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 two decades and in many different industries.
We seek to invest in established companies that have a history of profitability, earnings (ebitda) greater than $10 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, management buy-outs, recapitalizations, roll-overs of a portion of existing equity, and growth equity investments.
Our usual equity commitment is at least $20 million and can be as large as $100 million or more. We also have access to substantial co-investment funds where necessary.
We apply our investment strategy and process across multiple industries, currently with a particular focus on enterprise and infrastructure software, education, distribution, financial services and consumer goods and 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.