Private equity, Enterprise, Content

Private Equity Firm Thoma Bravo Raises $12.6B for Enterprise Software Acquisitions

Credit: Thoma Bravo

Thoma Bravo has raised $12.6 billion for a new investment fund, and the private equity firm plans to acquire more enterprise software companies. Rumored targets in recent weeks have reportedly included Symantec and McAfee, though no firm details about such chatter have emerged.

The new Thoma Bravo Fund XIII reinforces private equity's growing influence across traditional and cloud software; technology firms that leverage MSPs as route to markets; and cybersecurity firms.

Thoma Bravo's current holdings include:

  • Security: Barracuda Networks, LogRhythm, McAfee (a minority stake...)
  • MSP Software: Continuum, SolarWinds (which recently went public)
  • IT Management Software: Dynatrace, Empirix, SolarWinds

Thoma Bravo has a long track record in the technology market. The private equity company has completed more than 200 software and technology acquisitions (over 60 platform companies and over 140 add-ons) with an aggregate value of about $57 billion, Thoma Bravo says. Moreover, the new Fund XIII is the largest pool of capital raised to invest in enterprise software companies, the PE firm asserts.

Private Equity Reshapes Channel Ecosystem, Managed IT Services

Although Thoma Bravo's new fund focuses on enterprise software investments, the overall PE industry also remains keenly focused on MSP-centric technology companies and service providers.

Four of the five major MSP technology companies -- Continuum, Datto, Kaseya and SolarWinds -- have some private equity ownership. The one holdout is ConnectWise, though that company has also attracted private equity interest, sources say.

MSPs themselves are getting swept up in the PE activity. Key PE firms in and around the MSP industry include:

Still, the private equity feeding frenzy has raised some concerns in the market -- with some pundits wondering what happens if/when the industry music stops. Track all private equity news here on ChannelE2E.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.