Chicago‑based Thoma Bravo announced it will wind down the growth equity strategy launched in 2021. The firm plans to run off the existing dry‑powder in its sole Growth Fund and will not seek a successor vehicle. The move follows the departure of the strategy’s two co‑heads. The strategy had backed several mid‑stage software firms, but no high‑profile exit has materialized.

Investors see the decision as a signal that the market for late‑stage software deals has cooled, limiting upside for firms that rely on rapid scaling. Deal flow in 2023 fell 20% year‑over‑year, pressuring valuation expectations. Thoma Bravo’s core buy‑and‑build platform, which targets mature SaaS and infrastructure businesses, remains untouched, preserving its reputation for deep‑tech expertise and sizable fund commitments.

By closing the growth arm, Thoma Bravo can concentrate capital on its traditional private‑equity model, where it has generated multi‑billion‑dollar returns. The firm’s shift may prompt other investors to reassess similar programs, potentially tightening funding for emerging software leaders. Limited partners have praised the firm’s disciplined capital allocation, expecting distributions. The firm will continue to deploy the remaining capital until the fund is fully exhausted.