Was Currencies Direct a Good Buy?
In August 2015, Reuters reported that two private equity firms – Corsair Capital and Palamon Capital Partners acquired leading Forex provider and international money transfer company, Currencies Direct. The acquisition was worth a tidy sum of £200 million, the equivalent of $310 million, and the deal closed at the end of 2015. At the time, Currencies Direct’s Private Forex Division boasted an impressive number of registered retail clients (150,000+) and its Corporate Forex Division provides services to SMEs around the world.
This corporate buyout was perceived as a strategic decision to allow these two private equity firms to gain a significant foothold in the lucrative international money transfers sector. Banks have heretofore dominated the scene, by monopolizing international money transfers for private and corporate clients. The rising costs of the bank-related transfers led to burgeoning growth in FinTech companies capable of providing low-cost, secure alternatives.
Taking the Plunge: Investing in Non-Bank Financial Services Currencies Direct
On August 11, 2015 Currencies Direct posted notification of the sale to Palamon and Corsair and expressed excitement with the $310 million sale. According to the terms of the deal, Currencies Direct Holdings LTD agreed to the sale through the buyer consortium formed by Corsair Capital and Palamon Capital Partners. Currencies Direct Holdings is headquartered in London and is a privately owned financial institution. It is a non-bank entity and provides non-cash Forex and various payment solutions to private and corporate clientele. Currencies Direct offers a full range of services to online and off-line clients.
The significance of the transaction is that it allows Currencies Direct Holdings (CDH) to continue its aggressive global growth strategy. Currencies Direct is the brainchild of Mayank Patel, with 18 offices around the world. It was established in 1996 and quickly became one of the world’s foremost providers of non-cash Forex and payment solutions to clients everywhere. With $4 billion + in currency payments per annum, this company is a power broker.
Currencies Direct features offices in the United States, Portugal, Australia, South Africa, France, the United Kingdom, and Spain. Among the many services provided by the company are specialist Forex dealers, a wide range of international payments solutions, online/off-line transactions, personalized services, local representation, strong proprietary networks, and sophisticated platforms for transactions purposes. There are many reasons why this non-bank entity offers advantages over traditional banks and Forex brokers. Customers can save 4% – 5% compared to High Street banks, especially on transactions involving large properties. This makes it much easier to repatriate funds, or to send money overseas on a regular basis. At corporate level, 99.7% of all payments go through without a glitch. It is possible to save as much as 3% of total sales value on exchange rates by using Currencies Direct.
Massive Growth in Double-Quick Time for Currencies Direct
Today, Currencies Direct has assisted 210,000+ people all over the world. The company has a 5 star rating on feefo with 277 reviews, and it has 2,100 reviews on TrustPilot with a 5/5 rating, indicating that 82% of users regard its services as excellent. More importantly, the current performance of this money transfer company is extraordinary. As this Currencies Direct review 2018 confirms, this internationally respected money transfer company has a 95.2% positive rating. Among the many pros are the following:
⦁ In-Depth experience of the overseas property market
⦁ No Fees charged by this international money transfer company
⦁ £4.5 billion worth of personal and corporate transactions annually
⦁ Global reach and availability with 18+ offices in cities around the world
The sheer size and growth rate of Currencies Direct is a force to be reckoned with. This company is making significant inroads where banks are failing. Currencies Direct is also an investor in its own right. It is a majority stakeholder in Universal VAT Services, indicating that this corporation is also generating passive income through its holdings. Over the years, it has racked up several awards including Consumer Champion of the Year 2017, Most Positive Client Reviews in 2017, Level 1 Credit-Rating Dun & Bradstreet, National Business Awards Finalists of 2006 etc. The fact that banks cannot offer comparable quality, expediency, cost competitiveness, or ease-of-use will continue to drive profits for companies like Currencies Direct and their owners, Palamon and Corsair.