Form 4: Accel-KKR Funds Distribute Paymentus Holdings Shares In-Kind

Accel-KKR funds distributed Paymentus Holdings Class A and Class B common stock to their partners in a pro rata in-kind distribution.

Summary

• Accel-KKR Holdings GP, LLC and several affiliated funds have distributed shares of Paymentus Holdings, Inc. Class A and Class B common stock to their partners.
• The distribution was conducted on a pro rata basis and in-kind, meaning no cash consideration was involved.
• The shares were distributed from various Accel-KKR funds including Accel-KKR Capital Partners CV III, LP, Accel-KKR Growth Capital Partners III, LP, and others.
• The Class B common stock is convertible into Class A common stock at any time at the holder's election.
• The distribution involved a total of 7,422,692 Class B shares and 7,422,692 Class A shares.

Sentiment

Score: 7

Explanation: The document describes a standard distribution of shares, which is a neutral event. The sentiment is slightly positive as it provides liquidity to the partners.

Positives

• The in-kind distribution allows partners to directly hold shares of Paymentus Holdings.
• The conversion feature of Class B shares provides flexibility to holders.

Risks

• The distribution of a large number of shares could potentially impact the market price of Paymentus Holdings stock.
• The conversion of Class B shares to Class A shares could increase the number of outstanding Class A shares.

Management Comments

• Accel-KKR Holdings GP, LLC, has voting and investment power over the shares of Common Stock of the Issuer owned by multiple Accel-KKR funds.

Industry Context

This type of distribution is common for private equity firms to distribute holdings to their limited partners.

Comparison to Industry Standards

• Private equity firms often distribute shares of portfolio companies to their limited partners as part of their fund lifecycle.
• This distribution is similar to other in-kind distributions seen in the industry, where assets are transferred without cash consideration.
• The pro rata nature of the distribution is standard practice to ensure fair allocation among partners.

Stakeholder Impact

• The distribution provides liquidity to Accel-KKR's partners.
• The distribution could potentially impact the trading volume and price of Paymentus Holdings stock.

Key Dates

Keywords

Paymentus Holdings, Accel-KKR, share distribution, in-kind, Class A Common Stock, Class B Common Stock, pro rata, convertible