Edmond de Rothschild Group explained

Edmond de Rothschild Group
Founder:Edmond de Rothschild
Area Served:Worldwide
Key People:Ariane de Rothschild (CEO)
Cynthia Tobiano (Deputy CEO)
Former Name:Compagnie Financière Edmond de Rothschild
Industry:Financial services
Aum: 158 billion CHF (2022)
Num Employees:2,500 (2022)
Location:Geneva, Switzerland

The Edmond de Rothschild Group is a financial institution specialized in private banking and asset management. Based in Geneva, the group is family-owned and independent, and encompasses the Edmond de Rothschild Foundations (philanthropic arm), the lifestyle brand Edmond de Rothschild Heritage (fine wine and cheese, luxury hotels and restaurants), and sponsors the Gitana Team (professional sailing team).

The group was founded in Paris in 1953 by Edmond de Rothschild as La Compagnie Financière (LCF) Edmond de Rothschild. After opening branches in Geneva and Luxembourg, the LCF launched the first fund of funds in 1969. In 1997, Benjamin and Ariane de Rothschild took over the governance of the company, which was reorganized and renamed Edmond de Rothschild Group in 2010.

In 2022, the business managed assets of CHF 158 billion, had 2,500 employees, and had 29 sites across 14 countries.[1] Ariane de Rothschild has been CEO of the group and Cynthia Tobiano Deputy CEO since March 2023.[2]

History

1953-1997: Edmond de Rothschild era

See also: Edmond Adolphe de Rothschild. In 1953, Edmond de Rothschild founded La Compagnie Financière (LCF) Edmond de Rothschild in Paris. He launched the Geneva-based private banking practice Banque Privée Edmond de Rothschild in 1965 and the branch in Luxembourg three years later.[3]

In 1969, LCF Edmond de Rothschild introduced a new investment model, the fund of funds (FOF) management.[4] In 1970, LCF Edmond de Rothschild was delivered a French banking licence.[5] In 1973, LCF Edmond de Rothschild bought the Bank of California, and sold it back to the Mitsubishi Bank in 1985 for thrice its acquisition price.[6] In 1973, Edmond de Rothschild purchased the vineyard Château Clarke, appellation Listrac-Médoc, the first wine of the Edmond de Rothschild Heritage collection.[7] In 1982, when David de Rothschild launched Paris-Orléans Gestion (Rothschild & Co), LCF Edmond de Rothschild took a 10% stake in the new structure.[6]

In 1989, Benjamin de Rothschild, son of Edmond de Rothschild, founded the Compagnie de Trésorerie to offer advanced financial risk management services.[3] In 1992, LCF Edmond de Rothschild managed assets worth $2 billion,[6] and opened an office in Hong Kong.[8]

1997-2021: Benjamin and Ariane de Rothschild era

See also: Benjamin de Rothschild and Ariane de Rothschild. Following the death of his father in 1997, Benjamin de Rothschild became the president of La Compagnie Financière Edmond de Rothschild.[6] [9] In 1999, in Canada, in association with the Banque Laurentienne, LCF created the financial company BLC—Edmond de Rothschild Gestion d'Actifs Inc., which eventually led to the creation of B2B Banque.[10] In 2001, LCF launched its first online banking website.[11] In 2002, LCF launched the private equity structure Capital Partners.[12] In 2005, Benjamin and Ariane de Rothschild launched the Edmond de Rothschild Foundations to unify and optimize the group's philanthropic operations.[13] In 2006, LCF and Nikko Cordial Securities launched LCF Edmond de Rothschild Nikko Cordial, the first fully-fledged family office in Japan.[14] In March 2008, LCF Edmond de Rothschild became the first foreign bank in China to own a share of a Chinese mutual fund manager when it bought 15% of Zhonghai Fund Management,[15] and increased its participation to 25% in 2011.[16] From 2000 to 2010, LCF Edmond de Rothschild opened 7 regional offices in France.[17]

In 2009, Ariane de Rothschild became the vice-president of LCF Edmond-de-Rothschild. In 2010, La Compagnie Financière Edmond de Rothschild (LCF) changed its name to Edmond de Rothschild Group.[18] In 2011, the group joined the UNEP FI program.[19] In 2011, the group opened an office in Dubai to develop its activities in the Middle East[20] and became a member of the United Nations Global Compact.[21] In 2013, it announced its plan to open a new office in London.[22] In 2014, after raising a $530 million fund targeting investments in Africa,[23] all of the company's financial and non-financial assets were reorganized within the group's structure.[24]

In 2015, Ariane de Rothschild was named CEO of the Edmond de Rothschild Group.[25] She was the first woman to run a Rothschild-branded financial institution,[26] and was nominated to give the company a new impetus.[27] The group published a sustainability report for the first time[28] and launched the Fund Big Data.[29] Under the Swiss Bank Program, the group signed a non-prosecution agreement with the US Department of Justice regarding undeclared US accounts in Switzerland and paid a $45.24 million penalty.[30] In 2016, the Société française des hôtels de montagne (SFHM) which gathered the non-financial assets of the group became Edmond de Rothschild Heritage.[31] In 2017, the group was fined $10.1 million in the aftermath of the 1MDB affair.[32] In 2018, the group raised a €345 million fund to invest in biotech and medical devices.[33] In March 2019, the company removed Edmond de Rothschild (Switzerland) S.A. from public trading, making it 100% private. Ariane de Rothschild took chairmanship of the board, and Vincent Taupin became CEO. The French business entities were folded into the Swiss holding company to simplify the group's organization.[34]

In 2019, the Edmond de Rothschild Group launched an AI-powered fund to invest in the real estate market[35] and raised €375 million for its fourth Africa-focused fund.[36] The company's shares were delisted from the Zurich stock exchange on 22 October 2019.[37] In 2020, the group made its first investment in the Baltics by investing in the parking lot operator Parkdema[38] and Sergey Bogdanchikov filed a lawsuit against the group for fraud.[39]

Since 2021: Ariane de Rothschild era

In January 2021, Benjamin de Rothschild died of a heart attack.[40] Ariane de Rothschild became the sole majority owner of the Edmond de Rothschild Group, holding the majority of the votes with her four daughters,[41] and maintained the roadmap of the group's transformation initiated with her husband.[42]

In 2021, the group launched a $250-million foodtech fund with PeakBridge VC[43] and the Fund-Human Capital focused on companies with the best employee management practices.[44] Yves Perrier joined the company's board[45] and François Pauly replaced Vincent Taupin as CEO of the group.[46] Edmond de Rothschild partnered with the UK-based wealth management firm Hottinger Group and acquired a 42.5% stake in the latter.[47] In March 2023, Ariane de Rothschild became CEO of the group.[2]

Description

The Edmond de Rothschild Group is a conviction-driven investment house. In 2022, the group had 2,500 employees, 29 offices in 14 countries and 3 international management centers (Geneva, Luxembourg, Paris).[48] The group managed CHF 158 billion worth of assets and recorded a solvency ratio of 22%.[1]  The Edmond de Rothschild Group provides the following services:

Other activities

Governance

Presidents

Executive committee

See also

References

  1. Web site: Gross Income Rises At Edmond De Rothschild; Logs Net Inflows . Wealthbriefing.com . 2023-03-15 . 2023-03-26 .
  2. Web site: Claude Baumann . Baroness Ariane Takes the Scepter at Edmond de Rothschild . Finews.com . 2023-03-15 . 2023-03-26.
  3. Web site: The Business ‹ Group Edmond de Rothschild ‹ Group Edmond de Rothschild :: The Rothschild Archive. https://web.archive.org/web/20170626153209/https://www.rothschildarchive.org/business/group_edmond_de_rothschild/. dead. 26 June 2017. www.rothschildarchive.org. 6 February 2020.
  4. Web site: McIntosh . Bill . April 2009 . Banque Privée Edmond de Rothschild . 6 February 2020 . thehedgefundjournal.com . en-GB.
  5. News: Edmond de Rothschild la passion de la banque. Fay. Sophie. 5 November 1999. Le Monde. 6 February 2020. fr.
  6. News: Baron Edmond de Rothschild, 71, French Financier, Dies. Prial. Frank J.. 4 November 1997. The New York Times. 6 February 2020. en-US. 0362-4331.
  7. Web site: Garely . Elinor . 12 May 2018 . Baron Edmond de Rothschild wine: When the name is the story . 6 February 2020 . Eturbonews.com . en-US.
  8. Web site: John . Alun . 9 December 2016 . Edmond de Rothschild to close Hong Kong branch amid troubled times for private banks . 6 February 2020 . South China Morning Post . en.
  9. Web site: 4 November 1997 . French Banker Edmond de Rothschild, 71 . 6 February 2020 . Chicagotribune.com . en-US.
  10. Web site: La Banque Laurentienne aujourd'hui . 6 February 2020 . Histoire du Québec . fr.
  11. Web site: 21 September 2001 . Gérer sa fortune en ligne avec E-Rothschild . 6 February 2020 . 01net.com . fr.
  12. Web site: Paisner . Guy . 15 July 2002 . LCF Rothschild moves into private equity . 6 February 2020 . Fnlondon.com . en-GB.
  13. News: Nous voulons promouvoir une philanthropie autre qu’occidentale . fr-FR . Le Monde . 2023-01-22.
  14. Web site: 14 February 2006 . Establishment of a new company - Presenting Japan's first genuine Family Office Services . 6 February 2020 . Smbcnikko.co.jp.
  15. News: Chen . George . 11 March 2008 . France's Edmond de Rothschild to buy China fund stake . en . Reuters . 6 February 2020.
  16. Web site: Serrouya . Thierry . 18 April 2011 . LCF Edmond de Rothschild se renforce dans l'empire du Milieu . 6 February 2020 . La Tribune . fr.
  17. Web site: Lechantre . Caroline . 28 September 2010 . La province, relais de croissance pour LCF Edmond de Rothschild . 6 February 2020 . Les Echos . fr.
  18. News: 2014-06-22 . Les grandes étapes du groupe . fr . Le Temps . 2022-11-13 . 1423-3967.
  19. Web site: 14 June 2011 . Edmond de Rothschild (Suisse) S.A – United Nations Environment – Finance Initiative . 6 February 2020 . Unepfi.org . en-GB.
  20. Web site: Marriage . Madison . 18 October 2011 . Rothschild targets Middle East . 6 February 2020 . Investmenteurope.net . en.
  21. Web site: 29 June 2020 . Edmond de Rothschild Achieves 4-year Goals for Sustainable Development . 7 September 2020 . Reportalert.info.
  22. News: Edmond de Rothschild to open London merchant bank. Schäfer. Daniel. 17 November 2013. Financial Times. 6 February 2020.
  23. News: Rothschild fund raises $530 million to invest in Africa: FT. 29 June 2014. Reuters. 6 February 2020. en.
  24. Web site: 2 June 2014 . Une identité commune pour Edmond de Rothschild . 2022-11-13 . Paperjam.lu . fr.
  25. Web site: Edmond de Rothschild Group Names Chairman's Wife as C.E.O.. Bray. Chad. 14 January 2015. DealBook. en. 6 February 2020.
  26. News: Ariane de Rothschild challenges Swiss conservatism. Agnew. Harriet. 15 March 2019. Financial Times. 6 February 2020.
  27. News: Edmond de Rothschild to take its Swiss bank private. Agnew. Harriet. 13 March 2019. Financial Times. 6 February 2020.
  28. Web site: 23 July 2015 . Edmond de Rothschild Group Publishes First Sustainability Report . 6 February 2020 . 3blmedia.com . en.
  29. Web site: 2022-01-06. Edmond de Rothschild: un fonds franchit la barre d'un milliard d'euros sous gestion. 2022-01-16. Allnews. fr.
  30. Web site: 2015-12-18 . Justice Department Announces Joint Resolution with Two Banks Under Swiss Bank Program . 2022-11-13 . www.justice.gov . en.
  31. Web site: Consigny . Chloé . 26 June 2018 . Edmond de Rothschild, une holding très lifestyle - Good Boost . 6 February 2020 . The Good Life . fr-FR.
  32. News: 22 June 2017 . Private bank Rothschild fined in 1MDB case: source . Reuters .
  33. Web site: Taylor . Nick Paul . 7 February 2018 . De Rothschild raises €345M Europe-skewed life science fund . 6 February 2020 . FierceBiotech . en.
  34. News: Rothschild Baroness Plots Swiss Private Bank Expansion After Bid. Torsoli. Albertina. Winters. Patrick. 13 March 2019. Bloomberg.com. 6 February 2020.
  35. Web site: Burke . Tim . 9 May 2019 . Edmond de Rothschild turns to AI in property investment . 6 February 2020 . Fnlondon.com . en-GB.
  36. Web site: Edmond de Rothschild closes fourth Africa fund above target – exclusive. Mendoza. Carmela. 9 June 2019. Private Equity International. en-GB. 6 February 2020.
  37. Web site: 19 August 2019 . Edmond de Rothschild Retreats . 6 February 2020 . Finews.com . en-gb.
  38. Web site: 5 February 2020 . Edmond de Rothschild invests in Baltics parking lot operator Parkdema . 7 September 2020 . IPE Real Assets . en.
  39. Web site: Edmond De Rothschild Hit With $100 Million Fraud Suit By Ex-Rosneft Boss. 20 October 2020.
  40. Web site: 2021-04-20 . Banking heir Benjamin de Rothschild dies at 57 . 2022-11-13 . AP NEWS . en.
  41. Web site: Lamster . Katharina . Ariane de Rothschild: Die Privatbank, die ausschließlich Frauen gehört . 2022-11-13 . www.private-banking-magazin.de . de.
  42. Web site: Ruche . Sébastien . La reconstruction d’Edmond de Rothschild prendra encore trois ans . 2021-05-18 . 2022-11-13 . letemps.ch . fr.
  43. Web site: Kreutzer. Laura. 2 December 2021. Edmond de Rothschild sets up food-tech investment partnership. 2021-12-21. Private Equity News.
  44. Web site: Kirakosian . Margaryta . 5 May 2021 . Edmond de Rothschild unveils 'Human Capital' fund . live . https://web.archive.org/web/20210505105157/https://citywireselector.com/news/edmond-de-rothschild-unveils-human-capital-fund/a1503751 . 5 May 2021 . 2021-10-10 . Citywireselector.com.
  45. News: Agnew . Harriet . 2021-05-18 . Edmond de Rothschild plans to double assets in deals push . Financial Times . 2022-11-13.
  46. Web site: Kirakosian . Margaryta . 7 June 2021 . Edmond de Rothschild group names new CEO . live . https://web.archive.org/web/20210607094725/https://citywireselector.com/news/edmond-de-rothschild-group-names-new-ceo/a1516338 . 7 June 2021 . 2021-10-10 . Citywireselector.com.
  47. Web site: 26 October 2021 . Edmond de Rothschild Partners U.K. Wealth arm . 13 November 2022 . Finews.
  48. Web site: Group presentation . 6 February 2020 . Edmond-de-rothschild.com.
  49. News: Edmond de Rothschild Invests $119 Million in French Alps Hotel. Torsoli. Albertina. 11 October 2017. Bloomberg.com. 6 February 2020.
  50. Web site: How We Work . 2023-01-22 . www.edmondderothschildfoundations.org.
  51. Web site: 2002-11-08 . Héritier de deux noms . 2023-01-22 . Les Echos . fr.

External links

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