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

Warburg Pincus LLC and related entities 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, along with several related entities, filed a Form 4 with the SEC on June 12, 2024, reporting changes in beneficial ownership of Clearwater Analytics Holdings, Inc. (CWAN) stock.
• The filing indicates the sale of 7,000,000 shares of Class A Common Stock at a price of $19.71 per share.
• The transaction involved multiple entities within the Warburg Pincus group, including WP CA Holdco, L.P., WP CA Holdco GP, LLC, and various Warburg Pincus funds and general partner entities.
• Following the reported transaction, Warburg Pincus still indirectly holds 18,192,059 shares of Class D Common Stock and no shares of Class A Common Stock.
• The Class D Common Stock will automatically convert into Class A Common Stock upon the earlier of Welsh, Carson, Anderson & Stowe owning less than 5% of the Issuer's common stock and the seventh anniversary of the closing of the Issuer's initial public offering.

Sentiment

Score: 5

Explanation: Neutral sentiment as it's a standard transaction filing. The sale itself doesn't necessarily indicate a positive or negative outlook, but rather a portfolio adjustment by a major shareholder.

Future Outlook

The Class D Common Stock will automatically convert into Class A Common Stock upon the earlier of Welsh, Carson, Anderson & Stowe owning less than 5% of the Issuer's common stock and the seventh anniversary of the closing of the Issuer's initial public offering.

Industry Context

This transaction reflects a significant shareholder adjusting their position in Clearwater Analytics. Monitoring similar transactions by major shareholders can provide insights into market sentiment and potential future stock performance.

Stakeholder Impact

• The sale of a large block of shares could potentially create short-term price volatility for Clearwater Analytics Holdings.
• Existing shareholders may be concerned about the reasons behind Warburg Pincus's decision to reduce its stake.

Key Dates