![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0039.png)
Rothschild & Co | Annual Report 2017
37
1. Overview
4. Financial statements
3.
Management report
2. Business review
Rothschild Merchant Banking
Rothschild Merchant Banking is the investment arm of the Rothschild & Co Group
with global Assets under management of €7.5 billion across Corporate Private
Equity, Secondaries, Multi-Managers funds, Co-Investments, Direct Lending and
Credit Management. Our business is founded on a passion for investing, respect
for risk and culture of partnership.
€7.5bn
of Assets under
management
84
investment
professionals
4
strategies
Since its foundation in 2009, Rothschild Merchant Banking has grown its assets under management from c.€1.1 billion to
€7.5 billion currently through the launch of a series of funds in private equity and private debt. Our cohesive platform now
provides a comprehensive offering in Europe. Overall, the business employs 84 investment professionals across four offices
(London, Paris, Los Angeles and Luxembourg).
Our business culture is shaped by the Rothschild family’s
investing tradition of consistently generating long-term value
through an equal emphasis on both risk and return. This is
driven by three intertwined principles which define who we
are today:
•
Passion for investing:
The Rothschild family has an
investing history dating back more than a couple of
centuries – particularly for backing entrepreneurs who
the family felt were ahead of their times. At Rothschild
Merchant Banking we celebrate this legacy and passion
for investing and we expend significant energy in
ensuring that it remains at the heart of our culture.
•
Respect for risk:
Our investing ethos is centred on
delivering attractive risk-adjusted returns for our
investors. This approach is born out of a long-held
Rothschild & Co philosophy of wealth preservation
through active avoidance of capital impairment.
•
Culture of partnership:
We aim to form close, enduring
relationships with each of our stakeholders: our
investors, our managers, our people, our advisers
and financiers, and the broader environment in which
we operate. We invest significant amounts of capital
alongside our investors in each of our funds. Our
aspiration is to have a culture of partnership with a
shared sense of collective purpose in every important
decision we make.
We are committed to Environmental, Social and Governance
(ESG) matters and are signatory to the UN PRI (United
Nations Principles for Responsible Investment). In 2016,
Rothschild Merchant Banking has supported four NGOs and
social enterprises focusing on enhancing the prospects of
disadvantaged young people globally through a partnership
with Epic Foundation. Our partnership is based on individual
commitments from our staff with a matching scheme from
Rothschild & Co.
As at 31 December 2017, our assets under management
amounted to €7.5 billion split between €3.0 billion in private
equity and €4.5 billion in private debt across four strategies:
• Corporate private equity including Five Arrows Principal
Investments (FAPI)
• Secondaries, multi-manager funds and co-investments
including Five Arrows Secondary Opportunities (FASO),
Arolla and Rothschild Proprietary Investments (RPI)
• Direct Lending including Five Arrows Credit Solutions
(FACS) and Five Arrows Direct Lending (FADL)
• Credit Management (RCM) including Oberon and
Elsinore strategies as well as CLO funds.
Note: Assets under management comprise committed capital where a
managed fund is still in its investment period, and includes net asset value
after the investment period has expired.
Assets under management
(in billions of euros, as at 31 December)
2013
2014
2015
2016
2017
2.9
3.1
5.0
5.8
7.5
23%
20%
14%
12%
11%
89%
77%
80%
86%
88%
Group
Third party