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N M Rothschild & Sons
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N M Rothschild & Sons (more commonly known simply as Rothschild) is the investment bank company of the Rothschild family. It was founded in the City of London in 1811, and is now a global firm with over 40 offices around the world. The firm acts as a financial advisor to some of the most important companies, largest governments, and wealthiest families in the world.
History In the late 18th century and early 19th century, Mayer Amschel Rothschild rose to become one of Europe's most powerful bankers in the principality of Hesse-Kassel (Hesse-Cassel) in the Holy Roman Empire.

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Encyclopedia
N M Rothschild & Sons (more commonly known simply as Rothschild) is the investment bank company of the Rothschild family. It was founded in the City of London in 1811, and is now a global firm with over 40 offices around the world. The firm acts as a financial advisor to some of the most important companies, largest governments, and wealthiest families in the world.
History In the late 18th century and early 19th century, Mayer Amschel Rothschild rose to become one of Europe's most powerful bankers in the principality of Hesse-Kassel (Hesse-Cassel) in the Holy Roman Empire. In pursuit of expansion, he appointed his sons to start banking operations in the various capitals of Europe, including sending his third son, Nathan Mayer Rothschild, to England. Nathan Mayer Rothschild first settled in Manchester, where he established a business in finance and textile trading. He later moved to London, where he founded N M Rothschild & Sons in 1811, through which he made a fortune with his involvement in the government bonds market.
According to notable historian and professor at Harvard University Niall Ferguson, "For most of the nineteenth century, N M Rothschild was part of the biggest bank in the world which dominated the international bond market. For a contemporary equivalent, one has to imagine a merger between Merrill Lynch, Morgan Stanley, J P Morgan and probably Goldman Sachs too — as well, perhaps, as the International Monetary Fund, given the nineteen-century Rothschild's role in stabilising the finances of numerous governments."
Early 19th century During the early part of the 19th century, the Rothschild's London bank took a leading part in managing and financing the subsidies that the British government transferred to its allies during the Napoleonic Wars. Through the creation of a network of agents, couriers and shippers, the bank was able to provide funds to the armies of the Duke of Wellington in Portugal and Spain. In 1818 the Rothschild bank arranged a £5 million loan to the Prussian government and the issuing of bonds for government loans. The providing of other innovative and complex financing for government projects formed a mainstay of the bank's business for the better part of the century. N M Rothschild & Sons financial strength in the City of London became such that by 1825, the bank was able to supply enough coin to the Bank of England to enable it to avert a liquidity crisis.
Late 19th century Nathan Mayer's eldest son, Lionel de Rothschild (1808-1879) succeeded him as head of the London branch. Under Lionel the bank financed the British government's 1875 purchase of a controlling interest in the Suez Canal. Lionel also began to invest in railways as his uncle James had been doing in France. In 1869, Lionel's son, Alfred de Rothschild (1842-1918), became a director of the Bank of England, a post he held for 20 years. Alfred was one of those who represented the British Government at the 1892 International Monetary Conference in Brussels.
The Rothschild bank funded Cecil Rhodes in the development of the British South Africa Company and Leopold de Rothschild (1845-1917) administered Rhodes's estate after his death in 1902 and helped to set up the Rhodes Scholarship scheme at Oxford University. In 1873 de Rothschild Frères in France and N M Rothschild & Sons of London joined with other investors to acquire the Spanish government's money-losing Rio Tinto copper mines. The new owners restructured the company and turned it into a profitable business. By 1905, the Rothschild interest in Rio Tinto amounted to more than 30 percent. In 1887, the French and English Rothschild banking houses loaned money to, and invested in, the De Beers diamond mines in South Africa, becoming its largest shareholders.
20th and 21st centuries The First World War marked a change of fortune and emphasis for Rothschild. After the War, the Rothschild banks began a steady transition towards advisory work and finance raising for commercial concerns, including the London Underground.
In 1938, the Austrian Rothschilds’ interests were seized by the Nazis, bringing to an end more than a century at the
heart of Central European banking. In France and Austria, the family was scattered for the duration of the Second World War. After the war, the British and French banks committed themselves to further developing their new operation in the United States, which was eventually to become Rothschild Inc, and increased focus on mergers and acquisitions and asset management.
In the twentieth century, Rothschild developed into a preeminent global organisation, which enhanced its ability to secure key advisory roles in some of the most important, complex and recognizable mergers and acquisitions. In the 1980s, Rothschild took a leading role in the international phenomenon of privatisation, where the company was involved from the beginning and developed a pioneering role which spread out to over 30 countries worldwide. In recent years, Rothschild advised on nearly 1,000 completed mergers and acquisitions, having a cumulative value in excess of $1 trillion. Next to this, Rothschild also advised on some of the largest and most high-profile corporate restructurings around the world.
Operations
Overview Rothschild is consistently in the top 10 global investment banks for M&A advisory. According to Thomson Financial data, in 2007 Rothschild announced 390 deals worth a total of $566bn, giving it 12.6% market share. The firm is particularly strong in Europe, especially in the UK, France, Germany, Italy, and the Benelux countries, in each of which Rothschild consistently holds a top league table position. Rothschild's strength also extends to Eastern Europe, Asia, and Latin America. The main anomaly is in North America, where the firm leads the market in restructuring, but has made few inroads in M&A advisory.
The firm competes against a wide range of investment banks, from conglomerates like Goldman Sachs and JPMorgan, to other M&A specialists like Lazard and Greenhill & Co.. For comparison, Lazard is slightly smaller, and in 2007 announced 263 deals worth a total of $529bn; and Greenhill is about half the size, announcing 34 deals worth a total of $239bn.
Divisions Rothschild operates through three divisions:
- Investment banking
- Corporate banking
- Private banking and trust
Next to these three main divisions, Rothschild is also active in real estate, venture capital, and asset management.
Corporate structure In the twentieth century, the London banking house continued under the management of Lionel Nathan de Rothschild (1882-1942) and his brother Anthony Gustav de Rothschild (1887-1961) and then to Sir Evelyn de Rothschild (b.1931). In 1970, the firm converted from a partnership to a limited liability company. In 2003, following Sir Evelyn's retirement as head of N M Rothschild & Sons of London, the English and French financial firms merged under the leadership of Baron David de Rothschild. All Rothschild offices around the world therefore now operate as one firm.
The Rothschild group went through a major restructuring the early twenty-first century. N M Rothschild & Sons is now the operating company in the UK. It is indirectly controlled by the main Rothschild holding company, Rothschild Continuation Holdings AG, registered in Zug, Switzerland. 72.5% of Rothschild Continuation Holdings is controlled by the Dutch-registered Concordia BV. Concordia is wholly controlled by the English and French Rothschilds. Until 2008, the only non-family interest was Jardine Matheson, a hong which holds the other 20% of Rothschild Continuation Holdings. The stake was acquired in 2005 from Royal & Sun Alliance through the Jardine Strategic subsidiary, which specializes in leveraging stakes to protect family owners. Jardines acted as Rothschilds' China agent from 1838 onwards. However, on 19 November 2008, Rabobank announced it intended to acquire 7.5% of Rothschild Continuation Holdings, ostensibly to cement an alliance in food and agricultural finance. FT Alphaville claimed that the move was intended to help Rothschild gain access to a wider capital pool, and enlarge its presence in East Asian markets.
Offices Rothschild's headquarters are in the City of London, the chief financial district of London. The firm is now a global investment bank with over 40 offices around the world.
New Court headquarters Rothschild's headquarters in London have been continuously located at the same site over the past two centuries, at New Court, St. Swithin's Lane. In the 1950s, the firm outgrew its New Court headquarters and took up space in nearby Chetwynd House. Eventually, in October 1962, at the suggestion of Evelyn de Rothschild, the firm demolished New Court and built a 6-story glass-and-steel building on the same site.
In the 1980s and 1990s, Rothschild outgrew its New Court headquarters for a second time, and now operates out of several buildings on St. Swithin's Lane, including 1 King William Street, which was originally the site of the first Gresham Club. As before, the firm has decided to demolish the New Court and build a taller 15-story glass-and-steel building, again on the same site. This third reincarnation of New Court was designed by Rem Koolhaas and will provide 20,992 square metres of office space (with associated plant, servicing and car parking). The new building will open up views of St Stephen Walbrook church from its lobby, and views of the London skyline from a roof-top "sky pavilion". Construction will take place over a 30-month period from March 2008 to August 2010, so the building will be completed shortly after Rothschild celebrates its 200-year anniversary.
Office locations Amsterdam
Athens
Auckland
Barcelona
Beijing
Bermuda
Birmingham
British Virgin Islands
Brussels
Budapest
Cayman Islands
Dubai
Frankfurt
Guernsey
Geneva
Harare
Hong Kong
Israel
Istanbul
Jakarta
Johannesburg
Kuala Lumpur
Leeds
Lisbon
London
Madrid
Manchester
Manila
Melbourne
Mexico City
Milan
Montreal
Moscow
Mumbai
New York
Paris
Port Moresby
Rome
Santiago
São Paulo
Shanghai
Singapore
Stockholm
Sydney
Tokyo
Toronto
Warsaw
Washington, D.C.
Zurich
Awards Rothschild has received several awards in recognition of its M&A positions in various countries from Acquisitions Monthly, Financial Times Mergermarket, Financial News, and Euromoney. Awards include Rothschild being named as Best UK M&A House, Best European M&A House, and Corporate Finance Advisor of the Year in 2006 as well as M&A Bank of the Year in 2007.
Notable current and former employees (excluding many notable members of the Rothschild family)
Business
Politics and public service
Armed forces
Books
External links
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