Kirkland & Ellis Advises Clearwater Analytics on $685M Bistro & Beacon Acquisitions.
Clearwater Analytics (NYSE: CWAN) has secured two major acquisitions, advised by Kirkland & Ellis, to significantly enhance its risk management and portfolio analytics capabilities.
The company has entered into definitive agreements to acquire Bistro, Blackstone’s proprietary portfolio visualization software, and Beacon, a leading cross-asset class modeling and risk analytics platform. The total value of the transactions is approximately $685 million.
Clearwater’s $125 Million Acquisition of Bistro
The acquisition of Bistro, developed by Blackstone for its Credit & Insurance business, is valued at $125 million. This platform enables Blackstone’s insurance clients to obtain detailed views of private credit portfolios, providing insights into asset analytics, client reporting, and risk management.
The purchase will be made partially in cash ($10 million) and partially in Clearwater’s Class A common stock.
Clearwater Acquires Beacon for $560 Million
Clearwater also announced the acquisition of Beacon, a next-generation platform for cross-asset class risk analytics and portfolio modeling. The deal is valued at approximately $560 million, with 60% of the purchase price paid in cash and the remainder in Clearwater’s Class A common stock.
Beacon, which specializes in derivatives, private credit, and alternative assets, will provide Clearwater with expanded capabilities for institutional investors managing complex portfolios.
Strategic Impact for Institutional Investors
These acquisitions are key to Clearwater’s strategy of providing advanced, integrated solutions for institutional investors, particularly as they allocate more funds to alternative assets, including private credit.
With Bistro and Beacon, Clearwater aims to offer a unified platform for real-time portfolio management, risk analysis, and modeling across public and private investments, structured products, and alternatives.
Sandeep Sahai, CEO of Clearwater Analytics, commented:
“With this combination, Chief Investment and Chief Risk Officers will have a unified, real-time view of their entire portfolio—all in a single, cloud-native platform.”
A Growing Demand for Sophisticated Risk Solutions
As institutional investors allocate nearly 20% of their portfolios to alternatives, Clearwater is meeting the demand for sophisticated risk solutions. The platform’s industry-leading tools allow for comprehensive risk evaluation, cash flow modeling, and pre-trade analysis, addressing the growing complexity of alternative asset management.
Kirat Singh, CEO of Beacon, shared:
“By bringing these platforms together, along with Blackstone’s Bistro, we’re creating something truly industry-leading—giving institutional investors complete transparency across front office, pre-trade, risk, and accounting.”
Financial Structure and Funding
To finance the acquisitions, Clearwater will utilize proceeds from its $800 million Term Loan B, cash on hand, and part of its $200 million revolving credit line. These deals also include previously announced plans to acquire Enfusion, strengthening Clearwater’s presence in the market.
Clearwater Analytics is a leading provider of investment accounting and reporting solutions. The company offers a cloud-based, SaaS platform that helps investment professionals automate accounting, reconcile data, and generate accurate, customizable reports. Clearwater’s solution serves over 1,000 organizations globally, providing comprehensive insights into a wide range of asset classes, currencies, and regulatory frameworks. With $8.8 trillion in assets under management (AUM) on its platform, Clearwater enables institutional investors to manage risk, compliance, and performance efficiently. Their platform is trusted for its accuracy, flexibility, and ease of integration into diverse investment operations.
The Kirkland team consisted of corporate lawyers Constantine Skarvelis, Marshall Shaffer, and Patrick Salvo, along with capital markets lawyer Ross Leff.
Kirkland & Ellis is a global law firm recognized for its expertise in corporate law, litigation, intellectual property, and private equity. With offices across major financial hubs, the firm serves a diverse range of industries, providing innovative solutions for complex legal and business challenges. Known for its top-tier legal services, Kirkland & Ellis focuses on high-profile cases and transactions, offering clients cutting-edge strategies and deep industry insights.
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