After a period of stagnation in deal-making, private equity firms are increasingly focused on generating returns for their investors. Thoma Bravo, a prominent Chicago-based buyout group, is making headlines with recent transactions that challenge the prevailing narrative of a sluggish buyout market.

In late July, Thoma Bravo sold education software provider Instructure Holdings Inc. to KKR for $4.8 billion, including debt. Additionally, the firm divested 50 percent of its stake in Nasdaq for $2.7 billion. These deals resulted in significant realizations of approximately $2.9 billion and $2.4 billion, respectively, as noted in a letter to Thoma Bravo’s investors reviewed by Bloomberg News. The firm had held nearly 84 percent of Instructure’s outstanding shares prior to the sale.

Thoma Bravo also reported that it has fully exited its investment in Dynatrace Inc., a software observability platform. While a representative for the firm declined to comment, the financial outcomes from these transactions are noteworthy.

In just one week, Thoma Bravo generated around $5.2 billion for its buyout fund investors. Since January 2023, the firm has returned approximately $19.4 billion to its investors. Over the broader period from 2020 to 2024, total realizations reached about $48 billion, a significant increase compared to $15.5 billion from 2015 to 2019.

In addition to the Instructure and Nasdaq transactions, Thoma Bravo has also sold cybersecurity company Venafi Inc. to CyberArk Software Ltd. for $1.54 billion in May. These strategic moves highlight Thoma Bravo's commitment to delivering strong returns and navigating the complexities of the current buyout landscape.