SailPoint is a pioneer in identity governance and administration (IGA), essential for operationalizing zero-trust security. The emergence of AI is dramatically expanding the total addressable market for identity, especially IGA, as non-human accounts are outnumbering human counterparts in companies adopting AI. This new TAM for machine identities is massive and complex, making governance increasingly important. SailPoint's recent development of a monetization framework for non-human identities presents a significant growth opportunity, with potential for non-GAAP operating margins to improve from approximately 17% to over 30%, aligning with best-in-class software peers.

We owned SailPoint prior to its privatization in 2022 and are pleased to have it back in the portfolio after its re-IPO. The market volatility provided compelling entry points for these businesses, indicating our belief in SailPoint's potential for growth and resilience in the current environment.

During the first quarter, we initiated a new position in SailPoint, Inc., a leading identity governance and administration (IGA) software security vendor. SailPoint is led by its Founder and CEO Mark McClain who created the IGA space around 20 years ago. The company has a very sticky customer base as evidenced with best-in-class gross retention rates of over 97%, a durable competitive moat thanks to its deep domain expertise with complex policy management, and multiple growth levers. We expect the company to compound annual recurring revenue or ARR by at least 20% for several years.

During the first quarter, we initiated a new position in SailPoint, Inc., a leading identity governance and administration (IGA) software security vendor. SailPoint is led by its Founder and CEO Mark McClain who created the IGA space around 20 years ago. The company has a very sticky customer base as evidenced with best-in-class gross retention rates of over 97%, a durable competitive moat thanks to its deep domain expertise with complex policy management, and multiple growth levers. We expect the company to compound annual recurring revenue or ARR by at least 20% for several years.

During the first quarter, we initiated a new position in SailPoint, Inc., a leading identity governance and administration (IGA) software security vendor. SailPoint is led by its Founder and CEO Mark McClain who created the IGA space around 20 years ago. The company has a very sticky customer base as evidenced with best-in-class gross retention rates of over 97%, a durable competitive moat thanks to its deep domain expertise with complex policy management, and multiple growth levers. We expect the company to compound annual recurring revenue or ARR by at least 20% for several years.

During the quarter we participated in the IPO of SailPoint, which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded form, we believe the incorporation of AI has swelled the company’s attractive total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise.

During the quarter we participated in the IPO of SailPoint, which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded form, we believe the incorporation of AI has swelled the company’s attractive total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise.

During the quarter we participated in the IPO of SailPoint, which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded form, we believe the incorporation of AI has swelled the company’s attractive total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise.

We participated in the IPO of SailPoint, which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded forms, we believe the incorporation of AI has swelled SailPoint’s total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise.

We participated in the IPO of SailPoint, which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded forms, we believe the incorporation of AI has swelled SailPoint’s total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise.