Wall Street's Best Dealmaker
Forbes Indonesia|November 2019
Orlando Bravo peaked as a competitive tennis player as a junior in the 1980s, but he is the undisputed world champion in a far more lucrative game: private equity.
Antoine Gara

Orlando Bravo discovered his edge early. In 1985, at age 15, he traveled from his home in Mayagüez, Puerto Rico, a small town on the island’s western coast, to Bradenton, Florida, to enroll in the legendary tennis guru Nick Bollettieri’s grueling academy.

Bravo would wake at dawn, head to class at St. Stephen’s Episcopal School, then return to Bollettieri’s tennis courts at noon. He spent hours warring against peers like Andre Agassi and Jim Courier under the broiling sun. At sundown, after an hour to shower and eat, he would study, then retire to a sweaty, two-bedroom condominium in which players bunked four to a room like army barracks. Then he would do it all over again, six days a week, for a full year. “It was the tennis version of Lord of the Flies,” says his former roommate Courier.

The brutally competitive environment helped Bravo climb to a top-40 ranking in the U.S. as a junior. Then he peaked. “It was quite humbling,” recalls Bravo, who’s still fit from his weekly tennis games. “It was a different level of hard work altogether. It became clear I could operate at these super-high levels of pain.”

That grit and perseverance eventually propelled him to the top echelons of the private equity world. Few outside of finance have heard of the 49-year-old Bravo, but he is the driving force behind Wall Street’s hottest firm, the $39 billion (assets) Thoma Bravo.

In February, the French business school HEC Paris, in conjunction with Dow Jones, named Thoma Bravo the best-performing buyout investor in the world after studying 898 funds raised between 2005 and 2014. According to public data analyzed by Forbes, its funds returned 30% net annually, far better than famous buy out firms like KKR, Blackstone and Apollo Global Management. That’s even better than the returns from the software buyout firm Vista Equity Partners, its closest rival, run by Robert F. Smith, the African American billionaire who recently made headlines by paying off the college debt of Morehouse College’s entire graduating class. Since the beginning of 2015, Bravo has sold or listed 25 investments worth a total of $20 billion, four times their cost. His secret? He invests only in well-established software companies, especially those with clearly discernible moats.

“The economics of software were just so powerful. It was like no other industry I had ever researched,” says Bravo, seated in his office in San Francisco’s Transamerica Pyramid. He wears a tailored purple dress shirt and enunciates his words with a slight Puerto Rican accent. “It was just very obvious.”

Bravo’s firm has done 230 software deals worth over $68 billion since 2003 and presently oversees a portfolio of 38 software companies that generate some $12 billion in annual revenue and employ 40,000 people. Forbes estimates the value of the firm, which is owned entirely by Bravo and a handful of his partners, at $7 billion. Based on his stake in the firm and his cash in its funds, Bravo has a $3 billion fortune. Not only does that make him the first Puerto Rican-born billionaire, it’s enough for Bravo to debut at 287th place on this year’s Forbes 400 ranking of the richest Americans.

Like a good tennis player who’s worked relentlessly on his groundstrokes, Bravo has made private equity investing look simple. There are no complicated tricks. He figured out nearly two decades ago that software and private equity were an incredible combination. Since then, Bravo has never invested elsewhere, instead honing his strategy and technique deal after deal. He hunts for companies with novel software products, like Veracode, a Burlington, Massachusetts-based maker of security features for coders, or Pleasanton, California-based Ellie Mae, the default system among online mortgage lenders, which the firm picked up for $3.7 billion in April. His investments typically have at least $150 million in sales from repeat customers and are in markets that are too specialized to draw the interest of giants like Microsoft and Google. Bravo looks to triple their size with better operations, and by the time he strikes, he’s already mapped out an acquisition or turn around strategy.

The pool of potential deals is growing. On public markets, there are now more than 75 subscription software companies, worth nearly $1 trillion, that Bravo can target, versus fewer than 20, worth less than $100 billion, a decade ago. Investors around the world clamor to get into his firm’s funds and lenders have checkbooks ready to finance his next big deal. “The opportunities today are the biggest I’ve ever seen,” Bravo says. “Right now we are in a huge, exploding and changing the industry.”

ORLANDO BRAVO’S isn’t a rags-to-riches story. He was born into a privileged life in Puerto Rico in the Spanish colonial city of Mayagüez, which for decades was the port for tuna fishing vessels supplying the local Starkist, Neptune and Bumble Bee canneries.

Starting in 1945, his grandfather Orlando Bravo, and later his father, Orlando Bravo Sr., ran Bravo Shipping, which acted as an agent for the massive tuna-fishing factory ships entering the port in Mayagüez. It was a lucrative business. His parents moved him and his younger brother Alejandro to what’s now a gated community in the hills of Mayagüez, where the brothers attended private schools and tooled about on the family’s 16-foot motorboat.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM FORBES INDONESIAView All

THE CROESUS OF CRYPTO

FTX COFOUNDER SAM BANKMAN-FRIED BUILT A $22.5 BILLION FORTUNE BEFORE HIS 30TH BIRTHDAY BY PROFITING OFF THE CRYPTOCURRENCY FRENZY—BUT HE’S NOT A TRUE BELIEVER. HE JUST WANTS HIS WEALTH TO SURVIVE LONG ENOUGH TO GIVE IT ALL AWAY.

10+ mins read
Forbes Indonesia
November 2021

The Cost of Looking Good

The fashion industry is at the tipping point of turning sustainable.

5 mins read
Forbes Indonesia
November 2021

Resilient Sectors in Greater Jakarta Amid the Pandemic

The pandemic has resulted in a challenging period for much of the Greater Jakarta real estate market.

2 mins read
Forbes Indonesia
November 2021

Sweet Dream

On 17 August 2021, PTPN, the national state-owned plantation company, with government support, officially established PT Sinergi Gula Nusantara (SugarCo) by bringing together 35 sugar mills owned by seven of its members under a single entity subsidiary.

4 mins read
Forbes Indonesia
November 2021

To the Moon

Tokocrypto takes early steps to integrate blockchain and crypto technology into Indonesian society

4 mins read
Forbes Indonesia
November 2021

ROADS TO SUCCESS

JUSUF HAMKA ASPIRES TO TURN CITRA MARGA NUSAPHALA PERSADA INTO A RP100 TRILLION COMPANY, IN TERMS OF ASSETS.

6 mins read
Forbes Indonesia
November 2021

Reshaping Business

At the height of COVID-19 pandemic, Hero Supermarket executes a major decision to divest Giant. Now, it is recalibrating business to regain profitability.

5 mins read
Forbes Indonesia
November 2021

Humility Matters

TAUFIK DARUSMAN IS ONE OF INDONESIA’S MOST EXPERIENCED JOURNALISTS. HE HAS HELD CHIEF EDITOR ROLES AT BUSINESS WEEK INDONESIA AND INVESTOR MAGAZINES, AND THE INDONESIAN OBSERVER NEWSPAPER.

2 mins read
Forbes Indonesia
November 2021

Opportunity in The Rise of Palm Oil Prices

What would you do if you had $5 billion in cash?

4 mins read
Forbes Indonesia
November 2021

Bridging the Gap

Komunal provides a platform that connects depositors to rural banks that rely on brick-and-mortar branches.

4 mins read
Forbes Indonesia
November 2021
RELATED STORIES

UNWRAPPERS' DELIGHT

Americans can’t resist the lure of elaborate packaging.

10 mins read
The Atlantic
December 2021

ALEC BALDWIN BOOZE TERROR

Will gun death tragedy trigger alcohol relapse?

2 mins read
Globe
November 22, 2021

HARRY & MEGHAN GET SPANKED!

Duchess’ dad brands couple greedy brats

2 mins read
Globe
November 08, 2021

The One-Bed room Museum

Thomas Lollar—ceramicist, teacher, and, most of all, collector— can always find space for something else in his home.

3 mins read
New York magazine
October 25 - November 7, 2021

POTENT POTION EASES BACK PAIN

A COCKTAIL of antiaging drugs could end agonizing back pain for millions of Americans!

1 min read
National Enquirer
October 25, 2021

The MIRACLE GAMES

The Games of the XXXII Olympiad were historic even before tennis star Naomi Osaka lit the flame in the cauldron with her relay torch to commence them.

9 mins read
Lens Magazine
September 2021

Thomas Walsh - The Unusual Suspect

Any paternity test on the sub-genre of police procedural will identify the DNA of Ed McBain and Lawrence Treat, as well as the 1948 movie The Naked City and the radio and TV series Dragnet…and of course Thomas Walsh.

6 mins read
Mystery Scene
Fall #169, 2021

WE'RE WITH HER Jane Levy

On the Emmy-winning Zoey’s Extraordinary Playlist she plays a computer programmer with special powers. In real life she’s mastered insomnia and RV maintenance.

3 mins read
Men's Journal
January - February 2021

MAKING THE TURN

Six years after saying goodbye to the protour grind, Mardy Fish may be more active than ever—on the court, on the course, and helping combat a struggle anyone can encounter

9 mins read
Tennis
September - October 2021

FOOD FOR THOUGHT

Queens is known for its gastronomy as much as its tennis. Daniil Medvedev, equal parts sugar and spice, hopes to add a unique flavor to the borough as he vies for his first major

9 mins read
Tennis
September - October 2021