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Thoma Bravo raises €1.8B for its first European fund
Private equity firm Thoma Bravo has raised €1.8 billion for its inaugural European fund, focusing on mid-sized software companies. This move comes as North American investment firms retreat from Europe, leaving a gap for private equity to fill, particularly as Europe accelerates its digital transformation.
Key points
- Thoma Bravo closed its first European fund at €1.8 billion ($1.9 billion).
- The fund targets mid-sized software companies across Europe for investment.
- North American VC firms are reducing their presence in Europe, creating opportunities for private equity.
- Thoma Bravo opened a London office in 2023, expanding its European operations.
- The firm has invested around €14 billion in Europe over 16 deals since entering the market.
Why it matters
- The trend of North American firms retreating from Europe contrasts with the growing establishment of homegrown VC funds.
- Thoma Bravo's moves reflect the broader trend of increased investment in software and tech following digital transformations accelerated during the COVID-19 pandemic.
- By 2025, digital transformation in Europe is expected to drive increased demand for investments in tech firms, particularly software.
Thoma Bravo's establishment of a significant European fund highlights the ongoing digital transformation in Europe and the subsequent opportunities for private equity amidst the retreat of North American firms.