Thoma Bravo Raises $2.4 Billion for Discovery Fund II

Chicago and San Francisco-based private equity investment firm Thoma Bravo announced on Thursday, Apr 26, a new fund that closed at its hard cap of $2.4 billion and will focus on middle market software companies. Thoma Bravo Discover Fund II was oversubscribed and received “strong support from a diverse range of Thoma Bravo’s exiting institutional investors, including sovereign wealth funds, public pension funds, multinational corporations, insurance companies, fund-of-funds, endowments, foundations and family offices.”

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The latest fund was preceded by Thoma Bravo Discover Fund, which closed in February at $1.07 billion, and also reached its hard cap.

Thoma Bravo and its predecessor firms have applied a “consolidation” or “buy and build” investment strategy across industries, while the private equity shop is best known for its experience in software and technology enabled service sectors. Founded in 1980, Thoma Bravo has raised more than $20 billion in capital commitments through its series of funds. Over the past fifteen years, the private equity firm has completed over 180 acquisitions, representing roughly $49 billion in enterprise value. Past and present portfolio companies include Datatel, Hyland Software, Blue Coat Systems, Riverbed and Solar Winds.

Like its predecessor, Thoma Bravo Discover Fund II will target investments in application, infrastructure and security software, as well as technology-enabled services.

"The Discover Fund has demonstrated that Thoma Bravo's approach of partnering with current management teams to implement our operating practices and metrics, investing in organic growth through product development and more effective distribution, and making accretive acquisitions is a model that works across size, stage and scale," stated Thoma Bravo partner A.J. Rohde in a press release. "We remain excited about the growing opportunities we see in the software market."

The firm is led by Managing Partners Orlando Bravo, Seth Boro, Scott Crabill, Lee Mitchell, Holden Spaht and Carl Thoma, alongside Partners Jack Le Rou, A.J. Rohde, Robert Sayle and Hudson Smith.