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Clearwater Analytics Holdings, Inc. (CWAN) is a SaaS (Software-as-a-Service) provider specializing in solutions for automated investment data aggregation, reconciliation, accounting, and reporting services. The company serves a diverse client base, including insurers, investment managers, corporations, institutional investors, and government entities. CWAN generates revenue primarily through fees for access to its SaaS platform, offering clients automated and accurate investment data management and streamlined reporting processes.
- Investment Data Solutions - Provides a comprehensive platform for investment data aggregation, accounting, analytics, and reporting services, catering to the needs of institutional investors and other financial entities.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Sandeep Sahai ExecutiveBoard | Chief Executive Officer | None | Sandeep Sahai has been the CEO since July 2018, leading the company through significant growth and global expansion. | View Report → |
Jim Cox Executive | Chief Financial Officer | None | Jim Cox has been the CFO since April 2019, overseeing financial operations and the company's IPO in 2021. | |
Andrew Young Board | Director | Partner at Permira Advisers; Board Member at Zwift, Seismic, Carta, and Reorg Research | Andrew Young has been a director since November 2020, with experience in technology investments and mergers and acquisitions. | |
Cary Davis Board | Director | Warburg Pincus; Director at Crowdstrike, BitSight, Cyren, eSentire, RS Energy Group, Reorg Research, and Varo Money | Cary Davis has been a director since November 2020, focusing on technology investments and finance. | |
Christopher Hooper Board | Class II Director | General Partner at WCAS; Director at Green Street, Avetta, and LINQ | Christopher Hooper has been a director since July 2017, with expertise in technology investments and finance. | |
D. Scott Mackesy Board | Class II Director | Managing Partner at Welsh Carson; Board Member at Avetta, CenterWell Primary Care, Emerus, and Valtruis | D. Scott Mackesy has been a director since December 2022, focusing on firm strategy and technology investments. | |
Eric Lee Board | Chairman of the Board | General Partner at Welsh Carson; Board Member at Revel Systems and Owl Practice Suite | Eric Lee has been Chairman since September 2016, with extensive experience in technology investments and finance. | |
Jacques Aigrain Board | Class I Director | Chairman at LyondellBasell NV, TradeWeb Markets Inc., and Singular Bank SAU | Jacques Aigrain has been a director since February 2021, with a background in finance and leadership roles in public companies. | |
Jaswinder Pal Singh Board | Director | Chairman at 8x8, Inc.; Director at Hiro Systems, PBC; Co-founder of CaaStle and Trust Machines; Professor at Princeton University | Jaswinder Pal Singh has been a director since July 2022, with expertise in technology and cybersecurity. | |
Kathleen A. Corbet Board | Director | Principal at Cross Ridge Capital, LLC; Board Member at Massachusetts Mutual Life Insurance Company and Waveny LifeCare Network | Kathleen A. Corbet has been a director since March 2021, with extensive experience in finance and leadership. | |
Lisa Jones Board | Director | Head of the Americas, President, and CEO of Amundi US, Inc. | Lisa Jones has been a director since September 2022, with a career in financial services and asset management. |
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Your Net Revenue Retention Rate (NRR) increased to 114% this quarter, partly due to onboarding additional assets and cross-selling new products; can you elaborate on how sustainable this elevated NRR is, especially considering that some of the new products are not yet fully mature?
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You've mentioned that the recent interest rate environment provided a tailwind to your ARR growth; with potential future interest rate cuts, how do you anticipate this will impact your ARR, given your new contract structures and the sensitivity of your revenue to asset valuations?
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With the significant $290 million in net cash holdings, and the proposal to terminate the Tax Receivable Agreement (TRA), can you provide more details on your capital allocation priorities, particularly regarding M&A opportunities and returning value to shareholders?
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Your gross margin improvement of 110 basis points is ahead of your target of 50 basis points for the year; what are the key drivers of this outperformance, and how do you plan to sustain or accelerate margin expansion going forward?
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Given your investments in new products, international expansion, and leveraging technologies like GenAI, how are you balancing these growth initiatives with the need for operational efficiency and improving EBITDA margins?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Enfusion, Inc. | 2025 | Clearwater Analytics acquired Enfusion, Inc. for approximately $1.5 billion in a merger structure that includes a $30 million fee to terminate a tax receivable agreement, aiming to deliver a unified, cloud-native front-to-back platform by combining Enfusion’s front-office with Clearwater’s middle- and back-office capabilities. |
Wilshire Advisors LLC (Risk & Performance Analytics Solutions) | 2024 | In 2024, Clearwater acquired Wilshire Advisors LLC’s risk and performance analytics solutions for $40.1 million in cash, integrating key products like Wilshire AxiomSM and AtlasSM to enhance its platform and market position in the institutional asset owner space, complemented by transition service and licensing agreements. |
JUMP Technology | 2022 | The acquisition of JUMP Technology for €75 million, completed in November 2022 and accompanied by up to 3.8 million RSUs for its employees, expanded Clearwater’s front-to-back investment lifecycle solution and bolstered its European presence with an added 100 employees and 70 customers. |
Recent press releases and 8-K filings for CWAN.
- Achieved record quarterly revenue of $126.9M (up ~24% YoY) with an annualized recurring revenue of $493.9M and strong retention metrics .
- Delivered adjusted EBITDA of $45.1M (35.5% margin; 40% YoY increase) alongside a net income of $6.9M .
- Outlined a strategic approach for Enfusion, Beacon, and Bistro: Q1 was the final quarter before proceeding with the acquisitions, with planned integration initiatives expected to yield $20M cost synergies .
- Emphasized continued investments in advanced technology and operational efficiency to drive margin expansion and enhanced client satisfaction .
- Clearwater Analytics completed the acquisition of Enfusion, Inc. on April 21, 2025, in a deal valued at approximately $1.5 billion.
- The acquisition integrates Enfusion’s front-office technology with Clearwater’s cloud-native platform, enhancing real-time data management and operational efficiency.
- The transaction includes a structured mix of cash and stock consideration for Enfusion stockholders, with detailed terms outlined in the filing.
- Clearwater Analytics and Enfusion have announced the preliminary results of the shareholder election regarding the merger consideration for Clearwater’s planned acquisition of Enfusion, as reported on April 17, 2025.
- Preliminary election results show approximately 45.5% of Enfusion shareholders elected the Per Share Mixed Consideration, 6.1% elected the Per Share Stock Consideration, 40.9% elected the Per Share Cash Consideration (subject to proration), and 7.6% did not submit a valid election.
- The Transaction is expected to close on April 21, 2025, pending shareholder approval and the satisfaction of customary closing conditions.
- Enfusion shareholders must elect their form of merger consideration by 5:00 p.m. ET on April 16, 2025 as part of Clearwater’s acquisition of Enfusion.
- The transaction is expected to close on or about April 21, 2025, subject to shareholder approval and other closing conditions.
- Clearwater Analytics Holdings, Inc. completed the acquisition of the Bistro Asset from Blackstone Holdings I L.P. on March 31, 2025.
- The transaction involved issuing 3,833,333 shares of Class A common stock and paying $10.0 million in cash by July 1, 2025.
- Beacon Acquisition: Clearwater Analytics will acquire Beacon for approximately $560 million on a cash-free, debt-free basis, paying around $336 million in cash and issuing 7.5 million Class A shares.
- Bistro Transaction: Concurrently, the company will acquire Blackstone's Bistro assets for $125 million, involving $10 million in cash (payable July 1st) and 3.8 million Class A shares, with the Bistro close expected in Q1 2025 and Beacon in Q2 2025 pending regulatory approvals.
- Clearwater Analytics announced a definitive agreement to acquire Beacon, a leader in cross-asset risk analytics and portfolio modeling, and entered an asset purchase agreement to acquire Blackstone’s Bistro platform, enhancing its investment intelligence across private and public markets.
- The acquisition of Beacon is valued at approximately $560 million with 60% paid in cash and the remainder in shares of Clearwater Class A common stock (valued at about $30.05 per share), while the Bistro transaction is priced at $125 million with a mix of cash (approximately $10 million) and shares.
- These strategic moves are designed to integrate risk, performance, and pre-trade capabilities into a single, cloud-native platform, providing institutional investors with real-time portfolio visibility and centralized analytics.
- Funding for these transactions will come from Clearwater’s previously committed $800 million Term Loan B, available cash, and a portion of its $200 million revolving credit line.