Edmond de Rothschild Group facts for kids
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Formerly
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Compagnie Financière Edmond de Rothschild |
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| Industry | Financial services |
| Founded | 1953 |
| Founder | Edmond de Rothschild |
| Headquarters | Geneva, Switzerland |
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Area served
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Worldwide |
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Key people
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Ariane de Rothschild (President) François Pauly (CEO) |
| AUM |  168 billion CHF (2020) |
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Number of employees
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2,700 (2020) |
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 2020, the group had 2,700 employees, 32 offices in 15 countries, and managed CHF 168 billion worth of assets. Ariane de Rothschild has been President of the board since April 2019, and François Pauly CEO since June 2021.
Contents
History
1953-1997: Edmond de Rothschild era
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.
In 1969, LCF Edmond de Rothschild introduced a new investment model, the fund of funds (FOF) management. In 1970, LCF Edmond de Rothschild was delivered a French banking licence. 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. In 1973, Edmond de Rothschild purchased the vineyard Château Clarke, appellation Listrac-Médoc, the first wine of the Edmond de Rothschild Heritage collection. In 1982, when David de Rothschild launched Paris-Orléans Gestion (Rothschild & Co), LCF Edmond de Rothschild took a 10% stake in the new structure.
In 1989, Benjamin de Rothschild, son of Edmond de Rothschild, founded the Compagnie de Trésorerie to offer advanced financial risk management services. In 1992, LCF Edmond de Rothschild managed assets worth $2 billion, and opened an office in Hong Kong.
Since 1997: Benjamin and Ariane de Rothschild era
Following the death of his father in 1997, Benjamin de Rothschild became the president of La Compagnie Financière Edmond de Rothschild.
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. In 2001, LCF launched its first online banking website. In 2002, LCF launched the private equity structure Capital Partners. In 2006, LCF and Nikko Cordial Securities launched LCF Edmond de Rothschild Nikko Cordial, the first fully-fledged family office in Japan. 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, and increased its participation to 25% in 2011. From 2000 to 2010, LCF Edmond de Rothschild opened 7 regional offices in France.
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. In 2011, the group joined the UNEP FI program.
In 2011, the group opened an office in Dubai to develop its activities in the Middle East and became a member of the United Nations Global Compact. In 2013, it announced its plan to open a new office in London. In June 2014, the group raised a $530 million fund targeting investments in Africa. In 2014, All of the company's financial and non-financial assets were reorganized within the group's structure.
In 2015, Ariane de Rothschild became CEO of the Edmond de Rothschild Group. As the first woman to run a Rothschild-branded financial institution, she was nominated to give the company a new impetus. In 2015, the group published a sustainability report for the first time and launched the Fund Big Data. In 2017, the Luxembourg authorities fined $10.1 million the local arm of Edmond de Rothschild for its handling of funds linked to Malaysian investment fund 1MDB. In February 2018, Edmond de Rothschild raised a €345 million fund dedicated to the biotech and medical devices industry. In March 2019, the company removed Edmond de Rothschild (Switzerland) S.A. from public trading, making it 100% privately held. Ariane de Rothschild became chairman of the board, and Vincent Taupin was named CEO of the group. The French business entities were folded into the Swiss company to simplify the group's organigram.
In May 2019, the Edmond de Rothschild Group launched an AI-powered fund targeting the real estate market. In June 2019, the group raised €375 million for its fourth Africa-focused fund. The company's share was delisted from the Zurich stock exchange on 22 October 2019. In February 2020, the group made its first investment in the Baltics by backing the parking lot operator Parkdema. In October 2020, Sergey Bogdanchikov filed a $100 million lawsuit against Bank Edmond de Rothschild in New York. In 2021, the group launched a $250-million foodtech fund with PeakBridge VC, and the Fund-Human Capital focused on companies with the best employee management practices. François Pauly was named CEO of the group in June 2021. Edmond de Rothschild announced their investment into the U.K. wealth management business Hottinger Group on 26 October 2021. The transaction, subject to the UK regulator's consent, would see the clients and staff of the Bank's U.K. wealth management division transfer to Hottinger. Connected to this transaction, Edmond de Rothschild acquired a 42.5% stake in Hottinger Group.
Description
The Edmond de Rothschild Group is a conviction-driven investment house. In 2020, the Group had 2,700 employees, 32 offices in 15 countries and 3 international management centers (Geneva, Luxembourg, Paris). The Group managed CHF 168 billion worth of assets and recorded a solvency ratio of 20.8%. The Edmond de Rothschild Group provides the following services:
- Private banking
- Asset management
- Real estate
- Private equity
- Corporate finance
- Funds management
Other activities
Foundation (philanthropy)
The Edmond de Rothschild Foundations follow the philanthropic tradition of the Rothschild family. The entity is an international network of 10 foundations active in the fields of art and culture, health and research, philanthropy, cultural dialogue and social entrepreneurship.
Firoz Ladak is the CEO of the Foundations since 2005.
Heritage (lifestyle)
The lifestyle assets managed by the Edmond de Rothschild Group are gathered under the label Edmond de Rothschild Heritage. 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, and a majority stake in Château Lafite Rothschild
- Restaurants: 1920 (2 Michelin stars), Kaïto, L'Auberge de la Cote 2000
- Hospitality: Châlet du Mont d'Arbois, Four Seasons Hotel Megève, La Ferme du Golf
- Farms: cheesemaking (Brie de Meaux, Coulommiers, Merle Rouge), honey, olive oil, terrine, jam
Gitana Team (sailing)
The sailing tradition of the family dates back to 1879 when the baroness Julie Caroline de Rothschild passed the 20-knot milestone with her motorboat Getana, followed by 26-knot record with the Gitana II 25 years later. In the 1960s, baron Edmond de Rothschild launched the Gitana III, a monohull sailboat. The Gitana IV won the 1965 Fastnet Race.
In 2000, Benjamin de Rothschild purchased the 62-foot-long (19 m) Elf Aquitaine and founded the professional sailing team Gitana Team. The Gitana VII won the Route du Rhum 2006. On 17 July 2017, the 32×23-meter Maxi Edmond de Rothschild (Gitana 17) was introduced, the offshore racing's first maxi-multihull designed to fly in the open ocean.
Governance
Presidents
- Since 2019: Ariane de Rothschild
- 1997–2019: Benjamin de Rothschild
- 1953–1997: Edmond de Rothschild
Executive committee
- François Pauly (CEO)
- Cynthia Tobiano (Deputy CEO)
- Christophe Caspar (Head of Group's Asset Management)
- Sabine Rabald (COO)
- Jean-Christophe Pernollet (Chief Risk Officer / Chief Legal & Compliance Officer)
- Diego Gaspari (Head of Human Resources)
- Robert Jenkins (Chief Brand and Marketing Officer)
- Pierre-Etienne Durand (Head of Strategy)
