sustainable competitive differentiation.
In summary, Summit Equity is a leading middle market private equity group with a differentiated strategy targeting niche sector leaders and a long track record of value creation stemming from its three decade plus history of over 130 platform and add-on deals across healthcare, tech, and other defensive growth sectors.