Orlando Bravo, founder and managing partner of private equity firm Thoma Bravo, recently shared his views on how artificial intelligence is affecting software company valuations and defended the private markets sector against recent criticism.

Bravo indicated that some software companies impacted by AI developments deserve lower valuations, suggesting the technology is creating winners and losers within the software industry. His comments come as investors reassess how AI will reshape traditional software business models and competitive dynamics.

The private equity leader also pushed back against criticism of private markets, stating that stakeholders are "extremely comfortable" with current conditions. This defense comes amid broader scrutiny of private equity performance and practices in recent months.

Thoma Bravo is one of the largest private equity firms focused on software and technology investments, managing over $130 billion in assets. The firm's portfolio includes numerous enterprise software companies that could be directly affected by the AI revolution.

Bravo's comments reflect the broader challenge facing investors as they navigate AI's disruptive potential across various technology sectors. While some companies may benefit from AI integration, others may see their business models threatened by automated alternatives or changing customer preferences.