SCHEDULE 13D/A: Goldman Sachs Group Reduces Stake in Stagwell Inc. Below 5% Threshold Due to Dilution

The Goldman Sachs Group and its affiliates have filed an Amendment No. 11 to their Schedule 13D, indicating they are no longer beneficial owners of more than 5% of Stagwell Inc.'s Class A Common Stock, primarily due to dilution from the issuer's share issuances.

Summary

• The Goldman Sachs Group, Inc. and its affiliated entities (collectively, the "Reporting Persons") have filed Amendment No. 11 to their Schedule 13D regarding their beneficial ownership in Stagwell Inc.'s Class A Common Stock.
• This amendment serves as an "exit filing," as the Reporting Persons are no longer beneficial owners of more than 5% of Stagwell Inc.'s Class A Shares.
• The reduction in ownership below the 5% threshold is attributed to dilution caused by Stagwell Inc.'s issuance of additional Class A Shares since the previous Amendment No. 10, filed on June 17, 2024.
• As of April 8, 2025, The Goldman Sachs Group, Inc. and Goldman Sachs & Co. LLC are deemed to share beneficial ownership of 13,279,932 Class A Shares, representing approximately 4.9% of the total Class A Shares outstanding.
• This 4.9% stake includes 432,712 Class A Shares acquired by Goldman Sachs or another wholly-owned broker or dealer subsidiary of GS Group in ordinary course trading activities, and 12,847,220 Class A Shares directly held by Broad Street Principal Investments, L.L.C. (BSPI) and Employee Funds.
• Other Reporting Persons, including Broad Street Principal Investments, L.L.C., StoneBridge 2017, L.P., StoneBridge 2017 Offshore, L.P., and Bridge Street Opportunity Advisors, L.L.C., are deemed to share beneficial ownership of 12,847,220 Class A Shares, representing approximately 4.8% of the total Class A Shares.
• The percentage calculations are based on 265,743,768 Class A Shares outstanding as of April 2, 2025, as reported by Stagwell Inc. in its Periodic Report on Form 8-K.

Sentiment

Score: 5

Explanation: The document is a factual, compliance-driven report of a change in beneficial ownership due to dilution, not an active divestment. It carries a neutral sentiment regarding the company's operational performance or strategic direction.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding Stagwell Inc.'s future operations or financial performance from the perspective of the reporting persons.

Industry Context

This filing is a routine compliance update regarding a change in beneficial ownership of a publicly traded company. It does not provide insights into broader industry trends but reflects the dynamic nature of institutional investment stakes in public companies, where share issuances can lead to dilution of existing holdings.

Stakeholder Impact

• Shareholders: The reduction of a significant institutional investor's stake below the 5% reporting threshold, even if due to dilution, might be noted by the market, but the explicit reason (dilution from issuer's share issuances) mitigates concerns about active divestment.

Next Steps

• As this is an exit filing, the Reporting Persons are no longer required to file Schedule 13D amendments unless their beneficial ownership of Stagwell Inc.'s Class A Shares again exceeds 5%.

Key Dates

Keywords

Stagwell Inc., Goldman Sachs Group, Schedule 13D, Beneficial Ownership, Class A Common Stock, Dilution, SEC Filing, Investment Stake