Investment Details:
- Investment Date: July 2019 (Pre-IPO)
- Purchase Price: $6.25 per share
- IPO Date: September 2020 (Direct Listing)
- IPO Reference Price: $9.20 per share
- Stock High: $117.39 in February 2025
- Founded: 2004
- Total Funding Raised: $2.75 billion (11 rounds)
- Last Private Valuation: $20 billion
Our Thesis
In mid-2019, we recognized the increasing importance of data analytics in both government and commercial sectors. Palantir Technologies stood out due to its unique position in providing sophisticated data solutions to defense and intelligence agencies. Their commitment to supporting Western democracies and their innovative approach to data analysis aligned with our investment strategy. We believed that Palantir’s strong ties to government contracts and its expanding footprint in the commercial sector would drive significant growth. This conviction led us to acquire shares at $6.25 per share in July 2019, anticipating a substantial appreciation in value as the company scaled its operations.
The Industry
The early 2020s marked a pivotal shift towards advanced data analytics, with governments and enterprises seeking robust solutions to manage and interpret vast datasets. The global big-data analytics market was projected to grow exponentially, driven by the need for actionable insights in real-time. Palantir, with its focus on defense and intelligence applications, was uniquely positioned to capitalize on this trend, offering platforms that addressed complex data challenges faced by governmental agencies and large corporations.
The Company
Founded in 2004, Palantir developed platforms like Gotham and Foundry, enabling users to identify patterns within complex datasets, ranging from intelligence reports to commercial data streams. Their solutions facilitated critical decision-making processes for clients, enhancing operational efficiency and security. Under the leadership of CEO Alex Karp, Palantir maintained a steadfast commitment to supporting Western institutions, often emphasizing the ethical implications of data usage. This dedication resonated with clients seeking reliable partners in national security and enterprise data management.
Since our initial investment, Palantir has demonstrated remarkable growth. The company went public through a direct listing in September 2020, with a reference price of $9.20 per share. By February 2025, the stock reached a high of $117.39, reflecting a market capitalization approaching $260 billion. This surge was fueled by a series of strategic government contracts, expansion into commercial sectors, and the successful integration of artificial intelligence into their platforms. In 2024, Palantir reported revenues of $2.87 billion, a 29% increase from the previous year, with U.S. revenue alone growing by 44%. The company’s client base expanded significantly, securing long-term contracts with both governmental agencies and private enterprises. Key leadership appointments, including senior counselors with extensive experience in national security, bolstered Palantir’s strategic direction and reinforced its commitment to serving public institutions.
Investment Outcome
Our early investment in Palantir at $6.25 per share has yielded substantial returns, with the stock price appreciating to $117.39 by February 2025. This growth underscores Palantir’s successful execution of its business strategy and its pivotal role in the data analytics industry. The company’s ability to secure significant contracts, innovate its product offerings, and maintain a strong ethical stance on data usage has solidified its position as a leader in the sector. Acuity’s foresight in identifying Palantir’s potential as a leader in an emerging industry, resulted in a highly profitable outcome for investors.
