Private equity is the new banking, if the Rothschilds are any indication

Two interesting stories today: a big profile of Nathan Rothschild in the NYT, saying that his buy-side activities might make him the richeset Rothschild ever:

In five short years, the man in line to be the fifth Baron Rothschild is close to becoming a billionaire through a web of private equity investments in Ukraine, Eastern Europe and most significant, his partnership stake in Atticus Capital, the fast-growing $14 billion hedge fund.

Meanwhile, Nathan’s father is making similar bets:

Lord Rothschild, the veteran City figure who is part of the banking dynasty, has agreed to back Darwin Private Equity, a new ߣ250m private equity group founded this year by a trio of youngprofessionals from CVCCapital and Permira.

RIT Capital Partners, the publicly traded investment trust that is 17 per cent- owned by Lord Rothschild, will take a “significant minority” stake as well as making a ߣ50m cornerstone investment in its maiden fund of up to ߣ250m.

And, notes the FT, the other branch of the (English) Rothschilds is also heavily involved in private equity: Sir Evelyn de Rothschild and his wife own private equity shop EL Rothschild.

Meanwhile, NM Rothschild, the bank, has a new rival, known as JNR, which is owned by the 35-year-old Nathan Rothschild, and, according to the NYT, “run by a small crew of investment bankers”. But JNR isn’t an advisory shop like NMR; rather, it looks very much like a gussied-up investment firm. Why make millions on fees when you can make billions in investments?

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