Form 4: Altos Ventures Distributes Roblox Shares to Partners in Pro-Rata In-Kind Transaction

Altos Ventures and related entities distributed a significant number of Roblox Class A Common Stock shares to their partners through a pro-rata in-kind distribution.

Summary

• Altos Ventures and its related funds have distributed Roblox Class A Common Stock shares to their partners.
• The distribution was done on a pro-rata in-kind basis.
• The shares were distributed from various Altos entities including Altos Ventures IV, L.P., Altos Ventures IV Liquidity Fund, L.P., Altos Ventures IV Reserve Fund, L.P., Altos Roblox SPV 1, LLC, Altos Roblox SPV 2, LLC, Altos Roblox SPV 2020, LLC and Altos Hybrid 2, L.P.
• Anthony P. Lee, a managing member of the general partners and managers of the respective entities, is reporting the transaction.
• Lee disclaims beneficial ownership of the shares except to the extent of his pecuniary interest.
• The distribution includes shares held directly by various trusts and entities associated with Lee and his family.

Sentiment

Score: 6

Explanation: The document describes a standard financial transaction, a pro-rata in-kind distribution, which is neither particularly positive nor negative. The sentiment is neutral to slightly positive as it represents a return of capital to investors.

Positives

• The distribution of shares indicates a potential return of capital to Altos Ventures' partners.
• The pro-rata in-kind distribution ensures fair allocation of shares to all partners.

Risks

• The distribution of a large number of shares could potentially increase the supply of Roblox stock in the market.
• The disclaimer of beneficial ownership by Anthony P. Lee could indicate a complex ownership structure.

Management Comments

• Anthony P. Lee disclaims beneficial ownership of the shares except to the extent of his pecuniary interest.

Industry Context

This type of distribution is common in private equity and venture capital when funds reach the end of their life or when they want to return capital to investors. It is a standard practice for distributing shares of portfolio companies.

Comparison to Industry Standards

• Pro-rata in-kind distributions are a common method for venture capital and private equity firms to distribute assets to their limited partners.
• Similar distributions have been observed with other venture-backed companies as funds mature and seek to return capital to investors.
• The complexity of the distribution, involving multiple entities and trusts, is not unusual for large venture capital firms.

Stakeholder Impact

• Shareholders of Roblox may see a slight increase in the supply of shares.
• Partners of Altos Ventures will receive shares in Roblox as part of the distribution.

Key Dates

Keywords

Roblox, Altos Ventures, share distribution, pro-rata, in-kind, Class A Common Stock, Anthony P. Lee, beneficial ownership