Thoma Bravo hits $1.25bn on Fund X

Managing partner Lee Mitchell attributed LPs' strong reception to Fund X to Thoma Bravo’s performance on previous funds.

Thoma Bravo has closed its tenth fund on $1.25 billion, handily beating its $900 million target, the firm announced in a statement. 

The firm saw a strong response from limited partners after launching the fund in September, managing partner Lee Mitchell told Private Equity International. Mitchell attributed LPs' enthusiasm for Fund X to the firm’s track record on recent funds. 

“They all really are top quartile funds. I know everyone says they’re top quartile, but these are tested by Cambridge benchmarks and Thomson Reuters benchmarks,” he said. “Most of [Fund X] was spoken for within three or four months.”

Performance data for Fund X’s predecessors could not be found at press time. However, the firm scored a pair of big exits last summer, generating respective 2.5x and 4.6x multiples on the sale of education product distributor Excelligence and software licensing company Flexera, according to market sources.  

LPs in Fund X include the Alaska Permanent Fund, The Massachusetts Pension Reserves Investment Management Board and The San Francisco Employees’ Retirement System. 

Fund X will focus on buy and build investments in enterprise and infrastructure software companies as well as the financial and business service sectors. The firm has already completed a pair of transactions through the fund, according to a release. 

Fund X completed its first acquisition in January when it picked up Telestream, a live and on-demand video provider. Earlier this month, the firm led an investment group that took private Blue Coat Systems, a web security provider, in a transaction valued at $1.3 billion. 

Thoma Bravo was founded in 1998 when Golder Thoma & Company split into two firms, GTCR Golder Rauner and Thoma Cressey Equity Partners – which was eventually renamed Thoma Bravo. The firm is led by Bravo, Scott Crabill, Lee Mitchell and Seth Boro and manages around $4 billion in private equity commitments.