Thoma Bravo closes Fund IX on $823m

The Chicago-based firm hit its hardcap, having adjusted down its $1bn target early last year amid tougher fundraising conditions. It's the first fund it has raised since partners Carl Thoma and Bryan Cressey split their prior firm along investment strategy lines.

Chicago-based private equity firm Thoma Bravo has raised its first fund since former partners Carl Thoma and Bryan Cressey amicably split their previous private equity firm, Thoma Cressey Bravo, ahead of respective fundraises.

Thoma Bravo's Fund IX hit its $822.5 million hardcap, having been oversubscribed, the firm said. The firm's original target for the software-focused fund had been $1 billion, but it was adjusted downwards in light of the more challenging fundraising environment.

Carl Thoma

Thoma Cressey Bravo's eighth fund closed on $765 million in 2006 and is fully committed. In late 2007, Cressey formed Cressey & Co to raise and manage a healthcare-focused fund, while Thoma, along with partners Orlando Bravo, Lee Mitchell and Scott Crabill, opted to raise a fund dedicated solely to software and services.

Thoma Bravo, which manages around $2.5 billion of equity capital, began investing from Fund IX in April 2008 with the $200 million acquisition of management software provider Acresso Software, which earlier this year closed a $27 million take-private acquisition of California-based Intraware. The fund has also made an equity investment in property tax provider Manatron to finance its acquisition in January of Software Techniques.

The firm typically invests in middle market businesses with an enterprise value of between $100 million and $500 million, with a focus on software, business and financial services and education, and seeks to create value through acquisitions. Originally named Thoma Cressey Bravo, the firm split its operations before its recent round of fundraising, with the renamed Cressey & Co. focusing on healthcare, and partners Thoma, Orlando Bravo, Lee Mitchell and Scott Crabill investing in software and services.