Summit Partners recently launched its fifth venture product and quickly collected three public LP commitments.

The Boston-based firm is targeting $900 million for Summit Partners Venture Fund V, according to a board meeting document from the Teachers’s Retirement System of Louisiana.

The vehicle looks to continue the firm’s strategy of investing in companies that sit in between the early and growth stages. The fund invests across sectors, including life sciences, cybersecurity and next generation retail, among others.

Summit will commit at least 7 percent of the capital raised and will collect a 1.53 percent annual management fee. The fund will have a 20 percent carry rate.

The vehicle has already grabbed $78 million in LP commitments since its launch this May. Teachers’ Retirement System of Louisiana committed $25 million, Maine Public Employees Retirement Fund committed $45 million, and Merced County Employees Retirement Association committed $8 million.

Fund IV closed on $730 million in 2015, surpassing its $600 million target. Fund IV currently has a net IRR of 39 percent. Maine PERS also committed $40 million to this vehicle.

Summit has made 17 commitments and invested about 64 percent of Fund IV, or $472 million so far, and has already seen some exit activity. The firm led the $25 million Series B into out of Fund IV in 2015. The ecommerce company was scooped up by Etsy in 2019 for $275 million.

The fund series is seeing strong returns from its other vintages, as well.

Fund III closed on $520 million in 2011 and has a net IRR of 18 percent. Fund II raised $310 million in 2006 and currently has a net IRR of 19 percent.

The fund series has clocked a net IRR of 20 percent since 2006 and a 1.9x multiple.

Summit leads the majority of its investments, 88 percent, and has an average bite size of $10 million to $60 million for this fund series. The firm has invested in five companies per year on average and closed four investments in 2019.

Recent venture deals include a $125 million Series C into Podium, a customer communication platform in April. Y Combinator Continuity Fund led the round and was joined by GV, Alkeon and IVP, among Summit and others.

The firm also led the $50 million Series B round into Brooklinen in March. The bedding and bath linen company has raised a total of $60 million.

Summit Partners was founded in 1984 and invests across venture, growth, public equities and credit. The growth and venture strategy has more than $19 billion in assets under management.