Several funds associated with Summit Partners, a prominent investment firm, have sold a substantial portion of their holdings in LifeStance Health Group, Inc. (NASDAQ:LFST), a provider of outpatient mental health services. The transactions, which took place on May 24, 2024, resulted in the sale of 3,802,345 shares of LifeStance Health stock at a price of $5.89 per share, totaling approximately $22.4 million.
The funds involved in the sale include Summit Partners Growth Equity Fund IX-A, L.P., Summit Partners Growth Equity Fund IX-B, L.P., Summit Investors GE IX/VC IV (UK), L.P., Summit Partners Entrepreneur Advisors Fund II, L.P., and Summit Investors GE IX/VC IV, LLC. Collectively, these funds are reported to be ten percent owners of the company, indicating a significant level of investment in LifeStance Health.
Following the sale, the ownership stakes of the Summit Partners funds in LifeStance Health have been adjusted. Summit Partners Growth Equity Fund IX-A, L.P. now holds 25,677,643 shares, Summit Partners Growth Equity Fund IX-B, L.P. has 16,032,765 shares, Summit Investors GE IX/VC IV, LLC owns 179,239 shares, Summit Partners Entrepreneur Advisors Fund II, L.P. retains 23,961 shares, and Summit Investors GE IX/VC IV (UK), L.P. is left with 18,750 shares.
The managing entities behind these funds have a complex structure. Summit Partners, L.P. manages the general partners of the funds that sold LifeStance Health shares. Moreover, Summit Master Company, LLC has delegated investment decisions, including voting and dispositive power regarding LifeStance Health, to the Summit Partners, L.P. investment committee. This committee is currently composed of Peter Y. Chung, Mark A. deLaar, and Craig D. Frances, who collectively have the authority to make decisions over the shares held by the funds.
The SEC Form 4 filing, which discloses these transactions, provides transparency into the trading activities of company insiders and significant shareholders. In this case, the filing reveals a notable divestment by the Summit Partners funds, which could be of interest to investors and market analysts tracking the performance and strategic moves of LifeStance Health Group, Inc.
InvestingPro Insights
As LifeStance Health Group, Inc. (NASDAQ:LFST) experiences significant shifts in its shareholder structure, investors are closely monitoring the company's financial metrics. According to InvestingPro data, LifeStance Health boasts a market capitalization of $2.16 billion, reflecting the scale of the company within the outpatient mental health services sector. Despite a challenging period, the company has reported a revenue growth of 21.39% over the last twelve months as of Q1 2024, which may signal underlying business strength amidst broader market conditions. The revenue growth is further evidenced by an 18.94% increase in the most recent quarter compared to the same quarter in the previous year.
However, an InvestingPro Tip suggests that analysts are not expecting the company to be profitable this year, and it has not been profitable over the last twelve months. This is corroborated by the company's negative P/E ratio of -12.19 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -18.52. Additionally, the company does not pay a dividend, which might influence the investment decisions of income-focused shareholders.
For investors considering a deeper analysis of LifeStance Health, there are additional InvestingPro Tips available, which provide a comprehensive look at the company's financial outlook. Access to these insights can be found at https://www.investing.com/pro/LFST. For those interested in a subscription to InvestingPro, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. The number of additional tips listed in InvestingPro can offer valuable guidance, particularly in understanding the nuances of LifeStance Health's financial performance and future potential.
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