Clearwater Analytics has entered into agreements to purchase Beacon and Blackstone’s Bistro for a total of $685m to strengthen its presence in investment intelligence and risk analytics across private markets.
These acquisitions align with the New York Stock Exchange (NYSE)-listed Clearwater Analytics’ strategy to expand its technology-driven investment management capabilities.
Under the agreement, Clearwater Analytics will acquire Beacon for approximately $560m, with 60% of the payment in cash and the remainder in its Class A common stock, priced at $30.05 per share.
At the close of 2024, Beacon reported annual recurring revenue (ARR) of $44m, positioning it as an established platform in risk modelling and investment analytics.
The cloud-native system enables financial institutions to integrate proprietary and external data sources, supporting risk management and strategy development.
The Bistro software, created by Blackstone for its credit and insurance division, will be acquired for $125m. Of this amount, $10m will be paid in cash, with the balance settled in shares of Clearwater Analytics Class A common stock, valued at $30 per share.
Designed for managing private credit portfolios, Bistro offers investment analytics, risk insights, and reporting tools tailored to institutional asset managers. The software was developed to integrate with both Clearwater Analytics’ and Beacon’s platforms.
Clearwater Analytics will use funds from its previously arranged $800m Term Loan B, existing cash reserves, and part of its $200m revolving credit facility to finance these acquisitions, as well as its earlier agreement to acquire Enfusion.
Beacon’s risk analytics platform provides cross-asset class modeling capabilities, covering derivatives, structured products, private credit, and alternative assets. The technology is integrated with Wilshire’s equity and fixed-income risk tools, enabling institutional investors to assess portfolio exposure and risk dynamics.
As allocations to private and alternative investments continue to expand, financial firms are turning to more advanced risk assessment solutions. Beacon’s platform is currently used by Pacific Investment Management Company (PIMCO), Blackstone, hedge funds, insurance asset managers, banks, and energy sector traders.
Beacon CEO Kirat Singh said: “Our platform is already integrated with Clearwater and Enfusion at many of our shared clients, delivering best-in-class risk, performance and pre-trade functionality.
“By bringing these platforms together, along with Blackstone’s Bistro, we’re creating something truly industry-leading—giving institutional investors complete transparency across front office, pre-trade, risk and accounting. We believe no one else can offer this level of depth, and I couldn’t be more excited for what’s ahead.”
The Bistro acquisition will expand Clearwater Analytics’ technology suite for asset managers and institutional investors. Blackstone built the software to support its insurance clients by offering portfolio analytics, risk assessment, and investment performance tracking.
Clearwater Analytics aims to leverage this technology to enhance its capabilities in managing private market investments.
Clearwater Analytics CEO Sandeep Sahai said: “With this combination, Chief Investment and Chief Risk Officers will have a unified, real-time view of their entire portfolio—from public equities and private credit to structured products and alternatives—all in a single, cloud-native platform.
“The Clearwater platform will allow them to drill down and comprehensively understand their exposure to a company, industry or geography across all their investments, public and private. That will, in turn, allow them to model their entire portfolio, evaluate cash flows and understand risk.”
Based in the US, Clearwater Analytics provides SaaS-based investment automation, offering services such as portfolio planning, reconciliation, compliance monitoring, risk analytics, and order execution. Its single-instance, multi-tenant platform supports institutional investors and asset managers in streamlining investment operations.
Advisers on these transactions include Kirkland & Ellis, which represented Clearwater Analytics, while Orrick, Herrington & Sutcliffe advised Beacon and Simpson Thacher & Bartlett provided legal counsel to Blackstone. Broadhaven Capital Partners served as financial adviser to Beacon.
