Thompson Street Capital Partners Launches Second Continuation Fund
Thompson Street Capital Partners (TSCP), a leading private equity firm, has announced a significant milestone with the completion of a strategic single-asset secondary market transaction. This move strengthens its ongoing partnership with Gurobi Optimization, recognized as a leader in mathematical optimization software, while also marking the launch of its second continuation fund.
Creating a New Fund
The newly established continuation fund is designed to facilitate the acquisition of Gurobi, providing the necessary capital to support growth initiatives. This strategic transaction positions TSCP to not just maintain but also enhance Gurobi's innovative efforts and acquisition strategies.
Gurobi's Role in the Market
Gurobi Optimization has played a crucial role in enabling over 1,200 clients worldwide to leverage their data for intelligent decision-making through its specialized mathematical optimization software. This empowers organizations to turn data insights into actionable strategies, highlighting Gurobi's invaluable contributions to decision intelligence.
Success and Growth with TSCP's Support
Since acquiring Gurobi in 2017 through an investment from TSCP Fund IV, TSCP has worked closely with Gurobi's founders and management team to enhance the company's overall performance. Their collaboration has focused on innovating technology, streamlining operations, and optimizing pricing and packaging strategies. As a result, Gurobi has seen an impressive rise of over 8 times in its annual recurring revenue and workforce size during their partnership.
Bob Dunn, TSCP’s Managing Partner, expressed his enthusiasm for this new chapter, stating, "The establishment of our second continuation fund marks a vital development for Thompson Street. Gurobi is one of our top-performing portfolio companies, and we look forward to deepening our collaboration through this new fund. We extend our heartfelt thanks to Hamilton Lane, StepStone, and all our investors for their steadfast support."
Leaders at Gurobi Share Their Insights
Dr. Edward Rothberg, co-founder and chairman of Gurobi, shared his excitement about the partnership, saying, “Our collaboration with Thompson Street has generated fantastic results, and this continuation fund lays the foundation for ongoing success and growth.”
Duke Perrucci, CEO of Gurobi, added, “Thanks to our relationship with TSCP, we can consistently provide top-notch service and solutions to our clients. This new influx of capital will enable us to pursue complementary acquisitions and broaden our product offerings, delivering even more value to our customers.”
The Path Ahead for Gurobi
Craig Albrecht, Managing Director at TSCP, reflected on Gurobi's potential, stating, “Gurobi is an exceptional business propelled by extraordinary individuals, and we're honored to extend our partnership. Together, we will strive for sustained growth, innovation, and leadership in the growing field of prescriptive analytics.”
In this transaction, Evercore served as the financial advisor, while Kirkland & Ellis provided legal assistance to TSCP, and Sidley Austin supported Gurobi.
About Thompson Street Capital Partners
Thompson Street Capital Partners (TSCP) is a prominent private equity firm based in St. Louis. The firm focuses on investments in founder-led middle-market companies across diverse sectors including Software & Technology, Life Sciences & Healthcare, and Business and Consumer Services. TSCP is dedicated to partnering with management teams to drive growth and enhance value through both organic initiatives and strategic acquisitions.
About Gurobi Optimization
Founded in 2008, Gurobi Optimization has grown to be a front-runner in providing mathematical optimization and decision intelligence solutions. With a clientele of over 1,200 organizations worldwide, Gurobi’s optimization solver is respected for its ability to address a variety of business challenges, ultimately assisting companies in making optimal decisions that profoundly affect their operations.
Frequently Asked Questions
What does the new continuation fund aim to accomplish for TSCP?
The new continuation fund is intended to acquire Gurobi and inject additional capital to support growth initiatives, including strategic acquisitions.
How has Gurobi performed while under TSCP's management?
Under TSCP's management, Gurobi has experienced substantial growth, with both annual recurring revenue and the number of employees increasing more than 8 times since the acquisition.
Who are the key figures involved in this partnership?
Key figures in this partnership include Bob Dunn, Managing Partner at TSCP, and Duke Perrucci, CEO of Gurobi, among others.
Which industries benefit from Gurobi’s software?
Gurobi’s software is utilized across various industries, enhancing prescriptive analytics to help organizations make informed data-driven decisions.
What is TSCP's strategy for investments?
TSCP prioritizes investments in founder-led middle-market businesses, focusing on enhancing growth through innovative solutions and strategic acquisitions.
