Our Businesses

Industria

IN THIS SECTION

2023 marked the 50th anniversary of the opening of our Hong Kong, Singapore and Kuala Lumpur offices. This milestone exemplified our significant global expansion into growth markets in the final quarter of the 20th century. Then and now, we believe that locally-hired people based full-time in local markets, assist our clients most effectively.

Global Advisory

1251 Avenue of the Americas in New York, the site of our headquarters in North America for over 30 years.

Services

M&A and Strategic Advisory

Debt Advisory and Restructuring

Equity Markets Solutions

The global independent adviser

We help our clients reach their goals through the design and execution of strategic M&A and financing solutions. We provide independent, expert financial advice to sovereign wealth funds and governments, large and mid-sized corporations, private equity houses, families and entrepreneurs. We advise on more transactions than any other adviser and on many of the largest, highest-profile and industry-defining assignments across M&A and Financing Advisory.

> To learn more about Global Advisory, visit our website

c. 1,400

PROFESSIONALS

no.1 globally

BY NUMBER OF M&A TRANSACTION IN 20231

59

LOCATIONS

47

COUNTRIES

Global Advisory

— highlights of 2023

1st globally

BY NUMBER OF COMPLETED M&A TRANSACTIONS1

1st in Europe

BY NUMBER OF ANNOUNCED AND COMPLETED M&A TRANSACTIONS FOR MORE THAN 15 YEARS1

594

TRANSACTIONS COMPLETED TOTALLING US $425bn

1 Source: LSEG, completed M&A, Full Year 2023

In 2023, we had our third-best ever year by revenue, ranking sixth position in the global revenue league tables.

We ranked first by number of completed transactions globally. In Europe, we advised on more M&A transactions than any of our competitors, a position we have held for more than 15 years.

We advised on 594 transactions, including two of the ten largest1 in Europe. Our position as the leading adviser in large, complex cross-border situations is underpinned by our global scale and network of relationships with key decision-makers. We ranked first by number of completed cross-border transactions, representing more than 50% of our total activity.

We remain the world’s leading debt advisory and restructuring adviser, with clients continuing to engage us on large and complex restructuring assignments. We further strengthened our position as the world’s leading equity adviser by adding Redburn Atlantic, an equity capital markets execution business, to our Equity Markets Solutions services.

Industry Awards: The Banker Investment Banking Awards

Rothschild & Co was named Independent Investment Bank of the Year for the sixth consecutive year.

Redburn Atlantic

In 2023, we completed both the acquisition of 100% of Redburn, and its merger with Atlantic Equities, to create Redburn Atlantic.

Redburn Atlantic is a full-service equity broker, active in the US and European markets.

As a truly transatlantic business, Redburn Atlantic offers clients broader and deeper research coverage, market leading corporate access and experienced research sales together with compelling agency execution capabilities. This further expands our ability to provide impactful support to our clients.

Geopolitical Advisory

In 2023, we formalised a new product offering, Geopolitical Advisory, chaired by Lord Sedwill, former National Security Adviser to the UK Government.

Our Geopolitical Advisory team provides clients with the insights and perspectives to navigate the complex risks arising from an increasingly multi-polar world, a shifting political and regulatory landscape, the race for natural resources and energy transition. This enhanced capability in delivering valuable strategically relevant advice will broaden our access to and strengthen our relationships with clients.

Click on logo to reveal our client highlights

Wealth and Asset Management

Our Zurich offices on Zollikerstrasse, established in 1975.

Services

Wealth Management

Asset Management

€108bn

TOTAL ASSETS UNDER MANAGEMENT

€5bn

NET NEW ASSETS

1,733

PEOPLE

11

COUNTRIES

€80bn

WEALTH MANAGEMENT AuM

€28bn

ASSET MANAGEMENT AuM

We invest, structure and safeguard assets, creating innovative investment solutions for preservation and growth in the long term

Wealth and Asset Management today manages €108 billion of assets in Europe for private and institutional clients.

Our philosophy has always been to manage our clients’ assets with the same diligence and care as we do our own business. More than 200 years of history drives our ability to take a long-term view and responsible investment underpins everything we do. Through our investments, we aspire to preserve the environment and society that future generations will inherit.

As a business focused on building relationships and delivering the best possible outcomes to our clients, finding the right people to drive our business forward is paramount.

We have a young, entrepreneurial workforce that places customers at the centre of every decision.

Our business is made up of more than 1,700 people in 11 countries across 23 offices. Over the past five years, our number of colleagues has grown by 23% and in 2023 a further 128 people joined our teams. We are committed to a more diverse workforce; this year, 43% of our new hires were women, 46% of our workforce is female and 33% of senior positions are filled by women.

> To learn more about Wealth Management, visit our website

> To learn more about Asset Management, visit our website

Wealth and Asset Management

— highlights of 2023

Assets under Management (AuM) exceeded €100 billion for the first time. They were standing at €108 billion at the end of 2023, an increase of 15% from 2022. This growth was supported by record Net New Assets (NNA) for Asset Management and positive NNA for all Wealth Management locations, totalling €5 billion, an increase of 70% from 2022.

Wealth Management AuM grew from €74 billion at the end of 2022 to €80 billion at the close of 2023 – an increase of 9% year-on-year. This was driven by good momentum in expanding and attracting new clients as well as good investment performance. For Asset Management, stronger markets and increasing client investments supported AuM growth of 37%, from €20 billion at the end of 2022 to €28 billion at the end of 2023.

In an increasingly uncertain market, we saw a €1.5 billion increase in our deposit base. Our belief in investing for the long term and reputation for stability continues to attract clients who entrust their wealth to us.

Spotlight on investment performance in the UK

12.3%

GBP BALANCED 2023 PERFORMANCE

PERFORMANCE

top 25%

OF MANAGERS OVER 1, 3, 5, 10 years1

Over 20 years

OF ARC INDICES DATA; FOUNDING CONTRIBUTOR

Growth of business

Opening of Hamburg office

This year, we opened our third Wealth Management office in Germany, in addition to Frankfurt and Düsseldorf.

Hamburg, as Germany’s second-largest city, is an important hub in Europe. This makes it a key location for Wealth Management and we are excited to see this region grow.

Expansion to Middle East

Wealth Management will be opening its first team in Dubai in 2024 as we expand our operations to the Middle East. This new team will complement our existing offerings, with these synergies providing an excellent foundation for the new location.

Launch of Private Market Group

Building on our partnership with Five Arrows, we launched the Private Market Group in 2023. This part of the business will identify and source Private Market investment opportunities, in the areas of private equity, private debt, infrastructure and real estate, to deliver more diversity of investments to our clients.

€6.2bn

COMMITTED BY WEALTH AND ASSET MANAGEMENT IN PRIVATE MARKET FUNDS

Digital advancements

Mobile application

We were pleased to launch our redesigned mobile app in France. This has been enhanced to create seamless navigation while prioritising robust security measures. We look forward to implementing these improvements to our Swiss and UK apps.

Artificial intelligence

In 2023, we worked with group’s Generative AI Taskforce to begin development of pilot projects to support our business, as the importance of this transformative technology became increasingly apparent. We use AI tools both to support our internal teams and to deliver higher levels of service to our clients.

Enhancing the Digital Journey

Intelligent automation and digitisation are critical to sustaining high-quality client experience with growth. We are using robotic process automation across our business and locations, for greater efficiency, effectiveness and scalability. We are accelerating our move to paperless operations and now complete three times more internal signatures online than in 2022, with 40% of all client onboarding using e-signatures.

Responsible investments

Green Shield Portfolio

In 2023, we launched the Green Shield Portfolio, a mandate designed to support the transition to a low-carbon economy. Two in-house sustainable funds make up the core of the portfolio: Asset Management’s “R-Co 4Change Net Zero Equity Euro” and our Swiss Wealth business’ “R&Co Changemaker”.

Sustainable finance agenda

Our teams used collaborative approaches to keep up with the fast-changing landscape. We increased internal education on sustainability topics and challenges so we can make better investment decisions and help clients navigate this shifting environment.

Five Arrows

New Court, site of our London offices since 1810 and currently in its fourth generation.

Services

Corporate Private Equity

Multi-Strategies

Direct Lending

Credit Management

Five Arrows is the alternative assets arm of the Rothschild & Co group

Founded in 2009, Five Arrows manages a series of funds primarily dedicated to corporate and secondaries private equity, as well as broadly syndicated loans and direct lending. We focus on both Europe and the US, with a team of more than 250 people working across six offices – Paris, London, Luxembourg, New York, Los Angeles and San Francisco.

> To learn more about Five Arrows, visit our website

€25.7bn

ASSETS UNDER MANAGEMENT

250+

PEOPLE

6

OFFICES

€28.5bn

RAISED

€22.7bn

INVESTED

€12.2bn

DISTRIBUTED

Developments in 2023

The Five Arrows Assets under Management (AuM) reached €25.7 billion at the end of 2023, up 12% over 2022. We delivered this increase primarily by securing €4.8 billion of new capital, across all strategies. Our AuM have more than doubled in the last five years.

Our recurring revenue grew to record levels – approximately €200 million, up 23% on 2022. We generated strong cash flow, with €200 million of net proceeds distributed to the Rothschild & Co group, compared with €123 million in 2022.

€282m

2023 REVENUE

€4.8bn

RAISED

ESG development

The Five Arrows approach to sustainability builds on Rothschild & Co’s 200-year record of being a responsible, long-term investor. Accordingly, sustainability is at the heart of everything we do; the sectors in which we focus; the companies in which we invest; the way in which we help our companies grow; the way we look after the people who work in our entire ecosystem; and the way we operate as an investment fund.

Five Arrows focuses on businesses which have an asset-light model – this tends to naturally lead to a light carbon footprint. A significant portion of our sector focus is in areas like healthcare, education and multiple end-markets of data, software and tech-enabled business services which have positive social impact as a core part of their principal business focus.

Our belief that being early adopters of sustainability guidelines is a vital part of how we measure progress. We have created a sustainability committee that works across our strategies to provide a unified voice on ESG topics. For example, in 2023, we aligned 10% of variable compensation to ESG learning and development.

We have a team of professionals dedicated to identifying, implementing and monitoring innovative practices across our entire portfolio. For example, we helped A2MAC1 – the global leader and provider of vehicle benchmarking insights and solutions across the mobility industry – launch a sustainability module within its product offering which allows its OEM customers to accurately track emissions as well as the fuel efficiency of a series of key components of the new cars being launched.