Thoma Bravo closes Discover Fund on $1.07 hard-cap

The fund will seek opportunities in the lower mid-market, away from the larger deals sought by the firm’s flagship funds.

Thoma Bravo has closed its Thoma Bravo Discover Fund on its $1.074 billion hard-cap.

Discover launched in November with a target of $1 billion, according to the firm’s 23 November filing with the US Securities and Exchange Commission.

It will seek to invest in the lower mid-market software sector, unlike larger opportunities that the firm’s flagship funds focus on, it said. It will make equity investments of a maximum of $150 million in companies with between $30 million and $150 million of revenue, according to reports.

Investors in the fund include the Arkansas Teacher Retirement System, which committed $30 million, and Massachusetts Pension Reserves Investment Management Board (MassPRIM), which committed $60 million, according to PEI’s Research & Analytics division.

It made its first investment in Illinois-based data analysis company Infogix, which was previously owned by HIG Capital.

As of November, Thoma Bravo was in market with its most recent flagship fund, Thoma Bravo Fund XII, targeting $7 billion, according to PEI Research. MassPRIM and the New York State Teachers’ Retirement System have committed $100 million and $200 million to the fund, respectively.

Thoma Bravo closed its previous flagship fund, Thoma Bravo Fund XI, on $3.66 billion, which it began deploying in 2014. Fund XI was supplemented by a $1.065 billion Special Opportunities Fund II, which closed in March.

Kirkland & Ellis was the legal advisor for the fund.

Thoma Bravo manages over $9 billion in assets.