Private equity firm Thoma Bravo has successfully closed its inaugural European fund at €1.8 billion ($1.9 billion), marking a significant milestone in the company's expansion into the European market. The fund will focus on taking equity stakes in mid-sized software companies across the continent, capitalizing on the growing demand for digital transformation.

The closure of this fund comes at a time when North American venture capital (VC) firms are slowly retreating from Europe. In recent months, notable Silicon Valley VC firms such as Andreessen Horowitz, Omers Ventures, and Coatue have shuttered their UK offices, creating a void that private equity firms like Thoma Bravo are poised to fill. This shift in investment landscape presents an opportunity for Thoma Bravo to establish itself as a key player in the European software market.

Thoma Bravo's European presence dates back to 2011, when it acquired French software firm InfoVista. Since then, the Chicago-headquartered firm has invested around €14 billion across 16 deals in Europe. The company's London office, launched in 2023, has been instrumental in formalizing its regional presence. Thoma Bravo's investment track record in Europe includes some of the biggest take-private deals of 2024, such as the acquisition of UK cybersecurity company Darktrace in a deal valued at $5.3 billion.

According to Thoma Bravo partner and European lead Irina Hemmers, the closing of the first Europe Fund represents a significant opportunity to deepen the firm's presence in the region. "Europe is digitizing rapidly, and leading software companies are increasingly looking for dedicated support and investment to accelerate their growth strategies," Hemmers stated. This sentiment is echoed by the growing demand for digital transformation across various industries in Europe, creating a fertile ground for Thoma Bravo's investment strategy.

The €1.8 billion fund will enable Thoma Bravo to take equity stakes in mid-sized software companies, providing them with the necessary capital and expertise to drive growth and expansion. This investment approach is likely to resonate with European software companies seeking to scale their operations and stay competitive in an increasingly digital landscape.

As Thoma Bravo embarks on this new chapter in its European expansion, the firm's inaugural fund is expected to have a significant impact on the region's software ecosystem. With its proven track record of investing in software companies, Thoma Bravo is well-positioned to capitalize on the growing demand for digital transformation in Europe, further solidifying its presence as a leading private equity firm in the region.

In the broader context, Thoma Bravo's €1.8 billion fund serves as a testament to the enduring appeal of the European software market, despite the challenges posed by the ongoing retreat of North American VCs. As the region continues to digitize rapidly, the need for dedicated investment and support will only continue to grow, creating opportunities for private equity firms like Thoma Bravo to fill the void and drive growth in the European software sector.