Flow Traders, a European electronic trading firm, has received what it describes as a significant minority equity investment from US private equity firm Summit Partners.
The amount and terms of the investment were not disclosed. De Brauw Blackstone Westbroek acted as legal counsel for Flow Traders, while Kirkland & Ellis and Loyens Loeff acted for Summit Partners.
Founded in 2004 and based in Amsterdam with an office in Singapore, Flow Traders is an electronic market-making business focused on high-growth asset classes. The firm trades equities as well as derivatives, currencies and bonds in the main European markets.
The company trades on more than 25 electronic exchanges and trading venues, including Deutsche Börse, Eurex, Euronext, Borsa Italiana, the London Stock Exchange and the Singapore Exchange.
'In a short time, Flow Traders has assumed a dominant role in the electronic market-making world by developing cutting-edge technology and innovative strategies,' says Roger Hodenius, who founded the firm and shares the chief executive's position with Jan van Kuijk. 'We're pleased to be working with an established firm like Summit Partners to further leverage our success and solidify our position in the market.'
Van Kuijk adds: 'Summit Partners has invaluable experience in financial services and technology investments, and is uniquely positioned to help drive the rapid expansion of our business.'
Han Sikkens, a vice-president at Summit, says: 'As the proliferation of electronic markets continues and securities become increasingly diverse and complex, we expect Flow Traders to continue to strengthen its position as a leading institution in this market.'
Founded in 1984 and with offices in Boston, Palo Alto and London, Summit has raised more than USD11bn in private equity and venture capital. The firm has provided equity, recapitalisation and management buyout financing to more than 300 companies in a range of industries, around 125 of which have completed public offerings and more than 110 have been acquired through strategic mergers and sales.
Previous Summit investments in the financial services and technology sectors include Coast Asset Management, Hyperion Software, Liquidnet, McAfee, Microbank Software, optionsXpress and SafeBoot.