Blackstone Tactical Opportunities Unit Invests in Currencies Direct
Posted on 03/08/2022
Palamon Capital Partners, a pan-European growth investor, and Corsair, a private equity firm targeting services, software, and payments investments in the financial services market, announced that funds managed by Blackstone Tactical Opportunities have agreed to make a £140 million strategic investment in Currencies Direct, a global provider of digital foreign exchange and international payment services to private clients and small and medium sized enterprises (SMEs). The investment will be made in partnership with Currencies Direct’s management team, led by Keith Hatton, and Palamon and Corsair, which will retain their majority co-controlling stake in the Company. Blackstone’s strategic investment will be used to accelerate the Company’s growth ambitions through further acquisitions.
Currencies Direct is one of the largest digital FX and international payment platforms globally with £105 million in revenues and £43 million of EBITDA for the last twelve months ending January 2022.
Since being acquired by Palamon and Corsair in 2015, Currencies Direct has delivered more than 20% CAGR profit growth, with EBITDA increasing from £13 million to £43 million, and has successfully executed three highly accretive add-on acquisitions, leveraging its scalable, state-of-the-art technology platform and infrastructure.
In connection with its investment, Blackstone will join the Currencies Direct Board of Directors. Palamon and Corsair will retain their majority co-controlling stake in Currencies Direct and will partner with Blackstone to accelerate Currencies Direct’s organic growth ambitions and target M&A opportunities across B2B, B2B2C and B2C platforms globally.
In January 2022, Currencies Direct completed a £235 million senior refinancing with Pemberton Asset Management, which followed a March 2021 £165 million refinancing.
The transaction is expected to close by the end of the first quarter of 2022.
Advisors
William Blair acted as financial advisor and Slaughter & May acted as legal advisor to Currencies Direct, Palamon and Corsair. FT Partners and EY LLP acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.
Keywords: Blackstone Group LP.