Rothschild & Co. Investment Bank to go Private
The recent news from Rothschild (arguably the biggest financial dynasty of the west) is interesting for students keen about #investmentbanking #deals and major developments in the #financialmarkets.
The Rothschild family announced its plan to take its French investment bank(Rothschild & Co) private, in a deal valued at about $4 billion. The family’s holding company, Concordia group released a statement claiming that none of the investment bank’s businesses require capital from public markets it would be better off as a private company. The family currently owns 38.9% of the firm’s shares along with 47.5% of the voting rights.
Rothschild & Co operates three divisions, including:
1️⃣ Global advisory
2️⃣ Wealth and asset management
3️⃣ Merchant banking
The investment bank leads the league table ahead of #bulgebracket firms like #jpmorgan and #goldmansachs across Europe and Africa in terms of 2022 M&A fee and deal performance. The #boutiqueinvestment firm has been focusing on expanding its US IB practice to build on its success in regions like the UK and France.
With Alexadandre de Rothschild at its helm, the bank’s focus has been to diversify from core advisory business to private equity as well.
It’s noteworthy that the announcement comes in the wake of a market slump, skyrocketing interest rates, and economic uncertainty that have poorly impacted deal making as well as the performance of investment banks. The plan also comes three months after the death of Evelyn de Rothschild who played a key role in uniting Rothschild’s banking arms.
However, what’s interesting is that Rothschild & Co going private is against the usual trend that boutique advisory firms have followed in the past couple decades 😱😱
Hence this move helps the Rothschild family to:
✅ Insulate the company from the impact of volatile share price movement
✅ Lesser impact from market scrutiny with slumping advisory fee and deal making.
Rothschild & Co's reported revenue worth 2.2 billion euros for the first nine months of 2022, with gains across all business lines.
Found this article useful to stay on track with market insights? Hit 👍 and share!
--------------------------------------------
We help university students like you to get into Investment Banking, Banking, Property/ Conglomerate and Advisory/ Consulting.
Follow us on Instagram (ig: HKCareers / ibankcoaching) to know insider tips about grad job / internship hunting.
Visit https://bit.ly/hkcareersaboutus to know more about the result-based career coaching program
