Gain Capital, a provider of foreign exchange trading technology and execution services, has received an injection of $117 million from two private equity firms; the money is to help Gain penetrate further into funds and institutions and strengthen its operations in international markets.
Private equity firm 3i led the investment round with $97 million; 3i US growth capital partner Whitney Bower will join Gain’s board of directors.
In addition, existing investor VantagePoint Venture Partners added $20 million. The two firms bought a minority stake from existing shareholders of the privately-held Gain, and some of the money will go toward building larger trading relationships with leveraged funds and institutions globally.
Gain also plans to expand on its white labeling business. Bower says Gain has a strong reputation and an impressive growth track record of 65% per annum for the last six years.
“We look forward to helping Gain accelerate the success of its business development initiatives and further strengthen its operations in key international markets,” says Bower.
Gain’s founder Mark Galant stepped down as chief executive last year, as Gain promoted Glenn Stevens to CEO. Stevens was previously managing director at Gain, and joined Gain in 2000 from Natwest Bank where he was managing director and head of North American FX sales and trading.
In addition to 3i and VantagePoint, Gain’s investors include private equity firms Tudor Ventures, Edison Venture Fund, Cross Atlantic Capital Partners and Blue Rock Capital.