In the world of private equity a few names always come up as leaders, driving big changes and innovation. Among them Vista Equity Partners and Thoma Bravo stand out, each with their own way of investing and creating value. By comparing these two giants we can get a better understanding of their strategies, successes and the private equity landscape. This article looks at the background, investment philosophy and performance of Vista Equity Partners and Thoma Bravo to see what makes them different and where they are going.
Vista Equity Partners
Founded in 2000 by Robert F. Smith, Vista Equity Partners quickly became a force to be reckoned with a clear focus on software and technology enabled businesses. Smith, a former Goldman Sachs executive, used his deep industry knowledge to build a firm that can find and grow companies with strong tech growth potential. Vista’s investment strategy is to buy enterprise software companies and grow value through operational improvements and strategic initiatives.
Vista’s portfolio is proof of its ability to find great companies. Some of its notable investments include Marketo, a marketing automation platform and Ping Identity, a leader in identity management solutions. By focusing on software companies Vista has created a niche that plays to the increasing technology adoption across all industries.
Thoma Bravo
Thoma Bravo was formed in 2008 from the merger of Thoma Cressey Bravo and Golder Thoma & Co. It has a long history and deep expertise in private equity. The firm’s roots go back to 1980 making it one of the oldest and most experienced private equity firms. Thoma Bravo has built a reputation by focusing on technology and software investments, similar to Vista but with their own approach.
Led by Orlando Bravo and Carl Thoma the firm is focused on strategic acquisitions and consolidation in the tech industry. Thoma Bravo’s strategy is to find companies with strong growth potential and then use their operational and financial expertise to drive value. Some of their notable investments include SolarWinds, an IT management software company and Dynatrace, a software intelligence solutions company. These investments are proof of their commitment to innovation and growth in the tech sector.
Vista equity partners Vs thoma
| Category | Vista Equity Partners | Thoma Bravo |
|---|---|---|
| Focus | Technology, software, and business value | Software and technology companies |
| Investment Size | $10 billion+ | $10 billion+ |
| Number of Funds | Multiple funds, including growth equity and buyout funds | |
| Portfolio Companies | Companies like TIBCO Software, Marketo, and AppDynamics | Companies like CyberArk, Venafi, and Darktrace |
| Geographic Focus | Global, with offices in US, Europe, and Asia | Global, with offices in US, UK, and Europe |
| Partnership Approach | Collaborative approach with portfolio companies | Partnership-driven approach with strategic and operational expertise |
| Performance Ranking | Ranked 17th in the HEC-Dow Jones Private Equity Performance Ranking (2020) | Ranked 1st in the HEC-Dow Jones Private Equity Performance Ranking (2020), dropped to 6th in 2021 |
| Employee Ratings | Vista Equity Partners: 4.1/5 (CEO approval 73%, career opportunities 3.8/5) | Thoma Bravo: 4.5/5 (CEO approval 90%, career opportunities 4.2/5) |
Vista equity partners vs thoma Bravo salaries
Vista Equity Partners and Thoma Bravo salaries:
| Job Title | Vista Equity Partners | Thoma Bravo |
|---|---|---|
| Executive Assistant | $77K – $115K | N/A |
| Associate | $156K – $259K | N/A |
| Analyst | $100K – $158K | N/A |
| Private Equity Associate | $153K – $260K | N/A |
| Vice President | $217K – $356K | N/A |
| Senior Associate | $164K – $256K | N/A |
| Customer Success Manager | $83K – $135K | N/A |
| Director | $219K – $353K | N/A |
| Summer Analyst | $93K – $145K | N/A |
| Private Equity Analyst | $96K – $160K | N/A |
Investment Strategies
Vista Equity Partners
Vista’s investment strategy is all about software and technology. The firm has a disciplined and systematic approach to finding investment opportunities, looking for companies with mission critical software solutions and a strong customer base and recurring revenue. Vista’s value creation strategy is around operational improvement, using its proprietary “Vista Standard Operating Procedures” to drive performance in its portfolio companies.
Vista typically does deals as leveraged buyouts, using a combination of equity and debt to fund the acquisition. This allows the firm to maintain a significant ownership stake while optimizing the capital structure for returns. Vista’s focus on operational excellence and strategic initiatives has delivered strong results across the portfolio.
Thoma Bravo
Thoma Bravo’s investment strategy is technology and growth focused. They invest in companies with established market positions and growth potential, often doing strategic acquisitions and consolidation to create value. Thoma Bravo partners with management teams to identify and execute on growth opportunities, using their deep industry knowledge and resources.
They typically do buyouts and use a mix of equity and debt to finance acquisitions. Thoma Bravo’s focus on strategic acquisitions and consolidation has allowed them to build a portfolio of market leading companies in the tech space. They foster innovation and growth by identifying and capitalizing on emerging trends and opportunities.
Performance Metrics
Return on Investment Comparison
Vista Equity Partners and Thoma Bravo have both delivered strong returns to their investors. But their performance metrics show some differences. Vista’s focus on operational improvements and strategic growth initiatives has produced high returns, many of their portfolio companies have grown significantly and become market leaders.
Thoma Bravo has shown the ability to generate returns through strategic acquisitions and consolidation. Their growth focus and deep tech expertise has allowed them to deliver value to their investors. A comparison of their returns on investment shows the strengths of each firm’s strategy and how they can deliver attractive returns in the competitive private equity landscape.
Past Performance
Vista Equity Partners has a long history of finding and growing high growth software and technology companies. Their focus on operational excellence and strategic growth initiatives has delivered strong performance across their portfolio. Vista has had many successful exits, many of their portfolio companies have become market leaders and grown significantly in value.
Thoma Bravo’s past performance is similar, with a focus on technology and growth investments. They have a track record of identifying and executing on strategic acquisitions and consolidation opportunities and have created a lot of value for their investors. Thoma Bravo has had several high profile exits, they have grown and innovated in the tech space.
Recent Wins and Struggles
Vista Equity Partners and Thoma Bravo have continued to do well in recent years, despite the challenges and opportunities of the private equity landscape. Vista has made several big deals, including Pluralsight, a tech workforce development platform. That’s Vista’s bet on companies that drive innovation and growth in tech.
Thoma Bravo has also had some wins, with recent investments in Proofpoint, a cybersecurity and compliance solutions company. That’s Thoma Bravo’s play on the emerging trends in tech.
Key Differentiators
Vista Equity Partners
Vista’s competitive edge is our disciplined approach and focus on operational excellence. Our proprietary “Vista Standard Operating Procedures” provide a framework to improve the performance of our portfolio companies. Our operational improvements and strategic growth initiatives set us apart from others and drive our success in software and technology.
And our focus on diversity and inclusion is an operational strategy. We believe diverse teams make better decisions and innovate better and we have initiatives to promote diversity within our portfolio companies and the broader tech industry.
Thoma Bravo
Thoma Bravo’s competitive edge is its deep technology and growth expertise. The firm’s focus on strategic acquisitions and consolidation allows it to build market leaders in tech. Thoma Bravo’s partnership with management teams to drive growth and innovation is a key differentiator that drives its success.
Thoma Bravo’s operational strategy is its ability to see and capitalize on emerging trends and opportunities in tech. The firm’s network and relationships in the industry provide valuable insights and resources to drive value creation and strong returns for its investors.
Competitive Edge
Vista Equity Partners and Thoma Bravo each have their own competitive edges. Vista’s focused investment approach, commitment to operational excellence and diversity and inclusion is a winning formula. These edges allow Vista to find and develop high growth software and technology companies.
Thoma Bravo’s edges are its deep technology and growth expertise and its ability to do strategic acquisitions and consolidation. Its ability to see and capitalize on emerging trends and opportunities in the tech industry and its broad network and relationships in the industry allows it to create value and deliver strong returns to its investors.
Summary
Vista Equity Partners and Thoma Bravo are both private equity leaders with their own approaches and strong results. Vista’s focus on software and technology companies, operational excellence and diversity and inclusion makes it a top tech investor. Thoma Bravo’s technology and growth expertise, strategic acquisitions and consolidation capabilities and ability to see and capitalize on emerging trends makes it a big player in private equity.
As the private equity landscape changes, Vista Equity Partners and Thoma Bravo are ready for what’s next. Their edges and competitive advantages will serve them well. Investors and stakeholders can learn a lot about the private equity market and what’s to come by understanding the differences and positions of these two giants.