US private equity and venture capital firm Summit Partners has bought a minority stake in Coast Asset Management, a Santa Monica-based alter...

US private equity and venture capital firm Summit Partners has bought a minority stake in Coast Asset Management, a Santa Monica-based alternative investment manager specialising in institutional and high net worth investors. The $126.8 million investment takes Summit Partners’ stake in Coast to around one-third of the firm’s equity. Founded in 1984, Summit Partners specialises in growth companies and has made 270 investments across North America, Europe, and Asia having raised nearly $9 billion in capital. Coast was founded in 1991 and specialises in managed-volatility hedge funds. "We are very pleased to welcome Coast to our portfolio of leadership companies in financial services. Coast is a unique firm in the fund of hedge funds sector. We have been very impressed with their outstanding professional team and their disciplined investing strategy," said Peter Y. Chung, General Partner, Summit Partners, who will join Coast's Board of Directors. Coast's diversified portfolio is based upon four investment strategies, fixed income arbitrage, diversified credit spread investment opportunities, special situations investing and multi-manager funds of hedge funds. It currently manages approximately $5 billion of assets.