Thoma Bravo has completed fundraising for Thoma Bravo Discover Fund at the hard cap of $1.1 billion in capital commitments. The new fund invests in lower middle market software companies.
The Discover fund provides Thoma Bravo with an investment vehicle that can be used for opportunities that require less equity capital than the larger opportunities that the firm has historically pursued. For instance, Thoma Bravo’s most recent flagship fund, Fund XI, closed at $3.7 billion and began investing in 2014. In 2015, Fund XI was supplemented by the $1.1 billion Special Opportunities Fund II. Those funds have focused on companies at the upper end of the software middle market.
“Although earlier Thoma Bravo funds made many investments of the size targeted by the Discover Fund, the increasing scale of companies in the consolidating software and technology sectors has resulted in larger funds and larger investment sizes,” said partner A.J. Rohde, who is heading up the investment team for Discover. “The Discover Fund is intended to allow our firm to continue to partner with great management teams at smaller, growing companies that can benefit from our process and our deep experience in software.”
Discover has already made a portfolio investment with the acquisition in January 2016 of Infogix from H.I.G. Capital. Infogix provides an enterprise level data analysis platform that is used by large companies to monitor transactions, profitability and operational efficiency. Infogix is headquartered in the Chicago suburb of Naperville (www.infogix.com). “Infogix is the market leader in transaction controls monitoring and predictive analytics for enterprise customers across healthcare, financial services, media and communications, insurance, and other key verticals,” said Mr. Rohde.
Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo is led by managing partners Seth Boro, Orlando Bravo, Scott Crabill, Lee Mitchell, Holden Spaht and Carl Thoma; as well as partners A.J. Rohde and Robert Sayle.
Thoma Bravo currently manages approximately $9 billion of equity capital and has offices in Chicago and San Francisco (www.thomabravo.com).
© 2016 Private Equity Professional • 2-16-16
