World Gold Council

Overview

On 21 June 2010 the World Gold Council (gold.org), the market development organisation for the gold industry, and Augmentum Capital, a growth capital fund backed by RIT Capital Partners, announced an investment in BullionVault, a market leading online gold investment platform.

The WGC and Augmentum completed a £12.5 million funding round in the Company in exchange for an equity interest.

Significance

BullionVault provides investors with an around-the-clock platform to buy and own 100% physical gold via the internet. BullionVault is the global leader in this rapidly growing segment, caring for approximately $800 million of physical gold for its users. BullionVault’s customers can store their gold in secure vaults in London, New York or Zurich, and have the option of taking physical possession.

Marcus Grubb, Managing Director of Investment at the World Gold Council, said:
“The World Gold Council has a proven track record of developing innovative solutions that provide efficient and cost-effective access to physical gold investment. We will work together with BullionVault to further develop the physical gold investment market and to ensure that investors are able to protect their wealth by holding gold.”

Tim Levene, Partner of Augmentum Capital said:
“This is an exciting time for Augmentum Capital which specialises only in technology and internet investments. We are delighted to be working alongside the World Gold Council in support of BullionVault. With it being profitable, high growth and a disruptive technology platform, it meets our stringent investment criteria. Given our backing by RIT Capital Partners Plc, the London listed investment trust whose substantial investor is Jacob Rothschild and family, gold is an area of particular interest. We will use this experience and our international network to assist in BullionVault’s continued success.”

Paul Tustain, Chief Executive Officer of BullionVault, said:
“With our dominant position, plus ongoing concerns about the stability of some of the world’s major economies and currencies, we have – unsurprisingly – had a lot of interest from investors. We’re delighted to be working with the World Gold Council and Augmentum, both of whom deeply understand our industry, our objectives, and our customers.”

Our Role

Acted as sole corporate finance advisors to the World Gold Council.