Form 4: KKR Affiliates Sell OneStream Shares Following Secondary Offering

KKR and its affiliates have sold a significant portion of their OneStream holdings following the company's secondary public offering.

Summary

• KKR Dream Holdings LLC and related entities have sold a substantial number of OneStream, Inc. shares.
• The transactions occurred on November 27, 2024, following the company's secondary public offering.
• The sale involved 898,957 common units, which were converted into Class D common stock and then sold for $29.9925 per share.
• The sale was executed at a price of $29.9925 per share, which is the secondary public offering price less the underwriting discount.
• The shares were sold by various KKR affiliated entities, including KKR Dream Holdings LLC, KKR Americas Fund XII (Dream) L.P., and others.
• The transactions involved both direct and indirect ownership of Class A common stock and Class D common stock.

Sentiment

Score: 4

Explanation: The document details a large sale of shares by a major shareholder, which is generally viewed as a negative signal. However, it is an expected outcome after a secondary offering, so the sentiment is moderately negative.

Negatives

• The sale by KKR and its affiliates could be perceived negatively by the market, potentially indicating a lack of long-term confidence in OneStream's stock.

Risks

• The large volume of shares sold by KKR could put downward pressure on OneStream's stock price.
• The market may interpret the sale as a negative signal about the company's future prospects.

Industry Context

This transaction is a typical example of a major shareholder selling shares after a secondary offering, which is a common practice in the financial markets. It is not unusual for large investors like KKR to reduce their holdings after a company goes public or conducts a secondary offering.

Comparison to Industry Standards

• Secondary offerings and subsequent sales by major shareholders are common in the tech industry, especially after a company goes public.
• Similar transactions can be seen with other private equity firms that have taken companies public, such as Vista Equity Partners and Thoma Bravo.
• The sale price of $29.9925 per share is typical for secondary offerings, which are often priced at a slight discount to the market price to ensure demand.

Stakeholder Impact

• Shareholders may experience a decrease in share price due to the large volume of shares sold.
• Employees may be concerned about the potential impact on the company's valuation and future prospects.
• Customers and suppliers are unlikely to be directly impacted by this transaction.

Key Dates

Keywords

OneStream, KKR, share sale, secondary offering, Class A Common Stock, Class D Common Stock, common units, equity, investment