Edmond de Rothschild Group

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Edmond de Rothschild Group
FormerlyCompagnie Financière Edmond de Rothschild
IndustryFinancial services
Founded1953
FounderEdmond de Rothschild
HeadquartersGeneva, Switzerland
Area served
Worldwide
Key people
Ariane de Rothschild (President)
François Pauly (CEO)
AUMIncrease 178 billion CHF (2021)
Number of employees
2,500 (2021)
WebsiteEdmond-de-rothschild.com

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 2021, the group had 2,500 employees, 31 offices in 13 countries, and managed CHF 178 billion worth of assets.[1] Ariane de Rothschild has been President of the board since April 2019,[2] and François Pauly CEO since June 2021.[3]

History[edit]

1953-1997: Edmond de Rothschild era[edit]

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.[4]

In 1969, LCF Edmond de Rothschild introduced a new investment model, the fund of funds (FOF) management.[5] In 1970, LCF Edmond de Rothschild was delivered a French banking licence.[6] In 1973, LCF Edmond de Rothschild bought the Bank of California, and sold it back to Mitsubishi Bank in 1985 for thrice its acquisition price.[7] In 1973, Edmond de Rothschild purchased the vineyard Château Clarke, appellation Listrac-Médoc, the first wine of the Edmond de Rothschild Heritage collection.[8] In 1982, when David de Rothschild launched Paris-Orléans Gestion (Rothschild & Co), LCF Edmond de Rothschild took a 10% stake in the new structure.[7]

In 1989, Benjamin de Rothschild, son of Edmond de Rothschild, founded the Compagnie de Trésorerie to offer advanced financial risk management services.[4] In 1992, LCF Edmond de Rothschild managed assets worth $2 billion,[7] and opened an office in Hong Kong.[9]

Since 1997: Benjamin and Ariane de Rothschild era[edit]

Following the death of his father in 1997, Benjamin de Rothschild became the president of La Compagnie Financière Edmond de Rothschild.[7][10] 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.[11] In 2001, LCF launched its first online banking website.[12] In 2002, LCF launched the private equity structure Capital Partners.[13] In 2005, Benjamin and Ariane de Rothschild launched the Edmond de Rothschild Foundations to unify and optimize the group's philanthropic operations.[14] In 2006, LCF and Nikko Cordial Securities launched LCF Edmond de Rothschild Nikko Cordial, the first fully-fledged family office in Japan.[15] 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,[16] and increased its participation to 25% in 2011.[17] From 2000 to 2010, LCF Edmond de Rothschild opened 7 regional offices in France.[18]

In 2009, Ariane de Rothschild became the vice-president of LCF Edmond-de-Rothschild.[4] In 2010, La Compagnie Financière Edmond de Rothschild (LCF) changed its name to Edmond de Rothschild Group.[19] In 2011, the group joined the UNEP FI program.[20] In 2011, the group opened an office in Dubai to develop its activities in the Middle East[21] and became a member of the United Nations Global Compact.[22] In 2013, it announced its plan to open a new office in London.[23] In 2014, after raising a $530 million fund targeting investments in Africa,[24] all of the company's financial and non-financial assets were reorganized within the group's structure.[25]

In 2015, Ariane de Rothschild was named CEO of the Edmond de Rothschild Group.[26] She was the first woman to run a Rothschild-branded financial institution,[27] and was nominated to give the company a new impetus.[28] The group published a sustainability report for the first time,[29] launched the Fund Big Data[30] and, under the Swiss Bank Program, the group signed a joint non-prosecution agreement with the US Department of Justice to cooperate with this authority regarding undeclared US accounts in Switzerland.[31] In 2016, the Société française des hôtels de montagne (SFHM) which gathered the non-financial assets of the group became Edmond de Rothschild Heritage.[32] In 2017, the Luxembourg authorities fined the group $10.1 million for its handling of funds in the Malaysian investment fund 1MDB.[33] In 2018, the group raised a €345 million fund to invest in biotech and medical devices.[34] 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 was named CEO of the group. The French business entities were folded into the Swiss holding company to simplify the group's organization.[2]

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 backing the parking lot operator Parkdema[38] and Sergey Bogdanchikov filed a lawsuit against the group.[39] In January 2021, Benjamin de Rothschild died of a heart attack[40] and 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] In 2021, the group launched a $250-million foodtech fund with PeakBridge VC[42] and the Fund-Human Capital focused on companies with the best employee management practices.[43] Yves Perrier joined the company's board[44] and François Pauly replaced Vincent Taupin as CEO of the group.[3] Edmond de Rothschild partnered with the UK-based wealth management firm Hottinger Group and acquired a 42.5% stake in the latter.[45]

Description[edit]

The Edmond de Rothschild Group is a conviction-driven investment house. In 2021, the group had 2,500 employees, 31 offices in 13 countries and 3 international management centers (Geneva, Luxembourg, Paris). The group managed CHF 1778 billion worth of assets and recorded a solvency ratio of 23%.[1][46] The Edmond de Rothschild Group provides the following services:

Other activities[edit]

  • Edmond de Rothschild Heritage: The lifestyle assets managed by the Edmond de Rothschild Group are gathered under the label Edmond de Rothschild Heritage.[32] Those assets include wines (Château Clarke, Château des Laurets, Château Malmaison, Flechas de los Andes, Rimapere, Rupert and Rothschild Vignerons, Macán, Champagne Barons de Rothschild, a majority stake in Château Lafite Rothschild), restaurants (1920, Kaïto, L'Auberge de la Cote 2000), hotels (Châlet du Mont d'Arbois, Four Seasons Hotel Megève,[47] La Ferme du Golf) and gournet foods production (Brie de Meaux, Coulommiers, Merle Rouge, honey, olive oil, terrine, jam).
  • Edmond de Rothschild Foundations: Following the philanthropic tradition of the Rothschild family, the Edmond de Rothschild Foundations is an international network of 10 foundations active in the fields of art and culture, health and research, philanthropy, cultural dialogue and social entrepreneurship.[48]
  • Gitana Team: Professional sailing team created by Benjamin de Rothschild in 2001[49]

Governance[edit]

Presidents[edit]

Executive committee[edit]

  • François Pauly (CEO)[3]
  • Benoit Barbereau (Chief Operating Officer)
  • Christophe Caspar (Head of Asset Management)
  • Philippe Cieutat (Chief Financial Officer)
  • Pierre-Étienne Durand (Head of Strategy)
  • Diego Gaspari (Head of Human Resources)
  • Hervé Ordioni (Head of Private Banking)
  • Jean-Christophe Pernollet (Chief Risk / Legal / Compliance Officer)

See also[edit]

References[edit]

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

External links[edit]