Podcast Summary: Bloomberg Talks – Orlando Bravo, Thoma Bravo Co-Founder and Managing Partner
Date: October 8, 2025
Host: Dani Burger (A)
Guest: Orlando Bravo (B)

Episode Overview

In this episode, Dani Burger interviews Orlando Bravo at the Latke Conference in New York. The conversation spans Bravo's journey from a small town in Puerto Rico to becoming a tech and private equity powerhouse, the evolution of tech investing, the impact and integration of AI, valuation and operational discipline in private equity, the current industry shakeout, and the future of investor access to alternatives. Bravo’s candid and often humorous insights make for a compelling discussion on the challenges and opportunities ahead in tech, software, and private capital.

Key Discussion Points & Insights

1. Orlando Bravo’s Journey to Private Equity and Tech (00:52–03:55)

• Background and Early Career:

  • Bravo describes entering Wall Street from Mayaguez, Puerto Rico—“I got lucky and was able to get a job in Wall Street” (01:23).
  • Early roles in Morgan Stanley’s LatAm group but gravitated toward the burgeoning tech group in the early '90s.
  • “It seemed to be a business that really fit young people really well, where you could have a lot of responsibility early in your career.” (01:41)

• Influences and Opportunities:

  • Learned from partners like Carl Thoma and operator Marcel Bernard.
  • Emphasizes gratitude for opportunity and self-awareness: “I’ve never created anything new. I got the opportunity to learn from one of the best investors in the world...” (02:57)

• Connection to Puerto Rico:

  • Maintains close ties, supporting opportunity and equality: “Our whole business is based on giving opportunities... Promoting from within and in Puerto Rico to try to change the opportunity set...” (04:20)

2. Lessons from Tech Bubbles and Investing Discipline (03:55–06:12)

• Surviving Bubbles:

  • Bravo draws parallels between the late 1990s/early 2000s and today’s AI boom.
  • “Focus on the business and the numbers that are right in front of you instead of being too affected by the noise.” (04:35)

• Enterprise Software After the Dot-Com Bust:

  • Despite skepticism, the industry rebounded by trusting business fundamentals: “All the customers are renewing, they’re buying more... focusing on the details in the business really helps you do something a little bit different than everybody else.” (05:46)

3. Software, AI, and the Changing Investment Landscape (06:12–10:32)

• AI Frenzy and Valuations:

  • AI is fundamentally tied to software: “AI and software go together. That is becoming clearer and clearer.” (06:34)
  • Notes how AI integration expands market opportunities and use cases gradually, not overnight.

• Public vs. Private Valuations:

  • Declining valuations are more due to fundamentals than to existential tech fears: “Investors buy numbers... the rest is noise.” (08:28)
  • Views market as highly efficient and sees new opportunities at lower valuations.

• Profitability and Cost Control:

  • Private equity’s edge is in operational improvement, aiming for 40% margins from nearly zero in acquired companies.
  • “The first course of action is we’re going to reduce the cost of the business, try to get it to a 40% margin, usually from zero.” (09:48)

4. Practical Use of AI at Thoma Bravo and in Private Equity (10:32–14:08)

• Internal Use Cases:

  • AI facilitates rapid information gathering, especially for portfolio monitoring.
  • “Instead of me having to call every single partner... I just know the bookings results and you can consume that pretty quickly.” (10:52)

• The Limits of AI in Decision-Making:

  • Entertains the idea of “AI IC” (investment committee) members, but stresses that strategy and diligence remain human-intensive.
  • “Private equity, you have three things to do: get the money, get the deal, and improve the deal.” (12:08)
  • Describes the intense operational focus, including monthly operating reviews with portfolio companies.

• Operational Excellence as Alpha:

  • Importance of hands-on management, repeated:
    “We do monthly operating reviews, 8am to noon with every single company... That is the alpha that our industry looks for.” (13:20)
  • Emphasizes that operational improvement in public markets has been stagnant for decades.

5. Exits, Continuation Vehicles, and Industry Critiques (14:08–18:05)

• The Continuation Vehicle Controversy:

  • Sees CVs as an exception, not the rule.
  • Points out the fundamental need to sell, not indefinitely hold, private equity assets.
    “If you hold the company too long in private equity... you will ultimately face a big project, especially in software... These companies are exhausting to run.” (17:17)

• Liquidity, Valuations & Selling Discipline:

  • Notes challenges in exits amid fluctuating valuations and sector rotation.
  • Importance of actively managing exits:
    “Our team has to spend more time selling a company than buying a company.” (16:36)
  • Thoma Bravo recently returned $20 billion to investors over 18 months.

6. Industry Shakeout and the Evolution of Private Equity (18:05–22:33)

• Current State of Play:

  • The shakeout is happening now—only the best performing, consistently liquid managers are thriving.
  • “We are in the middle of the shakeout... They have great performance and they have liquidity to their LPs.” (18:26)
  • Many funds winding down quietly, as underperformers cannot attract capital.

• Underperformance vs. Public Markets:

  • Candid admission: “Over the last five years, the average private equity firm and venture capital firm has underperformed the S&P 500.” (21:39)

• Performance Drivers:

  • The necessity for adaptability, focus, and action: “There is so much you can do about it. You just have to adapt to the times.” (21:51)

7. Private Equity’s Move Into Wealth & Retail (22:33–25:32)

• Expanding Beyond Institutions:

  • Retail/wealth allocations to private assets are near zero but are expected to grow.
  • Thoma Bravo will approach this slowly and strategically due to complexity. “Retail investors and high net worth investors really need to understand what the manager does, how the manager invests...” (23:24)

• Cautious Approach vs. First Mover FOMO:

  • Addresses pressure to rush but prefers thoughtful engagement:
    “There’s that FOMO and you have to resist it, especially since there’s so much demand for it.” (24:57)

8. Mega Deals and the Future of LBOs (25:32–28:23)

• Role in Large Take-Privates:

  • Thoma Bravo’s mega deals have become the norm for the firm; cites multiple examples.
  • On rival $55B EA deal: “At some point we can’t be the only crazy ones doing all these $10 billion deals.” (25:46)

• SaaS Opportunity:

  • SaaS is still young; massive on-prem-to-cloud migration opportunity remains.
  • Thoma Bravo’s strategy is turning innovative, growth companies into cash-generating leaders.

• Performance and Scale:

  • Continues to back up growth and returns at scale, maintaining operational discipline.

9. Essential Private Equity Principles for Difficult Times (28:23–29:52)

• Orlando Bravo’s Playbook:
  • “Focus on the business. Get away from what’s the firm going to be in 10 years or 20 years... Mentor your people to get the deal and then figure out a way, a repeatable process that you can continuously improve the company.” (28:42)
  • Stays grounded: “We work as hard as possible to run it just like when we did our first deal at $50 million... Remaining true to that is very, very important.” (29:34)

Notable Quotes & Memorable Moments

• “Focus on the business and the numbers that are right in front of you instead of being too affected by the noise.”
  – Orlando Bravo (04:35)

• “AI and software go together. That is becoming clearer and clearer.”
  – Orlando Bravo (06:34)

• “Private equity, you have three things to do: get the money, get the deal, and improve the deal.”
  – Orlando Bravo (12:08)

• “Our team has to spend more time selling a company than buying a company.”
  – Orlando Bravo (16:36)

• “Over the last five years, the average private equity firm and venture capital firm has underperformed the S&P 500. Now, the best of the best always crush it.”
  – Orlando Bravo (21:39)

• “Focus on the business. Get away from what’s the firm going to be in 10 years or 20 years... Have your feet on the ground and focus on the business that’s right in front of you.”
  – Orlando Bravo (28:42)

Timestamps for Important Segments

• Bravo’s origin story and Puerto Rico ties – 00:52–02:48
• Lessons from the Dot-Com Bubble – 03:55–06:12
• AI’s impact and public/private valuations – 06:34–10:32
• AI in Thoma Bravo’s processes – 10:32–12:04
• Operational alpha and monthly reviews – 12:04–14:08
• Exits, liquidity, and continuation vehicles – 14:08–18:05
• Private equity’s current shakeout – 18:05–21:31
• Industry shift to retail/wealth and reframing FOMO – 22:33–25:32
• Mega LBOs and SaaS transformation – 25:32–28:23
• Bravo’s advice for tough times – 28:42–29:52

Tone and Style

Throughout, Orlando Bravo is direct, practical, and candid, blending humor with unvarnished assessments (“can’t be the only crazy ones doing all these $10 billion deals”). He mixes optimism with a strict operational ethos, emphasizing discipline, adaptation, and the essential human element in private equity.

For listeners seeking a masterclass on modern private equity, operational rigor, and market adaptation, this episode is a goldmine of insight and pragmatic advice.