Form 4: Robert Palumbo Reports Changes in Beneficial Ownership of Paymentus Holdings, Inc. (PAY)

Robert Palumbo, a director and 10% owner of Paymentus Holdings, Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's stock due to a pro rata distribution from funds affiliated with Accel-KKR.

Summary

• On September 11, 2024, Robert Palumbo, a director and 10% owner of Paymentus Holdings, Inc. (PAY), reported changes in his beneficial ownership of Class A and Class B Common Stock.
• The changes are due to a pro rata distribution of shares from funds affiliated with Accel-KKR.
• Palumbo directly owns 563,637 shares of Class B Common Stock, which includes 131,076 shares received in the distributions.
• He also indirectly owns shares through various Accel-KKR entities, including Accel-KKR Capital Partners CV III, LP (67,652,092 shares), Accel-KKR Members Fund, LLC (5,307,464 shares), Acel-KKR Growth Capital Partners III, LP (3,025,270 shares), Accel-KKR Growth Capital Partners II Strategic Fund, LP (101,395 shares), and Accel-KKR Growth Capital Partners II, LP (1,195,150 shares).
• Accel-KKR Holdings GP, LLC controls the voting and investment power over the shares owned by these entities; Mr. Palumbo and Mr. Barnds control decision making for Accel-KKR Holdings GP, LLC.
• Class B Common Stock is convertible into Class A Common Stock on a 1:1 basis and has no expiration date.

Sentiment

Score: 5

Explanation: This is a neutral regulatory filing. It doesn't inherently indicate positive or negative sentiment, but rather provides factual information about changes in ownership.

Industry Context

Form 4 filings are standard disclosures required by the SEC for insiders of publicly traded companies, providing transparency into their transactions and holdings. This filing indicates changes in ownership structure related to internal distributions within affiliated funds.

Comparison to Industry Standards

• Form 4 filings are a standard regulatory requirement for corporate insiders in the US, ensuring transparency in their trading activities.
• The reporting of indirect ownership through investment funds is common, especially for individuals affiliated with private equity firms like Accel-KKR.
• The level of detail provided in the footnotes regarding the relationships between the various Accel-KKR entities and the reporting person is consistent with best practices for disclosing complex ownership structures.

Stakeholder Impact

• The filing provides transparency to shareholders regarding the ownership structure of Paymentus Holdings, Inc.

Key Dates