CAPITAL Z FINANCIAL SERVICES FUND II, L.P. MAKES
$25 Million Investment in Wit Capital
- Investment To Significantly Expand Wit Capital's Online Investment Banking and Internet-Based Trading Activities -
NEW YORK, March 1 /PRNewswire/ -- Wit Capital Group, Inc., the online investment banking firm that is pioneering the offering and trading of securities through the Internet, and Capital Z Financial Services Fund II, L.P., ("CZFII"), today jointly announced that CZFII will make a $25 million equity investment in Wit Capital. CZFII is a $1.85 billion global private equity fund focused on the financial services, insurance and healthcare services industries. With this investment from CZFII, Wit Capital will continue to expand its highly successful online investment banking business and accelerate the development of its internet-based, after-hours trading system that will be launched later this year. Additionally, CZFII will have the right to elect two members to Wit Capital's Board of Directors. Terms of the transaction were not disclosed.
Robert Lessin, Wit Capital's Chairman and Chief Executive Officer, said, "CZFII's substantial capital commitment is a strong endorsement of our strategy to capitalize on the power and potential of the Internet in transforming the securities industry. With this capital in place, we will be able to continue to build on the momentum Wit Capital has created in shifting the paradigm for capital formation. We look forward to working with Capital Z on an ongoing basis, applying their extensive financial services industry knowledge to our efforts to further build our online investment banking business and to successfully launch our internet-based, after-hours trading system."
Steven M. Gluckstern, a Partner of Capital Z, said, "Our investment in Wit Capital reflects our belief in the power of the Internet to dramatically change the securities industry and our great confidence in the company and its highly accomplished management team. By identifying the technology-enabled individual investor as a critical force in the capital formation process, Wit Capital has established itself as the leader in the online investment banking business. Additionally, we believe that with the development of its internet- based trading platform, Wit Capital has once again found an untapped avenue through which it can grow a significant business to become a leader in creating a liquid, after-hours trading system to serve the individual investor. We look forward to helping Wit Capital reach its next stage of growth."
This investment will allow Wit Capital to substantially enlarge its investment banking staff in order to increase its e-Manager(TM) and online investment banking activities that currently include private placement, capital market, M&A and other advisory, and retail oriented research services. In addition, the investment will help fund the development of a significant technology infrastructure which will support both the investment banking and internet-based, after-hours trading activities.
About Wit Capital
Since September of 1997, Silicon Alley-based Wit Capital has participated in more than 50 major stock offerings. The 85-person firm has recently served as a co-manager designated as e-Manager(TM)or syndicate member in a series of high profile Internet IPOs, including transactions for Marketwatch.com, EarthWeb, uBid, TicketMaster Online-City Search and X00M.com. The firm also has a ten person private equity group. Wit Capital is also set to launch the world's first internet-based, after-hours trading facility which will allow online investors to avoid spreads by buying and selling Nasdaq and listed shares directly with other investors, even when the traditional markets are closed. Wit Capital is a registered broker-dealer and member of NASD and SIPC. Its web address is witcapital.com.
About Capital Z Financial Services Fund II, L.P.
Based in New York, Capital Z Financial Services Fund II, L.P., is a $1.85 global private equity fund that focuses exclusively on investments in the insurance, financial services and healthcare services industries. The fund, which was formed in August 1998, is managed by Capital Z Partners, a global alternative asset management firm headquartered in New York City with offices or affiliates in London and Hong Kong. Capital Z Partners also manages Capital Z Investments, L.P., a $1.5 billion fund which focuses exclusively on investments in private equity funds, hedge funds and other alternative investment vehicles. Since 1990, Capital Z Partners and its predecessor funds have invested in excess of $1.6 billion in over 40 transactions with an aggregate market value in excess of $12 billion.
SOURCE Wit Capital Group, Inc. and Capital Z Financial Services Fund II L.P.
-0- 03/01/99 /CONTACT: Curtis Hougland of Middleberg & Associates, 212-888-6610, for Wit Capital; or Tracey T. Stearns of Kekst and Company, 212-521-4800, for Capital Z/
/Web site: witcapital.com
CO: Wit Capital Group, Inc.; Capital Z Financial Services Fund II
L.P. ST: New York IN: FIN SU: |
