Tech-focused buyout firm Thoma Bravo is looking to capitalise on the ongoing software market downturn, which some observers have dubbed the “SaaSpocalypse”, on the back of a disconnect between high-quality firms and riskier software providers, according to a report by Bloomberg.
The report cites Managing partner Holden Spaht as saying that saying that failure of public markets to distinguish between the two camps is creating an “exceptional buying opportunity.”
The firm, which has specialised in software investing since 2008 and has backed companies including Anaplan, Darktrace, and SailPoint, recently completed its $12.3 billion acquisition of Dayforce Inc. Spaht emphasised that artificial intelligence is increasingly intertwined with software offerings, with all of Thoma Bravo’s portfolio companies either using, selling, or developing AI.
Thoma Bravo targets businesses with large, sticky customer bases, high renewal rates, and deep domain expertise, which Spaht says “tend to index very well” amid the AI-driven market shift.
