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1 July 2021
SentinelOne Completes Successful NYSE IPO
· TPIL has backed the company with both capital and board expertise since becoming an early investor in 2015, and added to its position on the IPO
· Cybersecurity company’s AI-powered technology is seeing rapid growth
· Highlights compelling value proposition of private markets exposure as part of TPIL’s flexible investment mandate
Third Point, the Investment Manager of the London-listed, multi-strategy Third Point Investors Limited (“TPIL” or the “Company”), is pleased to announce that portfolio holding SentinelOne, Inc. (“SentinelOne”) executed a successful initial public offering on 30 June 2021, representing an important milestone in the cybersecurity company’s trajectory.
At SentinelOne’s (NYSE: S) closing valuation of $42.50 per share on 30 June, implying a market capitalization of approximately $11 billion, the Company estimates the resulting uplift to its 31 May NAV to be 1.9%. SentinelOne comprises about 6% of Third Point’s flagship Cayman fund (the “Master Fund”) portfolio as of the end of June and with the appreciation is now a Top 5 position.
Led by Co-Founder and CEO Tomer Weingarten, SentinelOne pioneered the world’s first purpose-built, AI-powered extended detection and response cybersecurity platform, helping make defence truly autonomous. Its Singularity Platform instantly defends against cyberattacks, performing at a rapid speed, great scale, and high accuracy. The speed of pinpointing digital threats is an increasingly critical global need, underscored by several recent high-profile ransomware attacks. SentinelOne currently serves more than 4,700 corporate, government and non-profit customers, and is growing annual recurring revenue (ARR) by more than 100% based on Q1 2021 year-over-year figures.
Third Point’s venture arm first invested in SentinelOne in 2015, leading its Series B funding round and taking a board seat. Since that time, the Investment Manager has advised the company on go-to-market strategy and capital markets approach, as well as having participated pro-rata in subsequent funding rounds. Importantly, Third Point chose to add to its position on the IPO, reflecting the enduring conviction it holds in management and in the prospects of the firm. The market capitalization of SentinelOne based on its first day of trading is more than 100 times the value of where Third Point led the Series B round.
SentinelOne’s public market debut marks the second high-profile traditional IPO of Third Point’s 2015 expansion stage venture capital vintage in the past six months, with AI-driven lender Upstart (NASDAQ: UPST) having been listed since December 2020 and appreciating more than five times in value since. Upstart is now the Master Fund portfolio’s largest position and has been a significant performance contributor on a year-to-date basis.
The Company considers the flexibility to invest in private market opportunities to be a differentiated feature of the security and is an area where the Investment Manager can apply the same shareholder engagement it is known for across public equities and credit. This aligns with the Company’s recent announcement of 1 April 2021 to allow an increased allocation to venture capital and private equity investments, to up to 20% of NAV.
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Elissa Doyle, Chief Communications Officer and Head of ESG Engagement
Notes to Editors
About Third Point Investors Limited
Third Point Investors Limited (LSE: TPOU) was listed on the London Stock Exchange in 2007 and is a feeder fund that invests in the Third Point Offshore Fund (the Master Fund), offering investors a unique opportunity to gain direct exposure to founder Daniel S. Loeb’s investment strategy. The Master Fund employs an event-driven, opportunistic strategy to invest globally across the capital structure and in diversified asset classes to optimize risk-reward through a market cycle. TPIL’s portfolio is 100% aligned with the Master Fund, which is Third Point’s largest hedge fund. TPIL’s assets under management are currently $1.0 billion.
About Third Point LLC
Third Point LLC is an institutional investment manager that actively engages with companies across their lifecycle, using dynamic asset allocation and an ethos of continuous learning to drive long-term shareholder return. Led by Daniel S. Loeb since its inception in 1995, the Firm has a 34-person investment team, a robust quantitative data and analytics team, and a deep, tenured business team. Third Point manages approximately $17.3 billion in assets for sovereign wealth funds, endowments, foundations, corporate & public pensions, high-net-worth individuals, and employees.