This NYC Hedge Fund Will Reap A $90 Million Profit In The $8.4 Billion Smartsheet Deal

Acquisition Overview - Smartsheet, an enterprise work management software platform, will be acquired by Blackstone and Vista Equity Partners in an all-cash deal valued at $8.4 billion, with shareholders receiving $56.50 per share, representing a 41% premium over the stock's average closing price for the past three months [1] Involved Parties - Vista Equity Partners, co-founded by billionaire Robert F. Smith, specializes in enterprise software deals and manages over $100 billion in assets [2] - Blackstone, the world's largest private equity firm, has more than $1 trillion in assets [2] Investor Insights - Eminence Capital, managed by Ricky Sandler, is the largest hedge fund holder of Smartsheet, with 4.3 million shares as of the latest filing for Q2, representing the fund's sixth largest holding [3] - Eminence began acquiring Smartsheet shares in the second half of 2022 at around $34 each, increasing its position to 4.3 million shares with an average purchase price of about $36 per share [4] Financial Impact - With the acquisition price of $56.50 per share, Eminence Capital stands to gain approximately $90 million, reflecting a 60% increase in value over two years [4] Historical Context - This acquisition is not the first for Eminence Capital; the fund was also the largest hedge fund owner of Keurig Green Mountain during its acquisition by JAB Capital in 2015 at a 78% premium [5]