Key Takeaways
- • Orlando Bravo, founder and managing partner of Thoma Bravo, joined CNBC's "Money Movers" to discuss the private equity deal environment and broader economic conditions as of September 2025.
- • AI adoption is significantly driving revenue growth across Thoma Bravo's portfolio companies, with 50% of new revenue generated from AI and agentic tools, signaling the material impact of artificial intelligence on software valuations and business models.
- • Bravo defended private markets against mounting criticism, emphasizing Thoma Bravo's deep sector expertise as a competitive advantage while cautioning that some software companies in public markets face disruption risk from AI technology.
- • Thoma Bravo successfully raised $34.4 billion, reflecting investor confidence in the firm's consistent deal execution strategy and ability to identify acquisition targets across market cycles.
- • Bravo warned that AI-related valuations in certain segments are in bubble territory, while simultaneously arguing that some public software stocks negatively impacted by AI disruption may warrant lower valuations going forward.
Summary
Orlando Bravo, founder and managing partner of Thoma Bravo, appeared on CNBC's "Money Movers" in September 2025 to address the current state of the private equity deal environment and provide his perspective on the broader economy. The discussion centered on artificial intelligence adoption, valuation concerns, and the ongoing evolution of software market dynamics.
A central theme of Bravo's commentary was the outsized impact of AI on Thoma Bravo's portfolio companies. According to Bravo, approximately 50% of new revenue generated by the firm's portfolio companies is now attributable to AI and agentic tools. This figure underscores how rapidly artificial intelligence has become embedded in software business models and a primary driver of incremental growth within Thoma Bravo's holdings.
Bravo also pushed back against mounting criticism directed at private markets, defending the firm's operational approach by highlighting the value of deep sector expertise. However, he simultaneously cautioned that many software companies trading in public markets face meaningful disruption risk from AI, suggesting that the market may not have fully priced in the competitive and technological shifts underway. He further warned that certain AI-related valuations have reached bubble levels, while contending that some public software stocks hit hard by AI disruption may actually deserve lower valuations given their diminished competitive positioning.
The firm's recent $34.4 billion fundraising represents substantial investor confidence in Thoma Bravo's deal strategy. According to Bravo, this fundraising success is a direct result of the firm's consistent acquisition activity across market cycles, demonstrating that institutional investors continue to support the firm's investment thesis and operational track record in the software sector.
A central theme of Bravo's commentary was the outsized impact of AI on Thoma Bravo's portfolio companies. According to Bravo, approximately 50% of new revenue generated by the firm's portfolio companies is now attributable to AI and agentic tools. This figure underscores how rapidly artificial intelligence has become embedded in software business models and a primary driver of incremental growth within Thoma Bravo's holdings.
Bravo also pushed back against mounting criticism directed at private markets, defending the firm's operational approach by highlighting the value of deep sector expertise. However, he simultaneously cautioned that many software companies trading in public markets face meaningful disruption risk from AI, suggesting that the market may not have fully priced in the competitive and technological shifts underway. He further warned that certain AI-related valuations have reached bubble levels, while contending that some public software stocks hit hard by AI disruption may actually deserve lower valuations given their diminished competitive positioning.
The firm's recent $34.4 billion fundraising represents substantial investor confidence in Thoma Bravo's deal strategy. According to Bravo, this fundraising success is a direct result of the firm's consistent acquisition activity across market cycles, demonstrating that institutional investors continue to support the firm's investment thesis and operational track record in the software sector.
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