Thoma Bravo Makes Investment in Blue Matrix

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Recently, software focused private equity firm Thoma Bravo announced that it has signed a definitive agreement to make a strategic growth investment in Blue Matrix, a leading investment research authoring platform.  Terms of the transaction were not disclosed.

About the Deal

Last week, Thoma Bravo, a software oriented private equity firm, announced it has signed a definitive agreement to make a strategic growth investment in BlueMatrix, a well-known investment research authoring and distribution platform. Upon closing the transaction, CEO and Founder Patricia Horotan will continue to lead Blue Matrix and will retain a significant ownership position in the firm. Terms of the transaction were not disclosed.

BlueMatrix is one of the industry’s most well respected investment research publishing platforms for many of the world’s leading investment banks, broker-dealers, and independent research providers. The company’s fully integrated and cloud-based solutions provide end-to-end coverage of the highly regulated investment research production workflow, including content creation, global compliance approval, distribution, hosting and analytics. BlueMatrix’s suite of solutions positions it as one of the few research publishing platforms with capabilities across the complete investment research authoring and publishing lifecycle.

Patricia Horotan, CEO of BlueMatrix commented on the recent investment saying, “We’ve grown BlueMatrix into the global market leader in end-to-end investment research and publishing solutions, with customers across 70 countries, and are excited to accelerate our strong momentum with capital, operational and strategic support from Thoma Bravo.  Thoma Bravo’s investment is a testament to what we’ve built and will enable us to drive continued innovation to better serve our customers as we enter this new phase of growth.”

“Since its founding in 1999, BlueMatrix has established itself as the best-in-class platform for the highly regulated investment research industry, and under its strong leadership team, the company is well-positioned to capitalize on the growing market opportunity,” said Adam Solomon, a Partner at Thoma Bravo. “We are thrilled to support BlueMatrix through its next chapter as it continues to deliver its unparalleled solutions to the most sophisticated investment banks and research analysts worldwide.”

The transaction is expected to close by the beginning of January 2024, subject to regulatory approvals and customary closing conditions.

Our Take

Blue Matrix, founded in 1999 by Patricia Horotan and Skye Hauptman, has established itself as one of the leading research authoring platforms in the financial services industry with a long tradition of data integrity and an easy to use authoring process.  For over two decades BlueMatrix has connected the world’s leading asset and wealth managers with nearly 1,000 investment research firms in more than 50 countries.

Thoma Bravo is one of the largest software investors in the world, with approximately US$134 billion in assets under management as of September 30, 2023. Through its private equity, growth equity and credit strategies, the firm invests in growth-oriented firms operating in the software and technology sectors.  Over the past 20 years, Thoma Bravo has acquired or invested in more than 455 companies representing over US$255 billion in enterprise value (including control and non-control investments).  Currently, the firm retains investment interests in 43 companies, of which they were lead investors in 33 firms.

The investment by Thoma Bravo in Blue Matrix should be seen as a good sign for Blue Matrix customers and the research industry in general.  Blue Matrix management should be able to leverage Thoma Bravo’s deep sector expertise and strategic and operational capabilities to implement operating best practices and drive growth initiatives.  In fact, we would not be surprised to see Blue Matrix roll out some exciting new technology initiatives in the coming year for their customers leveraging machine learning, NLP and artificial intelligence.  

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About Author

Mike Mayhew is one of the leading experts on the investment research industry. In addition to founding Integrity Research, Mike is on the board of directors of Investorside Research Association, the non-profit trade association for the independent research industry, and a frequent speaker on research industry trends and developments. Mike has over thirty years of research industry experience. Email: Michael.Mayhew@integrity-research.com

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