2022 Year in Review

2022 was a record-making year at Thoma Bravo. We acquired several leading companies, had strong portfolio exits and completed fundraising that totaled about $35 billion, including closing the single largest tech-focused buyout fund ever. These achievements occurred in a year that saw a dramatic market downturn, which impacted software and technology companies like almost every other sector. But despite the economic headwinds, our portfolio has remained strong and our optimism for the future has not waivered. After all, Thoma Bravo was founded amidst a market downturn, and we have generated strong returns during similar economic cycles. Software continues to innovate and solve increasingly complex problems across industries, further strengthening our conviction in this space.

BUILDING ON OUR HISTORY

We made our first software investment shortly after the dot-com bubble crash of the early 2000s as we saw the significant investment opportunity that software offered. We understood how to identify companies that were being irrationally discounted despite having strong fundamentals. Then came the Global Financial Crisis of 2008. Again, we saw opportunity, and it was during this period that we made the pivotal decision to invest exclusively in software and technology companies. That decision, combined with our ability to identify under-valued, under-managed or under-financed companies, brought us to where we are today.

Having confronted several economic cycles over the last two decades, we are confident that we know what it takes to manage assets through bear markets. We believe our discipline, operational excellence and differentiated skillset set us apart. We are optimistic about the opportunity ahead because we have confidence that our approach works as effectively in down cycles as in up cycles, and that software is a sector that can thrive irrespective of broader macroeconomic conditions.

This theme of resiliency has continued to drive our deal activity, particularly from the public markets. While technology stocks took a large hit in 2022, the public market downturn has created a significant opportunity for our operational playbook. Even during times of deceleration, we see the immense value these innovative companies have to offer and the accompanying growth potential that can drive strong returns.

 

OUR PORTFOLIO ACTIVITY IN 2022

We believe that the time to buy a great software company is when we can. We understand how to help companies create earnings and increase EBITDA margins, which are fundamental to our strategy. We continue to see the resilience of software, both as a business model and in terms of corporate spending and priorities.

The market dislocation in 2022 presented an opportunity to acquire high-quality businesses at attractive valuations. Last year, we closed 11 new buyout fund platform acquisitions, 6 of which were take-private transactions. We also made 10 minority growth investments, and the credit platform invested $800 million across 22 distinct borrowers.

We had an active year in terms of realizations, as well. We exited a number of companies, including Barracuda, Frontline, Kofax and Veracode. Sales transactions and other liquidity events across the Thoma Bravo equity platform amounted to over $11 billion in 2022.

 

RECORD-BREAKING FUNDRAISING

Adding to this positive momentum, we announced the close of four of our equity funds, raising about $35 billion across our Flagship, Discover, Explore and Growth Fund products, as well as $3.3 billion in total available capital, including leverage, for Thoma Bravo Credit Fund II. 2022 was not only a record-breaking fundraising year at our firm, but Thoma Bravo Fund XV also represented the largest tech-focused buyout fund ever raised.

 

LONDON AND BEYOND

Europe is a critical market for the growth of Thoma Bravo. In September, we announced that we are expanding our presence with the opening of a London office, which will serve as a hub for European investments. While Thoma Bravo has been making investments in Europe since 2011, a physical presence in London will deepen our footprint and help us to further access the region’s rich ecosystem of innovative and fast-growing software and technology companies.

 

COMMITMENT TO OUR INVESTORS

Our culture of performance, collaboration and open-mindedness has resulted in strong performance throughout investing cycles. Our goal today, as always, is to continue delivering on this commitment to our investors. We are excited for this next chapter of growth at Thoma Bravo and all the great work we will continue to achieve together in 2023.

THOMA BRAVO IN THE NEWS

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CNBC: Orlando Bravo on software resiliency, economic risks and tech buyouts

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    Thoma Bravo Bags $32.4 Billion Including Largest Technology Buyout Fund

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    Slow and Steady Still Wins for Growth Equity

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    Thoma Bravo’s Holden Spaht: ‘Dislocation in the Public Markets’ Fueled Active Year

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    Technology Stalwart Goes All in on Cybersecurity

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    Unlocking Potential Within the Public to Private Shift

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    Orlando Bravo’s Three Tips for Software Investors

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    28 The CFOs Who Helped Shape Private Equity

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    A Top Thoma Bravo Partner Explains How they Reel in Companies

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    Private Equity Global Outlook 2023 Report

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INSIGHTS FROM THOMA BRAVO

CONFERENCES
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Greenwich Economic Forum: Technology – The End of Growth at All Costs

PODCASTS

  • Scott Crabill on Private Equity Deals with Capital Allocators

    LISTEN
  • Seth Boro on The Exchange

    LISTEN
  • Carl Press on Behind the Buyouts

    LISTEN

INDUSTRY RECOGNITION

  • Large-Cap Firm of the Year in
    North America

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  • Best Overall Fundraising: Buyout

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  • Thoma Bravo Named #1 in
    GrowthCap’s Top 25 Private
    Equity Firms of 2022

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  • North America Mid-Market/
    Private Debt Loan

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  • Thoma Bravo Top 3: Largest
    Bay Area Private Equity Firms

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  • The Top 25 Growth Equity
    Firms of 2021

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Congratulations to all of our portfolio companies that were
recognized in 2022 for being leaders in their respective industries.

EMPLOYEE RECOGNITION

We are proud of the Thoma Bravo employees who were recognized in 2022 for
their outstanding contributions and accomplishments.

THOMA BRAVO TODAY

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  • 203Total Employees
  • 67New Hires
    in 2022

New London Office

In September 2022, we announced that Thoma Bravo would be expanding its presence internationally with the opening of an office in London. Our London location joined the firm’s existing offices in Chicago, Miami and San Francisco, each of which have experienced tremendous growth. The London office will serve as the firm’s hub for U.K. and European deals and will help allow Thoma Bravo to further access the region’s rich ecosystem of innovative and fast-growing software and technology companies.

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We are pleased to announce that
Irina Hemmers will be joining as
a Partner in London in early 2023.

As part of this expansion, Irina Hemmers will join Thoma Bravo as a Partner to lead and grow the London office and help deepen the firm’s presence across Europe. Hemmers will be joining from Inflexion Private Equity where she led the technology investment team as Partner and Head of Technology. Prior to that, she was a Partner at Apax Partners.

Europe is a critical market for the growth of Thoma Bravo,
and the launch of a London office represents a significant
step forward in our ability to partner with some of the
best software companies in the world as we continue to
extend our investment strategy globally.

–Orlando Bravo

Congratulations to our 20+ colleagues who were
promoted at the end of 2022.

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20+Promotions

Thoma Bravo's Culture of Performance,
Opportunity and Family

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ESG AT THOMA BRAVO

Just like the technology and software companies in which we invest, Thoma Bravo focuses on evaluating, adapting and evolving as a firm. Our process includes our assessment and implementation of environmental, social and governance (ESG) efforts and how these can benefit and support our investing goals. In July 2022, we expanded our ESG capabilities with the hiring of our first Head of ESG, Donna Riley Bebb. Donna’s appointment signified a meaningful step forward in the evolution of ESG at Thoma Bravo, and she has brought a wealth of subject-matter expertise and strategic vision in this evolving space.

esg report PDF

We are also excited to share that Thoma Bravo became a signatory of the UN Principles for Responsible Investing (PRI) in October 2022, whereby we committed to adopting and implementing these six ESG-focused principles, where consistent with our fiduciary responsibilities.

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PHILANTHROPY

Thoma Bravo is committed to giving back to the communities in which we work and live. In 2022, dozens of employees participated in multiple volunteer events and other charitable efforts across the Chicago, Miami and San Francisco offices, including packing food and care packages for shelters, staffing Special Olympics events in Miami, donating professional outfits for women in need, providing turkeys to local communities for Thanksgiving and donating gifts to more than 100 children during the holiday season.