LeapRate Exclusive… LeapRate has learned that the unnamed ‘mystery’ investor which agreed to put up to $100 million into Cyprus based retail FX broker IronFX is Singapore based regulated investment fund Torch Investment Management Pte Limited.
IronFX announced in August that it had arranged a $100 million investment from a ‘major family office investment outfit’. We reported at the time that it was money from a family office out of the Middle East, and that the investment would formally be made by the family office’s regulated fund based in Singapore.
Torch is indeed a regulated Singapore fund, and is backed by Saudi Arabia based ZAD Investment Company. ZAD is the investment office of Saudi royal family member Prince Mishaal bin Abdullah bin Turki bin Abdulaziz Al-Saud. Torch is run by CEO Shaurya Doval, the son of Ajit Doval, National Security Advisor to the Prime Minister of India.
The investment by Torch into IronFX is planned to be made in several tranches. The first tranche, in the $10 million range, was made in late 2017. As Torch manages a total of about $150 million in investments, we believe that ZAD will be contributing more capital as further tranches are completed. With the initial tranche Torch was given one seat on IronFX’s board of directors, and will receive more board seats as further tranches of the investment are made.
The plan apparently is to use IronFX as a platform for acquisitions and consolidation in the FX industry. As LeapRate has written numerous times in recent months, smaller players in the FX sector are finder it tougher to make money in the face of tougher regulations and increased competition, providing good opportunities for deeper pocketed, larger brokers to pick off competitors. IronFX recently called off a planned three-way merger with FXDD and Nukkleus Inc (OTCMKTS:NUKK) – apparently with each party deciding to ‘go it alone’ in pursuing acquisition opportunities.