Carl Thoma: Private equity has become ‘self-centred’ - Private Equity International | PEI

Carl Thoma, a pioneering private equity executive with four decades of industry experience, delivered a pointed critique of the private equity sector's evolution and cultural orientation. Speaking at the CFOs & COOs Forum 2020, Thoma characterized modern private equity as having become "self-centered," marking a notable commentary from one of the industry's foundational figures.

Thoma co-founded Thoma Bravo, a leading software-focused private equity firm, alongside partner Orlando Bravo. The firm has grown into one of the largest buyout platforms globally, now ranked fourth on Private Equity International's PEI 300 ranking of the world's largest PE firms. This institutional prominence gives Thoma's observations particular weight within investor and management communities.

The veteran's criticism centers on the industry's reputational trajectory and fee structures. Thoma specifically raised concerns about private equity fee models, suggesting the compensation architecture requires examination. He further characterized the PE sector as having become a "scapegoat" for anti-wealth movements, indicating that external perception of private equity has deteriorated even as firm valuations and deal activity have expanded. His remarks suggest internal industry leadership recognizes tensions between financial performance and stakeholder sentiment.

Thoma's commentary reflects broader institutional concerns about PE's public standing. As the sector has scaled significantly over the past two decades, criticism has mounted regarding fee compression, operational practices, and wealth concentration. His framing—that the industry has become excessively inward-focused rather than value-conscious toward broader stakeholder interests—suggests an elder statesman's concern that PE's structural incentives may have drifted from original buyout principles emphasizing operational improvement and long-term value creation.