In December 2000, MCP made a preferred stock investment in Datek Online Holdings, a leading provider of financial technology products and services to the institutional and retail trading communities. The investment was made as part of a larger recapitalization by an investor group that included Bain Capital, TA Associates, and Silver Lake Partners. Datek's primary businesses are: Datek Online — the leading independent online broker; iClearing—a securities clearing operation; and Watcher Technologies—a provider of state-of-the-art trading systems for the professional trading industry. In addition, as part of the recapitalization, The Island ECN, a former majority-owned Datek subsidiary, was spun out directly to MCP and the investor group. The Island ECN is a leading alternative trading system to NASDAQ and the largest electronic communications network as measured by execution volume. Proceeds from the investment were used to buy-out founders of Datek and to finance the company's rapid growth.
In September 2002, Ameritrade (NASDAQ: AMTD) acquired Datek.
Date of Investment: December 2000
Date of Sale: September 2002
MCP Contact: Peter Laino