Arnhold and S. Bleichroeder

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Arnhold and S. Bleichroeder was a New York-based investment bank that remained as a fund management company under the control of the Arnhold family until December 2015, when majority ownership was sold to the Blackstone Group LP and Corsair Capital LLC, led by Simpson Thacher & Bartlett.[1] The core constituent was of a merger between the banking firm of S. Bleichröder founded by Samuel Bleichröder in 1803 in Berlin; whose bank maintained close contacts with the Rothschild family acting as a branch office in Berlin of the Rothschilds' bank.[2] and the banking firm of Gebr. Arnhold (Arnhold Brothers) founded in Dresden in 1864 which acquired S. Bleichroeder in 1931.

History[edit]

In the mid-19th century, S. Bleichröder achieved international prominence under the leadership of Samuel's eldest son, Gerson von Bleichröder. Amongst other activities he managed the private banking transactions of Otto von Bismarck and with the transfer of credits and/or placing of loans on behalf of the Prussian state and the German Empire.[3] He was also a partner at the investment bank of the New York investment bank Ladenburg Thalmann.

The other component of the current firm was Gebr. Arnhold (Arnhold Brothers) founded in 1864 in Dresden. This was the banking firm of the Arnhold family, which also had major industrial interests in Germany.[4] Gebr. Arnhold established an office in Berlin in 1912, and after World War I became active in London, Zurich, and New York.

In 1931, Gebr. Arnhold acquired S. Bleichröder. With the rise of Nazi persecution the firm’s activities were moved to New York City in 1937 and conducted business under the name of Arnhold and S. Bleichroeder, Inc.[5]

In 1939, the firm's name was changed to Arnhold and S. Bleichroeder.[6]

In 1967, it launched first offshore fund under the First Eagle name.

In 1987 launched first U.S. registered mutual fund, the First Eagle Fund of America.

In 2002, Natexis Banques Populaires, the investment banking arm of Banque Populaire, a French mutual bank, purchased the brokerage business of Arnhold & S Bleichroeder for $105 million. The broker's existing shareholders received a 2.6% stake in Natexis, and the company was renamed Natexis Bleichroeder. The asset management business, Arnhold & S Bleichroeder Advisors, was not part of the deal and continued to be operated through its parent, A&SB.[7] Subsequently, Arnhold and S. Bleichroeder Advisers was renamed First Eagle Investment Management, and as of Sept 2010, it held approximately US-$45 billion in assets under management according to its web site,.[8]

In December 2015, Blackstone and Corsair Capital bought majority control of the firm from TA Associates and descendants of the founding family.

Notable employees and alumni[edit]

  • George Soros, worked there from 1963–1973.[9]
  • Jim Rogers, joined the firm in 1970 and left in 1973 to form the Quantum Fund with Soros reportedly because new brokerage firm regulation prevented them from getting a percentage of profits.[10]

References[edit]

  1. ^ http://www.law360.com/articles/681067/simpson-led-blackstone-corsair-nab-stake-in-4b-first-eagle
  2. ^ International Directory of Company Histories, Volume 97
  3. ^ Ellis, Charles D.; Vertin, James R. (2003). Wall Street People: True Stories of the Great Barons of Finance. New York: Wiley. pp. 121–123. ISBN 0-471-27428-3. 
  4. ^ Mosse, Werner Eugen (1987). Jews in the German Economy: The German-Jewish Economic Elite, 1820–1935. New York: Oxford University Press. ISBN 0-19-821967-9. 
  5. ^ "Arnhold and S. Bleichroeder Advisers, LLC". Asbai.com. Archived from the original on 17 October 2010. Retrieved 2010-10-12. 
  6. ^ "About Us : History". First Eagle Investment Management. First Eagle Investment Management. Retrieved 16 June 2015. 
  7. ^ http://www.highbeam.com/doc/1G1-88271100.html
  8. ^ www.feim.com
  9. ^ www.georgesoros.com
  10. ^ www.streetstories.com

External links[edit]