3i invests $97M in market leading forex trading firm GAIN Capital Group

22 Jan 2008

3i, an international private equity firm, today announced its investment of $97M in GAIN Capital Group, a leading independent provider of online foreign exchange (forex) trading services for individuals and institutions.

GAIN Capital is a market leader with a strong presence in North America, Europe and Asia.  As GAIN looks to further increase its presence internationally, 3i’s financial services expertise, strong global network and recognized ability to add value will help the company achieve its objectives of continued growth.

“We are pleased to welcome a partner with such extensive international financial services knowledge,” said Glenn Stevens, CEO of GAIN Capital. “In addition, 3i’s significant expertise in technology and Internet marketing makes them a partner of choice to leverage GAIN’s unique approach to combining the power of the Internet with institutional level trading capabilities.”

GAIN, a privately held company, was founded in 1999 and is one of the largest and most respected firms in the financial services industry, servicing clients from more than 140 countries.  GAIN leverages the Internet to enable individuals to participate in forex trading in a way that previously was accessible only to large institutional investors.  By utilizing the Internet to attract and service customers in a low cost model, GAIN is able to offer its customers expanded trading access while dramatically reducing trading costs.  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).   

3i’s strong financial services expertise has proven successful in growing many companies worldwide, including Travelex, RoyalBlue / Fidessa, Asia Capital Re and Interhyp. 

3i’s expertise translates into an ability to identify initiatives and areas that have the potential to positively impact GAIN and grow its customer base internationally.

“We are excited to partner with GAIN Capital. As one of the global market leaders, its track record is impressive, not only from a financial perspective, having delivered over 60% compounded annual growth over the last six years, but also with its strong reputation and impressive management team. We look forward to helping GAIN accelerate the success of its business development initiatives and further strengthen operations in key geographic areas,” said Ken Hanau, Head of 3i North America.

About 3i

3i is a world leader in private equity and venture capital.  We focus on Buyouts, Growth Capital, Venture Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia.  Our competitive advantage comes from our international network and the strength and breadth of our business relationships.  These underpin the value that we deliver to our portfolio and to our shareholders.

3i Growth Capital is the world’s largest growth capital fund investing over $1.4bn every year in businesses across Europe, Asia and the US.  We provide financial and strategic support to established businesses with the potential for outstanding value growth.  We invest up to $300m to help businesses achieve their growth ambitions, restructure shareholdings, release equity or change the balance of equity to debt.  Once we have invested, we are committed to working in partnership with majority shareholders.

3i’s recent investments in the financial services sector include Fulcrum, a hedge fund administrator; Interhyp, Germany’s leading online mortgage broker, which achieved a highly successful IPO on Frankfurt Stock Exchange; Travelex, the world’s largest FX specialist; RoyalBlue / Fidessa, is a world-leading supplier of multi-asset trading technology; Asia Capital Re, an Asian reinsurer of property and casuality insurance and Kneip, investment fund administrator.

About GAIN Capital

GAIN Capital Group is a leading independent provider of foreign exchange services. Founded in 1999 by Wall Street veterans, GAIN is now one of the largest, most respected firms in the industry, servicing clients from more than 140 countries around the globe, including fund managers, Commodity Trading Advisors (CTAs), and professional traders. For individual investors, GAIN Capital operates FOREX.com, offering advanced, yet easy-to-use trading tools along with lower account minimums and extensive educational resources.

For more information, please visit the company’s Web site atwww.gaincapital.com

For further information please contact:

Rachel Richards
email. rachel.richards@3i.com
tel.  +44 207 975 3573