Thoma Bravo is closing its growth equity strategy less than five years after launching it, as the software-focused investor shifts its attention back toward its core buyout model of taking controlling stakes in established companies, according to a report by Bloomberg, citing unnamed people familiar with the matter.
The firm introduced its growth equity platform in 2021 to invest in minority positions across public and private software businesses, including companies such as HubSync and Alation. However, the strategy has struggled to align with Thoma Bravo’s broader operational approach, which is built around active control and hands-on management of portfolio companies.
Bloomberg’s sources said the firm concluded that minority investments limited its ability to influence strategy and operational direction, reducing the effectiveness of its investment model. Thoma Bravo will continue managing existing investments in the strategy but does not plan to raise a successor fund.
The firm, which oversees roughly $183bn in assets, said it remains focused on its core buyout platform, where it typically acquires majority ownership and implements operational improvements across software businesses.
The move comes as private equity investors in software face growing uncertainty over the long-term impact of artificial intelligence on traditional enterprise applications. The rapid emergence of AI-enabled tools has raised concerns about disruption in areas such as data services, legal tech and back-office automation – sectors that are central to many software-focused portfolios.
Earlier this year, AI developer Anthropic released tools capable of automating a range of knowledge-work tasks, intensifying debate among investors about the resilience of incumbent software providers. The developments prompted reassurance efforts across the industry, including communications to limited partners from firms such as Thoma Bravo and Vista Equity Partners aimed at addressing concerns about portfolio exposure.
Thoma Bravo reportedly declined to comment on the matter.
