Boston-based growth equity investor Summit Partners has set up its India office in Mumbai nearly two years after completing its debut deal in the country. Summit made its debut in April 2010 with $30 million investment in Krishidhan Seeds Ltd (KSL), a commercial seeds manufacturer based in Maharashtra.
“Summit is opening its office to increase investment activity in India and to support its North America and Europe-based portfolio companies with their expansion efforts in the region,” the firm stated in a release. Besides Boston and Mumbai, Summit has offices in Palo Alto and London.
The new office comes after Summit Partners closed two new global funds with combined commitments of $3.22 billion in January this year. Summit Partners Growth Equity Fund VIII is a $2.7 billion fund, formed to invest primarily in profitable, growing companies. It will target equity commitments of more than $45 million. Summit Partners Venture Capital Fund III is worth $520 million and it will invest in private, emerging growth companies. The fund will target equity investments of up to $45 million.
Summit’s India office will be managed by Amit Chaturvedy (India director), along with Gaurav Prakash and Miloni Shah (associates).
Summit Partners will apply the same investment strategy that it has successfully executed since 1984 – to focus on high-growth businesses run by strong management teams. The private equity firm will target investments between Rs 50 crore ($10 million) and Rs 500 crore ($100 million).
“As growth equity investors with a 28-year track record, we see a significant opportunity in the Indian market. India’s strong entrepreneurial tradition, combined with a fast-growing economy, means there are many companies which can benefit from Summit’s capital investment, strategic advice and industry expertise,” said Scott Collins, managing director – international equity, who oversees Summit Partners’ investment efforts in Europe and Asia.
Summit’s portfolio companies, such as Belkin International, Continuum, McAfee, Multifonds, Ogone, Snap Fitness and Winshuttle Holdings, also have a major presence in India.
Founded in 1984, Summit has raised more than $14 billion in capital and provides equity and credit for growth, recapitalisations and management buyouts. It is currently investing from six equity and subordinated debt funds that total more than $9 billion.
Through its Boston office, Summit also picked up a significant stake in the managed services business unit of BSE-listed Zenith Infotech, which is called Zenith RMM LLC.