French and British multinational investment bank and financial services firm Rothschild has signed an agreement to divest its wealth planning and trust services business.
Rothschild has appointed Richard Martin, a senior executive in the company to lead the sale. Financial backing is being provided by an experienced investor.
Responsibilities of Martin include oversight of the Trust business and he will be supported by a senior management team from within Rothschild Trust. Financial terms related to the sale were not disclosed.
Rothschild & Co Gestion executive chairman Alexandre de Rothschild 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.
“As always, our priority is our clients’ interests, so we are delighted that Richard Martin, a longstanding Rothschild & Co employee, will be the purchaser and will thereby ensure continuity.”
The acquisition is expected to be completed in the first quarter of next year, subject approval from regulatory authorities.
As per the company, the sale is in-line with its decision to focus on its core wealth management and private banking business.
Richard Martin said: “In today’s world of increasing complexity and internationalisation, our clients’ needs for first class wealth planning, structuring and administration are greater than ever before. As an independent firm, my colleagues and I are committed to bringing the same long-term perspective as they have come to expect from us.
“We will continue to work closely with Rothschild & Co, providing a seamless service to our existing clients and with the intermediary community to address the needs of successful international families everywhere.”
The company stated that its trust business will announce a new brand next month, which will be used after the acquisition is completed.
Rothschild’s trust business offers professional services in terms of managing succession, protecting assets and privacy, effective charitable giving or complying with tax laws.
The company noted that it will start by defining the purpose of the trust and the nature of the legacy that the client wants to create. Once, this foundation is laid, full range structuring of the assets will carried out.