Orlando Bravo Defends Private Markets Amid Growing Scrutiny

In a recent interview, Orlando Bravo, the founder and managing partner of Thoma Bravo, provided a compelling defense of private markets at a time when skepticism is rising. His insights shed light on the complexities of private equity and the nuances that may separate the winners from the losers, especially in the face of disruptive technologies like artificial intelligence (AI).

Key Points from Bravo’s Analysis

• Deep Sector Expertise: Bravo emphasized that Thoma Bravo’s approach is grounded in a detailed understanding of the software sector, rather than a superficial overview. This expertise, he argues, positions them to navigate current challenges effectively.
• Investor Confidence: Despite the tightening scrutiny from investors regarding private-market valuations, Bravo reassured that Thoma Bravo’s investor base remains confident due to the firm’s history and transparency. Major U.S. pension funds and sovereign wealth funds continue to support them.
• Challenges in Valuation: The backdrop of increasing default rates in direct lending and criticisms from industry peers regarding valuation accuracy highlights a turbulent landscape for private equity firms.
• Admission of Mistakes: Bravo openly acknowledged the misjudgment in their acquisition of Medallia, a customer experience software firm, admitting they overestimated its growth potential. This candid admission reflects a level of transparency that can foster trust among investors.
• Strong Portfolio Performance: Despite setbacks, Bravo maintains that the majority of Thoma Bravo’s portfolio companies are thriving, particularly in leveraging AI to enhance their performance.

The Broader Context

Bravo’s remarks come at a critical juncture when many private equity firms are facing scrutiny over their valuations and the stability of their investments. As Morgan Stanley points to rising default rates in direct lending, the landscape is shifting, prompting a reevaluation of strategies across the sector.

Furthermore, Bravo’s distinction between private equity-owned companies and publicly traded software firms offers a vital perspective. He suggests that while public companies are grappling with rapid disruption due to AI, private equity firms like Thoma Bravo are leveraging their expertise to mitigate such risks.

Conclusion

In conclusion, Bravo’s insights serve as a reminder that while the private equity landscape is fraught with challenges, a strong foundation of expertise and transparency can help navigate these turbulent waters. His candid acknowledgment of missteps, coupled with a focus on the strengths of his portfolio, paints a picture of resilience and adaptability in the face of evolving market dynamics.

For a deeper understanding of Orlando Bravo’s perspective, I encourage readers to explore the original article [here](https://www.cnbc.com/2026/03/17/orlando-bravo-pushes-back-on-private-markets-criticism-everybodys-extremely-comfortable.html).