US-based private equity firm Thoma Bravo has pulled in up to $499m for its maiden credit vehicle.
Thoma Bravo Credit Fund I has a set target of $750m; however, it is unclear if this figure is a hardcap, according to the latest US SEC filing.
So far, there have been 46 registered contributors to the new investment fund.
Alongside this credit vehicle, the firm operates middle market, buyout and co-investment funds, but it is unclear what the investment strategy will be for the new credit fund.
Thoma Bravo is currently in the process of raising its 13th flagship fund, which is targeting $10bn, which recently received a $150m pledge from MassPRIM, according to FinTech Global sister site AltAssets.
Earlier in the year, the firm closed its second Discover Fund on its $2.4bn hard cap and will be used to make buy-and-build investments.
Investments from its flagship funds tend to be between $400m and $1bn, while its middle market vehicles make deals valued around $50m to $300m. Transactions made through the co-investment line vary and can reach ‘almost any size.’
The firm, which has offices in Chicago and San Francisco, is focused on application, infrastructure and security software and technology-enabled services businesses. It looks to companies which have or near an EBITDA greater than $50m, and have a strong management team.
Thoma Bravo typically focuses on companies headquartered within the US, but it does invest internationally as well.
There are a number of FinTech companies currently in Thoma’s portfolio, including workflow automation platform Nintex, payment processor ABC Financial, risk management technology developer Riskonnect and online security solution DigiCert.
Last month, the firm led the $350m acquisition and merger of MeridianLink and the ACTion, Synergy, and Achieve divisions of CRIF Lending Solutions. This deal will enable both companies to increase technology investments into services that will provide financial institutions with improved lending solutions, privacy protections and data analytics.
Earlier this year, Thoma Bravo agreed a deal to buy Centrify, an identity & access management platform. Headquartered in Santa Clara, California, Centrify serves over five thousand customers, including over half the Fortune 100. It customer base spans the public and private sectors, including blue-chip Global 2000s, across diverse industries including defense, banking, energy, retail, manufacturing and health care.
The firm also recently paid $1.6bn for Barracuda Networks, a provider of cloud-enabled security and data protection solutions. Its security platform helps IT professionals simplify the way they purchase, deploy, manage and protect their workloads and applications. Its product portfolio spans across email security and management, network and application security, and data protection solutions that can be deployed and centrally managed in cloud and hybrid environments.
In the cybersecurity space, the private equity giant also recently bought in LogRhythm, a company helping organisations reduce risk by detecting and neutralising damaging cyberthreats.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
