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Summary
- Closed end investment management company Third Point Investors announced its investee company, an AI driven cybersecurity firm SentinelOne, publicly listed on the NYSE on 30 June.
- SentinelOne’s market cap at the end of first day of trading stood at about US $11 billion, over 100 times its valuation since its series B funding round which was led by Third Point.
- This is Third Point Investors’ second high profile IPO in the last six months, after another one of its investee company’s Upstart, an AI powered lending company, floated on the market in December 2020 and increased its valuation by over 5 times since listing.
LSE-listed and closed end investment management company Third Point Investors Ltd (LON:TPOS) announced recently that its investee firm SentinelOne (NYSE:S) had floated an initial public offering on the NYSE on 30 June.
SentinelOne is a US based and the world’s first artificial intelligence powered and purpose built cybersecurity company. It also accounts for about 6 per cent of Third Point Investors’ flagship Master Fund, which is based in the Cayman Islands.
Third Point Investors’ shares closed at GBX 1,952.50, up by 4.41 per cent on 30 June following the news. Third Point Investors’ is a value-oriented hedge fund and is owned by billionaire investor Daniel S Loeb and is also managed by Loeb’s Third Point LLC.
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SentinelOne
SentinelOne’s has an implied market capitalization of about US $11 billion, after its closing price on its first day of public trading on the exchange ended at US $42.50 as of 30 June. This market cap is over 100 times the valuation that SentinelOne had during its series B funding round, which was led by Third Point Investors.
The cybersecurity company’s public listing boosted its net asset value (NAV) by about 1.9 per cent from its NAV on 31 May. Moreover, the appreciation in its NAV helped it become a top 5 investment position at Third Point Investors.
SentinelOne has over 4,700 customers across government, non-profit and corporate sectors. Its annual recurring revenue (ARR) growth rate stands at over 100 per cent on year on year basis, based on data from Q1 2021.
Third Point had first invested in the company in 2015 and even helped advise the company on its go-to market strategy and on the company’s approach for going public.
TPOS also holds a seat on the cybersecurity company board and had also added to its investment position for SentinelOne’s IPO, indicating its faith in the company’s vision and management team.
Also Read: How to invest in IPOs in the UK?
Previous IPO
SentinelOne is Third Point’s second high profile portfolio holding investment which has floated on the market in the last six months from Third Point Investors investments in 2015.
Third Point Investors had previously seen its investee Upstart (NASDAQ:UPST) go public in December 2020. Upstart is a US based lending platform that uses artificial intelligence technology to offer directly to consumer personal loans.
Upstart’s valuation has increased by more than five times since listing on NASDAQ in December. It is also Third Point Investors’ Master fund’s largest investment position currently and has contributed to a high degree to Third Point’s performance year to date.
Third Point also released its June performance update for its Third Point Offshore Fund, Ltd on 1 July. Its net returns increased by 0.4 per cent, while its year to date returns in 2021 stood at 15.2 per cent.
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