Form 4: Insight Holdings Group Distributes nCino Shares to Partners

Insight Holdings Group and affiliated entities distributed shares of nCino, Inc. common stock to their partners on April 9, 2024, without any consideration furnished in exchange.

Summary

• On April 9, 2024, Insight Venture Partners Growth-Buyout Coinvestment Funds distributed an aggregate of 1,849,604 shares of nCino, Inc. common stock to their partners on a pro rata basis.
• The partners did not provide any consideration for the shares received.
• In connection with the distribution, Insight Venture Associates Growth-Buyout Coinvestment, L.P. acquired direct ownership of 195,550 shares, Insight Venture Partners Growth-Buyout Coinvestment Fund (Class A), L.P. acquired 61,741 shares, and NV Secondary L.P. acquired 5,927 shares.
• IVA Coinvestment distributed 218,211 shares pro rata to its partners, IVP Coinvestment Class A distributed 61,741 shares pro rata to its partners, and NV Secondary distributed 5,927 shares pro rata to its partners.
• These distributions were made in accordance with the respective ownership interests as determined by the applicable limited partnership agreements.

Sentiment

Score: 7

Explanation: The document describes a routine transaction (distribution of shares) within the investment firm's portfolio management. It's a neutral event from a financial performance perspective, but positive in the sense that it represents a return of capital to investors.

Industry Context

This announcement reflects the ongoing portfolio management activities of Insight Partners, a private equity and venture capital firm, and its affiliated funds. Distributions of this nature are common in the private equity industry as funds mature and return capital to their investors.

Comparison to Industry Standards

• Distributions of shares to limited partners are a standard practice in the private equity industry, often occurring when portfolio companies reach a stage of maturity or liquidity.
• Similar distributions have been observed with other major private equity firms such as Accel, Sequoia Capital, and Andreessen Horowitz, when their portfolio companies like Facebook, Airbnb, and Palantir reached significant milestones.
• These distributions allow limited partners to directly benefit from the success of the portfolio companies and manage their own investment portfolios accordingly.

Stakeholder Impact

• The distribution of shares may impact the trading volume and price of nCino stock as the partners may choose to sell their newly acquired shares.
• The partners of the Insight Coinvestment Funds receive direct ownership of nCino shares, allowing them to manage their investments independently.

Key Dates