Rothschild Set To Crown Dynasty Heir As Head Of Legendary Bank

The king is dead, at least metaphorically: long live the (new) king.

The 75-year-old scion of the banking empire, David de Rothschild, is stepping aside as chairman of Rothschild & Co. this summer to pass the reins to his son Alexandre in a long-expected changing of the guard at the Franco-British investment bank.

The younger Alexandre de Rothschild, the 7th generation of a banking dynasty that was founded 200 years ago and which many speculate is among the world's most influential families, has long been groomed to succeed his father in becoming the bank's new head. Currently executive deputy chairman, the 37-year-old Aelxandre first joined Rothschild in 2008 to focus on the merchant-banking division after stints in both investment banking and private equity at Bank of America and Bear Stearns.

Alexandre de Rothschild

The dynastic handover, the FT reports, is set to take place in June, "amid a push by the investment bank to diversify from its core French and British advisory business to help it ride out less buoyant periods in Europe’s mergers and acquisitions market."

The elder David de Rothschild, who was born in New York, oversaw the merger of the then-separate French and UK banks in 2012 in a combination designed to unify two branches of the Rothschild family and bolster the balance sheet. Before that, the 75-year-old had been running the UK part of the bank after Evelyn de Rothschild, his cousin, retired in 2004. The group has also been increasingly investing in its small US operations and last year completed its first sizeable acquisition to expand its private bank.

Meanwhile, despite losing some market share, the iconic Rothschild bank remains among the top 5 European names in 2017 M&A deals by revenue.


Rothschild’s latest H1 results published in November showed global advisory revenue - which accounts for about three-fifths of total - falling 8% €492MM. By contrast, the bank's private wealth and asset management and merchant banking divisions each posted growth of more than 30% in the six months to September. Overall, revenue rose 6% Y/Y to €852MM and pre-tax profit increased 10% to €206MM, according to the FT.

The corporate overhaul launched by senior, also granted de Rothschild an opportunity to put in motion a succession plan by bringing his third child and only son to the supervisory board. It also allowed the family to tighten control over the group by buying out minority shareholders. Today, the most recognizable family name in banking has 58% of voting rights in the company and owns a 49% stake, while just over 26% of the group’s shares are listed on Paris’ Euronext exchange.

Rothschild’s shares, which were hit dramatically in the wake of the financial crisis, have gained more than 15 per cent since the beginning of 2017

The banking dynasty, which has spawned countless financial entities and whose financial assets are distributed around the globe, and in the form of investments in hedge funds via a fund of funds operation with well over $168 billion in AUM...

... most recently boasts Emmanuel Macron, the French president, as a former employee. Macron became known as the “Mozart of finance” for his role at Rothschild in advising Nestlé on its $12bn acquisition of a Pfizer unit in 2012.

Comments

Benjamin123 PT Wed, 02/28/2018 - 02:54 Permalink

Nepotism is no different than tribalism or nationalism: You take care of your family. Its an evolutionary instinct. Meritocracy is anti-family, thats why the family is disappearing. First went the extended family (grandparents, uncles, cousins) that often lived and worked together in the same field and the same compound. Destroyed. Superseded by the "nuclear family", which is now also being superseded by "single parents" and now by "childless professionals". Turns out you dont need a family to work at big institutions and to judge people according to their "merits".

In reply to by PT

ChaoKrungThep Consuelo Tue, 02/27/2018 - 21:26 Permalink

Hardly. A "semite" must born in a Semitic land, eg, Arabia, speak a Semitic language, eg Arabic, Aramaic, Hebrew. 

The "big" game has been run by Catholics for > 1,000 yrs, while the Jews, prohibited from owning property, were forced into usury, a Christian sin.

The Jew bashing is amusing. They "accept it a patient shrug for sufferance is the badge of all [their] tribe", to paraphrase Shylock. They're patsies, but well paid.

The angry goy are fools.

In reply to by Consuelo

Setarcos Consuelo Tue, 02/27/2018 - 22:08 Permalink

No.  He may practice Judaism and be a Jew (but not if he is an atheist, that'd be as crazy as an atheist Christian or Moslem).  But Semite?  NO.  Quite apart from having no genetic ties to the Middle East (Ashkenazi came from roughly where the Ukraine is now and converted to Judaism about 800AD) ... quite apart from that "Semitic" has nothing to do with race.  It denotes a language grouping, such as Babylonian and Ancient Hebrew (both extinct), Aramaic spoken by a few people in Syria and ARABIC, spoken by millions.  All of these "anti-Semitic" smears are total BS, not a single Jew is Semitic, though an updated version of Hebrew was artificially revived in Israel.  Makes no difference, Arabic speakers are Semitic, none of the Rothschild Dynasty.

In reply to by Consuelo

Benjamin123 Setarcos Wed, 02/28/2018 - 03:09 Permalink

Like most jews he is likely only part-jew. Theres probably hundreds of millions of people with at least one jewish great-great grandparent. Jews themselves are never fully sure of who is or isnt a jew, its pointless because they are all converts or descendants of converts and that goes too for the "original" biblical israelites or the sephardim.

In reply to by Setarcos

sgt_doom P.K.Snosage Tue, 02/27/2018 - 19:16 Permalink

Well . . after that LIBOR "scandal" of a few years back, the Rothschild Bank, where LIBOR had been decided on a weekly or daily basis, lost out to ICE, now it's ICE LIBOR.  ICE, or InterContinental Exchange, was a pivotal player in the global economic meltdown of 2007 -- 2009, and today is owner of the NYSE.

Of course, last time I checked, ICE in turn was owned by Goldman Sachs, Morgan Stanley, BP, that French oil firm, and Deutsche Bank (minor stakeholder).

It's all one big Happy Circle . . .

Recommended Reading:

Open Secret     by Erin Arvedlun

In reply to by P.K.Snosage