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Rothschild & Co

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Rothschild & Co
Company typePublic
Euronext: ROTH
IndustryFinancial Services
Founded1838; 186 years ago (1838)
Headquarters
Paris
,
France
Area served
Worldwide
Key people
Alexandre de Rothschild, Chairman Nigel Higgins, co-Chief Executive Officer[1]
Olivier Pécoux, co-Chief Executive Officer[1]
Alexandre de Rothschild, Director[1]
ProductsInvestment banking
Corporate banking
Private equity
Asset management
Private banking
RevenueIncrease € 1.403 billion (2015)[2]
Increase € 268 million (2015)[2]
Increase € 144 million (2015)[2]
Total assetsIncrease € 52.1 billion (2015)[2]
Total equityIncrease € 1.419 billion (2015)[2]
Number of employees
2,853 (2014)[3]
Subsidiaries
Websitewww.rothschild.com

Rothschild & Co (formerly Paris Orléans) is a financial holding company listed on Euronext Paris and controlled by the French and English branch of the Rothschild family. Rothschild & Co is the flagship of the Rothschild banking Group and controls the Rothschild Group’s banking activities including N M Rothschild & Sons and Rothschild & Cie Banque.

The banking business of Rothschild banking Group covers the areas of investment banking, corporate banking, private equity, asset management, private banking, and so on. In addition, Rothschild & Co has its own investment account in private equity.

It was originally a French railway company, the Compagnie du chemin de fer de Paris à Orléans. In September 2015, Paris Orléans changed its name to Rothschild & Co.[4]

In June 2016, it acquired Compagnie financière Martin Maurel, a French family-owned bank and asset manager.

Its use of names including "Rothschild & Co," "Rothschild & Cie" and "Rothschild group" is disputed by the Edmond de Rothschild Group, founded by a different branch of the Rothschild family, which argues that "no entity has the right to lay sole claim to the Rothschild name."[5][6]

History

Beginning as railway company

Main article: Compagnie du chemin de fer de Paris à Orléans

The Compagnie du chemin de fer de Paris à Orléans was founded in 1838 as a railway company; after several takeovers and a merger with the Chemins de fer du Midi it had about 11,000 km (6,800 mi) of track, and was one of the major railway companies in France. In 1938, it was nationalised along with five other railway undertakings to form the national state railway company SNCF. After the nationalization of rail operations, the company became a simple property company.

As French banking branch of Rothschild family

Logo of Rothschild

After the Second World War, the French branch of the Rothschild family took over the remains of Paris Orléans and transformed it into a holding company for its banking activities and corporate investments. These mainly included the "Banque Rothschild" (Bank), "SGIM" (property company), the "SIACI" (insurance), the "Francarep" (oil company) and the "SGDBR" (wineries), now Domaines Barons de Rothschild (DBR).

By 1980, the Paris business employed about 2,000 people and had an annual turnover of 26 billion francs ($5 billion in the currency rates of 1980).[7]

But then the Paris business suffered a near death blow in 1981 when the Socialist government of François Mitterrand nationalized Banque Rothschild and renamed it Compagnie Européenne de Banque.

In 1983, David de Rothschild and Eric de Rothschild decided to restart their family's business, using Paris Orléans as a launchpad for building a new Rothschild bank in France.

In 1984, they founded Paris Orléans Banque, which later became Rothschild & Cie Banque.[8] Capitalized at only $1 million and starting with just three employees, they made their tiny investment bank into a major competitor in France and continental Europe. Today, Rothschild & Cie Banque is the French branch of the Rothschild group.

As the flagship of Rothschild Group

In 2003, English and French firms merged into the Rothschild Group under the leadership of David R. de Rothschild. To do this, a holding company, Concordia BV, was created to own the Rothschild Group’s banking activities. Now, Rothschild & Co holds 100% of Concordia BV.[9]

Rothschild & Co today

Banking

For the merger of the banking activities of the English and French branch of the Rothschild family in January 2008, the company "Paris Orléans SCA" became the flagship of the family business of Rothschild. The share capital of Paris Orléans is controlled to 58.64% by the Rothschild family (March 2010). The remaining shares are widely spread on the exchange.[10][11]

Paris Orléans SCA controls "Concordia BV". "Concordia BV" in turn controls "Rothschilds Continuation Holdings AG". "Rothschilds Continuation Holdings AG" in turn controls the Rothschild Group’s banking activities.

The most important holdings of Rothschilds Continuation Holdings AG are:

  • NM Rothschild & Sons Ltd, London - British division of Rothschild Group
  • Rothschild & Cie Banque, Paris - French division of Rothschild Group
  • Rothschild Bank AG, Zurich - Global division of Rothschild Group serving a varied international client base

Rothschild Group has a total of 57 offices in 45 countries on five continents and employs 2853 employees worldwide. In the area of investment banking, Rothschild Group has specialized in the M & A advisory. Today, Rothschild Group is the most active M & A house in Europe.[12]

Private equity business

In addition to banking activities, Rothschild & Co holds €3.0 billion in private equity assets and an additional €4.5 billion in private debt assets under management (2017). This portfolio includes investments in private equity funds and mezzanine financing, including investments in listed and unlisted companies.

Historically, the Rothschild family owns many Bordeaux vineyards since 1868. Les Domaines Barons de Rothschild (Lafite) is one of Rothschild's winery company.

Rothschild Bank AG broke anti-moneylaundering rules in 1MDB case according to Swiss prosecutior.[13]

See also

Notes

  1. ^ a b c Paris Orléans: Corporate governance
  2. ^ a b c d e Rothschild & Co 2015 Annual Report
  3. ^ Rothschild & Co Key Figures
  4. ^ "Bienvenue sur le site Relations Investisseurs de Rothschild & Co" (PDF). Rothschild & Co. Retrieved 10 October 2016.
  5. ^ Rival Rothschild branches face court battle over family name, Financial Times
  6. ^ Rothschilds to Rename Holding Company Amid Family Feud, Bloomberg
  7. ^ RPT-French banker Guy de Rothschild dies aged 98 Reuters, Thu 14 June 2007 12:26 pm EDT
  8. ^ Baron Guy de Rothschild, Leader of French Arm of Bank Dynasty, Dies at 98 The New York Times, Thu 14 June 2007
  9. ^ "Rothschild family realigns London and Paris bank operations". The Independent. 8 July 2003. Retrieved 11 February 2018.
  10. ^ "Banking activities organisation chart of Rothschild". Paris-orleans.com.
  11. ^ "Paris Orléans Annual report 2007/2008" (PDF). Paris-orleans.com. Retrieved 31 July 2008.
  12. ^ "Paris Orléans Annual report 2009/2010" (PDF). Paris-orleans.com. Retrieved 30 July 2010.
  13. ^ https://mobile.reuters.com/article/amp/idUSKBN1KA0Z4
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