Thoma Bravo is winding down its growth equity platform to refocus on its core buyout strategy, according to a report by Bloomberg.

The firm, which manages approximately $183bn in assets, will complete investments from its remaining growth equity funds before exiting the strategy entirely.

Launched in 2021, the growth equity business targeted minority investments in public and private software companies, including HubSync and Alation. However, Thoma Bravo determined that minority positions limited its ability to apply its operational expertise, a key driver of value creation in its buyout model.

The decision also comes amid increasing pressure on software investors, as advances in artificial intelligence raise questions about the long-term resilience of certain business models across sectors such as legal services, data analytics, and financial research.

Consequently, Thoma Bravo’s shift underscores a renewed focus on ownership and operational control. Private equity firms are increasingly looking to prioritise strategies where they can directly influence performance and mitigate emerging technological risks.

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