Apr 13, 2023 · 30m · capital-allocators

Thoma Bravo's Behind the Deal Podcast (Capital Allocators, EP.308)

Mark McClain · 11m spoken Seth Boro · 10m spoken Orlando Bravo · 4m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

This syndicated episode of Thoma Bravo's 'Behind the Deal' explores the decade-long partnership between Thoma Bravo Managing Partner Seth Boro and SailPoint CEO Mark McClain. They detail their journey through an initial 2014 buyout, a landmark 2017 IPO, and a rare $7 billion take-private transaction in 2022 to accelerate cloud transformation.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Ted holds 4.3% of the talking time here. How this is scored →

Ted as informed peer 3.0 Guest teaching 2.0 Guest disagreement 0.8 Ted pushing back 0.8
05100:0010:0020:0030:001:28–6:25 · Ted as informed peer 1/10 Orlando Bravo Introduces the SailPoint Partnership After a brief playful teaser where Seth checks Mark on the acronym for EBITDA, Orlando Bravo delivers a solo framing monologue explaining the investment thesis and operating philosophy behind Thoma Bravo's acquisition of SailPoint. Because this is almost entirely a solo narrative monologue rather than a debate, confrontation and host pushback are virtually non-existent.6:26–12:33 · Ted as informed peer 3/10 SailPoint Origins, Market Drivers, and the 2014 Deal Mark details the origins of SailPoint and the market dynamics of identity management, using the famous Société Générale rogue trader scandal as a case study. Seth provides complementary context on Thoma Bravo's investment thesis, keeping the dynamic educational and fully aligned.12:38–24:27 · Ted as informed peer 4/10 Initial Partnership, Scaling Operations, and the 2017 IPO Seth and Mark reminisce about their initial 2013-2014 meetings, the strategic bidding process, scaling the go-to-market engine, and executing Thoma Bravo's first software IPO. The conversation is highly collaborative and warm, featuring mutual validation about how private equity and high-growth software can successfully partner.24:27–29:49 · Ted as informed peer 4/10 Reconnecting for the 2022 Take-Private and Cloud Shift The dialogue focuses on SailPoint's $7 billion take-private transaction in 2022 to accelerate its SaaS cloud transition away from public market scrutiny. Seth highlights Thoma Bravo's extensive experience guiding legacy software companies through cloud transformations, ending the episode on an upbeat, forward-looking note.1:28–6:25 · Guest teaching 1/10 Orlando Bravo Introduces the SailPoint Partnership After a brief playful teaser where Seth checks Mark on the acronym for EBITDA, Orlando Bravo delivers a solo framing monologue explaining the investment thesis and operating philosophy behind Thoma Bravo's acquisition of SailPoint. Because this is almost entirely a solo narrative monologue rather than a debate, confrontation and host pushback are virtually non-existent.6:26–12:33 · Guest teaching 4/10 SailPoint Origins, Market Drivers, and the 2014 Deal Mark details the origins of SailPoint and the market dynamics of identity management, using the famous Société Générale rogue trader scandal as a case study. Seth provides complementary context on Thoma Bravo's investment thesis, keeping the dynamic educational and fully aligned.12:38–24:27 · Guest teaching 2/10 Initial Partnership, Scaling Operations, and the 2017 IPO Seth and Mark reminisce about their initial 2013-2014 meetings, the strategic bidding process, scaling the go-to-market engine, and executing Thoma Bravo's first software IPO. The conversation is highly collaborative and warm, featuring mutual validation about how private equity and high-growth software can successfully partner.24:27–29:49 · Guest teaching 1/10 Reconnecting for the 2022 Take-Private and Cloud Shift The dialogue focuses on SailPoint's $7 billion take-private transaction in 2022 to accelerate its SaaS cloud transition away from public market scrutiny. Seth highlights Thoma Bravo's extensive experience guiding legacy software companies through cloud transformations, ending the episode on an upbeat, forward-looking note.1:28–6:25 · Guest disagreement 1/10 Orlando Bravo Introduces the SailPoint Partnership After a brief playful teaser where Seth checks Mark on the acronym for EBITDA, Orlando Bravo delivers a solo framing monologue explaining the investment thesis and operating philosophy behind Thoma Bravo's acquisition of SailPoint. Because this is almost entirely a solo narrative monologue rather than a debate, confrontation and host pushback are virtually non-existent.6:26–12:33 · Guest disagreement 0/10 SailPoint Origins, Market Drivers, and the 2014 Deal Mark details the origins of SailPoint and the market dynamics of identity management, using the famous Société Générale rogue trader scandal as a case study. Seth provides complementary context on Thoma Bravo's investment thesis, keeping the dynamic educational and fully aligned.12:38–24:27 · Guest disagreement 1/10 Initial Partnership, Scaling Operations, and the 2017 IPO Seth and Mark reminisce about their initial 2013-2014 meetings, the strategic bidding process, scaling the go-to-market engine, and executing Thoma Bravo's first software IPO. The conversation is highly collaborative and warm, featuring mutual validation about how private equity and high-growth software can successfully partner.24:27–29:49 · Guest disagreement 1/10 Reconnecting for the 2022 Take-Private and Cloud Shift The dialogue focuses on SailPoint's $7 billion take-private transaction in 2022 to accelerate its SaaS cloud transition away from public market scrutiny. Seth highlights Thoma Bravo's extensive experience guiding legacy software companies through cloud transformations, ending the episode on an upbeat, forward-looking note.1:28–6:25 · Ted pushing back 1/10 Orlando Bravo Introduces the SailPoint Partnership After a brief playful teaser where Seth checks Mark on the acronym for EBITDA, Orlando Bravo delivers a solo framing monologue explaining the investment thesis and operating philosophy behind Thoma Bravo's acquisition of SailPoint. Because this is almost entirely a solo narrative monologue rather than a debate, confrontation and host pushback are virtually non-existent.6:26–12:33 · Ted pushing back 0/10 SailPoint Origins, Market Drivers, and the 2014 Deal Mark details the origins of SailPoint and the market dynamics of identity management, using the famous Société Générale rogue trader scandal as a case study. Seth provides complementary context on Thoma Bravo's investment thesis, keeping the dynamic educational and fully aligned.12:38–24:27 · Ted pushing back 1/10 Initial Partnership, Scaling Operations, and the 2017 IPO Seth and Mark reminisce about their initial 2013-2014 meetings, the strategic bidding process, scaling the go-to-market engine, and executing Thoma Bravo's first software IPO. The conversation is highly collaborative and warm, featuring mutual validation about how private equity and high-growth software can successfully partner.24:27–29:49 · Ted pushing back 1/10 Reconnecting for the 2022 Take-Private and Cloud Shift The dialogue focuses on SailPoint's $7 billion take-private transaction in 2022 to accelerate its SaaS cloud transition away from public market scrutiny. Seth highlights Thoma Bravo's extensive experience guiding legacy software companies through cloud transformations, ending the episode on an upbeat, forward-looking note.

speaking balance: gold is Ted, purple is the guest (3 minute bins)

0:00 · Ted 37.2% · guest 62.8%0:00 · Ted 37.2% · guest 62.8%3:00 · Ted 0% · guest 100%3:00 · Ted 0% · guest 100%6:00 · Ted 0% · guest 100%6:00 · Ted 0% · guest 100%9:00 · Ted 0% · guest 100%9:00 · Ted 0% · guest 100%12:00 · Ted 0% · guest 100%12:00 · Ted 0% · guest 100%15:00 · Ted 0% · guest 100%15:00 · Ted 0% · guest 100%18:00 · Ted 0% · guest 100%18:00 · Ted 0% · guest 100%21:00 · Ted 0% · guest 100%21:00 · Ted 0% · guest 100%24:00 · Ted 0% · guest 100%24:00 · Ted 0% · guest 100%27:00 · Ted 0% · guest 100%27:00 · Ted 0% · guest 100%30:00 · Ted 43.9% · guest 56.1%30:00 · Ted 43.9% · guest 56.1%
Sharpest disagreement ▶ 18:36 Mark Notes Thoma Bravo Initially Leaned Back

In a mild, playful critique of the deal process, Mark notes that Thoma Bravo initially seemed less engaged than competing suitors before accelerating late in the bidding process.

Hardest push from Ted ▶ 1:36 Seth Corrects Mark's EBITDA Definition

Seth playfully challenges Mark on the exact meaning of EBITDA when Mark mistakenly says 'income' instead of 'interest'.

Biggest teaching moment ▶ 7:41 Société Générale Case Study on Identity Security

Mark explains how a rogue trader exploited unrevoked IT access privileges to lose billions, providing an instructive real-world lesson on why identity management matters.

Ted holds their own ▶ 21:43 Seth Explains the Operational Playbook for Scaling

Seth demonstrates Thoma Bravo's operational domain expertise by detailing how they build predictable go-to-market systems to prevent high-growth companies from missing targets or breaking operations.

the scores for every segment, with the reasoning behind each
ChapterTopicTed as informed peerGuest teachingGuest disagreementTed pushing backWhy
Orlando Bravo Introduces the SailPoint Partnership 1111 After a brief playful teaser where Seth checks Mark on the acronym for EBITDA, Orlando Bravo delivers a solo framing monologue explaining the investment thesis and operating philosophy behind Thoma Bravo's acquisition of SailPoint. Because this is almost entirely a solo narrative monologue rather than a debate, confrontation and host pushback are virtually non-existent.
SailPoint Origins, Market Drivers, and the 2014 Deal 3400 Mark details the origins of SailPoint and the market dynamics of identity management, using the famous Société Générale rogue trader scandal as a case study. Seth provides complementary context on Thoma Bravo's investment thesis, keeping the dynamic educational and fully aligned.
Initial Partnership, Scaling Operations, and the 2017 IPO 4211 Seth and Mark reminisce about their initial 2013-2014 meetings, the strategic bidding process, scaling the go-to-market engine, and executing Thoma Bravo's first software IPO. The conversation is highly collaborative and warm, featuring mutual validation about how private equity and high-growth software can successfully partner.
Reconnecting for the 2022 Take-Private and Cloud Shift 4111 The dialogue focuses on SailPoint's $7 billion take-private transaction in 2022 to accelerate its SaaS cloud transition away from public market scrutiny. Seth highlights Thoma Bravo's extensive experience guiding legacy software companies through cloud transformations, ending the episode on an upbeat, forward-looking note.

Statements from this episode (6)

Assertion Supported
Bravo: SailPoint was Thoma Bravo's first IPO before its 2022 reacquisition
“Which led to our first ever IPO as an investment firm to eventually acquiring SailPoint again in 2022.”
Orlando Bravo Apr 13, 2023 ▶ 2:23
Insight
Boro: Many corporate breaches stem from former employees' active accounts
“It turns out a lot of breaches that take place at companies come on the back of employees who no longer work there, but their identities are still active. They have access to systems that they shouldn't.”
Seth Boro Apr 13, 2023 ▶ 7:30
Assertion Not checkable as stated
McClain: SailPoint grew over 60% annually but was barely profitable in 2014
“We were still a very high growth startup, north of 60% Annually at that time, but barely making money to be blunt.”
Mark McClain Apr 13, 2023 ▶ 11:50
Assertion Not checkable as stated
Boro: SailPoint was Thoma Bravo's first high-growth innovator investment
“Historically, and especially in tech, private equity was not buying companies that were considered innovators or high growth. So it was a departure from what you would see in a typical private equity investment at the time. It's become our business today. And …”
Seth Boro Apr 13, 2023 ▶ 13:46
Assertion Supported
Boro: Thoma Bravo fully exited SailPoint equity within one year of IPO
“It took about a year, which is not, you never, we certainly, because we owned a overwhelming majority of the business, it was not something that we expected, but the stock did so well. And it, there was sort of constant opportunity actually to provide liquidit…”
Seth Boro Apr 13, 2023 ▶ 23:28
Assertion Partly supported
Boro: Thoma Bravo valued SailPoint at $7B in its 2022 buyout
“Mark, you are in a unique situation where you've taken a business to our value was seven billion dollars.”
Seth Boro Apr 13, 2023 ▶ 25:08
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