Thoma Bravo’s investment strategy and process involves intensively studying fragmented industries to identify high-potential sectors; becoming deeply knowledgeable in the selected sectors; and investing in businesses in those sectors that can grow both organically (through changes in their cost structure and expansion of their revenues) and by acquiring and integrating similar businesses. This often is referred to as “industry consolidation” or “buy and build” investing. We have applied and refined this strategy and process for more than three decades and in many different industries.
We seek to invest in established companies that have a history of profitability, annual earnings (ebitda) greater than $20 million, and a strong management team with a record of accomplishment. Our principal focus is on companies headquartered in the U.S., but we can invest elsewhere as well. Our investments can be in the form of take-private transactions, buy-outs, corporate carve-outs, recapitalizations and growth equity investments.
Our usual equity commitment is at least $100 million and can be as large as $750 million or more. We also have access to substantial co-investment funds when needed to complete $1+ billion transactions.
We apply our investment strategy and process across multiple industry sectors, with a particular focus on enterprise, infrastructure and security software and technology-enabled business services
We do not invest in new inventions or technologies, developmental products or services, business start-ups, the biological sciences, motion pictures, distressed businesses, oil and gas or real estate.