Clearwater Analytics Announces New Investment From Growth Investors

Permira, Warburg Pincus, Dragoneer and Durable Capital have joined majority shareholder WCAS to power R&D and drive growth into new markets.

(Image credit: Marco Rosas.)

Clearwater Analytics, a Boise, Idaho-based SaaS provider of investment accounting and analytics, announced today that it will receive a new investment led by investment firms Permira (London), Warburg Pincus (New York), Dragoneer Investment Group (San Francisco) and Durable Capital (Chevy Chase, Md.). Welsh, Carson, Anderson & Stowe (WCAS, New York), which first invested in Clearwater in 2016, will remain the Company’s majority shareholder, and Sandeep Sahai will continue as Clearwater’s CEO. The parties declined to specify the amount invested but say the funds will drive growth into new markets, including Europe and Asia-Pacific, continue aggressive investment in R&D, and pursue “transformative” M&A opportunities.

Sandeep Sahai, CEO, Clearwater Analytics.

A Clearwater Analytics statement describes the company’s place in the market by saying it helps thousands of leading corporations, insurance companies and asset managers by providing unified, highly-compliant, and powerfully-automated investment accounting, reporting, and analytics. The new investor group will further Clearwater’s innovative leadership and strong organic growth as it brings its solutions to the global marketplace and enable transformative M&A opportunities in the years ahead, according to the statement.

Clearwater reports that its solution serves more than $4 trillion in assets for clients that include American Family Insurance, Arch Capital, Aureum Re, Cisco, CopperPoint Mutual Company, C.V. Starr & Co., Facebook, J.P. Morgan, Knights of Columbus Insurance, Oracle, Selective Insurance, Sirius Group, Sompo International, Starbucks, Unum Group, WellCare Health Plans, and Wilton Re. “Investment professionals in 49 countries trust Clearwater to deliver timely, accurate, and auditable data, accounting and analytics solutions that are mission-critical to their businesses,” the Clearwater statement says.

Eric J. Lee, General Partner, WCAS.

“Our new partnership with Permira, Warburg Pincus, Dragoneer, and Durable, builds upon our very strong relationship with WCAS and continues the momentum Clearwater has achieved as the innovative leader in the investment accounting and analytics market,” comments Sahai. “We remain 100 percent focused on bringing our clients the best solutions and service quality in the world.  We look forward to benefitting from all of our partners’ deep domain expertise, global resources, and growth capital as we continue to extend Clearwater’s international reach and advance our solution set for our valued clients.”

Clearwater’s growth trajectory has been built on its fundamental commitment to client success, quality and innovation, according to Eric J. Lee, Clearwater’s Chairman and a WCAS General Partner. “Every decision the Company makes starts with these principles,” he says. “Despite the challenging backdrop in 2020, Clearwater has won significant new client mandates as it pursues its vision of becoming the world’s most trusted and comprehensive technology platform for investment accounting and analytics. We are incredibly grateful for, and proud of, our partnership with Sandeep Sahai and the Clearwater team and are pleased to welcome this group of world-class growth investors to support the Company’s pursuit of global market leadership.”

Permira seeks partnerships with companies with differentiated technology solutions serving large market opportunities. Clearwater is a perfect fit in that respect, according to Andrew Young, Principal and Fintech lead, Permira. “We look forward to supporting Clearwater’s continued growth in a number of large vertical markets worldwide. With one of the highest Net Promoter Scores among all SaaS companies, the company’s strong focus on its clients is clear. We are excited to help enable Clearwater’s vision of becoming the world’s most trusted and comprehensive technology platform for investment accounting and analytics.”

Andrew Young, Principal and Fintech lead, Permira.

Expansion into New Markets and Geographies

“We are very excited about Clearwater’s long-term prospects and its plan to continue its expansion into new markets and geographies,” comments Cary Davis, Managing Director, Warburg Pincus.

“The senior Clearwater team, led by Sandeep Sahai, has established the company as the true market leader and we are excited to help write the next chapter in Clearwater’s growth,” added Chandler Reedy, Managing Director, Warburg Pincus.

Goldman Sachs & Co. LLC and Credit Suisse served as financial advisors and Kirkland & Ellis LLP (Chicago) acted as legal advisor to Clearwater Analytics. Warburg Pincus was advised by Simpson Thacher & Bartlett LLP (New York).

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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