Leading institutional partners
"We are fortunate to count some of the world's leading institutions among our investors," explains Orlando Bravo enthusiastically. These include US pension funds, Canadian pension funds and sovereign wealth funds from Asia, the Middle East and Europe. These institutions, which manage the pensions of millions of citizens, are above all looking for stable and predictable returns over the long term, an objective that Thoma Bravo has succeeded in achieving thanks to its specialization in software company buyouts.
"American pension funds are among our longest-standing partners," says Orlando Bravo. In the United States, funds such as CalPERS and Texas Teachers Retirement System are key players in the financing of private equity funds. These institutional investors invest up to several hundred million dollars per fund, seeking to diversify their portfolios and benefit from the growth of technology assets.
This relationship of trust with institutional investors has been built up over decades, not least thanks to Thoma Bravo's transparency. "We are very clear with our partners: we explain our strategies, objectives and results in detail. This transparency is essential in our business," insists Bravo.
Foundations, endowments and family offices
In addition to public institutions, Thoma Bravo also relies on foundations and university endowments. These investors seek steady returns to finance philanthropic projects or educational institutions. The most prestigious American universities, such as Harvard, Yale and Stanford, have vast endowment funds, often invested in private equity.
Family offices, representing the interests of wealthy families, are also playing an increasing role in Thoma Bravo's fund-raising activities. These private investors appreciate the stable cash flows generated by the software companies acquired by the manager, as well as Thoma Bravo's ability to transform these companies into market leaders.
"We like to widen our circle of friends," smiles Orlando Bravo. "Even though we have long-standing partners, we always make room for a few new investors in our funds. This brings new perspectives and strengthens our relationships around the world."
A philosophy focused on value creation
What sets Thoma Bravo apart is its willingness to serve its partners with a true value-creation approach. "We love our partners. We like working for them and with them," says Orlando Bravo. Unlike other firms that focus on transactional relationships, Thoma Bravo adopts a collaborative philosophy, seeking to meet investors' expectations while ensuring the sustained growth of its portfolio companies.
This approach, focused on the operational performance of the companies we buy, enables us to maintain high returns, even in difficult market environments. Investor loyalty is the best proof of this. Some partners have been present since Thoma Bravo's inception, and continue to reinvest over the years.
Variable, but always selective, entry tickets
When it comes to fund-raising, Thoma Bravo remains highly selective. Minimum investment amounts vary according to the type of fund, but average tickets for large institutions are often several tens of millions of dollars or more.
"We have investors who invest from 10 million to several hundred million euros," says Bravo. "What's important for us is not the size of the investment, but the quality of the relationship. We look for long-term partners who share our vision of the market."
This approach enables Thoma Bravo to raise colossal funds in record time. In 2022, the fund manager raised $24.3 billion for its latest flagship fund, Thoma Bravo Fund XV, in just over six months. An exceptional performance in a sector where competition for capital is fierce.
Diversification as the key to success
Finally, Thoma Bravo is careful to diversify its investor base. "We have a very broad investor base: pension funds, sovereign wealth funds, endowments, family offices, high net worth individuals... This diversification is key for us," stresses Orlando Bravo.
This diversification means that the fund is not dependent on any particular type of investor, and ensures stability in its fundraising, even in times of economic turbulence.
Beyond its financial performance, Thoma Bravo's strength lies in its ability to forge solid, lasting relationships with its investors. The loyalty of our partners, many of whom have been with us for several decades, testifies to the confidence the company inspires.
For Orlando Bravo, the very essence of Private Equity lies in this partnership relationship. "We don't just invest. We build relationships. We help our partners achieve their financial goals, and they enable us to continue doing what we do best: transforming companies into industry champions."
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