Understanding changes in beneficial ownership within publicly traded companies is crucial for investors and market observers. SEC Form 4, officially titled “Statement of Changes in Beneficial Ownership of Securities,” provides a window into these shifts. This analysis delves into a recent Form 4 filing associated with Crestview Partners Lp, a prominent private equity firm, offering insights into their transactions and holdings.
Decoding SEC Form 4: A Snapshot of Ownership Dynamics
The U.S. Securities and Exchange Commission (SEC) mandates the use of Form 4 to report alterations in the beneficial ownership of a company’s securities. This form is essential for transparency, ensuring that significant stakeholders, such as directors, officers, and principal stockholders, disclose their transactions within a timely manner. By examining Form 4 filings, stakeholders gain valuable understanding of key individuals and entities’ investment activities, potentially signaling confidence or adjustments in their positions within a company.
Crestview Partners LP’s SEC Filing: Key Takeaways
On May 10, 2022, Crestview Partners LP and related entities filed a Form 4 concerning Select Energy Services, Inc. (WTTR). Several entities under the Crestview Partners umbrella were listed as reporting persons, including Crestview Partners II GP, L.P., Crestview Partners II SES Investment B, LLC, Crestview Partners II SES Investment, LLC, Crestview Advisors, L.L.C., and Robert V. Delaney Jr. This indicates a broad organizational involvement in the reported transactions.
Transaction Details: Class A Common Stock Acquisition
The filing primarily highlights transactions involving Class A Common Stock of Select Energy Services. Notably, it reports the acquisition of 18,853 shares of Class A Common Stock on May 6, 2022, marked as acquired (“A”) at a price of $0. This acquisition is attributed to restricted shares awarded under the Select Energy Services, Inc. 2016 Equity Incentive Plan to Robert V. Delaney, Jr., a reported person in this filing. These restricted shares are scheduled to vest on May 6, 2023. It’s important to note that Mr. Delaney Jr. has assigned his rights to these shares to Crestview Advisors, L.L.C.
This image displays the header of the SEC Form 4 document, showcasing the official form title and regulatory information.
Beneficial Ownership Post-Transaction
Following the reported transactions, the Form 4 details the beneficial ownership of securities. For Class A Common Stock, the total amount beneficially owned is listed as 3,899,195 shares, held indirectly. This figure encompasses shares directly owned by Crestview Partners II SES Investment B, LLC, the newly awarded restricted shares, and shares held by Crestview Advisors, L.L.C.
Regarding Class B Common Stock, the filing indicates beneficial ownership of 16,221,101 shares, also held indirectly through SES Legacy Holdings, LLC. The form clarifies that Crestview Partners II GP, L.P. may be deemed to have beneficial ownership over these shares due to its control over the investment decisions made by the Crestview Entities.
This image shows Table I from the SEC Form 4, outlining Non-Derivative Securities transactions and holdings, including Class A and Class B Common Stock.
Crestview Partners LP: A Glimpse into Indirect Ownership
The Form 4 emphasizes the concept of indirect beneficial ownership. Crestview Partners II GP, L.P., as the general partner, exercises investment and voting power over the securities held by its related entities. This hierarchical structure is typical in private equity, where management companies control investment vehicles that hold assets. Robert V. Delaney, Jr.’s role as a director of Select Energy Services and an indirect member within the Crestview organization further connects the entities involved.
Significance for Investors and Market Analysis
SEC Form 4 filings are valuable resources for investors seeking to understand the actions of significant stakeholders. For Crestview Partners LP, this Form 4 provides transparency into their ongoing investment in Select Energy Services, Inc. The acquisition of restricted shares, while not a market purchase, still reflects continued alignment and incentive structures within the company’s equity plan.
For those tracking Crestview Partners LP, monitoring SEC filings like Form 4 offers insights into their investment strategies and portfolio company engagements. These filings, while technical in nature, are essential pieces of information for comprehensive financial analysis and market understanding.
Conclusion: Transparency through SEC Filings
The SEC Form 4 filing by Crestview Partners LP and its associated entities serves its intended purpose: to transparently disclose changes in beneficial ownership. By dissecting these filings, investors can gain a deeper understanding of the transactions and ownership structures of key market participants like Crestview Partners LP, contributing to more informed investment decisions and market analysis. Staying informed about these filings is a crucial aspect of due diligence in the financial markets.
