Benchmark Capital Partners, has long been an ardent supporter of Twitter Inc (NYSE:TWTR). The Venture Capital fund didn’t even divested a single share in the company, when it was going through turbulent times. Now, that Twitter Inc (NYSE:TWTR) has surprised the Street with its better than expected second quarter results, Benchmark though to share the recent gains in Twitter Inc (NYSE:TWTR) with its investors by transferring over 10.05 million shares in the company to them.
The recent SEC filing by Benchmark Capital Partners shows that it returned over 10.0 million shares of Twitter Inc (NYSE:TWTR) to its limited partners. At Monday’s closing price of $43.27, that amounts to over $435 million worth of Twitter Inc (NYSE:TWTR)’s stocks being transferred to Benchmark’s investors. The transactions represent a pro-rata, in-kind distribution by the Benchmark VI Funds, without additional consideration, to their respective partners, members and assignees.
A venture capital fund can sell the stocks it owns in a company and distribute the profits among its investors or in rare occasions, just like Benchmark did, it can distribute those shares directly to its investors. If Benchmark would have gone ahead and sold those 10.05 million shares, it would have definitely have had an impact on the company’s stock price. Now, it is up to Benchmark’s investors, whether they sell or don’t sell the stock.