Thoma Bravo, a leading U.S.-based private equity firm specializing in software investments, has successfully closed its inaugural European-focused fund, raising approximately €1.8 billion in capital commitments. This strategic move underscores the firm’s commitment to expanding its footprint in Europe’s burgeoning software market.
Strategic Expansion into Europe
The establishment of this European fund marks a significant milestone for Thoma Bravo, which has been actively investing in the region since 2011. Over the past 14 years, the firm has deployed over €14 billion across 16 transactions in Europe, including notable investments such as the acquisition of the UK cybersecurity company Darktrace for $5.3 billion in 2024. In 2023, Thoma Bravo solidified its European presence by opening its first international office in London, aiming to be closer to key markets and investment opportunities. (techcrunch.com)
Focus on Middle-Market Software Companies
The newly established Europe Fund is designed to target equity investments in innovative, middle-market software businesses across core European markets. Specifically, Thoma Bravo is interested in companies with enterprise values ranging from €150 million to €1 billion, operating in sectors such as risk and compliance, healthcare, and financial tools. This focus aligns with the firm’s strategy to support founders, entrepreneurs, and management teams in scaling their businesses into industry leaders. (ft.com)
Capitalizing on Market Dynamics
Thoma Bravo’s expansion into Europe comes at a time when the region is experiencing rapid digitization, with software companies increasingly seeking dedicated support and investment to accelerate their growth strategies. The firm perceives the European market as offering better value compared to the U.S., with less crowded competition in the software sector. This environment provides Thoma Bravo with a unique opportunity to differentiate itself and capitalize on attractive investment prospects. (ft.com)
Investor Confidence and Future Prospects
The successful fundraising for the Europe Fund, which exceeded its initial target, reflects strong investor confidence in Thoma Bravo’s strategic vision and expertise in the software investment domain. Orlando Bravo, a Founder and Managing Partner at Thoma Bravo, expressed gratitude for the long-term support from investors, emphasizing the firm’s ambition to back Europe’s technology innovators and help them scale. (thomabravo.com)
Key Takeaways:
- Inaugural European Fund: Thoma Bravo has closed its first Europe-focused fund, raising €1.8 billion to invest in the continent’s software companies.
- Targeting Middle-Market Firms: The fund will focus on mid-sized software businesses with enterprise values between €150 million and €1 billion, particularly in sectors like risk and compliance, healthcare, and financial tools.
- Strategic European Presence: The opening of a London office in 2023 has bolstered Thoma Bravo’s ability to identify and support promising European software companies.
- Attractive Investment Climate: Europe’s less competitive and more value-oriented software market presents lucrative opportunities for Thoma Bravo’s investment strategy.
- Strong Investor Support: The fund’s successful close, surpassing its initial target, indicates robust investor confidence in Thoma Bravo’s approach and the potential of Europe’s software sector.
With the Europe Fund now active, Thoma Bravo is poised to deepen its engagement in the European software landscape, leveraging its extensive experience and resources to foster the growth of the next generation of industry leaders.