Form 4: General Atlantic Sells 375,000 Shares of Alkami Technology Following Over-Allotment Option Exercise

General Atlantic sold 375,000 shares of Alkami Technology at $37.50 per share following the underwriter's exercise of its over-allotment option.

Summary

• General Atlantic GenPar (Bermuda), L.P. and related entities, including General Atlantic (AL), L.P., have reported the sale of 375,000 shares of Alkami Technology, Inc. (ALKT) common stock.
• The sale occurred on November 12, 2024, at a price of $37.50 per share.
• The transaction was executed following the exercise in full by the underwriter of its over-allotment option after the closing of a previously reported registered block trade.
• After the sale, General Atlantic (AL), L.P. directly holds 12,645,318 shares, while Raphael Osnoss holds 27,878 shares and 6,853 restricted stock units.
• Various General Atlantic-related entities, including investment funds and partnerships, may be deemed to have beneficial ownership of the shares.
• The reporting persons disclaim beneficial ownership of any securities deemed to be owned by the group that are not directly owned by the reporting person.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard transaction following an over-allotment option exercise. While a large shareholder selling shares can sometimes be viewed negatively, the context suggests it's a planned part of the investment lifecycle.

Industry Context

This transaction reflects a partial exit by a major shareholder, General Atlantic, from its investment in Alkami Technology. Such transactions are common after a period of investment and can be influenced by market conditions and the investor's portfolio strategy. The sale following the exercise of the over-allotment option suggests strong demand in the initial offering.

Comparison to Industry Standards

• Comparing this transaction to similar sales by private equity firms in the fintech sector, the size of the sale (375,000 shares) is relatively modest compared to the overall holdings of General Atlantic.
• For example, when Vista Equity Partners divested a portion of its stake in Avalara, the transaction involved a significantly larger block of shares.
• Similarly, when Silver Lake Partners reduced its position in Black Knight, the sale was of a more substantial portion of its holdings.
• The fact that this sale was triggered by an over-allotment option suggests that the initial offering was well-received by the market, which is a positive sign for Alkami Technology.

Stakeholder Impact

• The sale could have a minor impact on shareholders due to the increased float, but the overall impact is likely to be minimal given the relatively small size of the transaction compared to the total outstanding shares.
• Employees and customers are unlikely to be directly affected by this transaction.

Key Dates