Thoma Bravo is actively seeking software takeovers, viewing the recent market sell-off as a buying opportunity. Co-founder Orlando Bravo told the Financial Times that investor anxiety over AI has unfairly punished listed software stocks. The firm, managing over $180bn, recently closed a $24.3bn fund for software deals and took HR provider Dayforce private in a $12.3bn transaction.

Public software stocks have dropped sharply, with a sector index falling about 7% in three weeks. Shares of Salesforce and Adobe declined around 12%, while Microsoft, Meta, and Oracle also retreated. Bravo argues that specialized companies with deep domain expertise in niches like payroll or cybersecurity are less vulnerable to AI disruption, unlike generic software vendors.

The comments signal a strategic pivot for large buyout firms deploying capital into a resetting market. While peers like Apollo and Blackstone remain cautious on AI risks, Thoma Bravo’s aggressive stance highlights a divergence in private equity strategy. Investors will watch for further acquisitions as the firm capitalizes on valuation compression.