Thoma Bravo, with hefty fundraising ambitions, raising debut European fund

As Thoma Bravo prepares to launch its next major fundraising cycle later this year, the firm is quietly marketing its first-ever European-focused pool to expand its reach in the region, sources told Buyouts.

Thoma Bravo is one of the select few managers in the market today likely to get limited partners to open their wallets, even as they slow their commitment pacing. The firm closed its last fundraising cycle in December, collecting more than $32.4 billion across three funds.

The firm has invested in Europe for years, but has not raised a separate, dedicated fund to the region. The debut European fund, which appears to be called Thoma Bravo Europe Partners, is in market targeting €1.5 billion, sources said. A Thoma Bravo spokesperson declined to comment.

Thoma began the process last year, bringing on Irina Hemmers as a partner to lead the London office and build out the firm’s presence in Europe. Hemmers joined from Inflexion Private Equity, where she was partner and head of technology. Before, she was a partner at Apax Partners.

Thoma Bravo deployed $11 billion across 11 deals over the last 12 years. The European team led by Hemmers made its inaugural investment in March in LOGEX, a European healthcare analytics provider.

Outside of the Euro fund, the firm is preparing to launch its next fundraising cycle in the fourth quarter, with its 16th flagship pool and its fifth mid-market fund, the firm told LPs at its recent annual meeting, Buyouts reported this week.

No target has been disclosed yet, sources said. Some sources believe the next fundraising round could prove challenging as LPs are contending with overexposure issues and slowing distributions.

The risk with quick and consistent fundraising processes is that commitments and capital calls for new deals will outpace money flowing back. This is the case for many LPs in the market as exit activity slows, forcing them to slow their commitment pacing into new funds, skipping certain funds they may otherwise like or cutting commitment sizes.

“Investors are saying, ‘Let’s get some capital back before we keep piling in,’” the LP said.