Clearwater Analytics, a company developing accounting, compliance, and risk reporting tools for asset managers, said on Monday it has entered into a definitive agreement to acquire investment management platform Enfusion for $1.5 billion.
Clearwater, which says it has obtained an $800 million loan to fund the transaction, along with a $200 million revolving line of credit, will let Enfusion’s shareholders elect to receive cash, stock, or a mix. Clearwater expects to pay $760 million in cash, and issue between approximately 23 million and 28 million new shares to Enfusion shareholders.
Both companies’ boards have agreed to the terms. Should Enfusion’s shareholders and regulators approve it, Clearwater expects the deal to close in Q2 2025.
Enfusion, based in Chicago, was founded in 1997 as a technology and operations consulting firm. After noticing a gap in the market for a portfolio management system, Enfusion’s managing partners focused their efforts on launching the company’s current investing tooling.
Enfusion raised tens of millions of dollars in venture capital from investors including Iconiq Growth and FTV Capital, which own 45% of the company along with Enfusion’s CEO, Oleg Movchan. After going public in 2021, Enfusion was valued at $1.9 billion.
Clearwater asserts that its purchase, for which it’s paying a 13% premium over Enfusion’s stock price as of January 10, is a wise one, pointing to Enfusion’s encouraging recent financials. Enfusion reported preliminary ~15% year-over-year growth in revenue in 2024 to ~$201 million, and preliminary ~13% year-over-year growth in annual recurring revenue to ~$210 million.
Clearwater also sees Enfusion as a means to building a “front-to-back platform for the entire investment management industry.” In a press release, Clearwater says it plans to integrate Enfusion’s portfolio and order management technology into its offerings while expanding into the hedge fund industry and geographies where Enfusion already has a presence.
Clearwater, launched in 2004, claims to have over $7.4 trillion of assets on its platform. Notable customers include J.P. Morgan Asset Management, Facebook, Cisco, and Oracle.
