Street Calls of the Week
Investing.com -- Payment company BILL Holdings (NYSE:BILL) has found itself the target of a couple of prominent activist investors, including Starboard Value and Elliott Management, but a sneaky filing from a private equity firm could provide a hint about where things ultimately are heading.
The third-largest holder of BILL is an unknown firm by the name of ER Collective Holdings, which was formed in early 2025. A registration document named Clearlake Capital’s general counsel as being behind the stealth firm, according to FT.com. ER Collective held a 7.4% stake in BILL as of the end of June. While the disguised stake suggests that Clearlake may have bigger plans, including a takeover of BILL, the private equity firm has not bid and has no plans to bid for BILL, according to sources familiar with the matter.
While Clearlake might not be a bidder, Elliott has its own private equity arm, and that could be part of the firm’s unknown plans. The FT reported on Tuesday that Eliott has at least a 5% stake in BILL.
Meanwhile, Starboard Value, an 8.5% holder, is trying to impose its will via a proxy contest, launched earlier this month. The firm nominated a slate of four directors for election to the Board at the company’s annual meeting of stockholders. Starboard may be taking this route on the belief that management is not open to selling the company.
BILL, for its part, said it is "committed to driving sustainable, long-term growth and value creation" and will consider Starboard’s nominees.
Clearlake declined to comment on its activities with ER Collective. Elliott, Starboard, and BILL have not responded to requests to comment.