Simply over three years in the past, non-public fairness investor Orlando Bravo referred to as FTX “essentially the most superior, refined cryptocurrency trade on the planet” as his buyout agency helped lead A $900 million investment within the firm at an $18 billion valuation.
Bravo now tells CNBC that he and his agency, Thoma Bravo, are out of cryptocurrency for good after this debacle. FTX filed for chapter on the finish of 2022, and founder Sam Bankman-Fried is within the early days of servicing 25 years in prison concerning the large fraud and conspiracy that doomed FTX and subsidiary hedge fund Alameda Analysis.
“You make a mistake as soon as, and when you’re achieved with one thing, our philosophy and my philosophy is to by no means contact it once more,” Bravo stated in an interview with CNBC’s “Squawk on the Street” on Thursday. “Even when it seems you missed an enormous growth.”
FTX marked a lateral flip for San Francisco-based Thoma Bravo, which has emerged as an enormous expertise investor, orchestrating multibillion-dollar acquisitions lately of firms together with a cybersecurity software program supplier Proofpointa property administration software program firm RealPagefinance and provide chain software program developer Anaplan and an expense administration software program firm Cut out.
Final 12 months, Thoma Bravo returned almost $13 billion to its Bravo traders said at a convention in March. Its latest exits embody $3.6 billion sale of Imperva of Thales Group in 2023 and $4 billion sale of Barracuda Networks to KKR the earlier 12 months.
Based in 2008, the agency now oversees roughly $160 billion in property.
On the time of Thoma Bravo’s funding in FTX, the crypto market was using the wave of rising crypto costs. Bankman-Fried was an business icon, constructing his firm into one of many world’s largest exchanges in about two years.
“We’re excited to accomplice with FTX of their subsequent part of development as they create a brand new ecosystem for crypto,” Bravo stated in a press launch dated July 2021. His agency’s funding within the spherical it is reported amounted to 130 million {dollars}.
Till November 2022 the FTX value was zero and senior executives have been accused for draining greater than $8 billion in buyer funds.
Bravo stated Thursday that the blockchain expertise that underpins crypto nonetheless has promise. However whether or not it is Bitcoin itself or an organization within the house, Bravo is staying away.
“Personally, I am a fan of blockchain. I feel it is a highly effective approach to do lots of issues and for lots of use circumstances, and I’ve at all times believed that,” Bravo stated. “From an funding perspective, when you make a mistake, you progress on.”
