Private equity investments in Europe’s technology sector are increasing as firms seek opportunities in a rapidly digitizing environment. Thoma Bravo, a private equity group with a focus on software companies, has announced a significant investment in the European market. This development follows a trend of rising private equity deals in Europe. The firm’s new fund aims to support mid-sized software companies in scaling their businesses and responding to growing digital demands.
Thoma Bravo has previously engaged in European investments, allocating over $14 billion across 16 deals over 14 years. However, the newly announced fund is the firm’s first dedicated pool for European software firms. Compared to earlier investments, this initiative is structured specifically to target Europe’s rapidly evolving technology space. Private equity activity in the region has surged, with large-scale buyouts increasing at a faster rate than in other global markets.
What are the objectives of the new fund?
The €1.8 billion ($1.89 billion) fund will focus on acquiring and supporting middle-market software firms across Europe. The company aims to help these firms scale their operations and expand their market presence. This move is expected to provide European software businesses with resources to accelerate their growth strategies.
“Our first dedicated pool of capital for European software marks a significant milestone for our firm,” said Orlando Bravo, a founder and managing partner at Thoma Bravo.
“We see an enormous opportunity to back Europe’s technology innovators and help them scale, and we are grateful for the long-term support of our investors in realizing this ambition.”
Why is private equity interest in Europe increasing?
Europe has seen an increase in private equity transactions, with buyout deals over $1 billion growing at a higher rate than in other regions. According to data from Dealogic, such transactions in Europe totaled approximately $133 billion in 2024, reflecting a 78% rise from the previous year. In contrast, the global private equity market experienced a 29% increase. The region’s economic situation has made it an attractive destination for investors looking for opportunities in technology and software industries.
Thoma Bravo has been involved in notable acquisitions, including the $5.5 billion purchase of British cybersecurity company Darktrace. Other significant private equity transactions in Europe include a $6.9 billion consortium deal for investment platform Hargreaves Lansdown. These deals indicate a growing interest in European technology firms by global investors.
Despite its active role in technology investments, the firm has avoided involvement in blockchain-related ventures. In a previous interview, Orlando Bravo stated that the company had once invested in the now-collapsed cryptocurrency exchange FTX but has since decided to move away from blockchain investments.
“From an investment standpoint, after you make a mistake, you kind of move on,” Bravo said, referring to the company’s past involvement with FTX.
Thoma Bravo’s move to focus on European software firms aligns with the broader trend of private equity investments in the region’s technology sector. The demand for digital transformation has created opportunities for mid-sized firms seeking financial backing. With the new fund, the firm aims to offer capital and strategic support to help businesses scale effectively.
