Exploring AvidXchange Holdings, Inc. (AVDX) Investor Profile: Who’s Buying and Why?

You're looking at AvidXchange Holdings, Inc. (AVDX) because you want to know which institutional giants were playing the accounts payable (AP) automation game and why they exited-or were forced to exit-in late 2025. The direct takeaway is this: the smart money was betting on the underlying growth story, but the public market's impatience with the path to profitability ultimately led to a private equity takeover. Before the stock was suspended on October 16, 2025, following the acquisition by TPG Global, LLC at $10.00 per share, major funds were making big moves, suggesting a clear split in the investment thesis.

In the lead-up to the merger, institutional investors held a massive position of over 194 million shares. For instance, in Q1 2025, FMR LLC (Fidelity Management & Research) added a significant 4,469,477 shares, a 30.0% increase to their holding, while Balyasny Asset Management L.P. boosted its stake by over 391.6% with an addition of 2,706,013 shares. But it wasn't a one-way street; in the same quarter, JPMorgan Chase & Co. slashed its position by 83.9%, removing 1,809,826 shares. The divergence shows some saw deep value in the company's 5.2% year-over-year Q2 2025 revenue growth to $110.57 million, while others were likely spooked by the persistent GAAP net loss of $9.5 million in that same quarter. So, who were the arbitrageurs, and who were the conviction buyers who got a quick, forced exit at the $10.00 merger price? That's the real story.

Who Invests in AvidXchange Holdings, Inc. (AVDX) and Why?

The investor profile for AvidXchange Holdings, Inc. (AVDX) is dominated by large institutional money, signaling a strong belief in the long-term shift toward accounts payable (AP) automation in the US middle market. You see a mix of passive, long-term holders and active hedge funds, all betting on the company's ability to convert its vast network into consistent, profitable transaction volume.

Institutional investors, the so-called big guns, hold about 76.62% of the total shares outstanding, which is a massive concentration and gives them significant influence over the stock's price dynamics. Retail investors and the general public, while numerous, hold a much smaller piece of the pie, so their trading activity is less of a market mover.

Key Investor Types and Their Stakes

The ownership breakdown shows a clear hierarchy. The sheer size of the institutional stake means their investment strategies are the ones that truly matter for AvidXchange Holdings, Inc.'s valuation. Insiders, which include the executive team and board, also hold a meaningful position, aligning management's interests with outside shareholders.

• Institutional Investors: Own roughly 76.62% of the company's 207.7 million shares outstanding. This group includes mutual funds, pension funds, and investment management firms.
• Insiders: Hold approximately 8.38% of the shares, translating to about 17.41 million shares. That's a healthy sign of management confidence.
• Retail/General Public: The remaining portion is held by individual investors and smaller entities.

The largest holders are names you know well: Vanguard Group Inc. and BlackRock, Inc. These firms are primarily passive index and mutual fund managers, meaning their large positions are less about a speculative bet and more about AvidXchange Holdings, Inc.'s inclusion in major US market indices, reflecting a foundational, long-term commitment to the stock.

Investment Motivations: Growth, Margin, and Automation

Investors are attracted to AvidXchange Holdings, Inc. for three core reasons: its dominant position in the middle-market AP space, the clear path to profitability, and the high-margin nature of its payment-centric revenue model. The company's focus is on automating the manual, paper-heavy accounts payable process for mid-market businesses, which is a huge, still-untapped opportunity.

The numbers from the first half of 2025 show why investors are sticking around. In Q2 2025, the company reported revenue of $110.57 million, and importantly, a Non-GAAP net income of $10.7 million, demonstrating operating leverage. Honestly, moving from losses to consistent non-GAAP profit is a major catalyst for institutional buying.

The real engine of growth is the total payment volume (TPV), which hit $20.6 billion in Q1 2025. This TPV is the basis for the company's 'Payment revenue,' which generates the majority of its sales. The bigger the network, the more valuable the platform becomes, and that's the classic network effect investors love. You can see how this ties into the company's long-term vision in their Mission Statement, Vision, & Core Values of AvidXchange Holdings, Inc. (AVDX).

Investment Strategies: Long-Term vs. Active Trading

You see two primary strategies at play among the major investors.

1. Long-Term Growth Holding (Passive Funds): Firms like Vanguard Group Inc. and BlackRock, Inc. are largely passive, meaning they are long-term holders. They are looking for sustained growth in the core business-customer additions, transaction volume, and yield expansion-over a multi-year horizon. They view AvidXchange Holdings, Inc. as a secular growth story tied to the digitization of US business payments.

2. Active/Arbitrage Strategies (Hedge Funds): A number of hedge funds, including Magnetar Financial LLC and Balyasny Asset Management L.P., are also significant holders. These funds are often looking for medium-term catalysts or arbitrage opportunities. For example, in Q1 2025, FMR LLC added a massive 4,469,477 shares to their portfolio, while AZORA CAPITAL LP removed 4,358,498 shares. This kind of large, simultaneous buying and selling activity is typical of funds trading around earnings reports, index rebalances, or merger arbitrage events, seeking to capitalize on short-term price movements rather than a decade-long hold.

Here's the quick math on the growth opportunity: if AP automation penetration in the middle market increases by just a few percentage points, the TPV could easily jump, directly boosting the company's high-margin payment revenue. That's the simple thesis driving both long-term and short-term capital. What this estimate hides, though, is the competitive pressure from other FinTech players.

Institutional Ownership and Major Shareholders of AvidXchange Holdings, Inc. (AVDX)

The most important takeaway for any investor looking at AvidXchange Holdings, Inc. (AVDX) today is that you are now looking at a historical profile. The company officially transitioned to private ownership on October 15, 2025, following its acquisition by TPG in partnership with Corpay, a deal that valued the company at approximately $2.2 billion. This means the institutional ownership structure we analyze was the driving force behind the final $10.00 per share merger consideration.

Before the deal closed, institutions controlled a massive portion of the stock, holding around 76.62% of shares outstanding. This kind of concentration means that a small number of large funds effectively dictate the stock's direction, and in this case, the ultimate exit strategy. Here's the quick math: with 194,011,531 shares held by institutions, their collective decision-making was paramount.

Top Institutional Investors Before the Acquisition

The institutional investor landscape for AvidXchange Holdings was dominated by passive giants and a few active funds. These are the players who ultimately voted to approve the merger on September 16, 2025. The top holders were primarily index funds and major asset managers, indicating that many investors held AVDX simply because it was part of their broader benchmark. The Vanguard Group, Inc. was the largest single shareholder, holding 8.9% of the outstanding shares as of April 2025.

For context, here are some of the largest institutional owners and their influence leading up to the privatization:

Ownership Dynamics: The Run-Up to Privatization

Analyzing the changes in ownership in early 2025 shows a market in flux, which is typical before a major corporate action like an acquisition. In the first quarter of 2025, we saw a near-even split in trading activity: 102 institutional investors added shares, but 108 decreased their positions. This tells you there was a fundamental disagreement on the stock's near-term value.

The big money moves, however, were dramatic. For instance, FMR LLC, a major asset manager, significantly increased its stake in Q1 2025, adding 4,469,477 shares, a 30.0% increase, valued at an estimated $37,901,164. Plus, BALYASNY ASSET MANAGEMENT L.P. had a massive accumulation, adding 2,706,013 shares, a jump of 391.6%. This suggests that some funds were defintely betting on a positive catalyst, like a sale or a strong earnings beat. On the flip side, AZORA CAPITAL LP completely liquidated its position, removing 4,358,498 shares in Q1 2025. These opposing trades show the market was pricing in both optimism and caution right before the merger was announced in May 2025.

Institutional Influence on Strategy and the Final Sale

When institutions own over three-quarters of a company, they are the primary audience for management's strategy. Their sheer size makes the stock price vulnerable to their collective trading decisions; they are the market movers. For AvidXchange Holdings, this high ownership concentration meant that the board had to pay close attention to shareholder preferences, especially as the company navigated a mixed 2025, reporting Q2 revenue of $110.6 million but a GAAP net loss of $9.5 million.

The ultimate impact of the institutional investor base was their role in the acquisition. Their approval of the TPG/Corpay merger was the final step in taking the company private. The large institutional stake ensured that the deal, finalized at $10.00 per share, had the necessary support. This move lets AvidXchange Holdings, Inc. focus on its long-term strategy-which you can read more about here: Mission Statement, Vision, & Core Values of AvidXchange Holdings, Inc. (AVDX). The new private structure removes the pressure of quarterly public reporting, giving management and the new private equity owners more room to maneuver and innovate without the constant threat of institutional selling impacting the stock price.

• High institutional ownership (76.62%) made the merger approval straightforward.
• The acquisition price of $10.00 per share was the final return for public shareholders.
• Private ownership allows a shift from short-term public market pressures to long-term strategic growth.

Key Investors and Their Impact on AvidXchange Holdings, Inc. (AVDX)

The investor profile for AvidXchange Holdings, Inc. (AVDX) is defintely dominated by large institutions, and their recent activity has been entirely shaped by the company's pending acquisition. The most important takeaway is that the stock's valuation is now essentially a spread trade based on the $10.00 per share cash merger price, not on quarterly earnings.

Institutional investors collectively hold a massive stake, owning roughly 78% of the company's stock, giving them the ultimate say in major corporate actions like the sale of the company. This concentration means that a few key funds drive the stock's near-term movements, especially as the deal nears its close.

The Institutional Heavyweights: Who Owns the Largest Slice

When you look at the shareholder registry, the names are exactly what you'd expect for a company of this scale: the index fund giants. These passive investors hold the largest positions, anchoring the stock. For example, Vanguard Group Inc. is the single largest institutional owner, holding 16,923,321 shares with a market value of around $168.39 million as of November 7, 2025. BlackRock, Inc. is also listed among the largest shareholders, which is typical for a widely-held public company.

These large, passive funds-like Vanguard and BlackRock-are not typically activist investors; they buy and hold to track an index. Still, their enormous collective voting power is critical for approving major transactions, like the one with TPG and Corpay.

• Vanguard Group Inc. holds 8.148% of the company.
• BlackRock, Inc. is a top institutional shareholder.
• Total institutional ownership is approximately 78%.

Recent Moves: Merger Arbitrage and Insider Sales

The most significant recent investor activity revolves around the May 2025 announcement that AvidXchange Holdings, Inc. would be acquired by TPG and Corpay for $10.00 per share in cash. This offer represented a 22% premium over the closing price on May 6, 2025.

This event created a clear opportunity for merger arbitrage (M&A arbitrage) funds. These funds buy the stock when the price is slightly below the offer price and hold it until the deal closes to capture the small, low-risk profit spread. You can see this in the dramatic recent buying activity:

Here's the quick math: funds like Principal Financial Group Inc. and AlphaQuest LLC are likely new entrants or significantly increasing their positions to lock in the spread between the market price and the $10.00 takeout price. Conversely, some long-term holders, like JPMorgan Chase & Co., are taking profits and moving on, which is why their stake dropped by -43.8%. Insider sales also picked up; for instance, CEO Michael Praeger disposed of shares at $9.90 in August 2025 following the vesting of restricted stock units.

Investor Influence: The Acquisition as the Ultimate Decision

The most profound influence investors have had recently is the approval of the sale. While some shareholders initiated investigations into the fairness of the $10.00 price and the process, the ultimate decision to sell was a direct result of institutional consensus. The high institutional ownership means that their collective vote was the deciding factor, effectively setting the company's near-term strategic path: a transition from a publicly-traded growth company to a private entity under TPG and Corpay.

The influence of these investors shifted from guiding growth strategy-like the one outlined in Mission Statement, Vision, & Core Values of AvidXchange Holdings, Inc. (AVDX)-to a pure capital allocation decision. The board, knowing the institutional majority, had to ensure the offer was compelling enough to secure their votes. The $10.00 cash offer became the new ceiling for the stock price, removing the risk and opportunity of future organic growth for public shareholders.

Market Impact and Investor Sentiment

The investor profile for AvidXchange Holdings, Inc. (AVDX) in 2025 is defintely defined by one major event: the pending acquisition by TPG in partnership with Corpay. This cash merger, announced on May 6, 2025, for $10.00 per share, entirely reframed the sentiment from a growth-versus-profitability debate to a simple arbitrage play for most investors.

Before the merger, institutional sentiment was mixed but heavily invested. Institutions held a significant stake, controlling around 79% of the company's shares. This high institutional ownership means the stock price was highly vulnerable to their collective trading decisions, and their initial losses-like the 3.5% drop in one week in late 2024-were substantial. The merger, however, provided a clear, near-term exit at a premium, shifting the focus from long-term growth metrics to the certainty of the deal closing.

The largest shareholders, including Vanguard Group Inc. and BlackRock, Inc., were key players in this shift. For them, the $10.00 cash offer represented a clean, liquid return, especially since the offer was a 22% premium to the closing price of $8.20 on May 6, 2025. You can read more about the company's history and structure here: AvidXchange Holdings, Inc. (AVDX): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Ownership Shifts

The stock market's reaction to the acquisition news was immediate and decisive. The share price quickly moved toward the offer price of $10.00, trading in a tight range until the deal closed. The last trade price on October 14, 2025, was exactly $10.00 per share, reflecting the market's confidence in the merger's completion. This is the classic 'merger arbitrage' scenario; the risk premium evaporated as the closing date approached.

The ownership data for the 2025 fiscal year shows a clear trend of institutional repositioning. While major holders like Vanguard Group Inc. maintained large positions, the activity from hedge funds and other institutional investors showed both accumulation and significant removal of shares as the deal progressed. For example, in Q1 2025, FMR LLC added over 4.4 million shares, while AZORA CAPITAL LP removed over 4.3 million shares. This is just the normal churn of capital around a definitive corporate action.

Here's a quick snapshot of the financial performance that preceded the acquisition:

• Q1 2025 Revenue: $107.9 million, up 2.2% year-over-year.
• Q2 2025 Revenue: $110.6 million, up 5.2% year-over-year.
• Q2 2025 GAAP Net Loss: $(9.5) million.

What this financial data hides is the core reason for the sale: steady but slow revenue growth and a persistent GAAP net loss, which made a guaranteed cash exit attractive to the Board.

Analyst Perspectives on the Acquisition

Analyst perspectives quickly converged on the merger price. Before the May 6th announcement, the average 12-month price target was $8.68, with a low of $7.00 and a high of $12.00, showing a wide range of opinions on the company's standalone value. But once the deal was public, the consensus target immediately anchored to the $10.00 offer. For instance, on May 8, 2025, analysts from UBS, Morgan Stanley, Wells Fargo, Baird, and Piper Sandler all set their price targets at $10.00.

This alignment signals that the market views the $10.00 offer as fair value in the context of the company's financial profile-steady growth but ongoing losses. The Q2 2025 report showed a GAAP net loss of $(9.5) million, for example, which is a tough pill to swallow for public market investors looking for clear profitability. The Board's unanimous recommendation to approve the merger, supported by a fairness opinion from Barclays, essentially validated the $10.00 price as the best outcome for shareholders.

Still, not everyone was happy. The proposed sale process faced scrutiny, with some legal actions questioning the adequacy of the $10.00 offer, suggesting a minority of shareholders believed the company's long-term value, particularly in the accounts payable (AP) automation space, was worth more. This table shows the shift in the analyst view:

The quick math is simple: a guaranteed $10.00 now is better than a volatile path to a potential $12.00 later, especially when the downside risk was a potential drop to $7.00, as one analyst suggested. The acquisition offered certainty, and in finance, certainty is a valuable commodity.