Thoma Bravo LLC, a leading technology-focused buyout firm based in Chicago, is turning its gaze toward Latin America, particularly Mexico and Brazil, in search of potential acquisition targets. Co-founder Orlando Bravo revealed in an interview with Bloomberg that the firm has identified three or four promising software companies in the region, which have gained significant traction in their local markets.
During his recent visit to Mexico City, Bravo highlighted the firm’s strategy of bolstering its software development capabilities by hiring new talent in Mexico. He cited the example of SailPoint Technologies Holdings Inc., a cybersecurity firm acquired by Thoma Bravo in 2022 for $6.9 billion, as a key beneficiary of these development resources. “We have started to deploy more development resources from our companies in Latin America,” Bravo noted, underscoring the importance of local talent in enhancing software distribution.
Despite the optimistic outlook for software investments in Latin America, Bravo indicated that no immediate deals are on the horizon. He also mentioned that while Thoma Bravo is not establishing a dedicated team for Mexico at this time, it remains a possibility for the future, contingent on successful transactions from the U.S. into the region.
At a New America Alliance event, Bravo addressed the challenges facing U.S. IPO markets, stating that while opportunities exist, regulatory hurdles complicate the process for many companies. He emphasized the need for greater transparency in the listing procedures to better align with the demands of a digital economy.
In light of recent Federal Reserve interest rate cuts, Bravo expressed skepticism about their impact on deal-making, suggesting that deeper economic issues could pose significant challenges for private equity firms in the near future. He warned of potential consolidation in the industry by 2025 if the U.S. economy does not recover robustly.
