Thoma Bravo

Thoma Bravo, LP, is an American private equity and growth capital firm based in Chicago.[6] It is known for being particularly active in acquiring enterprise software companies[7] and has over $130 billion in assets under management as of 2023.[4] It is the successor to the firm Golder Thoma & Co., which was established in 1980 by Stanley Golder and Carl Thoma. Thoma Bravo is led by managing partners Seth Boro, Orlando Bravo, Scott Crabill, Lee Mitchell, Holden Spaht and Carl Thoma.[8] It has additional offices in San Francisco, New York City, London and Miami.[9]

Thoma Bravo, LP
TypePrivately-held limited partnership
IndustryPrivate equity
Predecessors
  • Golder Thoma & Co.
  • Golder Thoma Cressey Rauner (GTCR)
  • Thoma Cressey Equity Partners
  • Thoma Cressey Bravo
Founded2008 (2008)
Founders
HeadquartersChicago, Illinois
Number of locations
5
Key people
  • Jennifer James (Managing Director, Chief Operating Officer and Head of Investor Relations & Marketing)[1]
  • Jerry Nowak (Managing Director, General Counsel and Chief Administrative Officer)[2]
  • Amy Coleman Redenbaugh (Managing Director, Chief Financial Officer) [3]
ProductsInvestments, private equity funds, private credit funds
AUMUS$130 billion (2023)[4]
Number of employees
212 (2023)[5]
Websitethomabravo.com
Thoma Cressey Equity Partners logo in use before 2007 when the firm changed its name

The company focuses on the application, infrastructure and cybersecurity software and technology-enabled business service sectors, and uses a "consolidation" or "buy and build" investment strategy.[10][11] In February 2019, the French business school HEC Paris, in conjunction with Dow Jones, named Thoma Bravo, the best-performing buyout investor after studying 898 funds raised between 2005 and 2014.[12] In 2021 it was the fastest growing major buyout firm.[13] In June 2023, Thoma Bravo were ranked fourth in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[14][15]

Investments

Called by the Financial Times "one of the most active acquirers of software companies in the world",[16] it has done over 300 software deals[17] since 2003 and oversees a portfolio of over 40 software companies.[18][19]

According to public data analyzed by Forbes, its funds returned 30% net annually. Since 2015, Thoma Bravo has sold or listed 25 investments worth $20 billion, four times their cost.[20]

Software investments

Thoma Cressey Equity Partners began investing in the enterprise software sector in 2002 with the acquisition of Prophet21, a provider of software for durable goods distributors.[21]

In 2014, the company acquired Riverbed Technology for $3.6 billion.[22] Riverbed later filed for Chapter 11 Bankruptcy in December 2021.[23]

After the purchase of edtech company Instructure in 2020, the purchase was accused of being "rushed" and "riddled by conflicts of interest" by a large shareholder at the time.[13]

In October 2021, Thomas Bravo took enterprise software company Medallia private for $6.4 billion.[24][25]

In March 2022, Thoma Bravo acquired the enterprise cloud software company Anaplan for $10.7 billion (€9.6bn).[26] The acquisition completed in June 2022 following Thoma Bravo cutting the takeover offer down to $10.4 billion after alleging that the company had violated the acquisition terms by overpaying new hires.[27][28]

In August 2022, the company agreed to buy Nearmap, its first Australian acquisition, for A$1.06 billion (US$730 million).[16]

In December 2022, the company outbid Vista Equity Partners to announce its acquisition of Coupa Software for $6.15 billion in cash, and a total enterprise value of $8 billion.[29][30]

In September 2023, the company announced it would take health-records software company NextGen Healthcare private for a total enterprise value of $1.8 billion.[31]

In September 2023, it was announced Thoma Bravo had sold the Herndon, Virginia-headquartered software company, Exostar to the private equity firm, Arlington Capital for an undisclosed amount.[32]

Security investments

In 2018, Thoma Bravo took cloud-first security provider Barracuda Networks private for $1.6 billion. In April 2022, it sold Barracuda to KKR for about $4 billion.[33]

In January 2019, Thoma Bravo acquired Imperva for $2.1 billion.[34] In July 2023, it then sold the company to Thales Group for $3.6 billion.[35]

In March 2020, Thoma Bravo completed its $3.9 billion acquisition of Sophos.[36]

In 2022, Thoma Bravo made a series of security related investments.[37] In April, it announced the acquisition of identity security company SailPoint for $6.9 billion with financing from private lenders.[38][39] SailPoint specializes in providing secure access to remote work software and cloud infrastructure protection.[39] In August, it agreed to buy Ping Identity for $2.8 billion in an all-cash transaction.[40] In October, it agreed to buy ForgeRock for $2.3 billion in an all-cash deal.[37] In August 2023, it was announced the acquisition of ForgeRock had been completed.[41]

Fintech investments

In May 2022, Thoma Bravo acquired Bottomline Technologies for $2.6 billion in an all-cash transaction.[42]

In June 2023, Thoma Bravo agreed to divest Adenza to Nasdaq, Inc. for $10.5 billion in a cash-and-stock deal. As part of the deal, it would get a 15 percent stake in Nasdaq.[43]

History
Assets under management (USD billions) [13] [44]

In 1980 Stanley Golder and Carl Thoma established Golder Thoma & Co,[45] a company that has been credited as creating the “consolidation” or “buy and build” investment strategy.[46][47] In 1984, Bryan Cressey was recruited to join the firm from First Chicago, and the firm's name was changed to Golder Thoma Cressey. With the promotion of Bruce Rauner to partner, it became Golder, Thoma, Cressey, Rauner, Inc. (GTCR).[48]

In 1998, the firm split into two firms: GTCR Golder Rauner, for raising larger funds and pursuing larger investments; and Thoma Cressey Equity Partners, which continued the firm's longstanding focus on the "middle market".[49]

In 2008, Thoma Cressey Bravo became Thoma Bravo after Bryan Cressey left the company to establish a separate healthcare services fund, Cressey & Co.[50][51]

The firm closed its 12th fund in September 2016, with $7.6 billion.[52] Thoma Bravo raised $12.6 billion for its 13th fund, which was announced in January 2019.[53]

In October 2019, Thoma Bravo’s co-founder and managing partner, Orlando Bravo, was named the first Puerto Rican-born billionaire as he debuted at 287th place on the Forbes 400 ranking of the wealthiest Americans.[20]

The company moved its operations to Miami, Florida at the end of 2020.[54]

In December 2021, it was reported that Thoma Bravo had taken more multi-billion dollar public companies private in the past year than any other buyout firm.[13] At the same time, company executives sought to raise $35 billion for more acquisitions.[13] In December 2022, the company raised $32.4 billion over three funds, including $24.3 billion for Thoma Bravo Fund XV, the most an independent private equity firm has ever raised for a technology-focused buyout fund.[6]

See also

References
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  2. "Kirkland Lawyers Flock to Posts at Private Equity Companies". Bloomberg Law. Retrieved 2022-10-06.
  3. "Bravo! Thoma Bravo's software SPAC Thoma Bravo Advantage files for a $900 million IPO". Renaissance Capital. 28 December 2020. Retrieved 2022-10-06.
  4. Weil, Dan (2023-09-08). "Tennis, Anyone? A Former Star Applies Lessons From the Sport to Private Equity". Institutional Investor.
  5. Form ADV (PDF) (Report). U.S. Securities and Exchange Commission. 2023-03-31. p. 11.
  6. Armental, Maria (2022-12-07). "Thoma Bravo Bags $32.4 Billion Including Largest Technology Buyout Fund". The Wall Street Journal. The Chicago-based private-equity firm collected $24.3 billion for its flagship buyout vehicle, Thoma Bravo Fund XV, easily topping the $17.8 billion it collected for a predecessor pool. The latest amount sets a record for a tech-focused buyout fund raised by an independent private-equity firm, according to data from Preqin Ltd.
  7. Savitz, Eric J. (2023-01-20). "He Might Be Tech's Last Bull. Here's Why the Founder of Thoma Bravo Is Still Buying". Barron's.
  8. "Team Members | Thoma Bravo". thomabravo.com. Retrieved 2017-06-29.
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  12. "The 2018 HEC-DowJones Private Equity Performance Ranking". HEC Paris. 14 February 2019. Retrieved 2019-10-05.
  13. Gara, Antoine (2021-12-07). "Buyout firm Thoma Bravo goes from niche to big league". Financial Times. Retrieved 2022-12-02.
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  16. Fildes, Nic (22 August 2022). "Thoma Bravo agrees $730mn takeover of Australia mapping company". Financial Times.
  17. St. Anthony, Neal (2021-03-23). "Thoma Bravo will buy Minneapolis-based Calabrio from KKR". Star Tribune.
  18. Marek, Lynne (2020-10-26). "Thoma Bravo raises $22.8 billion". Crain's Chicago Business.
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  22. Thoma Bravo. "Riverbed to be Acquired by Thoma Bravo for $21.00 Per Share in Cash". www.thomabravo.com. Retrieved 2022-12-02.
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  25. Jain, Shweta (2021-12-08). "Mubadala invests in US enterprise software company Medallia". The National.
  26. "Anaplan acquired by Thoma Bravo in $10.7bn deal". www.channelweb.co.uk. 2022-03-21. Retrieved 2022-03-21.
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  37. Miller, Ron (2022-10-11). "Thoma Bravo buys third identity company this year with $2.3B ForgeRock acquisition". TechCrunch. Retrieved 2022-10-11.
  38. "Thoma Bravo to take identity security company SailPoint private for $6.9B". TechCrunch. Retrieved 2022-04-13.
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  54. "Bravo Family Foundation dona $250,000 para apoyar a Surfside". CB en Español (in Spanish). 2021-06-28. Retrieved 2021-07-09.
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