Forex Club sells minority stake to Quadro Capital Partners, plans an IPO

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Club just announced that it sold a minority stake (believed to be in the region of 5-10%) to Quadro Capital Partners, a Moscow based private equity firm.

Forex Club is one of the largest and oldest brokers in the forex market and is the second largest broker in Russia.

Quadro Capital Partners is a $1 billion fund that primarily targets financial services, retail, consumer goods and services, and sustainable natural resources in Russia and CIS. The fund is managed by Giedrius Pukas formerly a managing director at Troika Capital Partners (one of Russia's largest private equity funds).

Details of the deal were not disclosed but the funds will be used by Forex Club to fuel its growth in Russia and international markets as it would like to expand much beyond organic growth. Lately Forex Club launched its own Metatrader 4 offering and will now be competing with other MT4 brokers finally on same terms, including CFD. Forex Club will surely become much more aggressive in terms of marketing and online/offline presence.

This is the first private equity investment in a Forex Broker Forex Broker In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke Read this Term by a Russian fund and will probably mean that Forex Club be aiming to complete an IPO in the next few years as the investor would like to liquidate its investment at some point. FXCM and Gain Capital both completed an IPO in 2010, although share price is still lower than when floated. OANDA is another large forex broker backed by private equity looking to go public in the near future and Alpari too is said to be planning an IPO sooner than later.

Rafael Carrascosa, Forex Club's CEO, had this to say when I asked him about this deal: ”Having Quadro Capital as our shareholder is another positive step in our development as a company and an endorsement of our strategic plans and business performance. We are delighted to bring to FOREX CLUB their expertise and views on the financial industry. And, without disregarding any of our other priorities, our principal focus right now is on building a set of financial service offerings that will enable us to establish lasting relationships with multiple segments of clients in several markets around the world.”