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FT Partners Advises FXCM on the Sale of Refco's 35% Equity Stake

Overview of Transaction
  • On November 20, 2007, Forex Capital Markets LLC ("FXCM") announced the signing of a transaction in which 35% of FXCM, previously owned by Refco, has been jointly sold to Lehman Brothers and Long Ridge Equity Partners
  • Five investors, including Long Ridge Equity Partners, have purchased 25.1%; Lehman Brothers has agreed to acquire 9.9%
  • The deal was brought about when FXCM reached an agreement with Refco's creditors to auction the defunct brokers 35% equity stake in FXCM
Significance of Transaction
  • FXCM will no longer have any financial connection or business relationship with the Refco estate
  • Lehman Brothers is able to make a rapid, risk-adverse entry into the retail FX market with minimal technology investment
  • FXCM Board of Directors will be composed of seven members
  • Five seats will be held by original founders of FXCM and two will be held by members nominated by the new investors excluding Lehman Brothers
  • No change to FXCM's management, operations or services
  • Award winning transaction recognized as Information Technology Deal of the Year and Financial Services Deal of the Year by the M&A Advisor
FT Partners' Role
  • FT Partners acted as exclusive strategic and financial advisor to FXCM and the Refco estate
  • FT Partners conducted a competitive auction process for the sale of Refco's equity stake in FXCM
  • FT Partners has been FXCM's exclusive investment banker since 2002