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Private Equity

Thoma Bravo closes second Discover fund at $2.4 billion hard cap

A closed sign hanging in a shop window

Thoma Bravo announced on Thursday it closed its a lower-middle-market fund, Thoma Bravo Discover Fund II, at its hard cap of $2.4 billion, confirmed spokesman Matthew Gorton.

Like its predecessor, the fund will focus on middle-market investments in the software industry. It will be deployed using Thoma Bravo's "buy-and-build" investment strategy, according to a news release. Capital has not been deployed yet, Mr. Gorton said. The fund will target investments in application, infrastructure, and security software and technology-enabled services.

The prior fund, Thoma Bravo Discover Fund, closed in February at $1.07 billion, also reaching its hard cap.

"The Discover Fund has demonstrated that Thoma Bravo's approach of partnering with current management teams to implement our operating practices and metrics, investing in organic growth through product development and more effective distribution, and making accretive acquisitions is a model that works across size, stage and scale," said A.J. Rohde, a partner at Thoma Bravo, in the release.

Investors in the fund include the Florida State Board of Administration, which oversees the $167 billion Florida Retirement System, Tallahassee; $118.9 billion New York State Teachers' Retirement System, Albany; $72 billion Massachusetts Pension Reserves Investment Management Board, Boston; and the $16.1 billion Arkansas Teacher Retirement System, Little Rock.