Three years ago, private equity investor Orlando Bravo called FTX “the most cutting-edge, advanced cryptocurrency exchange in the world” as his buyout firm helped lead the Investment of US$900 million The company is valued at $18 billion.
Bravo has now told CNBC that he and his company, Thoma Bravo, have permanently moved away from cryptocurrencies following that debacle. FTX fell into bankruptcy at the end of 2022, and founder Sam Bankman-Fried was sentenced to 25 years in prison for massive fraud and conspiracy, leading to the demise of FTX and its sister hedge fund Alameda Research.
“Once you make a mistake, once you get burned by something, our philosophy and my philosophy is you never touch it again,” Bravo told CNBC’s “Squawk on the Street” on Thursday. “Even if it turns out you missed a big boom.”
FTX marks a lateral shift for San Francisco-based Thoma Bravo, which has become a huge investor in technology, orchestrating billions of dollars in acquisitions in recent years, including cybersecurity software provider Proofpoint, property management software company RealPage , financial and supply chain software developer Anaplan and spend management software company Coupa.
Thoma Bravo returned nearly $13 billion to its investor Bravo last year explain at a meeting in March. Its most recent exits include $3.6 billion Imperva for sale Thales Group will receive US$4 billion in funding in 2023 Selling Barracuda Network The previous year it was KKR.
The firm was founded in 2008 and currently manages approximately $160 billion in assets.
When Thoma Bravo invested in FTX, the cryptocurrency exchange was riding the wave of surging cryptocurrency prices. Bankman-Fried is an industry icon who built his company into one of the largest exchanges in the world in about two years.
“We are excited to partner with FTX to drive their next phase of growth as they create a new ecosystem for cryptocurrencies,” Bravo said in a July 2021 press release. His company’s investment in this round It is said amounted to US$130 million.
By November 2022, FTX was worth zero, and senior executives were accused of embezzling more than $8 billion in client funds.
Bravo said Thursday that the blockchain technology behind cryptocurrencies still holds promise. But Bravo stays away from both Bitcoin itself and companies in the space.
“Personally, I’m a believer in blockchain. I think it’s a powerful way to do a lot of things and a lot of use cases, and I’ve always believed in that,” Bravo said. “From an investing perspective, when you make a mistake, you move on.” 0
watch: Bankman-Fried sentenced to 25 years in prison
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