Gain Capital raises $40m in series D funding

Source: Gain Capital

GAIN Capital Group, Inc. a leading non-bank provider of foreign exchange (FOREX) trading and asset management services, announced today the successful completion of its Series D investment round, with a $40 million equity investment from VantagePoint Venture Partners.

VantagePoint obtained a minority stake in the firm and the funds were immediately used to repurchase outstanding stock from existing GAIN shareholders.

VantagePoint is a $2.8 billion fund that specializes in active multi-stage investing; their focus is on fast-growing companies at all stages of development. "Currency trading has been one of the fastest growing segments of the electronic trading universe in recent years," commented Jim Mills, Managing Director at VantagePoint Venture Partners. "As a pioneer in this market, GAIN Capital has helped drive the growth of the market and has become a highly profitable company. VantagePoint is delighted to partner with GAIN Capital's talented management team, which is comprised of seasoned executives with significant FX and financial technology expertise and a premier reputation," continued Mr. Mills, who has joined GAIN's Board of Directors.

The company reported record revenues for the fiscal year ending December 31, 2005, increasing over 70% versus the previous year. In October of 2005, GAIN was named the 9th Fastest Growing Technology Firm in North America on the Deloitte & Touche Technology Fast 500 with an increase in revenues of 23,313 percent from 2000 to 2004. GAIN was also named to the 2005 Inc. 500 list of the fastest growing privately-held firms in the United States.

"The combination of GAIN's strong position within the forex industry and the growing acceptance of forex as a tradable asset class among both retail and institutional investors will continue to fuel the firm's growth over the next several years," said Mark Galant, CEO and founder of GAIN Capital. "We are pleased to welcome VantagePoint as an investor in GAIN Capital," continued Mr. Galant. "GAIN management will undoubtedly leverage VantagePoint's deep resources and strategic insight to achieve our long term business goals."

In addition to VantagePoint, GAIN investors include the private equity firms Tudor Investments, Edison Ventures, Cross Atlantic Capital Partners, and Blue Rock Capital.

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