PALO ALTO, Calif. – Summit Partners promoted two investment professionals late last summer and is in the market for additional Internet/e-commerce specialists in its Silicon Valley and Boston offices, said Managing Partner Greg Avis.
Walter Kortschak was elevated to managing partner from general partner and Peter Chung was promoted to general partner from principal.
Kortschak joined Summit, a later-stage firm that invests in a wide variety of industries, as a vice president in 1989, leaving CrossPoint Venture Partners where he held posts as an associate and vice-president for more than three years. Chung came to Summit from Stanford Business School in 1994, entering the firm as a senior associate and later advancing to principal.
Both venture capitalists will take on increased responsibilities, although neither expects a major change in his duties. Kortschak said he would be more involved in hiring decisions and in determining the firm’s strategic direction. He also will assume a more advisory role in backing portfolio companies, although he will continue to directly lead investments.
Chung expects to take on more duties related to some investments and to take on more administrative tasks.
“Peter has made a tremendous contribution to the firm since joining us, and I think this promotion is in recognition of the fact that he’s developed into an extremely effective and very successful venture capital investor,” Kortschak said of his colleague.
Kortschak seeks to back companies in networking, telecommunications, Internet and computer peripherals. He has led investments in Altocom Inc., McAfee Associates, Netcom Systems Inc., E-Tek Dynamics Inc., Somera Communications Inc. and HMT Technology Corp., all of which, except for Somera, have gone public or were acquired.
Chung, specializes in communications technology, digital imaging and information services, and he has taken board seats on companies including Ditech Communications Corp., E-Tek Dynamics, Somera and Splash Technology Holdings Inc.
Avis said Summit promoted the two investment professionals because of their performance, their commitment to the firm and in recognition of the returns they have generated over the last few years. The decision was not, however, related to any impending fund-raising plans. The group closed the $1.1 billion Summit V in March 1998 (VCJ, April 1998, page 10). Avis said the firm has $3.5 billion under management and makes investments averaging some $20 million to $25 million in later-stage growth companies, management buyouts and recapitalizations.
Summit presently has four managing partners, seven general partners (including the firm’s chief financial officer), one principal, one vice president and about 15 associates.
Summit expects to boost the investment staff of its West and East Coast offices, likely at the principal level or even at the partner level for the right person.