Bedminster, NJ - January 22, 2008 - GAIN Capital Group, LLC, a market leader in the rapidly growing online foreign exchange (FX) industry, today announced the successful completion of an investment round from two leading private equity firms with a specialty focus in finance and technology. 3i led the round with a $97 million investment, while existing investor VantagePoint Venture Partners participated with a $20 million investment. In connection with the investment, 3i US Growth Capital Partner Whitney Bower will join GAIN's Board of Directors.
3i and VantagePoint purchased a minority stake from existing shareholders of the privately-held GAIN Capital, with a portion of the proceeds going to the company's balance sheet to facilitate larger trading relationships with leveraged funds and institutions globally, as well as to support GAIN's growing white label business.
"We are pleased to welcome 3i to our investor group," stated Glenn Stevens, GAIN's chief executive officer. "We will undoubtedly look to leverage 3i's financial expertise, strong global network and recognized ability to add value to help us achieve our long term business goals."
"We are excited to partner with GAIN Capital," commented Whitney Bower, Partner at 3i US Growth Capital. "GAIN has a strong reputation and an impressive track record from a financial perspective, achieving no less than 65% annual growth for the past six consecutive years," continued Bower. "We look forward to helping GAIN accelerate the success of its business development initiatives and further strengthen its operations in key international markets."
Forex is the most traded market in the world, with a daily volume that exceeds $3.2 trillion, according to the Bank of International Settlements (BIS). Among retail investors, forex trading has gained widespread acceptance over the past several years. According to U.S. research firm Aite Group, average daily trade volume in the retail forex market increased 500% from 2001 to 2006, reaching an estimated $77 billion per day in 2007.*
"VantagePoint's decision to make the follow-on investment is a testament to GAIN's management team and the company's prospects," commented Jim Mills, a managing director at VantagePoint Venture Partners and a member of GAIN's Board of Directors. "We are confident that GAIN is well positioned to take full advantage of the significant market opportunities within this space." VantagePoint was the sole investor in the company's previous investment round completed in April, 2006.
In addition to 3i and VantagePoint, GAIN's investor group also includes private equity firms Tudor Ventures, Edison Venture Fund, Cross Atlantic Capital Partners, and Blue Rock Capital.