Hedge Funds

Summit pays $126.8m for Coast stake


Aiming to gain access to the fee-rich hedge fund space, the $9 billion Boston-based private equity firm Summit Partners has paid some $126.8 million for a minority stake in Coast Asset Management.

The deal, announced this week, gives Summit a one-third share of the Santa Monica, California-based asset management group, which runs its own funds and also invests in external managers. The bulk of Coast's assets are in fund of funds. The firm also manages fixed-income hedge funds and structured finance vehicles.

Coast's principals include president David Smith, CFO Christopher Pettit and managing director Anthony Harrington, all of who will