Starboard takes large stake in Clearwater Analytics, sources say

Clearwater Analytics Holdings

09/12/2025 13:00

Starboard built nearly 5% stake, sources say

Hedge fund views company as attractive acquisition target

Hedge fund has engaged with company privately

Starboard sees several paths to boosting share price

By Svea Herbst-Bayliss

NEW YORK, Dec 9 (Reuters) - Activist investor Starboard Value has taken a nearly 5% stake in Clearwater Analytics CWAN.N and wants the technology company to boost its share price and run a robust sales process with independent advisers if it has received in-bound interest from potential buyers, two people familiar with the matter said.

Starboard thinks Clearwater Analytics' business is significantly undervalued by investors as they worry about how management will integrate recent acquisitions, said the sources who are not permitted to discuss the new stake publicly.

The Boise, Idaho-headquartered company, which has a market value of $6.4 billion, has seen its stock price drop 20% this year.

News that Starboard, one of the investment industry's busiest corporate agitators, built a stake comes at a time private equity firms have expressed interest in possibly buying the company, which provides investment accounting and reporting software.

Starboard and the company, which went public in 2021, have communicated privately, the sources said.

A representative for Clearwater  did not immediately respond to a request for comment.

Starboard believes there are several paths to improving shareholder value, the sources said, noting that the hedge fund would like to see the company run a proper sales process with independent advisers after the company has received indications of interest from credible buyers.

The hedge fund believes Clearwater would be a very coveted asset for both financial sponsors and strategic acquirers, the sources said.

Should the company and its advisers fail to find a suitable buyer, Starboard believes that management should focus on opportunities to grow revenue and improve margins after recent acquisitions are properly integrated, the sources said.

In the first few months of 2025, Clearwater bought Enfusion, Bistro and Beacon. But investors sent the stock price tumbling as they worried about integration risk and the company's increased financial leverage, industry analysts have said.

Clearwater makes software that helps companies manage investment portfolios across both public and private markets and counts insurers, asset managers, hedge funds and banks as its clients, according to its website.

 (Reporting by Svea Herbst-Bayliss; Editing by Muralikumar Anantharaman)

 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net))