Rothschild (Europe)

THE SCOOP

Inside history

The investment banking arm of the family-owned Rothschild Group, Rothschild has been serving governments, corporations and wealthy individuals for two centuries.  Its London headquarters have never moved from New Court, St Swithin's Lane, though over the years its offices have been rebuilt and expanded.  The latest version, a Rem Koolhaas-designed tower with a rooftop pavilion, is slated for occupancy in mid-2011.

 

The Rothschild story began in 1769 when Mayer Amschel Rothschild began offering banking services in his home town of Frankfurt, Germany.  His five sons carried the family business-and the family name-across Europe, winning fame as the financiers who funded the Duke of Wellington's victory over Napoleon.  In later years, the Rothschilds arranged loans for the Prussian government; kept the Bank of England afloat during a financial crisis; financed the British government's purchase of a controlling stake in the Suez Canal; helped De Beers founder Cecil Rhodes establish his eponymous scholarship at Oxford; and played a major role in financing the London Tube.  The modern Rothschild family includes vast holdings of art and land, not to mention historic estates and some of the most esteemed vineyards in the French wine country.

 

There are also the financial services businesses, of course.  These underwent reorganisation in 2003 when a new holding company, Concordia BV, was created to oversee operations in Europe.  Rothschilds Continuation Holdings AG is the holding company for U.K. and other international businesses; while it remains under the control of the Rothschild family, Hong Kong-based Jardine Strategic owns a 20 percent stake and Rabobank owns 7.5 percent. 

 

Reaching the world

 

Perhaps best known as a high-powered advisor, Rothschild's investment banking division provides debt advice and restructuring services, mergers and acquisitions advice, equity advice and advice on divestments and privatisations.  Other divisions cover private banking and trust, merchant banking and corporate banking.  It has approximately 2,800 employees in 49 offices worldwide, though its footprint remains largest in Europe.

 

Rothschild's industry sector groups include property, financial institutions, consumer products (in which it has a joint venture with Rabobank), transportation, health care, natural resources, industrials, business services, oil and gas, infrastructure, media and technology, and financial sponsors.

 

Nice work

 

Major deals Rothschild worked on in late 2008 and early 2009 included advising London's Telereal Ventures on its £750 million acquisition of Land Securities Trillium; advising CSR plc on its £91 million ($136 million) acquisition of California-based SiRF Technology; assisting Unibanco with its $45 billion acquisition of Banco Itau; and advising the Swedish government on its 19.9 percent stake purchase in the Nordea financial services group as well as participating in its â'¬2.5 billion rights issue.

Rothschild picked up its share of banking industry recognitions, too.  EuroWeek dubbed it the LBO Advisory Bank of the Year for 2009, and Acquisitions Monthly recognized its work on the £7.8 billion ($15.4 billion) acquisition of Scottish & Newcastle plc by Carlsberg A/S and Heineken as the Cross Border Deal of the Year.  In the FT & Mergermarket Awards for 2008, Rothschild won UK Financial Adviser of the Year, Italy Financial Adviser of the Year and Middle Market Financial Adviser of the Year.

For 2008, Rothschild ranked No. 12 in worldwide announced M&A deal volume, according to Thomson Reuters; in completed deal volume, it ranked No. 11.  It put up similar numbers on the Europe banking league tables, ranking No. 13 and No. 9 in announced and completed transactions, respectively.  The bank's strongest M&A performance was in France, where it ranked No. 4 in both announced and completed deal volume.

 

By number of M&A deals, Rothschild ranked No. 8 worldwide for both announced and completed deals in 2008.  In Europe, Rothschild consistently ranks No. 1 in number of announced deals (though, in 2008, according to Thomson Reuters, the bank ranked No. 2).  It also ranks No.1 by number of deals year after year in France and the U.K.

 

In addition to its established markets, Rothschild has been increasing its success in emerging markets, including Latin America and the Middle East.  In 2008, it ranked No. 4 in announced M&A volume in Brazil, and No. 9 in announced M&A volume in the Middle East and North Africa.

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Rothschild (Europe)


New Court, St. Swithin's Lane
London EC4P 4DU
Phone: +44 20 7280 5000
www.rothschild.com

STATS


  • Employer Type: Private
  • Chairman: Baron David de Rothschild
  • 2010 Employees: 2,800

Major Office Locations

  • London, United Kingdom

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