Private equity firm Thoma Bravo has completed fundraising for Thoma Bravo Discover Fund (Discover), which will focus on lower middle market software investments, with USD1.074 billion of commitments, reaching its hard cap.
Thoma Bravo will invest Discover with a continued emphasis on its successful investment strategy in the software and technology enabled services sectors. The fund provides an investment vehicle for opportunities requiring less equity capital than the larger opportunities that are the focus of Thoma Bravo’s flagship funds.
Thoma Bravo’s most recent flagship fund, Fund XI, closed at USD3.66 billion and began investing in 2014. In 2015, Fund XI was supplemented by a USD1.065 billion Special Opportunities Fund II. Those funds have focused on companies at the upper end of the software middle market.
Thoma Bravo is led by managing partners Seth Boro, Orlando Bravo, Scott Crabill, Lee Mitchell, Holden Spaht and Carl Thoma; as well as partners A.J. Rohde and Robert Sayle.
“Although earlier Thoma Bravo funds made many investments of the size targeted by the Discover Fund, the increasing scale of companies in the consolidating software and technology sectors has resulted in larger funds and larger investment sizes,” explained Rohde, who is heading up the investment team for Discover. “The Discover Fund is intended to allow our firm to continue to partner with great management teams at smaller, growing companies that can benefit from our process and our deep experience in software.”
Discover’s first investment – Infogix, Inc. – was announced on January 5. The company is a leader in end-to-end data analysis tools and boasts several Fortune 1000 companies as clients.
“We are humbled and motivated by the continued support from our existing investors, who quickly oversubscribed this fund, and we thank them for their commitments to Discover,” said Bravo. “It’s an acknowledgement of our team’s strong track record as well as the momentum we’ve built with larger investments from our flagship funds.”
