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Thoma Bravo targets $20bn for 14th flagship, third Discover offering

If Thoma Bravo Fund XIV meets it $16.5 billion target, it will be largest flagship pool in the Chicago private equity firm’s 40-year history.

Technology investor Thoma Bravo appears to be undeterred by the challenges of a pandemic-roiled fundraising market, targeting a combined $20 billion for a 14th flagship buyout fund and a third mid-market vehicle.

Thoma Bravo Fund XIV is seeking $16.5 billion, according to a Form D fundraising document published this week. The filing comes roughly 16 months after the Chicago private equity firm announced wrapping up a 13th flagship at a hard cap of $12.6 billion, one of last year’s biggest fund closings.

If Fund XIV meets the goal, it will be largest flagship pool in Thoma Bravo’s 40-year history, surpassing its predecessor by 31 percent.

In addition, Thoma Bravo Discover Fund III is looking to secure $3.5 billion, a second Form D shows. The vehicle is also set to be larger than its predecessor, which closed two years ago at a hard cap of $2.4 billion.

Limited partners that pledged to back Fund XIV include Arkansas Teacher Retirement System; Los Angeles County Employees’ Retirement Association; Massachusetts Pension Reserves Investment Management Board; New York State Teachers’ Retirement System; Teachers’ Retirement System of Louisiana; and West Virginia Investment Management Board, PEI data show.

The same group of investors have pledged commitments to Discover Fund III.

Thoma Bravo invests across the software and tech ecosystem, with a track record of buying and building companies in applications, cybersecurity and infrastructure. Fund XIV is expected to take controlling interests in related businesses sized $600 million to $2 billion, while Discover Fund III will acquire majority stakes in businesses sized $200 million to $400 million.

Thoma Bravo is planning to market a new small-cap fund, called Explorer, Buyouts reported in January. The offering has a target of up to $1 billion. The firm is also shopping a second private debt pool with a $1 billion target, Private Debt Investor reported last September.

Thoma Bravo did not respond to a request for comment prior to publication of this story.

Action Item: Check out Thoma Bravo’s ADV filings here.