Thoma Cressey Bravo
Encyclopedia
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
firm based in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
and San Francisco. , the firm has raised more than $1.5 billion in investor commitments.
The firm principally invests in high-growth industries, including health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
and software.
Thoma Cressey invests through a series of private limited partnerships and its investors include a variety of pension funds, endowments
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
and other institutional investors. Following its separation from GTCR
GTCR
GTCR LLC is a private equity firm focused on leveraged buyout, leveraged recapitalization, growth capital and rollup transactions. As of 2008, it manages more than $8 billion in equity and mezzanine capital invested in a wide range of companies and industries....
(discussed below), Thoma Cressey has raised three private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s:
- 1998 — Fund VI, ($450 million)
- 2001 — Fund VII ($555 million)
- 2006 — Fund VIII ($765 million)
History
Thoma Cressey Equity Partners, which was renamed Thoma Cressey Bravo to reflect the growing role of partner Orlando Bravo, was founded in 1998 following the separation of Golder Thoma Cressey RaunerGTCR
GTCR LLC is a private equity firm focused on leveraged buyout, leveraged recapitalization, growth capital and rollup transactions. As of 2008, it manages more than $8 billion in equity and mezzanine capital invested in a wide range of companies and industries....
(GTCR), a large Chicago-based private equity firm.
The firm's earliest predecessor Golder Thoma & Co. was founded in 1980 by Stanley Golder
Stanley Golder
Stanley C. Golder was an American financier and venture capitalist.He is the namesake of the Stanley C. Golder Center for the Study of Private Equity at the University of Illinois at Urbana-Champaign, which he graduated ....
and Carl Thoma. In the 1970s, Golder built the private equity program at First Chicago Corp.
First Chicago Bank
First Chicago Bank was a Chicago-based retail and commercial bank tracing its roots back to 1863. Over the years, the bank operated under several names including The First National Bank of Chicago and First Chicago NBD...
where he is noted primarily for backing Federal Express
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
and for efforts as chairman of the National Venture Capital Association
National Venture Capital Association
The National Venture Capital Association is the leading trade association representing the venture capital industry in the U.S. The NVCA represents the venture industry in public policy debates in Washington, DC, and promotes high professional standards, professional development, and interaction...
and the National Association of Small Business Investment Companies to change federal laws allowing pensions to invest in private equity. Golder Thoma received much of its initial funding from William M. Blair
William M. Blair
William McCormick Blair , was an American financier.-Life:William McCormick Blair was born May 2, 1884 in Chicago....
and upon leaving First Chicago, Golder was replaced by John Canning, Jr.
John Canning, Jr.
John A. Canning, Jr. is a private equity investor and sports executive. He is the founder and chairman of Madison Dearborn Partners, the large Chicago-based private equity firm. He has recently been linked to discussions about the potential sale of the Chicago Cubs.-Career:Canning was an early...
who would go on to found rival Chicago private equity firm Madison Dearborn
Madison Dearborn
Madison Dearborn Partners is a private equity firm specializing in leveraged buyouts of privately held or publicly traded companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth...
.
In 1984, after recruiting Bryan Cressey to join the firm from First Chicago
First Chicago Bank
First Chicago Bank was a Chicago-based retail and commercial bank tracing its roots back to 1863. Over the years, the bank operated under several names including The First National Bank of Chicago and First Chicago NBD...
, the firm's name was changed to Golder Thoma Cressey and with the promotion of Bruce Rauner to partner the firm would come to be known as Golder, Thoma, Cressey, Rauner, Inc. (GTCR), although it would still often be referred to as Golder Thoma.
In 1998, disagreements between the senior partners led Golder, Thoma, Cressey, Rauner, Inc. split into two private equity firms. Both firms continue to invest primarily through consolidations of specific industries, referred to as roll-ups
Rollup
A Rollup is a technique used by investors where multiple small companies in the same market are acquired and merged. The principal aim of a rollup is to reduce costs through economies of scale. Rollups also have the effect of increasing the valuation multiples the business can command as it...
:
- Thoma Cressey Equity Partners, (Carl Thoma and Bryan Cressey) based in ChicagoChicagoChicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
and San Francisco. Thoma Cressey would be renamed Thoma Chressey Bravo to reflect the growing role of partner Orlando Bravo.
- GTCR Golder Rauner, (Stanley GolderStanley GolderStanley C. Golder was an American financier and venture capitalist.He is the namesake of the Stanley C. Golder Center for the Study of Private Equity at the University of Illinois at Urbana-Champaign, which he graduated ....
and Bruce Rauner), the $8 billion private equity firm, based in ChicagoChicagoChicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, commonly referred to as GTCR. GTCR founder Stanley GolderStanley GolderStanley C. Golder was an American financier and venture capitalist.He is the namesake of the Stanley C. Golder Center for the Study of Private Equity at the University of Illinois at Urbana-Champaign, which he graduated ....
died in 2000 and today the firm is led by Bruce Rauner along with several partners (David Donnini, Ned Jannotta, et al.).
In 2008, Bryan Cressey left Thoma Cressey Bravo with several investment professionals to form Cressey & Co. a small healthcare focused private equity firm.
Thoma Cressey Bravo became Thoma Bravo after Cressey’s departure, led by managing partners Carl Thoma, Orlando Bravo, Lee Mitchell and Scott Crabill. The firm closed its 9th fund in March 2009 with $822.5 million.
External links
- Thoma Cressey Bravo (official website)
- Thoma Bravo (official website)