Thoma Bravo Completes Massive $22.8 Billion Fundraise

By Amit Chowdhry ● October 26, 2020
  • Private equity firm Thoma Bravo announced that it completed the fundraising for 3 funds, totaling over $22.8 billion in capital commitments. These are the details.

Private equity firm Thoma Bravo announced that it completed the fundraising for 3 funds, totaling over $22.8 billion in capital commitments: Thoma Bravo Fund XIV ($17.8 billion fund), Thoma Bravo Discover Fund III ($3.9 billion fund), and Thoma Bravo Explore Fund ($1.1 billion fund). Each of the funds reached its hard-cap and was significantly oversubscribed.

The closings of these funds bring Thoma Bravo’s assets under management to more than $70 billion. And the new funds significantly enhance the firm’s capacity to invest in high quality software and technology companies around the world.

Thoma Bravo Fund XIV is expected to target large equity investments and it is the largest flagship fund in the firm’s history. Thoma Bravo Discover Fund III is expected to make middle-market equity investments. And Thoma Bravo Explore Fund is expected to make lower middle-market equity investments. These funds received strong 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.

The Funds are following an active year for Thoma Bravo on both the buy and sell side with investments and realizations representing over $20 billion in combined enterprise value — including the $11 billion sale of Ellie Mae to Intercontinental Exchange.

Thoma Bravo has over a 20-year track record of partnering with management teams of software and technology companies to implement best practices, invest in growth initiatives, and make accretive acquisitions intended to accelerate revenue and earnings with the goal of creating the company’s value.

So far, the firm has acquired more than 260 software companies across a range of industries, including healthcare IT, security, financial technology, infrastructure and applications. And the firm’s private equity software portfolio includes over 40 companies that generate approximately $15 billion of annual revenue and employ over 45,000 staff around the world.

KEY QUOTES:

“We are grateful to our investors for their tremendous support and their continued confidence in our investment strategy. 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.”

— Orlando Bravo, a founder and managing partner at Thoma Bravo

“The accelerated digital transformation across all industries has underscored how essential software is for commerce and business continuity as well as its continued resilience. 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.”

— Jennifer James, managing director, head of investor relations and marketing at Thoma Bravo