Key Takeaways
- • Thoma Bravo co-founder Orlando Bravo declared 2020 "absolutely our best year ever," capitalizing on strong software sector momentum and fundraising success during a challenging capital-raising environment.
- • The software-focused PE firm raised $22.8 billion in 2020, including $17.8 billion in primary capital, positioning itself as a dominant force in technology-enabled buyouts during a year when fundraising proved difficult for most competitors.
- • Thoma Bravo's sustained focus on the software sector reflects conviction that the "red-hot run" in software valuations and deal activity remains in early innings, with significant growth runway ahead.
- • The firm's fundraising success in 2020 positions it for continued deal-making momentum in the software and technology-enabled services space as market conditions evolve.
Summary
Thoma Bravo, the PE industry's leading investor in software companies, capped an exceptional 2020 with record fundraising results that underscore sustained appetite for technology and software buyouts despite broader market uncertainty. Co-founder and managing partner Orlando Bravo characterized the year as "absolutely our best year ever," signaling the firm's dominant positioning in an otherwise challenging fundraising environment where capital deployment faced headwinds.
The firm secured $22.8 billion in total commitments during 2020, with $17.8 billion representing primary fund capital. This performance stands out particularly against the backdrop of a difficult year for capital raising across much of the PE industry, highlighting investor conviction in Thoma Bravo's software-first strategy and track record in consolidating fragmented technology markets. The substantial capital raise underscores the continued institutional demand for exposure to software and technology-enabled services sectors, even amid pandemic-driven market volatility.
Thoma Bravo's confidence in software's trajectory reflects its assessment that the sector's growth run is far from exhausted. The firm's messaging suggests that despite strong performance in 2020, significant opportunities remain for value creation through continued buyouts, add-on acquisitions, and operational improvements within portfolio companies. This conviction informs the firm's strategy to deploy the newly raised capital into the software sector through acquisitions that leverage its established playbook of buy-and-build strategies and operational value creation.
The fundraising success positions Thoma Bravo to maintain its commanding presence in software PE deals as market conditions evolve. With substantial dry powder deployed in a capital-efficient manner, the firm is well-positioned to capitalize on investment opportunities in technology and software companies, sustaining its trajectory as the dominant private equity player focused on the sector.
The firm secured $22.8 billion in total commitments during 2020, with $17.8 billion representing primary fund capital. This performance stands out particularly against the backdrop of a difficult year for capital raising across much of the PE industry, highlighting investor conviction in Thoma Bravo's software-first strategy and track record in consolidating fragmented technology markets. The substantial capital raise underscores the continued institutional demand for exposure to software and technology-enabled services sectors, even amid pandemic-driven market volatility.
Thoma Bravo's confidence in software's trajectory reflects its assessment that the sector's growth run is far from exhausted. The firm's messaging suggests that despite strong performance in 2020, significant opportunities remain for value creation through continued buyouts, add-on acquisitions, and operational improvements within portfolio companies. This conviction informs the firm's strategy to deploy the newly raised capital into the software sector through acquisitions that leverage its established playbook of buy-and-build strategies and operational value creation.
The fundraising success positions Thoma Bravo to maintain its commanding presence in software PE deals as market conditions evolve. With substantial dry powder deployed in a capital-efficient manner, the firm is well-positioned to capitalize on investment opportunities in technology and software companies, sustaining its trajectory as the dominant private equity player focused on the sector.
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