Forex Club, Quadro seek to invest in online trading projects as interest in Russia hots up

FXC-QCP VC, the venture capital fund launched in December 2013 by private equity firm Quadro Capital Partners and founders of FX broker Forex Club, has officially launched its search for projects in online trading in which to invest.

The newly born fund is already gaining speed and has now opened its doors and coffers for projects from online trading businesses, with the areas of Forex, CFD, as well as traditional online stock trading targeted in particular. The regions of interest for investment are Russia, Ukraine and CIS but Quadro Capital Partners say that projects from Eastern Europe and the European Union will also be considered. FXC-QCP VC is quite generous in its offer, with the investment in the approved projects to reach $50 million.

The timing of the launch of the search procedure has its rationale, with market volatility hitting ultra low levels and affecting negatively many businesses in online trading. Vyacheslav Taran, partner of the fund and co-founder of FOREX CLUB Group of Companies, explained: “Profitability in our business is a function of volatility. Consequently, now is one of the best moments for us to develop our business by investing in promising companies that have been forced into a crisis. While for these companies it’s a good means to survive through the crisis, and for many of them – a chance to resolve a difficult situation in a dignified manner, without violating their obligations to clients”.

The proposed projects can be structured as independent investment or, more interestingly, as M&A deals with subsequent integration into Forex Club. The latter adds weight to the ongoing process of consolidation in the Forex industry which has also affected the Russian market. In October 2010, Forex Club acquired 100% of Akmos Trade, a veteran Russian Forex company. The integration of Akmos Trade’s business into Forex Club was finalised in 2013 and has already led to many additions in the product portfolio of Forex Club, including the LibertEx service.

The start of the search for investment projects by FXC–QCP VC marks another important step in the relations between Quadro and Forex Club. In March 2012, the private equity firm bought a minority stake in the Russia-focused broker, with the size of the stake being 10% according to Russian media.

Quadro has a solid reputation for managing venture capital funds – it currently operates three such entities, with the sum of investments in realized projects exceeding $1 billion.

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