Thoma Bravo Closes New Tech Fund, Bets on New Industry Opportunities

Thoma Bravo LLC has closed its most recent fund, Thoma Bravo Fund XII, at a hard cap of $7.6 billion. The Thoma Bravo Fund XII allows for the Chicago and San Francisco-based private equity firm to pursue software and technology investments of “almost any size.”

The fund was “significantly oversubscribed,” according to the firm. The Fund XII will be invested with Thoma Bravo’s “buy and build” strategy , which involves working with the existing company’s leadership to make operational improvements, invest in growth opportunities, and make additive acquisitions.

"The software industry is entering a new phase of secular growth as it expands into all segments of the economy,” states managing director Orlando Bravo. “Significant industry trends, including changes in software companies' business models and the current dissatisfaction with the public equity markets, have created a new opportunity for private equity in the software industry.”

As tech deals have grown increasingly attractive, Thoma Bravo continues to bet big on software services. In June, Thoma Bravo acquired Bomgar, a secure access software provider, from TA Associates; and in October 2015, Thoma Bravo teamed up with Silver Lake Partners to purchase SolarWinds Inc., a software manufacturer for managing computer networks.

In 2014, Thoma Bravo won Mergers & Acquisitions’ 2014  M&A Mid-Market Award for Deal of the Year for its TravelClick deal worth $930 million. Thoma Bravo has made more than 140 acquisitions in the software and technology space since 2003, totaling approximately $30 billion in enterprise value. Kirkland & Ellis advised Thoma Bravo. 

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