Company Overview - Clearwater Analytics Holdings, Inc. is a technology-driven provider of investment accounting and analytics software, utilizing a scalable SaaS platform to deliver critical solutions for institutional asset owners and managers [6] - The company operates a subscription-based business model, generating recurring revenue by providing cloud-based software and analytics services to institutional clients, including insurers, investment managers, corporations, institutional investors, and government entities [9] Financial Performance - As of February 12, 2026, Clearwater Analytics had a market capitalization of $6.78 billion and reported a revenue of $451.80 million with a net income of $424.38 million for the trailing twelve months [4] - In the third quarter, the company experienced a revenue increase of 77% year over year, reaching $205.1 million, while adjusted EBITDA rose 84% to $70.7 million, and annualized recurring revenue reached $807.5 million with a net revenue retention rate of 108% [10] Recent Developments - Keenan Capital initiated a new position in Clearwater Analytics by purchasing 3,660,973 shares valued at approximately $88.30 million during the fourth quarter, which now represents 16.08% of Keenan Capital's reportable U.S. equity AUM as of December 31, 2025 [2][8] - Clearwater Analytics agreed to be acquired in an $8.4 billion deal in December, raising questions about the timing of the share accumulation by Keenan Capital [11] Market Position - As of February 12, 2026, shares of Clearwater Analytics were priced at $23.47, reflecting a decline of 14.5% over the past year and underperforming the S&P 500 by 27.43 percentage points [8]

Core Insights - A consortium of private equity firms, led by Permira and Warburg Pincus, has reached an agreement to acquire Clearwater Analytics Holdings for approximately $8.2 billion, which includes debt [1] Company Summary - Clearwater Analytics Holdings specializes in investment and accounting software [1] Industry Context - The acquisition reflects ongoing interest and investment in financial technology companies, particularly those providing software solutions for investment and accounting [1]

Company Overview - Clearwater Analytics Holdings provides cloud-native platforms for institutional investors, integrating various investment lifecycle functions into a single system [1] - The company serves a diverse clientele, including insurers, asset managers, hedge funds, banks, corporations, and governments [1] - Clearwater has been recognized for its capabilities in complex portfolio management across public and private markets, including structured products and derivatives [1] Activist Involvement - Starboard Value holds approximately 4.9% ownership in Clearwater and is known for its successful activist campaigns, achieving an average return of 36.92% in prior IT company engagements [2][3] - Starboard has urged Clearwater to conduct a thorough sales process if there is inbound interest from potential buyers [3][9] Recent Developments - Clearwater has shifted its strategy by making several acquisitions, including Enfusion and two private businesses, which has raised concerns about its ability to integrate these acquisitions while maintaining organic growth [6][7] - Following these acquisitions, Clearwater's stock price fell to a low of $15.73 per share after its third-quarter earnings report [7] Strategic Options - Clearwater has engaged advisers to evaluate strategic options after receiving unsolicited offers from firms like Thoma Bravo and Warburg Pincus [8] - Starboard's involvement suggests a focus on maximizing shareholder value, whether through a sale or a standalone growth strategy [10][11] Potential Outcomes - There are three potential outcomes for Clearwater: (i) a standalone plan focusing on integration and core growth, (ii) a sale of the company at a satisfactory premium, or (iii) a sale process led by Warburg and Permira [13] - Starboard is likely to support either the standalone plan or a competitive sale process, while opposing a sale orchestrated by existing private equity investors [13]

Core Viewpoint - Loomis Sayles Small/Mid Cap Growth Fund underperformed the Russell 2500 Growth Index in Q2 2025, returning 8.49% compared to the index's 11.31% due to security selection issues in the consumer discretionary and financials sectors [1] Fund Performance - The fund experienced a challenging quarter starting with high policy uncertainty but ended with the S&P 500 reaching an all-time high [1] - The fund's performance lagged behind its benchmark, indicating potential areas for improvement in investment strategy [1] Company Focus: Flowco Holdings Inc. - Flowco Holdings Inc. (NYSE:FLOC) was highlighted as a significant detractor from the fund's performance, with a one-month return of -1.00% and a 12.29% decline over the last three weeks [2][3] - As of September 12, 2025, Flowco Holdings Inc. had a market capitalization of $1.43 billion, closing at $15.84 per share [2] - The company is positioned in the oilfield service sector, focusing on production optimization and methane abatement, which are seen as stable areas despite recent commodity price declines [3] Hedge Fund Interest - Flowco Holdings Inc. was held by 17 hedge fund portfolios at the end of Q2 2025, a decrease from 21 in the previous quarter, indicating a potential decline in interest among institutional investors [4] - The company is not currently among the 30 most popular stocks among hedge funds, suggesting a cautious outlook from the investment community [4]