PARIS, Oct 24 – Rothschild & Co, the bank controlled by the Rothschild family, is to sell its trust services business to one of its managers to focus on expanding wealth management operations.
The bank said on Wednesday that it had agreed the sale of the division to Richard Martin, one of Rothschild’s executives, who will get financing for the deal from an un-named investor.
The financial terms of the sale were not disclosed.
Alexandre de Rothschild, who took over this year as executive chairman of the bank, said: “Following a strategic review of our private wealth business, we have decided to focus on growing our wealth management operations.”
“In a changing environment, we believe that the trust business can operate more successfully in an independent structure,” he added.
Services run by Rothschild’s trust business include creating and administering structures that hold all of a wealthy client’s assets, from companies and intellectual property to art collections and aircraft.
The bank earlier this year reported higher annual profits and revenues, but is facing increasing competition from rivals such as Lazard and Perella Weinberg Partners which is looking to do more business in France.
The Rothschild banking dynasty has worked on some of the biggest deals in history, including helping to finance Britain’s war against French military leader Napoleon. (Reporting by Sudip Kar-Gupta. Editing by Jane Merriman)