SCHEDULE: Haveli Investments Reports 22.6% Stake in Blend Labs

Haveli Investments and Brian N. Sheth disclose a significant beneficial ownership position in Blend Labs, Inc., totaling over 64 million shares.

Summary

• Haveli Brooks Aggregator, L.P. and associated entities have filed Amendment No. 4 to their Schedule 13D regarding Blend Labs, Inc.
• The reporting group collectively holds 64,197,502 shares of Class A Common Stock, representing 22.5% of the class.
• Brian N. Sheth reports a slightly higher individual beneficial ownership of 64,327,502 shares, or 22.6%, which includes 130,000 shares held in a family trust.
• The total share count includes 46,153,845 shares of Class A Common Stock that would be issued upon the conversion of 150,000 shares of Series A Preferred Stock.
• The calculation is based on 238,860,271 shares outstanding as of May 1, 2026, plus the shares resulting from the preferred stock conversion.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as positive due to the stability of a major institutional holder maintaining a large stake, though the potential for future dilution remains a factor.

Positives

• Strong institutional backing from Haveli Investments, a specialized software investment firm.
• Significant long-term commitment indicated by a 22.6% ownership stake.
• The reporting persons have not engaged in any transactions of Class A Common Stock in the 60 days preceding this amendment, suggesting a stable holding period.

Negatives

• Potential for significant dilution of existing shareholders if the 150,000 Series A Preferred shares are converted into 46.15 million Class A shares.
• High concentration of voting power within a single investment group and its principal.

Risks

• Concentrated ownership of 22.6% allows Haveli Investments and Brian N. Sheth to exert substantial influence over corporate decisions.
• Future sales of such a large block of shares could create significant downward pressure on the stock price.

Future Outlook

The reporting persons maintain a substantial strategic stake in the company, suggesting continued involvement in the company's long-term trajectory and potential influence over future corporate actions.

Management Comments

• Brian N. Sheth certified that the information set forth in the statement is true, complete, and correct as of June 12, 2026.

Industry Context

StockSavvy.ai notes that significant positions held by software-focused private equity firms like Haveli Investments often precede strategic shifts or operational restructuring in fintech companies to drive value in a competitive digital lending environment.

Comparison to Industry Standards

• A 22.6% stake is significantly higher than the typical 5-10% threshold for major institutional investors in the mid-cap fintech sector.
• The use of convertible preferred stock for large-scale investment is a standard private equity structure used to provide downside protection while maintaining upside potential.

Related Party Transactions

• The filing details the shared voting and dispositive power among various Haveli-affiliated entities and Brian N. Sheth.

Stakeholder Impact

• Shareholders: High concentration of ownership may limit the influence of minority shareholders.
• Management: Likely to face significant oversight or influence from the Haveli investment group.

Next Steps

• Monitor for future Form 4 filings to see if reporting persons begin buying or selling shares in the open market.
• Watch for any strategic announcements from Blend Labs that may be influenced by the Haveli investment group.

Key Dates

Recommendation

The continued presence of a major institutional investor with a 22.6% stake provides a level of support for the stock, but the high concentration and potential dilution from preferred stock conversion suggest a cautious hold until further strategic direction is clarified.

Keywords

Blend Labs, Haveli Investments, Brian N. Sheth, Schedule 13D, Beneficial Ownership, Series A Preferred Stock, Fintech, Software Investment