SCHEDULE 13G/A: Welsh, Carson, Anderson & Stowe Affiliates Disclose 7.61% Passive Stake in Clearwater Analytics

Affiliates of Welsh, Carson, Anderson & Stowe have filed an amended Schedule 13G, reporting a passive beneficial ownership of 7.61% in Clearwater Analytics Holdings, Inc.'s Class A common stock as of December 31, 2024.

Summary

• WCAS XIII Carbon Analytics Acquisition, L.P., WCAS GP CW LLC, WCAS XIII Carbon Investors, L.P., and WCAS XIII Associates LLC (collectively, the 'Reporting Persons') have filed an Amendment No. 3 to Schedule 13G.
• As of December 31, 2024, the Reporting Persons collectively beneficially own 18,958,356 shares of Clearwater Analytics Holdings, Inc.'s Class A common stock.
• This ownership represents 7.61% of the total Class A shares outstanding, calculated based on an assumed 249,057,258 Class A shares outstanding.
• The reported securities include 10,786,830 LLC Interests (convertible into Class A Shares and Class C Shares) and 8,171,526 Class D Shares (convertible into Class A Shares).
• The Reporting Persons hold shared voting and shared dispositive power over all 18,958,356 shares.
• The filing indicates a passive investment purpose, as it is filed under Rule 13d-1(d).
• The Reporting Persons were previously part of a group with entities associated with Warburg Pincus LLC and Permira VII GP S.a.r.l. but are no longer deemed to constitute a group pursuant to a Stockholder's Agreement dated September 28, 2021.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive due to the disclosure of a significant, passive institutional stake by a reputable firm, which can be interpreted as a vote of confidence in the company's value and stability, without indicating any immediate negative implications.

Positives

• The disclosure of a significant 7.61% stake by a prominent private equity firm like Welsh, Carson, Anderson & Stowe can be viewed as a vote of confidence in Clearwater Analytics Holdings, Inc.'s long-term prospects.
• The passive nature of the filing (Rule 13d-1(d)) suggests that the investors do not intend to influence control of the issuer, which can provide stability and reduce concerns about activist intervention.

Future Outlook

NA

Industry Context

This Schedule 13G filing reflects a significant institutional investment in Clearwater Analytics, a company operating in the financial technology sector, specifically in investment accounting and reporting solutions. Such filings are common for private equity firms or large institutional investors holding substantial, but passive, stakes in publicly traded companies. The continued holding of a significant stake by WCAS suggests their ongoing belief in the company's long-term prospects within the competitive fintech landscape.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by WCAS may instill confidence and potentially influence investor sentiment positively, suggesting a belief in the company's long-term value.
• Management: The presence of a large, passive institutional investor like WCAS indicates a significant shareholder base that management will need to consider in strategic decisions, though without direct control influence.

Key Dates

Keywords

Clearwater Analytics Holdings Inc., WCAS, Welsh Carson Anderson & Stowe, Schedule 13G, Beneficial Ownership, Class A Common Stock, Institutional Investor, SEC Filing, Passive Investment, Equity Stake