SCHEDULE 13G: Nantahala Capital Management Discloses 7.82% Stake in Altisource Portfolio Solutions S.A.

Nantahala Capital Management, along with Wilmot B. Harkey and Daniel Mack, has disclosed a beneficial ownership of 7.82% of Altisource Portfolio Solutions S.A.'s common stock as of December 31, 2024.

Summary

• Nantahala Capital Management, LLC, Wilmot B. Harkey, and Daniel Mack (collectively, the "Reporting Persons") have filed a Schedule 13G.
• As of December 31, 2024, the Reporting Persons beneficially own an aggregate of 2,128,284 shares of Common Stock, $1.00 par value, of Altisource Portfolio Solutions S.A.
• This ownership represents 7.82% of the total outstanding shares of Altisource Portfolio Solutions S.A.
• Nantahala Capital Management, LLC is a Massachusetts limited liability company and an investment adviser.
• Wilmot B. Harkey and Daniel Mack are citizens of the United States and are managing members of Nantahala, deemed beneficial owners of the shares.
• The Reporting Persons hold shared voting power and shared dispositive power over all 2,128,284 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.
• BLACKWELL PARTNERS LLC SERIES A, a fund advised by Nantahala, has the right to receive or direct the receipt of dividends or proceeds from the sale of more than five percent of the outstanding shares beneficially owned by Nantahala.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While a Schedule 13G is a factual disclosure of ownership and not a performance report, the presence of a significant institutional investor like Nantahala Capital Management taking a substantial stake can be viewed as a positive signal of confidence in the company's value or future prospects. The certification of holding shares in the ordinary course of business and not for control purposes suggests a stable, long-term investment.

Positives

• The disclosure of a significant stake by an investment adviser like Nantahala Capital Management can signal confidence in the company's long-term prospects.
• The filing indicates the shares are held in the ordinary course of business, suggesting a passive investment rather than an immediate activist intent to change control, which can provide stability.

Negatives

• The Schedule 13G filing itself does not contain information that would be considered negative regarding the issuer's performance or outlook.

Risks

• The document does not explicitly detail risks related to Altisource Portfolio Solutions S.A.'s operations or financial health, as it is a beneficial ownership disclosure.

Future Outlook

This Schedule 13G filing is a disclosure of beneficial ownership and does not contain any forward-looking statements or guidance from Altisource Portfolio Solutions S.A. or the reporting persons regarding the issuer's future performance.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11." (Certification by Reporting Persons)

Industry Context

This filing indicates a significant passive investment by Nantahala Capital Management in Altisource Portfolio Solutions S.A., a company operating in the financial services and real estate industries. Such disclosures are common for institutional investors taking substantial, non-controlling stakes in publicly traded companies, reflecting their investment strategies within the broader market.

Related Party Transactions

• BLACKWELL PARTNERS LLC SERIES A, a fund advised by Nantahala Capital Management, LLC, has the right to receive or direct the receipt of dividends from, or the proceeds from the sale of, more than five percent of the outstanding shares of common stock beneficially owned by Nantahala.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a 7.82% stake may influence investor perception and potentially the stock price, signaling institutional confidence.
• Management: Awareness of a large, passive institutional holder may influence strategic decisions, though the filing explicitly states no intent to influence control.

Key Dates

Keywords

Altisource Portfolio Solutions S.A., Nantahala Capital Management, Beneficial Ownership, Schedule 13G, Common Stock, Investment Adviser, SEC Filing, Shareholder Disclosure, L0175J104