Form 4: Warburg Pincus Sells 7 Million Shares of Clearwater Analytics Holdings

Warburg Pincus LLC sold 7 million shares of Clearwater Analytics Holdings Class A Common Stock at $19.71 per share on June 12, 2024.

Summary

• Warburg Pincus LLC, a 10% owner and director of Clearwater Analytics Holdings, Inc., filed a Form 4 detailing changes in beneficial ownership.
• On June 12, 2024, Warburg Pincus sold 7,000,000 shares of Class A Common Stock at a price of $19.71 per share.
• The transaction involved the conversion of 7,000,000 shares of Class D Common Stock into Class A Common Stock.
• Following the transaction, Warburg Pincus directly owns 0 shares of Class A Common Stock and indirectly owns 18,192,059 shares.
• The shares are held indirectly through WP CA Holdco, L.P., with Warburg Pincus entities managing the investment and voting decisions.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing a share sale. It doesn't inherently convey positive or negative sentiment, but rather reports a factual transaction.

Industry Context

Private equity firms like Warburg Pincus often reduce their stakes in portfolio companies after a certain period following an IPO to realize gains and return capital to investors. This sale is a typical example of such a transaction.

Comparison to Industry Standards

• Similar sales by large shareholders are common after the lock-up period following an IPO expires.
• Blackstone selling shares in Bumble, or KKR reducing its stake in various portfolio companies after their IPOs are comparable examples.
• The sale price of $19.71 per share reflects the market valuation of Clearwater Analytics at the time of the transaction.

Stakeholder Impact

• The sale of a large block of shares could potentially create short-term price volatility for Clearwater Analytics Holdings.
• The transaction may signal a shift in Warburg Pincus's investment strategy regarding Clearwater Analytics.

Key Dates