Billionaire investor Orlando Bravo said it’s private equity’s time to shine as venture capital struggles in the current market.
(Bloomberg) — Billionaire investor Orlando Bravo said it’s private equity’s time to shine as venture capital struggles in the current market.
“I am very negative right now in the VC world,” the co-founder of the tech-focused private equity firm Thoma Bravo said on Bloomberg TV at the SuperReturn International conference in Berlin. “I think that world is going to be shaken up.”
For venture capital firms struggling to turn unprofitable businesses around, the current market will remain challenging, he warned.
“I don’t think they’ve got the memo that buying growth is no longer a viable business option,” Bravo said. “You have to turn what you have into a really profitable business.”
In contrast, declining valuations, inflation, recession and a tight labor market are good for private equity, Bravo said, speaking at the end of the three-day gathering of private equity’s top players.
“As an owner of a business, you can deal with all that and you can turn it into positive,” he said.
In March, Thoma Bravo completed its $6.2 billion take-private buyout of enterprise software firm Coupa Software Inc. Also this year, the firm agreed in January to acquire cybersecurity provider Magnet Forensics Inc. for about C$1.8 billion ($1.35 billion). It was also one of several private equity firms interested in Swiss banking software company Temenos AG, Bloomberg News has reported.
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