How much are the Rothschilds worth

Money, power and network: one of the richest families in the world

It is a legend in financial history - in the 19th century, the Rothschild family rose from poor conditions in Frankfurt's Jewish quarter to become a money dynasty that ruled Europe and helped shape America's finances.

As the financier of states and mansions, it influenced the course of history. Today the Rothschild family still rules a considerable empire with a global network of banks and companies.

At first sight there are essentially three financial groups of what was once the largest bank in the world: Paris-Orléans, Banque Privée Edmond de Rothschild and RIT Capital Partners. The focus is on investment banking, asset management and private equity investments. Edmond de Rothschild has been back in Frankfurt since 2011, where it all began.

The Rothschild family - from Frankfurt into the world

The Jewish family had lived there since the 16th century in the house with the “red sign”; color plates were common next to house numbers. The money changer Amschel Meyer called himself Rothschild when he made it to the bank at the beginning of the 19th century. He was helped by his contact with the Hessian regent, one of the richest men in the German Empire. When he fled from Napoleon's troops, he discreetly managed his assets.

The business grew through clever tactics with securities in the intrigue game of the powerful. He founded the Rothschild Bank and involved his five sons. Four went abroad and founded their own banks in Vienna, Paris, Naples and London. The daily exchange of letters and the use of our own couriers always ensured the decisive information advantage.

Sensitivity and information advantage

So they found out about Napoleon's defeat at Waterloo before the governments involved in the war. Son Nathan, who was already financing England's tight treasury with bonds in London, quickly bought British government bonds, and they did it dirt cheap because everyone was expecting England to defeat - the next day the price skyrocketed.

The financial empire grew with knowledge and a feel for the right investment to expand customers' power. Europe's political celebrities depended on the money of the Rothschild family. This financed war and peace but also the construction of France's rail network and the Suez Canal. The Rothschilds were also among the founding circle of the US Federal Reserve and helped determine the daily gold price in London. In 2004 they were replaced by Barclays Bank, in which they in turn have a stake.

Incredible network

Although the Rothschild family plays a minor role today, it is still influential. However, the complex network of global holdings is obscure. This also includes publishers and news agencies. Besides the banks of the descendants, their castles and famous wines are well known.

Behind the figureheads there is a fortune that is estimated at US $ 350 billion. But if you think of the quote from forefather Mayer Amschel “the compound interest effect is the eighth wonder of the world”, it could also be a multiple. In any case, the Rothschild family is the richest clan in the world and leaves the Walmart descendants far behind with their US $ 145 billion.

Myths and Facts

The strictest discretion ensured the meteoric rise, but also for myths and conspiracy theories surrounding the Rothschild family. The fact is that with their far-sighted approach they got through the latest financial crisis unscathed, from which customers such as Allianz, BMW and Thyssen-Krupp benefited. The Parisian great-great-great-grandson of the founding father David de Rothschild was named "European Banker of the Year" in 2011.

Family quarrel and discretion

David had previously brought the long-divided family together over the unification of the British and French lines under the umbrella of Paris Orléans, the central holding of the Rothschilds. However, the ambitions expressed in 2015 to rename it Rothschild & Co caused renewed controversy - especially with Benjamin, who runs the Edmond de Rothschild banking group named after his father in Geneva. He fears name confusion.

All descendants are involved with their banks, including Nathaniel with his hedge funds, Evelyn with the investment company E.L. Rothschild and Jacob with RIT Capital Partners. Incidentally, the latter acquired 37% of the Rockefeller financial group in 2012.

Benjamin's wife Ariane, who is also a member of the Board of Directors of Edmond de Rothschild, recently commented on current investment behavior. She warns of a “fragile and volatile state of the stock exchanges”, and a large number of her customers are invested in cash as a precaution. The interview with a Swiss magazine is one of the rare Rothschilds. The family avoids the media hype and prefers to pull the strings behind the scenes - in the spirit of old tradition.

These stocks are of interest to dividend hunters, with many companies canceling dividends. In the case of these DAX companies, however, the distributions are likely to be secured. > read more


© Verlag für die Deutsche Wirtschaft AG, all rights reserved