© 2024 Thoma Bravo, L.P. All Rights Reserved. * Although believed accurate, statements and data presented herein may contain errors or be incomplete. The historical returns achieved by any fund or any individual investment are not a prediction of future performance or a guarantee of future results, and there can be no assurance that these or comparable returns will be achieved by still unrealized investments individually or in the aggregate. There also can be no assurance that any of the pending transactions referenced herein will occur as described. Thoma Bravo makes no representation or warranty as to the accuracy, completeness or reliability of the articles provided above.
DISCLOSURE: This ESG Report documents activities for calendar year 2023. Information and data included in this report are as of December 31, 2023, unless otherwise noted. Where applicable, we have included an update on activities for 2024. We collected data from all of Thoma Bravo’s majority-owned, active, non-public software and technology-enabled services portfolio companies. Some data points are not tracked by all portfolio companies. Accordingly, some portfolio companies did not provide a response for some data points.
The information provided herein is for informational purposes only and is not an offer of Thoma Bravo’s investment advisory services and does not include any endorsement or testimonial for which Thoma Bravo has provided compensation. Any offer or solicitation regarding Thoma Bravo’s investment advisory services will be made only pursuant to a fund’s confidential private placement memorandum (as may be amended or supplemented, a PPM) and such fund’s agreement of limited partnership (LPA) and subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering.
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By leveraging Coupa’s software, businesses can better align their spending and supply chain decisions with their sustainability goals, reduce their environmental impact and promote ethical and socially responsible practices throughout supply chains.
Supply Chain Design and Planning: Powered by Llamasoft, Coupa’s modeling capabilities help customers make optimal supply chain decisions by analyzing more efficient transportation modes to reduce carbon emissions and optimize sourcing routes.
For example, for Microsoft Data Centers, the Coupa solution enabled Microsoft’s teams to achieve a 60 percent reduction in carbon emissions from North American trucking over the projected baseline in their forward supply chain while supporting growth based on speedy deliveries. This work is being replicated in Europe and other regions of the world as well.
Carbon Emissions Reductions: Coupa’s platform enables customers to benchmark environmental performance against their peers, report their environmental impact and establish policies to help reduce their carbon footprint. Specifically, the platform provides estimations for Scope 3 emissions, Category 1 - Purchased Goods and Services and Category 6 - Business Travel.
In addition to setting ambitious internal climate goals, Coupa has a variety of capabilities across its platform that help customers drive informed decisions around ESG impacts. These include:
Reduce Scope 1 & 2 emissions by 85 percent
Continue annual sourcing of 100 percent renewable electricity
Reduce Scope 3 emissions by 52 percent per million USD value added
In 2024, Coupa partnered with the Science Based Targets initiative, a corporate climate action organization that helps companies and financial institutions worldwide play their part in combating the climate crisis. The Science Based Targets initiative validated Coupa’s FY2041 net zero target and near-term FY2031 climate targets, including:
In response to the challenge presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with its business operations, including reaching net zero emissions by FY2041.
In 2023, Thoma Bravo acquired Coupa Software, a leading AI-driven total spend management platform. Coupa helps companies better manage direct and indirect spend, mitigate third-party and brand risk, and proactively address supply chain volatility, resiliency and sustainability. Coupa’s AI is trained on $6 trillion of economic spend data from a network of 10 million buyers and suppliers around the world. Coupa’s mission is to empower customers, employees and the community to drive durable, profitable growth while maintaining responsible environmental stewardship, ethical decision-making and fair supplier and financial practices.
In response to the challenges presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with their business operations, including reaching net zero emissions by FY2041. Coupa is committed to powering its facilities with 100 percent renewable electricity, empowering employees to take action through their Coupa Green group and integrating environmental justice throughout its climate strategy.
Pioneering Sustainable Spend Management
CASE STUDY
As due diligence around climate and other environmental issues grows, we emphasize relevant environmental areas for our portfolio companies by providing them with peer benchmarks related to GHG emissions, data center usage and oversight of climate risks and opportunities. We have aided our portfolio companies in adopting environmental best practices by offering strategic support, education and training, and connection to third-party providers and resources to build programs that mitigate operational risks and drive lasting sustainability. We are proud of the creative ways in which our portfolio companies are operating more sustainably.
of portfolio companies measure their GHG footprint
33%
ACROSS portfolio companies
Prioritizing environmental sustainability is critical to safeguarding our planet for future generations. Sustainability programs are not only an ethical choice, but such efforts have also been tied to operational efficiencies and cost savings.
We partner with a third-party SaaS provider to measure our greenhouse gas (GHG) emissions footprint, which was 11,877 mtCO2e in 2023. We recognize that our efforts to identify, capture and diminish our carbon footprint serve as an example to our portfolio companies. Thoma Bravo also incorporates sustainability into our business operations and culture by working to eliminate single-use plastic water bottles in our offices, recycling and composting where possible, and volunteering for environmental projects in our communities.
(3) Henisz, Witold, Tim Koller, and Robin Nuttall. "Five ways that ESG creates value." McKinsey Quarterly 4 (2019): 1-12.
(3)
mtCO2e
11,877
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
AT THOMA BRAVO
Environment: Sustainability and Stewardship
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow. We see mentorship as a continuous process that benefits both the mentor and mentee, creating a dynamic way for our people to both learn and lead.
We encourage mentorship through informal and formal programs. Our Partners have an open-door policy, and team members are expected to teach, develop and mentor those junior to them. Formal mentorship programs are available to our Investment and Operations teams. Our Investment Associate Mentorship Program pairs first- and second-year Associates with a mentor, typically a Senior Associate, Vice President or Principal. Mentor-mentee pairs typically meet each month and address a wide variety of topics, including professional growth, skills development, goal setting and deal experience. Associates have said that — through conversations with their mentor — they have been able to navigate different work scenarios, gain industry insight and perspectives, and increase networking opportunities.
In 2024, we launched an Operations Mentorship Program, which pairs mentees with a mentor who is typically outside of their department. The mentor-mentee pairs are expected to meet at least six times per year. In addition to fostering a supportive work culture and developing our talent, the Operations Mentorship Program seeks to strengthen cross-departmental relationships and create a shared responsibility for coaching and advancement across the firm.
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow.
At Thoma Bravo, we believe that people working collaboratively makes all the difference. We pride ourselves on hiring and retaining exceptional and diverse talent to build partnerships for success. We look to develop our employees’ skillsets and leadership abilities. Many of our Partners started at Thoma Bravo as Associates. We aim to offer career growth opportunities, challenging work and a supportive environment across all levels of the organization — with an ability to tangibly contribute and create something significant.
Our demonstrated performance record is driven in part by the value we place on mentorship. Core to Thoma Bravo's culture, mentorship is engrained in who we are and what we do. The firm was formed out of a mentor-mentee relationship when Carl Thoma hired Orlando Bravo at the start of his private equity career and taught him the art of deal-making. As Managing Partners and Co-Founders, Carl and Orlando have continued to make sure that mentorship is a foundational part of our culture.
Fostering a Mentorship Culture
CASE STUDY
At Thoma Bravo, we believe that talent is key to building and growing strong software and technology companies. We measure and track board diversity, and we seek to encourage our portfolio companies to build and develop inclusive workforces.
Our portfolio companies have been committed to collaborative growth, with 93 percent of our reporting portfolio companies administering an employee engagement survey to develop a dialogue between leadership and employees.
Our portfolio companies work to support their people; they have implemented programs that seek to build inclusive communities and track KPIs to measure impact. Health and wellness programs, counseling services, provision of free or subsidized meals, offsite subsidized childcare and onsite childcare are among the most common benefits and programs within our portfolio companies.
We also salute our portfolio companies for the work they do volunteering in the communities where they live and work. Eighty-five percent of our portfolio companies provide opportunities for their employees to engage in community volunteer projects.
of portfolio company boards have at least one woman or underrepresented member
74%
ACROSS portfolio companies
We are intentional about building and developing a diverse talent pipeline. As part of our long-held values, leaders across the firm help our colleagues in their personal development and professional advancement through a variety of formal and informal mentoring opportunities.
We are also committed to expanding access to careers in finance and private equity. Since 2020, we have helped to place over 80 college interns at our portfolio companies through a program we developed in partnership with Sponsors for Educational Opportunity (SEO), a nonprofit dedicated to advancing underserved youth. For the third year running, Thoma Bravo partnered with nine of our portfolio companies in 2023 to help them recruit and hire nearly 30 SEO interns for the summer.
Our firm has a strong tradition of philanthropy and volunteerism, and our employees regularly engage to support our communities through local activities and our Charitable Giving Program. In 2023, Thoma Bravo employees gave back in several ways, including donating to earthquake response efforts in Turkey and Syria and wildfire assistance in Hawaii, supplying and packing go-bags for foster youth in San Francisco, and creating care packages for homeless women and infants in Miami. For the Thanksgiving holiday, our Miami team provided meal kits to more than 300 families, and Chicago and San Francisco employees provided hundreds of gifts for needy families during the winter holiday season.
of leaders identify as an underrepresented racial or ethnic group
22%
(2)
women in leadership positions
30%
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
(2)
AT Thoma Bravo
Social: Diversity and Human Capital
Overall, Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership. By aligning AI initiatives with robust risk management frameworks, Sophos has been able to explore new applications of AI in a sustainable manner, unlocking significant growth opportunities and fueling innovation across the business. Sophos’ approach to governance has enhanced internal operational efficiencies and decision-making processes, helping to reduce costs and accelerate growth. In its product offerings, it has enabled the delivery of valuable AI-powered features and capabilities to customers faster, while also building deep trust and enhancing its reputation as a leader in the cybersecurity space.
Internally, Sophos uses GenAI to innovate and enhance productivity. So that all employees can leverage and use GenAI technology responsibly, Sophos developed a GenAI use policy. The policy includes responsible AI practices and outlines Sophos’ current standards for AI adoption and use. To contribute to the broader dialogue on responsible AI governance, Sophos leveraged its internal GenAI use policy to create a set of recommended guidelines, publicly available in the Sophos Trust Center, to serve as a resource for other organizations.
As an AI native company, AI governance is important to Sophos; its internal GenAI use policy is a small piece of its larger AI governance framework. The company has established a cross-functional AI steering committee — which includes leaders from engineering, product, sales, security, privacy, legal and HR — to help evaluate the opportunities and risks around AI and establish appropriate governance measures for each department. Additionally, Sophos’ AI-enabled products are built following the Sophos Secure Development Lifecycle — a series of activities and roles that the Sophos development teams follow so that each solution is built securely and efficiently. The company shares this process on the Sophos Trust Center to demonstrate its commitment to transparency and to encourage industry adoption of governance practices.
Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership.
Joe Levy, CEO of Sophos, at Thoma Bravo’s AI Summit in May 2024.
Thoma Bravo acquired Sophos, a leader in next-generation cybersecurity, in 2020. While AI has increasingly caught the general public’s attention over the past few years, Sophos has been innovating and leveraging multiple AI technologies since 2016. Today, Sophos delivers a broad portfolio of advanced products and services powered by threat intelligence, AI and machine learning that defend organizations worldwide against ransomware, data breaches, malware, phishing and other devastating cyberattacks. Some of the company’s recent innovations include creating AI-powered workflows, case summarization and command analysis for Sophos’ security analysts, and providing engineering teams with AI-driven tools to accelerate the development process and the pace of new feature delivery.
Setting a Standard for AI Governance
CASE STUDY
of portfolio companies have or are working on a GenAI policy
Many of our portfolio companies have been leveraging traditional AI for years to bring innovative products to market while building and maintaining customer trust. As incumbents in software, we believe that our portfolio companies are uniquely positioned to take advantage of the evolving abilities of AI and GenAI because of their proprietary data, existing distribution channels and mission-critical positions. Our portfolio companies that use AI and GenAI have expressed that they already have been able to create value by widening market opportunities, improving margins and enhancing customer experience.
85%
ACROSS portfolio companies
We believe that AI and generative AI (GenAI) have significant potential to unlock value within the software market. We pride ourselves on our disciplined approach to investing, and we view GenAI and its integration and use at our portfolio companies as another evolution in the software and tech industry that warrants a disciplined approach. As a software investment specialist that has navigated across multiple technological and business model transitions, we are often at the forefront of managing evolving risks and opportunities. This deep domain expertise enables us to share best practices to help drive innovation, profitability and the responsible adoption of GenAI in our portfolio companies. Overall, we view GenAI as an opportunity for our portfolio. In 2023, Thoma Bravo launched a responsible AI learning cohort to help our portfolio companies monitor this rapidly evolving landscape, provide education and share best practices. Through this cohort, we collaborate with our portfolio companies to encourage innovation through AI while also seeking to build safeguards to protect against potential risks.
AT Thoma Bravo
Governance: Artificial Intelligence (AI)
As an investor in leading cybersecurity companies since 2009, Thoma Bravo is acutely aware of the risks posed by cyberattacks to systems, networks and people. As one of the largest cybersecurity investors, we have a portfolio of cyber companies with an enterprise value close to $45 billion that generates a total annual revenue over $5 billion and employs more than 16,000 people. As part of our initial due diligence and throughout our ownership period, we track metrics on our portfolio companies’ cybersecurity policies and adherence to standards. Our 2023 data shows that 100 percent of our reporting portfolio companies have cybersecurity policies and insurance. Due to the nature of the software and tech industry, the majority of our portfolio companies collect personally identifiable information (PII). Of those companies, 100 percent have PII data policies and 100 percent have implemented best-in-class cybersecurity standards, including but not limited to ISO 27001, ISO 27002 and/or NIST CSF.
of portfolio companies abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
100%
ACROSS portfolio companies
As cyberthreats continue to grow in frequency and sophistication, cybersecurity remains an ongoing commitment at the firm, not a one-time task. Our own internal oversight practices include a Cyber Incident Response policy, an Information Security policy, training for all new hires, randomized simulated phishing tests, tabletop incident response planning sessions, penetration tests and vulnerability scans.
AT Thoma Bravo
Governance: Cybersecurity
and Data Privacy
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
33%
measure their GHG footprint
ENVIRONMENT
85%
offer their employees some type of community involvement program
93%
conduct an employee engagement survey
100%
offer their employees some type of employee wellness program
SOCIAL
74%
of boards have at least one woman or member of an underrepresented racial or ethnic group
100%
have a Non-Discrimination and/or Harassment policy
100%
abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
85%
have or are working on a generative AI (GenAI) policy
87%
have a Health and Safety policy and/or training
100%
have a Code of Ethics
GOVERNANCE
ACROSS Our Portfolio
ENVIRONMENT
11,877
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
Carbon footprint measurement stats at a glance
45%
of employees are women
30%
women in leadership positions
32%
of employees identify as an underrepresented racial or ethnic group
22%
of those in leadership identify as an underrepresented racial or ethnic group
(2)
(2)
SOCIAL
ESG Policy
Health and Safety Policy
AI Guidelines
Data Privacy Policy
Code of Ethics
Non-Discrimination / Harassment Policy
GOVERNANCE
This dashboard reflects a non-exhaustive list of policies in place at Thoma Bravo.
ESG Dashboard
At Thoma Bravo
REPORT
ENGAGE
BENCHMARK
DILIGENCE
In an effort to share Thoma Bravo and portfolio company ESG metrics transparently, we publish an annual ESG report and participate in the United Nations Principles for Responsible Investment (UN PRI), among other industry disclosures.
Report
REPORT
Our collaboration with portfolio company management teams includes our support of portfolio companies in management of ESG risks and opportunities as appropriate. This may include making introductions to peers, creating connections with subject matter experts or leveraging partnerships with consultants and tools.
Engage
ENGAGE
The collection of data is an essential component of our ESG program. We have developed, starting with the data collected in 2023, a system of internal portfolio company scorecards in an effort to help our companies benchmark against their peers and navigate board-level ESG discussions.
Benchmark
BENCHMARK
We train our teams to help them identify material ESG factors that can form part of the evaluation of an investment opportunity; we believe the consideration of ESG factors in our investment due diligence process can enhance our ability to identify opportunities and areas of risk of an investment. With assistance from our external advisors, we seek to conduct a thorough due-diligence process, document identified ESG risks or opportunities, and determine potential ESG courses of action, as needed, in partnership with our deal team and the portfolio company’s senior management.
Diligence
DILIGENCE
(1) Includes control and non-control investments
Thoma Bravo’s mission is to deliver superior value to our investors by forming collaborative partnerships with management teams that produce operational excellence and drive innovation. As of December 31, 2023, our firm had over $138 billion in assets under management and had acquired or invested in more than 465 software and technology companies representing approximately $260 billion of value.
Thoma Bravo recognizes that ESG may present regulatory, market, reputational, and operational risks and opportunities for consideration when making an investment decision and during the ownership of a portfolio company investment. Additionally, we understand that we have a role in influencing the impact our software and technology portfolio companies have on society. Through our ESG strategy, Thoma Bravo strives to integrate the consideration and thoughtful management of ESG risks and opportunities during the investment cycle to help build responsible and sustainable business practices. Our ESG strategy adheres to the following process:
(1)
Thoma Bravo’s Purpose and ESG Strategy
2023 Thoma Bravo ESG Report
2023 ESG Report
Thoma Bravo’s Purpose and ESG Strategy
ESG Dashboard
Governance: Cybersecurity and Data Privacy
Governance: Artificial Intelligence
Case Study: Sophos
Social: Diversity and Human Capital
Case Study: Thoma Bravo
Environment: Sustainability AND Stewardship
Case Study: Coupa
© 2024 Thoma Bravo, L.P. All Rights Reserved. * Although believed accurate, statements and data presented herein may contain errors or be incomplete. The historical returns achieved by any fund or any individual investment are not a prediction of future performance or a guarantee of future results, and there can be no assurance that these or comparable returns will be achieved by still unrealized investments individually or in the aggregate. There also can be no assurance that any of the pending transactions referenced herein will occur as described. Thoma Bravo makes no representation or warranty as to the accuracy, completeness or reliability of the articles provided above.
DISCLOSURE: This ESG Report documents activities for calendar year 2023. Information and data included in this report are as of December 31, 2023, unless otherwise noted. Where applicable, we have included an update on activities for 2024. We collected data from all of Thoma Bravo’s majority-owned, active, non-public software and technology-enabled services portfolio companies. Some data points are not tracked by all portfolio companies. Accordingly, some portfolio companies did not provide a response for some data points.
The information provided herein is for informational purposes only and is not an offer of Thoma Bravo’s investment advisory services and does not include any endorsement or testimonial for which Thoma Bravo has provided compensation. Any offer or solicitation regarding Thoma Bravo’s investment advisory services will be made only pursuant to a fund’s confidential private placement memorandum (as may be amended or supplemented, a PPM) and such fund’s agreement of limited partnership (LPA) and subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering.
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SFDR Disclosure
CHICAGO
110 N. Wacker Drive
32nd Floor
Chicago, IL 60606
+1 (312) 254-3300
LONDON
Norfolk House
31 St. James’s Square
6th Floor
London, SW1Y 4JR
UK
MIAMI
2916 N. Miami Avenue
Suite 920
Miami, FL 33127
Interim space
+1 (786) 785-5800
NEW YORK
375 Park Avenue
Suite 2301
New York, NY 10022
Interim space
+1 (212) 292-7070
SAN FRANCISCO
One Market Plaza
Spear Tower
Suite 2400
San Francisco, CA 94105
+1 (415) 263-3660
Download the PDF
By leveraging Coupa’s software, businesses can better align their spending and supply chain decisions with their sustainability goals, reduce their environmental impact and promote ethical and socially responsible practices throughout supply chains.
Supply Chain Design and Planning: Powered by Llamasoft, Coupa’s modeling capabilities help customers make optimal supply chain decisions by analyzing more efficient transportation modes to reduce carbon emissions and optimize sourcing routes.
For example, for Microsoft Data Centers, the Coupa solution enabled Microsoft’s teams to achieve a 60 percent reduction in carbon emissions from North American trucking over the projected baseline in their forward supply chain while supporting growth based on speedy deliveries. This work is being replicated in Europe and other regions of the world as well.
Carbon Emissions Reductions: Coupa’s platform enables customers to benchmark environmental performance against their peers, report their environmental impact and establish policies to help reduce their carbon footprint. Specifically, the platform provides estimations for Scope 3 emissions, Category 1 - Purchased Goods and Services and Category 6 - Business Travel.
In addition to setting ambitious internal climate goals, Coupa has a variety of capabilities across its platform that help customers drive informed decisions around ESG impacts. These include:
Reduce Scope 1 & 2 emissions by 85 percent
Continue annual sourcing of 100 percent renewable electricity
Reduce Scope 3 emissions by 52 percent per million USD value added
In 2024, Coupa partnered with the Science Based Targets initiative, a corporate climate action organization that helps companies and financial institutions worldwide play their part in combating the climate crisis. The Science Based Targets initiative validated Coupa’s FY2041 net zero target and near-term FY2031 climate targets, including:
In response to the challenge presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with its business operations, including reaching net zero emissions by FY2041.
In 2023, Thoma Bravo acquired Coupa Software, a leading AI-driven total spend management platform. Coupa helps companies better manage direct and indirect spend, mitigate third-party and brand risk, and proactively address supply chain volatility, resiliency and sustainability. Coupa’s AI is trained on $6 trillion of economic spend data from a network of 10 million buyers and suppliers around the world. Coupa’s mission is to empower customers, employees and the community to drive durable, profitable growth while maintaining responsible environmental stewardship, ethical decision-making and fair supplier and financial practices.
In response to the challenges presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with their business operations, including reaching net zero emissions by FY2041. Coupa is committed to powering its facilities with 100 percent renewable electricity, empowering employees to take action through their Coupa Green group and integrating environmental justice throughout its climate strategy.
Pioneering Sustainable Spend Management
CASE STUDY
As due diligence around climate and other environmental issues grows, we emphasize relevant environmental areas for our portfolio companies by providing them with peer benchmarks related to GHG emissions, data center usage and oversight of climate risks and opportunities. We have aided our portfolio companies in adopting environmental best practices by offering strategic support, education and training, and connection to third-party providers and resources to build programs that mitigate operational risks and drive lasting sustainability. We are proud of the creative ways in which our portfolio companies are operating more sustainably.
of portfolio companies measure their GHG footprint
33%
ACROSS portfolio companies
Prioritizing environmental sustainability is critical to safeguarding our planet for future generations. Sustainability programs are not only an ethical choice, but such efforts have also been tied to operational efficiencies and cost savings.
We partner with a third-party SaaS provider to measure our greenhouse gas (GHG) emissions footprint, which was 11,877 mtCO2e in 2023. We recognize that our efforts to identify, capture and diminish our carbon footprint serve as an example to our portfolio companies. Thoma Bravo also incorporates sustainability into our business operations and culture by working to eliminate single-use plastic water bottles in our offices, recycling and composting where possible, and volunteering for environmental projects in our communities.
(3) Henisz, Witold, Tim Koller, and Robin Nuttall. "Five ways that ESG creates value." McKinsey Quarterly 4 (2019): 1-12.
(3)
mtCO2e
11,877
(2)
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
AT THOMA BRAVO
Environment: Sustainability and Stewardship
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow. We see mentorship as a continuous process that benefits both the mentor and mentee, creating a dynamic way for our people to both learn and lead.
We encourage mentorship through informal and formal programs. Our Partners have an open-door policy, and team members are expected to teach, develop and mentor those junior to them. Formal mentorship programs are available to our Investment and Operations teams. Our Investment Associate Mentorship Program pairs first- and second-year Associates with a mentor, typically a Senior Associate, Vice President or Principal. Mentor-mentee pairs typically meet each month and address a wide variety of topics, including professional growth, skills development, goal setting and deal experience. Associates have said that — through conversations with their mentor — they have been able to navigate different work scenarios, gain industry insight and perspectives, and increase networking opportunities.
In 2024, we launched an Operations Mentorship Program, which pairs mentees with a mentor who is typically outside of their department. The mentor-mentee pairs are expected to meet at least six times per year. In addition to fostering a supportive work culture and developing our talent, the Operations Mentorship Program seeks to strengthen cross-departmental relationships and create a shared responsibility for coaching and advancement across the firm.
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow.
At Thoma Bravo, we believe that people working collaboratively makes all the difference. We pride ourselves on hiring and retaining exceptional and diverse talent to build partnerships for success. We look to develop our employees’ skillsets and leadership abilities. Many of our Partners started at Thoma Bravo as Associates. We aim to offer career growth opportunities, challenging work and a supportive environment across all levels of the organization — with an ability to tangibly contribute and create something significant.
Our demonstrated performance record is driven in part by the value we place on mentorship. Core to Thoma Bravo's culture, mentorship is engrained in who we are and what we do. The firm was formed out of a mentor-mentee relationship when Carl Thoma hired Orlando Bravo at the start of his private equity career and taught him the art of deal-making. As Managing Partners and Co-Founders, Carl and Orlando have continued to make sure that mentorship is a foundational part of our culture.
Fostering a Mentorship Culture
CASE STUDY
At Thoma Bravo, we believe that talent is key to building and growing strong software and technology companies. We measure and track board diversity, and we seek to encourage our portfolio companies to build and develop inclusive workforces.
Our portfolio companies have been committed to collaborative growth, with 93 percent of our reporting portfolio companies administering an employee engagement survey to develop a dialogue between leadership and employees.
Our portfolio companies work to support their people; they have implemented programs that seek to build inclusive communities and track KPIs to measure impact. Health and wellness programs, counseling services, provision of free or subsidized meals, offsite subsidized childcare and onsite childcare are among the most common benefits and programs within our portfolio companies.
We also salute our portfolio companies for the work they do volunteering in the communities where they live and work. Eighty-five percent of our portfolio companies provide opportunities for their employees to engage in community volunteer projects.
of portfolio company boards have at least one woman or underrepresented member
74%
ACROSS portfolio companies
We are intentional about building and developing a diverse talent pipeline. As part of our long-held values, leaders across the firm help our colleagues in their personal development and professional advancement through a variety of formal and informal mentoring opportunities.
We are also committed to expanding access to careers in finance and private equity. Since 2020, we have helped to place over 80 college interns at our portfolio companies through a program we developed in partnership with Sponsors for Educational Opportunity (SEO), a nonprofit dedicated to advancing underserved youth. For the third year running, Thoma Bravo partnered with nine of our portfolio companies in 2023 to help them recruit and hire nearly 30 SEO interns for the summer.
Our firm has a strong tradition of philanthropy and volunteerism, and our employees regularly engage to support our communities through local activities and our Charitable Giving Program. In 2023, Thoma Bravo employees gave back in several ways, including donating to earthquake response efforts in Turkey and Syria and wildfire assistance in Hawaii, supplying and packing go-bags for foster youth in San Francisco, and creating care packages for homeless women and infants in Miami. For the Thanksgiving holiday, our Miami team provided meal kits to more than 300 families, and Chicago and San Francisco employees provided hundreds of gifts for needy families during the winter holiday season.
of leaders identify as an underrepresented racial or ethnic group
22%
(2)
women in leadership positions
30%
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
(2)
AT Thoma Bravo
Social: Diversity and Human Capital
Overall, Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership. By aligning AI initiatives with robust risk management frameworks, Sophos has been able to explore new applications of AI in a sustainable manner, unlocking significant growth opportunities and fueling innovation across the business. Sophos’ approach to governance has enhanced internal operational efficiencies and decision-making processes, helping to reduce costs and accelerate growth. In its product offerings, it has enabled the delivery of valuable AI-powered features and capabilities to customers faster, while also building deep trust and enhancing its reputation as a leader in the cybersecurity space.
Internally, Sophos uses GenAI to innovate and enhance productivity. So that all employees can leverage and use GenAI technology responsibly, Sophos developed a GenAI use policy. The policy includes responsible AI practices and outlines Sophos’ current standards for AI adoption and use. To contribute to the broader dialogue on responsible AI governance, Sophos leveraged its internal GenAI use policy to create a set of recommended guidelines, publicly available in the Sophos Trust Center, to serve as a resource for other organizations.
As an AI native company, AI governance is important to Sophos; its internal GenAI use policy is a small piece of its larger AI governance framework. The company has established a cross-functional AI steering committee — which includes leaders from engineering, product, sales, security, privacy, legal and HR — to help evaluate the opportunities and risks around AI and establish appropriate governance measures for each department. Additionally, Sophos’ AI-enabled products are built following the Sophos Secure Development Lifecycle — a series of activities and roles that the Sophos development teams follow so that each solution is built securely and efficiently. The company shares this process on the Sophos Trust Center to demonstrate its commitment to transparency and to encourage industry adoption of governance practices.
Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership.
Joe Levy, CEO of Sophos, at Thoma Bravo’s AI Summit in May 2024.
Thoma Bravo acquired Sophos, a leader in next-generation cybersecurity, in 2020. While AI has increasingly caught the general public’s attention over the past few years, Sophos has been innovating and leveraging multiple AI technologies since 2016. Today, Sophos delivers a broad portfolio of advanced products and services powered by threat intelligence, AI and machine learning that defend organizations worldwide against ransomware, data breaches, malware, phishing and other devastating cyberattacks. Some of the company’s recent innovations include creating AI-powered workflows, case summarization and command analysis for Sophos’ security analysts, and providing engineering teams with AI-driven tools to accelerate the development process and the pace of new feature delivery.
Setting a Standard for AI Governance
CASE STUDY
of portfolio companies have or are working on a GenAI policy
Many of our portfolio companies have been leveraging traditional AI for years to bring innovative products to market while building and maintaining customer trust. As incumbents in software, we believe that our portfolio companies are uniquely positioned to take advantage of the evolving abilities of AI and GenAI because of their proprietary data, existing distribution channels and mission-critical positions. Our portfolio companies that use AI and GenAI have expressed that they already have been able to create value by widening market opportunities, improving margins and enhancing customer experience.
(4)
85%
ACROSS portfolio companies
We believe that AI and generative AI (GenAI) have significant potential to unlock value within the software market. We pride ourselves on our disciplined approach to investing, and we view GenAI and its integration and use at our portfolio companies as another evolution in the software and tech industry that warrants a disciplined approach. As a software investment specialist that has navigated across multiple technological and business model transitions, we are often at the forefront of managing evolving risks and opportunities. This deep domain expertise enables us to share best practices to help drive innovation, profitability and the responsible adoption of GenAI in our portfolio companies. Overall, we view GenAI as an opportunity for our portfolio. In 2023, Thoma Bravo launched a responsible AI learning cohort to help our portfolio companies monitor this rapidly evolving landscape, provide education and share best practices. Through this cohort, we collaborate with our portfolio companies to encourage innovation through AI while also seeking to build safeguards to protect against potential risks.
AT Thoma Bravo
Governance: Artificial Intelligence (AI)
As an investor in leading cybersecurity companies since 2009, Thoma Bravo is acutely aware of the risks posed by cyberattacks to systems, networks and people. As one of the largest cybersecurity investors, we have a portfolio of cyber companies with an enterprise value close to $45 billion that generates a total annual revenue over $5 billion and employs more than 16,000 people. As part of our initial due diligence and throughout our ownership period, we track metrics on our portfolio companies’ cybersecurity policies and adherence to standards. Our 2023 data shows that 100 percent of our reporting portfolio companies have cybersecurity policies and insurance. Due to the nature of the software and tech industry, the majority of our portfolio companies collect personally identifiable information (PII). Of those companies, 100 percent have PII data policies and 100 percent have implemented best-in-class cybersecurity standards, including but not limited to ISO 27001, ISO 27002 and/or NIST CSF.
of portfolio companies abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
100%
ACROSS portfolio companies
As cyberthreats continue to grow in frequency and sophistication, cybersecurity remains an ongoing commitment at the firm, not a one-time task. Our own internal oversight practices include a Cyber Incident Response policy, an Information Security policy, training for all new hires, randomized simulated phishing tests, tabletop incident response planning sessions, penetration tests and vulnerability scans.
AT Thoma Bravo
Governance: Cybersecurity and Data Privacy
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
33%
measure their GHG footprint
ENVIRONMENT
85%
offer their employees some type of community involvement program
93%
conduct an employee engagement survey
100%
offer their employees some type of employee wellness program
SOCIAL
74%
of boards have at least one woman or member of an underrepresented racial or ethnic group
100%
have a Non-Discrimination and/or Harassment policy
100%
abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
85%
have or are working on a generative AI (GenAI) policy
87%
have a Health and Safety policy and/or training
100%
have a Code of Ethics
GOVERNANCE
55
Portfolio Companies
48
Control Investments
ACROSS Our Portfolio
ENVIRONMENT
11,877
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
Carbon footprint measurement stats at a glance
45%
of employees are women
30%
women in leadership positions
32%
of employees identify as an underrepresented racial or ethnic group
22%
of those in leadership identify as an underrepresented racial or ethnic group
(2)
(2)
SOCIAL
At Thoma Bravo
ESG Policy
Health and Safety Policy
AI Guidelines
Data Privacy Policy
Code of Ethics
Non-Discrimination / Harassment Policy
GOVERNANCE
This dashboard reflects a non-exhaustive list of policies in place at Thoma Bravo.
ESG Dashboard
Thoma Bravo’s mission is to deliver superior value to our investors by forming collaborative partnerships with management teams that produce operational excellence and drive innovation. As of December 31, 2023, our firm had over $138 billion in assets under management and had acquired or invested in more than 465 software and technology companies representing approximately $260 billion of value.
Thoma Bravo recognizes that ESG may present regulatory, market, reputational, and operational risks and opportunities for consideration when making an investment decision and during the ownership of a portfolio company investment. Additionally, we understand that we have a role in influencing the impact our software and technology portfolio companies have on society. Through our ESG strategy, Thoma Bravo strives to integrate the consideration and thoughtful management of ESG risks and opportunities during the investment cycle to help build responsible and sustainable business practices. Our ESG strategy adheres to the following process:
(1) Includes control and non-control investments
(1)
REPORT
ENGAGE
BENCHMARK
DILIGENCE
In an effort to share Thoma Bravo and portfolio company ESG metrics transparently, we publish an annual ESG report and participate in the United Nations Principles for Responsible Investment (UN PRI), among other industry disclosures.
Report
REPORT
Our collaboration with portfolio company management teams includes our support of portfolio companies in management of ESG risks and opportunities as appropriate. This may include making introductions to peers, creating connections with subject matter experts or leveraging partnerships with consultants and tools.
Engage
ENGAGE
The collection of data is an essential component of our ESG program. We have developed, starting with the data collected in 2023, a system of internal portfolio company scorecards in an effort to help our companies benchmark against their peers and navigate board-level ESG discussions.
Benchmark
BENCHMARK
We train our teams to help them identify material ESG factors that can form part of the evaluation of an investment opportunity; we believe the consideration of ESG factors in our investment due diligence process can enhance our ability to identify opportunities and areas of risk of an investment. With assistance from our external advisors, we seek to conduct a thorough due-diligence process, document identified ESG risks or opportunities, and determine potential ESG courses of action, as needed, in partnership with our deal team and the portfolio company’s senior management.
Diligence
DILIGENCE
Thoma Bravo’s Purpose and ESG Strategy
2023 Thoma Bravo ESG Report
Environmental, Social & Governance (ESG) Report
2023 ESG Report
Thoma Bravo’s Purpose and ESG Strategy
ESG Dashboard
Governance: Cybersecurity and Data Privacy
Governance: Artificial Intelligence
Case Study: Sophos
Social: Diversity and Human Capital
Case Study: Thoma Bravo
Environment: Sustainability AND Stewardship
Case Study: Coupa
© 2024 Thoma Bravo, L.P. All Rights Reserved. * Although believed accurate, statements and data presented herein may contain errors or be incomplete. The historical returns achieved by any fund or any individual investment are not a prediction of future performance or a guarantee of future results, and there can be no assurance that these or comparable returns will be achieved by still unrealized investments individually or in the aggregate. There also can be no assurance that any of the pending transactions referenced herein will occur as described. Thoma Bravo makes no representation or warranty as to the accuracy, completeness or reliability of the articles provided above.
DISCLOSURE: This ESG Report documents activities for calendar year 2023. Information and data included in this report are as of December 31, 2023, unless otherwise noted. Where applicable, we have included an update on activities for 2024. We collected data from all of Thoma Bravo’s majority-owned, active, non-public software and technology-enabled services portfolio companies. Some data points are not tracked by all portfolio companies. Accordingly, some portfolio companies did not provide a response for some data points.
The information provided herein is for informational purposes only and is not an offer of Thoma Bravo’s investment advisory services and does not include any endorsement or testimonial for which Thoma Bravo has provided compensation. Any offer or solicitation regarding Thoma Bravo’s investment advisory services will be made only pursuant to a fund’s confidential private placement memorandum (as may be amended or supplemented, a PPM) and such fund’s agreement of limited partnership (LPA) and subscription documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering.
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By leveraging Coupa’s software, businesses can better align their spending and supply chain decisions with their sustainability goals, reduce their environmental impact and promote ethical and socially responsible practices throughout supply chains.
Supply Chain Design and Planning: Powered by Llamasoft, Coupa’s modeling capabilities help customers make optimal supply chain decisions by analyzing more efficient transportation modes to reduce carbon emissions and optimize sourcing routes.
For example, for Microsoft Data Centers, the Coupa solution enabled Microsoft’s teams to achieve a 60 percent reduction in carbon emissions from North American trucking over the projected baseline in their forward supply chain while supporting growth based on speedy deliveries. This work is being replicated in Europe and other regions of the world as well.
Carbon Emissions Reductions: Coupa’s platform enables customers to benchmark environmental performance against their peers, report their environmental impact and establish policies to help reduce their carbon footprint. Specifically, the platform provides estimations for Scope 3 emissions, Category 1 - Purchased Goods and Services and Category 6 - Business Travel.
In addition to setting ambitious internal climate goals, Coupa has a variety of capabilities across its platform that help customers drive informed decisions around ESG impacts. These include:
Reduce Scope 1 & 2 emissions by 85 percent
Continue annual sourcing of 100 percent renewable electricity
Reduce Scope 3 emissions by 52 percent per million USD value added
In 2024, Coupa partnered with the Science Based Targets initiative, a corporate climate action organization that helps companies and financial institutions worldwide play their part in combating the climate crisis. The Science Based Targets initiative validated Coupa’s FY2041 net zero target and near-term FY2031 climate targets, including:
In response to the challenge presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with its business operations, including reaching net zero emissions by FY2041.
In 2023, Thoma Bravo acquired Coupa Software, a leading AI-driven total spend management platform. Coupa helps companies better manage direct and indirect spend, mitigate third-party and brand risk, and proactively address supply chain volatility, resiliency and sustainability. Coupa’s AI is trained on $6 trillion of economic spend data from a network of 10 million buyers and suppliers around the world. Coupa’s mission is to empower customers, employees and the community to drive durable, profitable growth while maintaining responsible environmental stewardship, ethical decision-making and fair supplier and financial practices.
In response to the challenges presented by climate change, Coupa has built an industry-leading sustainability program focused on measurable and quantifiable targets aligned with their business operations,
including reaching net zero emissions by FY2041. Coupa is committed to powering its facilities with 100 percent renewable electricity, empowering employees to take action through their Coupa Green group and integrating environmental justice throughout its climate strategy.
Pioneering Sustainable Spend Management
CASE STUDY
As due diligence around climate and other environmental issues grows, we emphasize relevant environmental areas for our portfolio companies by providing them with peer benchmarks related to GHG emissions, data center usage and oversight of climate risks and opportunities. We have aided our portfolio companies in adopting environmental best practices by offering strategic support, education and training, and connection to third-party providers and resources to build programs that mitigate operational risks and drive lasting sustainability. We are proud of the creative ways in which our portfolio companies are operating more sustainably.
of portfolio companies measure their GHG footprint
33%
ACROSS portfolio companies
Prioritizing environmental sustainability is critical to safeguarding our planet for future generations. Sustainability programs are not only an ethical choice, but such efforts have also been tied to operational efficiencies and cost savings.
We partner with a third-party SaaS provider to measure our greenhouse gas (GHG) emissions footprint, which was 11,877 mtCO2e in 2023. We recognize that our efforts to identify, capture and diminish our carbon footprint serve as an example to our portfolio companies. Thoma Bravo also incorporates sustainability into our business operations and culture by working to eliminate single-use plastic water bottles in our offices, recycling and composting where possible, and volunteering for environmental projects in our communities.
(3) Henisz, Witold, Tim Koller, and Robin Nuttall. "Five ways that ESG creates value." McKinsey Quarterly 4 (2019): 1-12.
(3)
mtCO2e
11,877
(2)
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
AT THOMA BRAVO
Environment: Sustainability and Stewardship
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow. We see mentorship as a continuous process that benefits both the mentor and mentee, creating a dynamic way for our people to both learn and lead.
We encourage mentorship through informal and formal programs. Our Partners have an open-door policy, and team members are expected to teach, develop and mentor those junior to them. Formal mentorship programs are available to our Investment and Operations teams. Our Investment Associate Mentorship Program pairs first- and second-year Associates with a mentor, typically a Senior Associate, Vice President or Principal. Mentor-mentee pairs typically meet each month and address a wide variety of topics, including professional growth, skills development, goal setting and deal experience. Associates have said that — through conversations with their mentor — they have been able to navigate different work scenarios, gain industry insight and perspectives, and increase networking opportunities.
In 2024, we launched an Operations Mentorship Program, which pairs mentees with a mentor who is typically outside of their department. The mentor-mentee pairs are expected to meet at least six times per year. In addition to fostering a supportive work culture and developing our talent, the Operations Mentorship Program seeks to strengthen cross-departmental relationships and create a shared responsibility for coaching and advancement across the firm.
Our commitment to our culture of mentorship has been a key component of the firm’s enduring success and remains pivotal as we grow.
At Thoma Bravo, we believe that people working collaboratively makes all the difference. We pride ourselves on hiring and retaining exceptional and diverse talent to build partnerships for success. We look to develop our employees’ skillsets and leadership abilities. Many of our Partners started at Thoma Bravo as Associates. We aim to offer career growth opportunities, challenging work and a supportive environment across all levels of the organization — with an ability to tangibly contribute and create something significant.
Our demonstrated performance record is driven in part by the value we place on mentorship. Core to Thoma Bravo's culture, mentorship is engrained in who we are and what we do. The firm was formed out of a mentor-mentee relationship when Carl Thoma hired Orlando Bravo at the start of his private equity career and taught him the art of deal-making. As Managing Partners and Co-Founders, Carl and Orlando have continued to make sure that mentorship is a foundational part of our culture.
Fostering a Mentorship Culture
CASE STUDY
At Thoma Bravo, we believe that talent is key to building and growing strong software and technology companies. We measure and track board diversity, and we seek to encourage our portfolio companies to build and develop inclusive workforces.
Our portfolio companies have been committed to collaborative growth, with 93 percent of our reporting portfolio companies administering an employee engagement survey to develop a dialogue between leadership and employees.
Our portfolio companies work to support their people; they have implemented programs that seek to build inclusive communities and track KPIs to measure impact. Health and wellness programs, counseling services, provision of free or subsidized meals, offsite subsidized childcare and onsite childcare are among the most common benefits and programs within our portfolio companies.
We also salute our portfolio companies for the work they do volunteering in the communities where they live and work. Eighty-five percent of our portfolio companies provide opportunities for their employees to engage in community volunteer projects.
of portfolio company boards have at least one woman or underrepresented member
74%
ACROSS portfolio companies
We are intentional about building and developing a diverse talent pipeline. As part of our long-held values, leaders across the firm help our colleagues in their personal development and professional advancement through a variety of formal and informal mentoring opportunities.
We are also committed to expanding access to careers in finance and private equity. Since 2020, we have helped to place over 80 college interns at our portfolio companies through a program we developed in partnership with Sponsors for Educational Opportunity (SEO), a nonprofit dedicated to advancing underserved youth. For the third year running, Thoma Bravo partnered with nine of our portfolio companies in 2023 to help them recruit and hire nearly 30 SEO interns for the summer.
Our firm has a strong tradition of philanthropy and volunteerism, and our employees regularly engage to support our communities through local activities and our Charitable Giving Program. In 2023, Thoma Bravo employees gave back in several ways, including donating to earthquake response efforts in Turkey and Syria and wildfire assistance in Hawaii, supplying and packing go-bags for foster youth in San Francisco, and creating care packages for homeless women and infants in Miami. For the Thanksgiving holiday, our Miami team provided meal kits to more than 300 families, and Chicago and San Francisco employees provided hundreds of gifts for needy families during the winter holiday season.
of leaders identify as an underrepresented racial or ethnic group
22%
(2)
women in leadership positions
30%
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
(2)
AT Thoma Bravo
Social: Diversity and Human Capital
Overall, Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership. By aligning AI initiatives with robust risk management frameworks, Sophos has been able to explore new applications of AI in a sustainable manner, unlocking significant growth opportunities and fueling innovation across the business. Sophos’ approach to governance has enhanced internal operational efficiencies and decision-making processes, helping to reduce costs and accelerate growth. In its product offerings, it has enabled the delivery of valuable AI-powered features and capabilities to customers faster, while also building deep trust and enhancing its reputation as a leader in the cybersecurity space.
Internally, Sophos uses GenAI to innovate and enhance productivity. So that all employees can leverage and use GenAI technology responsibly, Sophos developed a GenAI use policy. The policy includes responsible AI practices and outlines Sophos’ current standards for AI adoption and use. To contribute to the broader dialogue on responsible AI governance, Sophos leveraged its internal GenAI use policy to create a set of recommended guidelines, publicly available in the Sophos Trust Center, to serve as a resource for other organizations.
As an AI native company, AI governance is important to Sophos; its internal GenAI use policy is a small piece of its larger AI governance framework. The company has established a cross-functional AI steering committee — which includes leaders from engineering, product, sales, security, privacy, legal and HR — to help evaluate the opportunities and risks around AI and establish appropriate governance measures for each department. Additionally, Sophos’ AI-enabled products are built following the Sophos Secure Development Lifecycle — a series of activities and roles that the Sophos development teams follow so that each solution is built securely and efficiently. The company shares this process on the Sophos Trust Center to demonstrate its commitment to transparency and to encourage industry adoption of governance practices.
Sophos’ focus on credible AI governance and implementation has provided an edge that helps to strengthen its business value and market leadership.
Joe Levy, CEO of Sophos, at Thoma Bravo’s AI Summit in May 2024.
Thoma Bravo acquired Sophos, a leader in next-generation cybersecurity, in 2020. While AI has increasingly caught the general public’s attention over the past few years, Sophos has been innovating and leveraging multiple AI technologies since 2016. Today, Sophos delivers a broad portfolio of advanced products and services powered by threat intelligence, AI and machine learning that defend organizations worldwide against ransomware, data breaches, malware, phishing and other devastating cyberattacks. Some of the company’s recent innovations include creating AI-powered workflows, case summarization and command analysis for Sophos’ security analysts, and providing engineering teams with AI-driven tools to accelerate the development process and the pace of new feature delivery.
Setting a Standard for AI Governance
CASE STUDY
of portfolio companies have or are working on a GenAI policy
Many of our portfolio companies have been leveraging traditional AI for years to bring innovative products to market while building and maintaining customer trust. As incumbents in software, we believe that our portfolio companies are uniquely positioned to take advantage of the evolving abilities of AI and GenAI because of their proprietary data, existing distribution channels and mission-critical positions. Our portfolio companies that use AI and GenAI have expressed that they already have been able to create value by widening market opportunities, improving margins and enhancing customer experience.
(4)
85%
ACROSS portfolio companies
We believe that AI and generative AI (GenAI) have significant potential to unlock value within the software market. We pride ourselves on our disciplined approach to investing, and we view GenAI and its integration and use at our portfolio companies as another evolution in the software and tech industry that warrants a disciplined approach. As a software investment specialist that has navigated across multiple technological and business model transitions, we are often at the forefront of managing evolving risks and opportunities. This deep domain expertise enables us to share best practices to help drive innovation, profitability and the responsible adoption of GenAI in our portfolio companies. Overall, we view GenAI as an opportunity for our portfolio. In 2023, Thoma Bravo launched a responsible AI learning cohort to help our portfolio companies monitor this rapidly evolving landscape, provide education and share best practices. Through this cohort, we collaborate with our portfolio companies to encourage innovation through AI while also seeking to build safeguards to protect against potential risks.
AT Thoma Bravo
Governance: Artificial Intelligence (AI)
As an investor in leading cybersecurity companies since 2009, Thoma Bravo is acutely aware of the risks posed by cyberattacks to systems, networks and people. As one of the largest cybersecurity investors, we have a portfolio of cyber companies with an enterprise value close to $45 billion that generates a total annual revenue over $5 billion and employs more than 16,000 people. As part of our initial due diligence and throughout our ownership period, we track metrics on our portfolio companies’ cybersecurity policies and adherence to standards. Our 2023 data shows that 100 percent of our reporting portfolio companies have cybersecurity policies and insurance. Due to the nature of the software and tech industry, the majority of our portfolio companies collect personally identifiable information (PII). Of those companies, 100 percent have PII data policies and 100 percent have implemented best-in-class cybersecurity standards, including but not limited to ISO 27001, ISO 27002 and/or NIST CSF.
of portfolio companies abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
100%
ACROSS portfolio companies
As cyberthreats continue to grow in frequency and sophistication, cybersecurity remains an ongoing commitment at the firm, not a one-time task. Our own internal oversight practices include a Cyber Incident Response policy, an Information Security policy, training for all new hires, randomized simulated phishing tests, tabletop incident response planning sessions, penetration tests and vulnerability scans.
AT Thoma Bravo
Governance: Cybersecurity and Data Privacy
(2) Leadership roles defined as SVP and above in both Operations and Investment teams.
33%
measure their GHG footprint
ENVIRONMENT
85%
offer their employees some type of community involvement program
93%
conduct an employee engagement survey
100%
offer their employees some type of employee wellness program
Diversity and Human Capital
SOCIAL
74%
of boards have at least one woman or member of an underrepresented racial or ethnic group
100%
have a Non-Discrimination and/or Harassment policy
100%
abide by one or more cybersecurity standards (e.g., ISO 27001, ISO 27002, NIST CSF)
85%
have or are working on a generative AI (GenAI) policy
87%
have a Health and Safety policy and/or training
100%
have a Code of Ethics
GOVERNANCE
55
Portfolio Companies
48
Control Investments
ACROSS Our Portfolio
Environment
ENVIRONMENT
11,877
Calculated by Watershed in line with the GHG protocol and includes Scope 1, 2, 3.6, 3.7. Does not include portfolio company emissions.
Carbon footprint measurement stats at a glance
Calculated by Watershed, includes Scope 1, 2, 3.6, 3.7 and does not include portfolio company emissions.
45%
of employees are women
30%
women in leadership positions
32%
of employees identify as an underrepresented racial or ethnic group
22%
of those in leadership identify as an underrepresented racial or ethnic group
Diversity and Human Capital
SOCIAL
ESG Policy
Health and Safety Policy
AI Guidelines
Data Privacy Policy
Code of Ethics
Non-Discrimination / Harassment Policy
At Thoma Bravo
Governance
GOVERNANCE
This dashboard reflects a non-exhaustive list of policies in place at Thoma Bravo.
(2)
(2)
ESG Dashboard
Thoma Bravo’s mission is to deliver superior value to our investors by forming collaborative partnerships with management teams that produce operational excellence and drive innovation. As of December 31, 2023, our firm had over $138 billion in assets under management and had acquired or invested in more than 465 software and technology companies representing approximately $260 billion of value.
Thoma Bravo recognizes that ESG may present regulatory, market, reputational, and operational risks and opportunities for consideration when making an investment decision and during the ownership of a portfolio company investment. Additionally, we understand that we have a role in influencing the impact our software and technology portfolio companies have on society. Through our ESG strategy, Thoma Bravo strives to integrate the consideration and thoughtful management of ESG risks and opportunities during the investment cycle to help build responsible and sustainable business practices. Our ESG strategy adheres to the following process:
(1) Includes control and non-control investments
(1)
REPORT
ENGAGE
BENCHMARK
DILIGENCE
In an effort to share Thoma Bravo and portfolio company ESG metrics transparently, we publish an annual ESG report and participate in the United Nations Principles for Responsible Investment (UN PRI), among other industry disclosures.
Report
REPORT
Our collaboration with portfolio company management teams includes our support of portfolio companies in management of ESG risks and opportunities as appropriate. This may include making introductions to peers, creating connections with subject matter experts or leveraging partnerships with consultants and tools.
Engage
ENGAGE
The collection of data is an essential component of our ESG program. We have developed, starting with the data collected in 2023, a system of internal portfolio company scorecards in an effort to help our companies benchmark against their peers and navigate board-level ESG discussions.
Benchmark
BENCHMARK
We train our teams to help them identify material ESG factors that can form part of the evaluation of an investment opportunity; we believe the consideration of ESG factors in our investment due diligence process can enhance our ability to identify opportunities and areas of risk of an investment. With assistance from our external advisors, we seek to conduct a thorough due-diligence process, document identified ESG risks or opportunities, and determine potential ESG courses of action, as needed, in partnership with our deal team and the portfolio company’s senior management.
Diligence
DILIGENCE
Thoma Bravo’s Purpose and ESG Strategy
2023 Thoma Bravo ESG Report
Environmental, Social & Governance (ESG) Report
2023 ESG Report
Thoma Bravo’s Purpose and ESG Strategy
ESG Dashboard
Governance: Cybersecurity and Data Privacy
Governance: Artificial Intelligence
Case Study: Sophos
Social: Diversity and Human Capital
Case Study: Thoma Bravo
Environment: Sustainability AND Stewardship
Case Study: Coupa
