Thoma Bravo Hits Hard Cap Trifecta

Thoma Bravo, an active investor in the software and technology sectors, has completed fundraising for three funds totaling more than $22.8 billion in capital commitments:

Each of the three new funds – Thoma Bravo Fund XIV LP (Fund XIV) with $17.8 billion of capital, Thoma Bravo Discover Fund III LP (Fund Discover) with $3.9 billion of capital, and Thoma Bravo Explore Fund LP (Fund Explore) with $1.1 billion of capital – closed at their hard caps and were oversubscribed.

Thoma Bravo’s new funds are segmented across markets with Fund XIV investing in large equity opportunities, Fund Discover investing in middle-market equity opportunities, and Fund Explore targeting lower middle-market equity investments.

The new funds received support from Thoma Bravo’s network of investors including sovereign wealth funds, public pension funds, multinational corporations, insurance companies, fund-of-funds, endowments, foundations and family offices.

“We are grateful to our investors for their tremendous support and their continued confidence in our investment strategy,” said Orlando Bravo, a founder and managing partner at Thoma Bravo. “Over the last 20 years, and over the course of more than 260 transactions, we’ve seen firsthand how well software can perform with the right investment and operational guidance. These three new funds position us to continue executing on our investment approach of buying high-quality software companies with experienced management teams, loyal customers and strong product offerings, to accelerate their growth and innovation.”

Thoma Bravo specializes in investing in application, infrastructure and security software and technology-enabled services businesses. The firm’s investments typically are in the form of take-private transactions, leveraged buyouts and growth equity investments in established companies that have or can quickly reach EBITDA of greater than $50 million. Over the past 20 years, the firm has acquired more than 260 software companies and its current portfolio has 44 companies.

Earlier this month, Thoma Bravo agreed to acquire a controlling interest in AxiomSL, a New York City-based provider of risk analytics, data-management, and regulatory-reporting software products used by banks, investment managers, broker-dealers and commodity trading institutions.

“The accelerated digital transformation across all industries has underscored how essential software is for commerce and business continuity as well as its continued resilience,” said Jennifer James, a managing director and the head of investor relations and marketing at Thoma Bravo. “Our investors recognize that our deep experience and track record in enterprise software have positioned us to take advantage of these industry dynamics and the opportunities in the market. As stewards of their capital, we greatly appreciate their support and look forward to applying our software expertise with a goal of continuing to drive successful outcomes for our investors.”

Kirkland & Ellis provided legal services to Thoma Bravo on the raising of Fund XIV, Fund Discover, and Fund Explore.

Thoma Bravo has offices in Chicago and San Francisco.

© 2020 Private Equity Professional | October 27, 2020

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