In a defiant counterpoint to private equity’s broader fundraising struggles, Thoma Bravo has closed three buyout funds totaling $34.4 billion – including the largest technology-focused fund in history at $24.3 billion[1][6][9]. This capital infusion, secured from sovereign wealth funds, pension plans, and institutional investors, signals unprecedented confidence in software’s recession-resistant cash flows and Thoma Bravo’s operational playbook. The raise comes as global PE fundraising declined 33% year-over-year in Q1 2025[7], making Thoma Bravo’s ability to surpass targets by 30%+ across all funds a case study in sector specialization[30][36].
💼 Seasoned CorpDev / M&A / PE expertise
Anatomy of a Record-Shattering Fundraise
Fund Structure & Investor Appetite
The $34.4 billion capital pool comprises three distinct vehicles: Fund XVI ($24.3B), Discover Fund V ($8.1B), and the firm’s inaugural Europe-focused fund (€1.8B)[1][6]. Notably, all three funds exceeded their original targets – Fund XVI and the Europe Fund hit hard caps, while Discover V saw commitments surge 30% above its predecessor[9][36]. This performance starkly contrasts with industry trends, where only 14% of PE funds exceeded targets in Q1 2025[5].
Evolution of Thoma Bravo’s Fund Strategy
Thoma Bravo’s fundraising machine has scaled exponentially, with assets under management growing from $9B in 2016 to $184B as of March 2025[1][38]. The firm’s tiered fund approach now spans:
| Fund | Size | Focus | Enterprise Value Coverage |
|---|---|---|---|
| Flagship Funds | $24.3B (XVI) | Large-cap software | $5B+ transactions |
| Discover Series | $8.1B (V) | Mid-market growth | $1-5B deals |
| Europe Fund | €1.8B | Continental expansion | Cross-border platform builds |
This structure enables precision targeting across market segments while maintaining software specialization – a key differentiator from generalist PE firms[32][38].
The Software Imperative: Why Investors Are All-In
Recurring Revenue Resilience
Thoma Bravo’s portfolio companies now generate $30B in annual revenue, with 90%+ from SaaS and subscription models[9][14]. This predictable cash flow profile proved critical during recent market volatility, with software EBITDA margins outperforming broader markets by 15 percentage points in 2024[32].
Cybersecurity: The $60B Vertical
With 20+ security platform investments representing $60B in enterprise value[14], Thoma Bravo dominates cybersecurity private equity. Recent moves like the $5.3B Darktrace acquisition[12] and $6.9B SailPoint purchase[10] position the firm to capitalize on the $2.3 trillion global cybersecurity spend projected by 2028[32].
Market Context: Private Equity’s Denominator Effect
While Thoma Bravo celebrates, the broader PE landscape faces headwinds. Public pension funds reported 7.3% average overallocation to private equity in Q1 2025[25], constraining new commitments. Meanwhile, PE distributions lagged contributions for the fifth consecutive year[7], creating what Bain terms “the liquidity trap.”
Thoma Bravo’s success stems from counter-cyclical advantages:
- Software valuations at 6.5x revenue vs. 8.2x 2021 peaks[32]
- Private credit providing 70-80% LBO financing[23]
- European tech valuations 22% below US comparables[9]
Strategic Implications: The Road Ahead
European Expansion Playbook
The €1.8B Europe Fund marks Thoma Bravo’s first dedicated push into continental markets. Expect copycat strategies from US cybersecurity acquisitions, targeting GDPR-compliant platforms in Germany and France[9][12].
Portfolio Optimization
With $35B in recent realizations[9], Thoma Bravo must deploy fresh capital rapidly. Likely targets include:
- Healthcare IT (building on $1.8B NextGen Healthcare deal[28])
- AI-powered DevOps tools
- Vertical SaaS for regulated industries
Conclusion: Rewriting the PE Playbook
Thoma Bravo’s $34.4B fundraise validates software’s status as the new defensive asset class. As traditional buyout shops struggle with industrial cyclicals, the firm’s focus on mission-critical applications positions it to weather economic uncertainty while delivering 25%+ gross IRRs[38]. With dry powder now exceeding $50B when including credit strategies[1], Thoma Bravo is poised to dominate middle-market tech M&A through 2030.
Sources
https://www.thomabravo.com/press-releases/thoma-bravo-completes-34.4-billion-fundraise, https://en.wikipedia.org/wiki/Thoma_Bravo, https://www.thomabravo.com/press-releases/thoma-bravo-debuts-lower-middle-market-focused-discover-fund-closes-at-1-billion, https://www.thomabravo.com/press-releases/thoma-bravo-completes-32.4-billion-fundraise, https://media.privateequityinternational.com/uploads/2025/04/q1-2025-fundraising-report-pei.pdf, https://www.prnewswire.com/news-releases/thoma-bravo-completes-34-4-billion-fundraise-302471819.html, https://www.thedailyupside.com/finance/private-equity/thoma-bravos-34b-win-leaves-pe-rivals-choking-on-exhaust-fumes/, https://sers.pa.gov/pdf/Investments/Investment%20Materials/Thoma%20Bravo%20Equity%20-%20Presentation.pdf, https://www.thomabravo.com/press-releases/thoma-bravo-completes-34.4-billion-fundraise, https://en.wikipedia.org/wiki/Thoma_Bravo, https://sers.pa.gov/pdf/Investments/Investment%20Materials/Thoma%20Bravo%20Equity%20-%20Memo.pdf, https://www.channele2e.com/brief/thoma-bravo-acquires-darktrace, https://www.thomabravo.com/team, https://www.thomabravo.com/companies, https://en.wikipedia.org/wiki/Thomson_Reuters, https://reutersinstitute.politics.ox.ac.uk/our-funders, https://www.caisgroup.com/articles/an-introduction-to-private-equity-buyout, https://www.moonfare.com/pe-masterclass/buyout-funds, https://dealroom.net/faq/buyout-fund, https://www.investopedia.com/terms/b/buyout.asp, https://hardgamma.com/buyout-private-equity/, https://flowinc.com/buyout-capital.html, https://blog.privateequitylist.com/what-is-a-buyout-fund-private-equity-explained/, https://en.wikipedia.org/wiki/Leveraged_buyout, https://www.spglobal.com/market-intelligence/en/news-insights/articles/2025/4/pension-funds-record-overallocation-to-private-equity-in-q1-2025-88390539, https://www.cbh.com/insights/reports/private-equity-report-2024-trends-and-2025-outlook/, https://www.prnewswire.com/news-releases/thoma-bravo-completes-34-4-billion-fundraise-302471819.html, https://www.fiercehealthcare.com/finance/thoma-bravo-buy-healthcare-software-company-nextgen-healthcare-take-private-deal, https://www.withintelligence.com/insights/private-equity-outlook-2025/, https://www.thomabravo.com/press-releases/thoma-bravo-completes-34.4-billion-fundraise, https://www.icgam.com/2025/03/03/icg-strategic-equity-completes-record-fundraise-of-11bn/, https://www.ainvest.com/news/thoma-bravo-24-3b-fund-mastering-software-sector-private-equity-winter-2506/, https://www.thomabravo.com/press-releases/thoma-bravo-completes-34.4-billion-fundraise, https://www.thomabravo.com/news-awards/thoma-bravo-bags-32-4-billion-including-largest-technology-buyout-fund, https://www.thomabravo.com/press-releases/thoma-bravo-completes-32.4-billion-fundraise, https://www.prnewswire.com/news-releases/thoma-bravo-completes-34-4-billion-fundraise-302471819.html, https://peprofessional.com/2022/12/thoma-bravos-24-3b-fund-xv-is-largest-technology-buyout-fund-ever-raised/, https://growthcapadvisory.com/firms/thoma-bravo/, https://www.thomabravo.com/press-releases/thoma-bravo-closes-discover-fund-ii
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