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Bloomberg
05-06-2025
- Business
- Bloomberg
Morgan Stanley's Evan Damast Says IPOs Are a Go After Tariff Turmoil
Hi, it's Ryan Gould, taking some time out from SuperReturn in Berlin to bring you the best bits of a recent chat I had with a top capital markets banker at Morgan Stanley. Meanwhile, back in the German capital, Orlando Bravo thinks private equity leaders have strayed off course. Today's top stories
Yahoo
05-06-2025
- Business
- Yahoo
British fintech champion to ditch main listing in London
The £12bn fintech champion Wise is to abandon its primary listing in Britain for the US, dealing a blow to London's beleaguered stock market. Wise told investors on Thursday that it would move its main listing to the US, claiming it would help the company grow faster and attract more investment. It will be seen as a snub to the London Stock Exchange (LSE), which has been battling an exodus of companies amid concerns over poor liquidity and excess governance. Kristo Käärmann, Wise's chief executive. said: 'We believe the addition of a primary US listing would help us accelerate our mission and bring substantial strategic and capital market benefits to Wise and our owners.' He claimed the US was 'the biggest market opportunity in the world for our products'. The international payments firm debuted on the LSE in 2021. Its shares have risen by around 20pc since then. It said retail and institutional investors in the US were currently unable to buy shares and said the move would allow current shareholders 'greater flexibility' – as well as potentially allowing it to be included in American indices. Switching a company's main listing does not affect the number of shares. However, it can have a huge effect on its visibility and its ability to attract investors and raise capital. Different markets also have varying fees, governance and financial requirements. News of Wise's plan to quit the British public markets follows just days after the £1.1bn drug firm Indivior, which makes opioid addiction treatments, said it too would quit London to focus solely on New York. Other companies to have made similar moves include the gambling giant Flutter, which switched its main listing to New York last year to capitalise on the explosion of the American sports betting market, and the Cambridge-based tech firm Arm. Wise's announcement came as it unveiled a 15pc rise in revenues to £1.2bn on Thursday for the year to April. Shares surged by more than 7pc as markets opened as investors welcomed the news of its impending move. Last month the US private equity billionaire Orlando Bravo claimed the London stock market was in need of 'major' reforms to be able to compete against other international markets. He argued that overly tight rules on acquiring British companies have made them less appealing to US buyers. Mr Bravo, who runs the eponymous firm Thomas Bravo and has bought several British firms himself in recent years, claimed doing so would improve valuations. Speaking earlier this year, the head of the London Stock Exchange Group (LSEG), David Schwimmer, insisted that London's position compared to other global markets meant it would be able to ride out the storm it faces. He said: 'London is probably third or fourth in the world in terms of being a capital-raising centre. 'There's lots of questions and focus on IPO [initial public offering] but if you look at the capital raised in general, including the follow-ons, this is a very healthy market with plentiful liquidity and lots of activity.' He argued there was little evidence of companies doing better after moving their listings. 'If you take a look at the companies that have gone from the UK to list in New York over the last 10 years it's about 20 companies. Of those 20, four are trading up, nine are delisted, and the rest are trading down by an average of over 80pc.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
04-06-2025
- Business
- Axios
Q&A with Orlando Bravo on private equity's big challenges
Thoma Bravo this week defied private equity's fundraising slump, announcing $34.4 billion for three new, software-focused funds. Axios spoke with firm co-founder and managing partner Orlando Bravo, who was on his way to the SuperReturn conference in Berlin. Our discussion included the new funds, PE's challenges, AI, and the buzzy deal he passed on. What follows is an edited transcript of our conversation: Axios: You raised the same amount for your flagship fund as you did in 2022 ($24.3b), but upsized your midmarket fund (to $8.1b from $6.2b). What does that tell us? Bravo: "Each fund is sized appropriately for its opportunity. And what's going on is that the midmarket's getting a little bigger, or the definition of a midmarket company keeps rising. "In terms of the flagship, it gives us all the capital we need to be the number one player in software for the categories we like." What are you going to talk about in Berlin? "The big challenges facing private equity. To put it very simply, private equity has a problem putting money to work and returning money. "I think one of the causes for both is there are too many worries about the macro — all of these factors that are not meant for our industry ... These are things our industry cannot control and certainly cannot predict." Are you saying PE should ignore the macro? "Just worry about the business." Aren't PE-backed businesses impacted by the macro? "If they're being impacted you're paying attention to the business. But I don't know how private equity buys a business that is heavily impacted by tariffs, yet I'm going to pursue it because I'm going to flip a coin on where public policy is going to go. I wouldn't touch that. It's not feasible, unless you want to gamble. "Same thing if you buy a business where, if interest rates go up another 200 basis points you're in trouble. Good luck. You're gambling with people's money." A big PE narrative was that Biden's antitrust regime was chilling sales of tech companies to strategics. Why haven't we seen more exits so far in Trump 2.0? "The new antitrust regime hasn't been tested ... There are still some Sometimes in policy you see a continuation of the past, particularly if you have deals that are still under review from the past administration. And there are a few of those overlapping deals." What is Thoma Bravo's best internal use case for AI? "Summarizing data. But right now there is not a compelling use case we see that will dramatically affect how we add value." Do you think that's just a matter of time? "It could be. Of course we have lots of data from a private equity standpoint, about $30 billion of revenue coming from our software companies — by geography, by deal, by customer — but you don't need an enormous model for all that stuff and a lot of models in the past could predict that information. "Technology is evolutionary in the corporate world, not revolutionary, so it's going to take time." Last year we discussed Thoma Bravo's decision to pass on helping Elon Musk buy Twitter. Yuo felt good about your decision. Now that he's merged X with xAI, do you still feel good about it? "Absolutely. It's not a deal for us."
Yahoo
03-06-2025
- Business
- Yahoo
Thoma Bravo Completes $34.4 Billion Fundraise
Clear Support for Thoma Bravo's Strategy of Investing in Leading Software Companies and Commitment to Returning Liquidity to Investors Across Market Cycles SAN FRANCISCO, MIAMI, LONDON and CHICAGO, June 3, 2025 /PRNewswire/ -- Thoma Bravo, a leading software investment firm, today announced the completion of fundraising for its buyout funds totaling more than $34.4 billion in fund commitments: Thoma Bravo Fund XVI, a $24.3 billion fund, Thoma Bravo Discover Fund V, an $8.1 billion fund, and as previously announced the firm's first dedicated Europe Fund, with approximately €1.8 billion in capital commitments (individually, a "Fund" and collectively, the "Funds"). The fundraise demonstrates strong support from Thoma Bravo's diverse network of investors for the firm's buyout strategies. Each fund significantly exceeded its target. Thoma Bravo Fund XVI and the Europe Fund were oversubscribed and achieved their hard caps and Thoma Bravo Discover V experienced an over 30% increase in commitments from its prior vintage. "We are deeply grateful to our investors for their continued confidence in Thoma Bravo," said Orlando Bravo, a Founder and Managing Partner at Thoma Bravo. "This fundraise is a testament to the strong relationships we've built with our investors over many years and reflects their belief in our ability to drive meaningful results. Their support will enable us to continue delivering on the strategy we have executed for more than two decades – pursuing leading software companies and deploying our strategic and operational expertise to drive innovation and profitable growth." "The successful completion of our fundraise underscores the enduring trust our investors have in Thoma Bravo's approach and team," said Jennifer James, Managing Director, Chief Operating Officer and Head of Investor Relations & Marketing at Thoma Bravo. "All three funds far exceeded their targets, reflecting not only the strength of our investor relationships but also their conviction in our ability to navigate complex markets. We look forward to continuing to be good stewards of our investors' capital as we seek to deliver strong outcomes." Thoma Bravo has had an active 12 months on both the buy and sell side, with buyout fund investments and realizations representing approximately $35 billion in combined enterprise value. The firm has invested in more than 535 software companies, and today, its software portfolio includes over 75 companies that generate approximately $30 billion of annual revenue and employ over 93,000 staff globally. Commitments to the Funds were secured from Thoma Bravo's broad network of global investors, including sovereign wealth funds, public pension funds, multinational corporations, insurance companies, fund-of-funds, endowments, foundations and family offices. Kirkland & Ellis served as legal advisor for the Funds. About Thoma Bravo Thoma Bravo is one of the largest software-focused investors in the world, with approximately $184 billion in assets under management as of March 31, 2025. Through its private equity, growth equity and credit strategies, the firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging Thoma Bravo's deep sector knowledge and strategic and operational expertise, the firm collaborates with its portfolio companies to implement operating best practices and drive growth initiatives. Over the past 20+ years, the firm has acquired or invested in approximately 535 companies representing approximately $275 billion in enterprise value (including control and non-control investments). The firm has offices in Chicago, Dallas, London, Miami, New York and San Francisco. For more information, visit Thoma Bravo's website at Thoma Bravo ContactsMegan Frank +1.212.731.4778 mfrank@ Global Liz Micci / Abigail Farr+1.646.957.2067ThomaBravo-US@ View original content to download multimedia: SOURCE Thoma Bravo Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
London's stock market ‘needs a major shake-up'
The London stock market needs 'major reforms' to compete on the world stage, a US private equity billionaire has said. Orlando Bravo, the managing partner of Thoma Bravo, said reforms were 'long overdue' amid concerns British companies have struggled to attract the same stock market valuations as US rivals. Mr Bravo, whose net worth is estimated at more than $13bn (£9.7bn), said strict rules governing how UK companies can be acquired 'chills the market', making British businesses less attractive to US bidders. He added that stock markets in the UK and the US needed 'major and incredibly overdue' reforms around how information is shared. Thomas Bravo, a US investment business with more than $179bn under management, has taken over several UK-listed companies, fuelling concerns that the London stock market is in crisis. Mr Bravo's comments could be taken as an example of self-interest. However, he argued that making it easier for companies to be taken over would increase stock market valuations in the UK overall, as investors would factor in the possibility of a bid even if deals did not necessarily rise. Mr Bravo said the current takeover rules make it 'very difficult' to do deals. His criticism adds to widespread concerns in the city about an exodus of companies from Britain's stock markets. The UK has seen a flood of companies quit its main market in take-privates or by re-listing in the US. Last year, 88 companies quit the stock market, the highest number in 15 years. One analyst said the UK risked having 'the best regulated graveyard' if it did not shake up its rules. Mr Bravo said the UK had a 'wonderful opportunity' to change its takeover rules to boost the market. There are currently strict rules around how companies disclose and manage approaches by bidders, governed by the Takeover Panel, a city regulator. The private equity baron said rules requiring disclosure of takeover interest meant bidders would consider it simply 'easier to look at some other stock', potentially harming valuations. Rachel Reeves, the Chancellor, has urged Britain's regulators to cut red tape to boost growth. The watchdog has already sought to narrow the scope of deals it oversees. Thoma Bravo bought Darktrace, the British cyber security business launched by entrepreneur Mike Lynch, last year in a $5bn deal. It also owns Sophos, an Oxfordshire cyber security company it took private in a $3.8bn deal in 2019. Mr Bravo said he could consider relisting Darktrace in Britain in the future, despite a lack of public offerings in the UK and fears of an exodus of promising companies to US markets. He said there was a possibility Cambridge-headquartered Darktrace could enjoy a higher valuation in Europe, given a dearth of technology listings in the region. 'Given the lack of assets in that market, Darktrace, if ever we were to list that company again, perhaps we would look at it,' he said. He added it could be 'either' a UK or US public company in future. 'The fact that they are already here [in the UK] that could make sense for it,' he said. Chicago-headquartered Thoma Bravo, which has long focused on cyber security and technology deals, earlier this year closed its first dedicated fund, worth €1.8bn (£1.5bn), aimed at taking over European businesses. The London Stock Exchange declined to comment. The Takeover Panel was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
