History of Rothschild Bank

In the late 18th century and early 19th century, Mayer Amschel Rothschild rose to become one of
Europe's most powerful bankers in the principality of Hesse-Kassel (Hesse-Cassel) in the Holy
Roman Empire. In pursuit of expansion, he appointed his sons to start banking operations in the
various capitals of Europe, including sending his third son, Nathan Mayer Rothschild, to England.
Nathan Mayer Rothschild first settled in Manchester, where he established a business in finance and
textile trading. He later moved to London, where he founded N M Rothschild & Sons in 1811,
through which he made a fortune with his involvement in the government bonds market.
According to historian Niall Ferguson, "For most of the nineteenth century, N M Rothschild was part
of the biggest bank in the world which dominated the international bond market. For a contemporary
equivalent, one has to imagine a merger between Merrill Lynch, Morgan Stanley, J P Morgan and
probably Goldman Sachs too as well, perhaps, as theInternational Monetary Fund, given the
nineteenth-century Rothschild's role in stabilising the finances of numerous governments."

Early 19th century

During the early part of the 19th century, the Rothschild London bank took a leading part in
managing and financing the subsidies that the British government transferred to its allies during
the Napoleonic Wars. Through the creation of a network of agents, couriers and shippers, the bank
was able to provide funds to the armies of the Duke of Wellington in Portugaland Spain. In 1818 the
Rothschild bank arranged a 5 million loan to the Prussian government and the issuing of bonds for
government loans. The providing of other innovative and complex financing for government projects
formed a mainstay of the bank's business for the better part of the century. N M Rothschild & Sons'
financial strength in the City of London became such that by 1825, the bank was able to supply
enough coin to the Bank of England to enable it to avert a liquiditycrisis. Like most firms with global
operations in the 19th century, Rothschild had links to slavery, even though the firm was instrumental
in abolishing it by providing a 15m gilt issue necessary to pass the Slavery Abolition Act of 1833.[2][3]

Late 19th century[

Nathan Mayer's eldest son, Lionel de Rothschild (18081879) succeeded him as head of the London
branch. Under Lionel the bank financed the British government's 1875 purchase of a controlling
interest in the Suez Canal. Lionel also began to invest in railways as his uncle James had been
doing in France. In 1869, Lionel's son, Alfred de Rothschild (18421918), became a director of the
Bank of England, a post he held for 20 years. Alfred was one of those who represented the British
Government at the 1892 International Monetary Conference in Brussels.

The Rothschild bank funded Cecil Rhodes in the development of the British South Africa
Company and Leopold de Rothschild (18451917) administered Rhodes's estate after his death in
1902 and helped to set up the Rhodes Scholarshipscheme at Oxford University. In 1873 de
Rothschild Frres in France and N M Rothschild & Sons of London joined with other investors to
acquire the Spanish government's money-losing Rio Tinto copper mines. The new owners
restructured the company and turned it into a profitable business. By 1905, the Rothschild interest in
Rio Tinto amounted to more than 30 percent. In 1887, the French and English Rothschild banking
houses loaned money to, and invested in, the De Beersdiamond mines in South Africa, becoming its
largest shareholders.

20th and 21st centuries

The First World War marked a change of fortune and emphasis for Rothschild. After the War, the
Rothschild banks began a steady transition towards advisory work and finance raising for
commercial concerns, including the London Underground. In 1938, the Austrian Rothschilds
interests were given to the Nazis, bringing to an end more than a century at the heart of Central
European banking. In France and Austria, the family was scattered for the duration of the Second
World War. After the war, the British and French banks committed themselves to further developing
their new operation in the United States, which was eventually to become Rothschild Inc, and
increased focus on mergers and acquisitions and asset management.
In the 20th century, Rothschild developed into a preeminent global organisation, which enhanced its
ability to secure key advisory roles in some of the most important, complex and recognizable
mergers and acquisitions. In the 1980s, Rothschild took a leading role in the international
phenomenon of privatisation, where the company was involved from the beginning and developed a
pioneering role which spread out to over thirty countries worldwide. In recent years, Rothschild
advised on nearly a thousand completed mergers and acquisitions, having a cumulative value in
excess of US$1 trillion. Next to this, Rothschild also advised on some of the largest and most highprofile corporate restructurings around the world. Today the price of gold is still fixed, twice a day,[4] at
10.30 am and 3.00 pm at the premises of N M Rothschild by the world's main Bullion
Houses: Deutsche Bank, HSBC, ScotiaMocatta and Societe Generale. Informally, the gold fixing
provides a recognized rate that is used as a benchmark for pricing the majority of gold products and
derivatives throughout the world's markets.
Every day at 1030 and 1500 local time, five representatives of the banks meet in a small room at
Rothschild's London headquarters on St Swithin's Lane. In the centre is the chairperson, who is
traditionally appointed by the Rothschild bank, although the bank itself has largely withdrawn from
trading. The price of gold is fixed twice a day by five members of the London Bullion
Association: Barclays Capital, Deutsche Bank, Scotiabank, HSBC and Societe Generale, and they
conduct their twice-daily meeting over the telephone. Today this is mere financial necessity, but until

2004, it was also a century-old tradition as great as the ringing of the bell at the New
York Stock Exchange. The five distinguished representatives included a Rothschild, and
they met in person in a panelled room at the London office of N M Rothschild & Sons.
That ritual is now a thing of the past services.

Services of Bank
Private client lending

Private client lending

We offer mortgages secured on residential property and other secured facilities to
private clients. Mortgages are available for the purchase or refinancing of owneroccupied or investment property in the UK.
Other lending and guarantees can be provided secured on investment portfolios.
Facilities are tailored around each individual clients income and asset profile.
The private client lending team provides facilities to private clients either as individuals
or within a trust or company structure. The loans are provided by N M Rothschild &
Sons or Rothschild Bank International Limited.

Rothschild Bank International Limited

Rothschild Bank International Limited is based in Guernsey and offers a range of private
client banking services including current accounts, credit cards, foreign exchange
facilities, deposit taking and lending.
Rothschild Bank International Limited specialises in providing a personal banking
service to high net worth individuals based in the UK or elsewhere in the world and
works closely with other parts of the Rothschild Group.
Find out more about Rothschild Bank International Limited

Rothschild Reserve

Rothschild Reserve is a deposit-taking business that offers fixed rate deposits to high
value savers in the UK who are seeking quality service. It offers a straightforward
application process and a high level of customer service.
Rothschild Reserve offers are available for a limited period and provide an attractive
fixed rate of interest for depositors prepared to commit their funds for a fixed period of
time. The minimum deposit is 20,000 and a variety of interest payment options are
available.
Find out more about Rothschild Reserve

2.Landing services
Rothschild offers a variety of secured lending facilities,
available from a minimum loan amount of 500,000 (or
currency equivalent).
These facilities include residential property mortgages, fixed term loans, cashbacked facilities and guarantees. The facilities are provided on a bespoke basis,
designed around each client personal circumstances and needs.
Residential property lending
Investment portfolio lending
Cash-backed facilities
Guarantees
Margined foreign exchange dealing MarginFX

3. M&R and Strategy Advisory

Rothschild is the financial adviser of choice to governments,

corporations of all sizes, individuals and family firms
throughout the world.

We have an unparalleled track record, consistently advising on more deals than

any other adviser in our core markets. We regularly top M&A league tables
around the world and field approximately 900 advisory bankers globally more
than any other advisory firm.

Our close connections to the market and the number of deals we are involved
in help us understand our clients needs across many different situations. We
are frequently called upon to help craft the strategies of our clients, who benefit
from our global perspective and depth of industry understanding. Having
assisted in formulating the strategy, our advisers have the hands-on skills to
deliver the desired outcome.

We are unique in that our senior bankers remain involved throughout the life
cycle of a mandate, from pitch to completion. This partnership with clients
explains our substantial repeat business and long-standing relationships. Some
clients have turned to us for as long as 100 years.

The integration of skills and knowledge is central to our advisory approach.

M&A advisers work closely with specialist debt and restructuring and equity
advisory teams to deliver the best solution for our clients.

Our industry sector specialists work on a global basis bringing indepth industry
and regional knowledge to both domestic and cross-border M&A deals. We are
recognised for our ability to deliver transactions covering multiple jurisdictions,
cultures and parties.

We also have a specialist team, known as Transaction R, who is dedicated to

mid size and smaller transactions.

5. Financing Strategy Advisory

Rothschild has the worlds largest and most experienced independent

financing advisory practice.
We have a global presence, with teams based throughout Europe, the United States of
America, Asia Pacific and the Middle East.
We advise many companies, governments and private equity houses throughout the
world on financing strategy, and deliver creative solutions from a wide range of financing
sources. Our independent advisory model enables us to objectively examine all possible
structures and alternatives and select the best solution for our clients.
Since January 2010 we have advised on more than US$700 billion of financing advisory
transactions globally. The large volume of deals we advise on combined with our
constant dialogue with banks, investors, listing authorities and agencies, gives our
teams a detailed knowledge of current trends and practices across all the active debt,
equity and equity-linked markets.

a.Debt Advisory & Restructuring

b.Equity Advisory

A. Debt Advisory & Restructuring

Rothschild has the most experienced independent debt advisory and

restructuring practice in the world, with an unsurpassed volume of
deals and expertise across the bank and bond markets.

We offer strategic capital structure advice to deliver the best possible restructuring and
refinancing solutions, including dual track financings. We are committed to the highest

standards of integrity, confidentiality and client service and we adopt a creative and
resourceful approach to maximising value for all our clients.
Rothschilds independence, and the large volume of deals we advise on, places us in a
unique position in terms of market knowledge. We are regularly placed at or near the
top of the restructuring league tables in terms of number of deals. In addition, we often
help clients behind the scenes in roles undisclosed to the market.
The professional experience of our teams is strengthened by their access to a wide
range of pricing/leverage sources and by our constant dialogue with banks, investors
and rating agencies. We have strong relationships with all the major players including
key debt and equity finance sources, banks, bondholders, financial and legal advisers,
and financial sponsors.

B.Equity Advisory

Rothschild offers independent advice to clients on a wide range of equity capital

raising transactions.
With equity advisory teams on the ground in key markets around the world, we have an
unparalleled global footprint and deeper resources than any other equity capital markets
adviser.
We use our expertise to deliver the best equity capital market outcomes for our clients,
including better organised and supervised distribution, better pricing, more accurate
market judgements, and improved terms with bookrunners.
Our high volume of assignments enables us to gain a detailed understanding of investor
behaviour, optimal deal structures, performance of key market participants and the
latest market trends. As a result, our teams can provide clients with unique insights into
the execution of recent offerings and the track record of bookrunners, and equip clients
with the latest deal technology.
As an independent adviser, we are not conflicted by the economic benefits that
relationship banks and brokers might gain by pursuing one financing goal over another,
or by equity-dealing loyalties and relationships with institutional and hedge fund
investors. Our pure advisory business model enables us to focus solely on achieving
the best possible result for our clients and minimising their execution risk.
Our equity advisory team is staffed by market specialists who, in addition to their own
expertise, can tap into our unrivalled experience and connections through our global
network of sector experts.

6. Wealth Management & Trust

Our Wealth Management & Trust business offers objective advice to
wealthy individuals and families from around the world.

We help our clients navigate what is a complex financial landscape and focus on
earning their trust and respect.
We have a long-term perspective and our objectivity means our interests are aligned
with those of our clients.
We help structure and protect a broad range of assets and invest freely across global
markets. Our goal is to preserve and enhance the real value of our clients wealth
across market cycles.
Clients from around the world are served by Rothschild's Wealth Management &
Trustbusiness, while Rothschild's Patrimoine business is focused on clients in France.

7. Merchant Banking

Rothschild Merchant Banking is the Private Equity and Private Debt

investment arm of the Rothschild Group. We manage in excess of 3.4
billion through five investment strategies. Our capital originates from the
Group, its senior executives, and Institutional and Private Clients from
across the globe.
Our core market is Europe, where we feel we have a distinctive edge in identifying
superior equity and debt investment opportunities, typically in the mid-market space.
We see ourselves as passionate investors with a long term horizon: we like to partner
with successful management teams, entrepreneurs, and professional investors by
providing strategic and financial support to help them develop their business over time.
We see ourselves as active partners, ready to deploy Rothschilds skills and resources
to our portfolio companies for the benefit of the investors in our funds.
Our investment philosophy is deeply rooted in Rothschilds 200 year history of building
trusted long-term relationships with corporate clients helping them grow their business
and investing alongside them.

Others Services
Drawing up communications strategies, as well as planning and implementing crisis
communications
Providing ongoing advice on all aspects of communications
Supervising the media relations work in all core markets
Active and reactive media relations work throughout Switzerland, acting as an external
media office
Advising on internal communications

Awards
Rothschild is recognised as a leader in the provision of financial
advisory services worldwide.

.Global

Financial Advisory

M&A advisory

Debt advisory and restructuring

Equity advisory

Wealth Management & Trust

Wealth Management & Trust

Institutional Asset Management

Institutional Asset Management

Global Financial Advisory

M&A advisory

2013
Mid-market Financial Adviser of the Year
Financial Times and Mergermarket European M&A Awards
Corporate Financier of the Year
unquote" Magazine
Most Innovative Investment Bank for Sovereign Advisory
The Banker
2012
Private Equity Financial Adviser of the Year
FT/Mergermarket
Mid market Financial Adviser of the Year
FT/Mergermarket
Financial Adviser of the Year
FT/Mergermarket

2011
Deal of the Year
Finance Asia and Alpha Southeast Asia
Mid-market Adviser of the Year
FT & mergermarket Europe Awards
European Independent Adviser of the Year
Financial News
Financial sponsors Coverage Team of the Year (Europe)
Private Equity News

2010
German M&A Adviser of the Year
Acquisitions Monthly
Benelux M&A Adviser
FT & mergermarket
France M&A Adviser
FT & mergermarket
Mid-Market Adviser of the Year
FT & mergermarket

2009
Cross-border Deal of the Year
Acquisitions Monthly
Best Deal in China
Asset Triple A Asian Awards
Best M&A House in The Phillipines
Asset Triple A Asian Awards
European M&A Deal of the Year
The Banker

Debt advisory and restructuring

2013
EMEA Bond of the Year
IFR Awards
Most Innovative Investment Bank for Sovereign Advisory
The Banker
Debt Advisory and Restructuring Deals of the Year
The Banker

2012
Rothschild adviser on three winning debt advisory and restructuring deals
IFR
Best China deal
FinanceAsia
Most innovative Investment Bank for Restructuring
The Banker
Most Innovative Investment Bank for Sovereign Advisory
The Banker
Global Restructuring Investment Bank of the Year
Global M&A Network

2011
Best Restructuring Deal
Latin Finance
Middle East Restructuring Deal of the Year
The Banker
EMEA Restructuring of the Year
IFR
Turnaround and Restructuring Adviser of the Year
Private Equity News

2010
Restructuring Adviser of the Year
Acquisitions Monthly
Most Innovative in Restructuring
The Banker
Asia Debt Restructuring Deal of the Year
The Banker

2009
Corporate Finance and Overall Winner
Deal of the Year ACT Awards
Debt Advisory House of the Year
Acquisitions Monthly
Restructuring Adviser of the Year
Acquisitions Advisory
Best LBO Advisory Bank
Euroweek

Equity advisory

2013
EMEA Equity Issue of the Year
IFR Awards
Most Innovative Investment Bank for Sovereign Advisory
The Banker
Europe Equities Deal of the Year
The Banker
2012
Rothschild adviser on winning equity award
IFR
Most Innovative Investment Bank for Sovereign Advisory
The Banker
Pan European Corporate Finance Adviser of the Year
Real Deals

2011
Deal of the Year
Real Deals
Americas Equity Deal of the Year
The Banker

2010
EMEA Equity Issue of the Year
IFR
Latin American Equity Issue of the Year
IFR
Financial Sponsors Coverage Team of the Year
Private Equity News
Corporate Finance Advisor of the Year
Private Equity News

Wealth Management & Trust

2013
UK Private Bank - UHNW team
WealthBriefing Awards 2013
Best Wealth Manager for Trusts
Financial Times and Investors Chronicle
Wealth Management Awards 2013
2012
Investment Team of the Year
STEP Private Client Awards
2011
Woman of the Year
CityWealth Awards
Private Banker of the Year
Spears Wealth Management Awards
Best Fund Over 5 Years
Lipper Fund Awards
Image & Reputation Award
PAM Awards
Private Bank of the Year
STEP Private Client Awards
2010
Private Bank of the Year
CityWealth Awards

Institutional Asset Management

Institutional Asset Management

2013
Xiphias fund - Best Multi-Strategy Aggressive Bias Fund of Hedge Funds over 5 years
Banco Swiss Hedge Funds Awards 2013
R Euro Crdit Best fund
Fund Awards Belgium, LEcho-De Tijd
Deutscher Fondspreis 2013, Germany
Premios de Fondos Expansion-Allfunds Bank, Spain
28th Corbeilles Awards 2013
Best Asset Management Company
Best Equity Fund Manager

Best Fund Manager of PEA shareholder-savings funds

2011
R Opal Global Trading Fund - Best Specialist Fund of Hedge Funds
World Finance Hedge Fund Awar

Deals of Rothschild Bank

Invest With a Rothschild - In Iraqi Oil

Whether there is war or peace in Iraq, whether the country holds together or falls
apart, the oil will flow. If you want to take a flyer on your own little piece of the
future of Iraqi oil, the stock to buy is probably Genel Energy. The company has the
highest production volumes and arguably the best oilfield assets in the Kurdish
Region of Iraq. And its prospects are protected not just by the loyal peshmerga
forces of the Kurdish Regional Government, but also by a robust safety net
of international business giants.

Genels big backers are banking scion Nathaniel Rothschild and Turkish
billionaire Mehmet Emin Karamehmet. The companys CEO is Tony Hayward, the
former head of BP BP, who also happens to be chairman of commodities giant
Glencore PLC. Genels CFO used to be the head of U.K. investment banking for
Goldman Sachs.
In an operational update released last week, Genel says that its net oil production
has doubled in the past year to a current 84,000 barrels per day. Most of that comes
from two world-class fields. Taq Taq, in which Genel has a 44% interest, is
currently producing 113,000 bpd. While Tawke (25% Genel interest) is doing
116,000 bpd.

When these fields first came on line Genel and its partners had no option but to
haul the oil to market; tanker trucks eventually carried 70,000 bpd of oil from Taq
Taq over the border into Turkey, according to Genel. But now, with the completion
of a pipeline between the Kurdish region and Turkeys port of Ceyhan, exports
have been surging.

Rockefellers and Rothschilds Unite

Two of the best-known business dynasties in Europe and the US
will come together after Lord Jacob Rothschilds listed investment
trust and Rockefeller Financial Services agreed to form a strategic
partnership.

RIT Capital Partners is to buy a 37 per cent stake in the Rockefellers wealth
advisory and asset management group for an undisclosed sum, giving Lord
Rothschilds London-listed trust a much sought-after foothold in the US.

The transatlantic union brings together David Rockefeller, 96, and Lord
Rothschild, 76two family patriarchs whose personal relationship spans five
decades.

The transatlantic union brings together David Rockefeller, 96, and Lord
Rothschild, 76two family patriarchs whose personal relationship spans five
decades.
The Rockefeller group traces its roots back to 1882 when John D.
Rockefellerestablished one of the worlds first family offices dedicated to
investing his wealth. It has since developed into a provider of wealth and
asset management services to other families, foundations and institutions. It
is majority-owned by the 19th century oil magnates family and has $34
billion of assets under management.
The partnership with RIT will focus on setting up investment funds, eyeing
joint acquisitions of wealth and asset managers and granting each other nonexecutive directorships.
RIT Capital Partners is minority-owned by Lord Rothschild and its net assets
of 1.9 billion ($2.97 billion) are spread across global investments
from public equities to government bonds and private equity.
The deal stemmed from a meeting two years ago when Mr Rockefeller
introduced Lord Rothschild to the US groups chief executive, Reuben Jeffery.
In a follow-up meeting one year later at Lord Rothschilds office at Spencer
House in London, the financier won Mr Jefferys blessing for opening talks to
buy a stake in the Rockefeller group.
He then launched long negotiations with Socit Gnrale Private Banking,
which has owned the shareholding since 2008.
The French banks wealth management arm has had several suitors for the
minority stake estimated to be worth less than 100 million ($156.2
million) but Lord Rothschild was the only one supported by the Rockefellers.

Sir Evelyn at the time ran NM Rothschild, which rose to fame in 1815 when
Nathan Meyer Rothschild made a fortune buying British government bonds in
anticipation of Napoleons defeat at Waterloo.
Baron David de Rothschild, chairman of the Rothschild Group, is currently
bringing the UK-based investment bank under a joint roof with the French
family operations.
At the same time Lord Rothschild launched an investment partnership this
March with the Franco-Swiss private bank Edmond de Rothschild Group,
which is yet another separate branch of the sprawling banking dynasty.

Samsung to invest in Rothschild PEF

Samsung Securities and Samsung Life Insurance will invest tens of billions of won in a private
equity fund (PEF) set up by Rothschild Merchant Banking, the private equity investment arm of
Rothschild Group.
The securities affiliate of Samsung Group said that the British financial company will run the
PEF, which will target undervalued European companies.
"We are in talks with Rothschild over investing in a PEF of Rothschild. We will invest with
(Samsung) Life Insurance, and the size will be less than 100 billion won," said Ha Jung-seok, a
spokesman of Samsung Securities.
This is the first time that Korean financial companies have invested in a PEF of the British
financial group, if the deal is completed.
Ha, however, said that the company did not decide yet when and how much the company will
invest in the company. Rothschild is contacting other investors to draw money into the fund, he
said.
The Rothschild PEF will eye European companies in trouble and buy them out later after
restructuring, Samsung said.
Samsung Securities and Rothschild have cooperated in several mergers and acquisition (M&A)
deals, including Mahindra's acquisition of Ssangyong Motor in 2011 and NHN Japan's purchase
of Japanese portal site Livedoor in 2010.
Rothschild Merchant Banking manages in excess of 3.4 billion euro, according to the company.
Its capital originates from Rothschild Group, and its senior executives, institutional and private
clients come from across the globe. The buyout company's core market is Europe, where it has
an edge in identifying superior equity and debt investment opportunities, typically in the midmarket area.
Rothschild is one of the world's largest independent financial advisory groups, employing
approximately 2,800 people in 40 countries around the world.
Rothschild provides strategic, M&A, wealth management and fundraising advice and services to
governments, companies and individuals worldwide. It is a global financial advisory group
which is family controlled and independent. It has been at the center of the world's financial
markets for more than 200 years.

BBM Investments and Edmond de Rothschild Group sign a

strategic cooperation agreement
Brazil, July 24 2013 - The Edmond de Rothschild Group, via its company
Edmond de Rothschild, Paris, and BBM Investimentos have signed a strategic
cooperation agreement that will lead to the development of opportunities in

asset management
Asset management is a strategic area in which both groups excel and further aim to
consistently develop over the
coming years. Through this cooperation agreement, Edmond de Rothschild and BBM
wish to increase their international
business activities in order to bring more value to their clients and develop their
exposure in new markets.
Concerning their asset management activities, both groups have strong track records
in terms of their fund performance,
placing them in a highly respected position amongst their peers. The first step of this
strategic alliance will be the launch
of two Brazilian domiciled funds, feeders of the Edmond de Rothschild Europe
Synergy fund, a European equity fund
managed by Edmond de Rothschild Asset Management.
The first fund will be dedicated to pension funds while the other is designed to
respond to the needs of private banking
clients.
Edmond de Rothschild Group and BBM Investimentos aim to herewith help the
Brazilian pension funds market
understand the benefits of diversification and propose products perfectly responding
to their needs. Brazil pension funds
represent approximately USD 300 billion under management and are authorized to
invest up to 10% of their assets in
non-Brazilian assets while to date this capacity remains almost unused.
Secondly, the two Groups will consider the creation of a fund of Brazilian equity
which will be managed by BMM
Investimentos and offered by Edmond de Rothschild Asset Management to
international institutional clients across the world, excluding in the USA.

About Edmond de Rothschild Group

The Edmond de Rothschild Group is an independent, family-owned group that
specializes in asset management and private banking. Founded in 1953, the Group has
been chaired by Baron Benjamin de Rothschild since 1997. It has USD160 billion in
assets under management, employs 2,900 people and has 30 offices worldwide. In
addition to asset management and private banking, the Group is also actively present in
corporate advisory services, private equity and fund administration.

About BBM Investimentos

BBM Investimentos is an active fund manager based in Rio de Janeiro, Brazil. The
institution offers competent fund management services, supported by the strength and
tradition of BBM, Brazils oldest private financial group, founded in 1858. BBM
Investimentos has R$ 2,7 billion in assets under management and employs 77 people.
Managed funds are allocated to public and private fixed income, macro, equity and long
& short funds, offering clients a wide array of specialized products.

Nat Rothschild to invest in Russian aluminium company Rusal

The blue-blooded investor, whose relationship with Mr Deripaska featured during a
holiday incident in Corfu last summer, is thought to be one of four main investors to sign
up for shares ahead of Rusals listing which is predicted to be one of the biggest of
2010.
The others are Paulson & Co, the American hedge fund giant run by John Paulson;
Robert Kuok, the Malaysian-Chinese tycoon; and Vnesheconombank, or VEB, the
Russian state development bank. The investors will be guaranteed shares in the
flotation in exchange for a pledge not to sell them for a number of months.
Rusal plans to raise $2bn (1.25bn) from selling a 10pc stake with the company set for
a primary listing in Hong Kong and a secondary listing in Paris on January 29.
Rusal had hoped for a valuation of $30bn from the listing but reports suggested that this
could be reduced to $17bn-$22bn next month.
Mr Rothschild is thought to be buying a stake through NR Investments, a private
vehicle. He has close ties with Mr Deripaska and has acted as his investment adviser.
Their relationship came to light in media reports about a holiday meeting involving
shadow chancellor George Osborne and Mr Deripaska aboard the Russian oligarchs
yacht, Queen K, in Corfu in 2008.

Rusal has planned the initial public offering in an attempt to reduce its $17bn debt
burden. The companys debts doubled last year after it went on an acquisition spree
shortly before commodity prices collapsed.
Aluminium tumbled 36pc in 2008 on the London Metal Exchange.
Regulators in Hong Kong approved Rusals listing application earlier this month but said
the offer would not be open to retail investors because
the companys debt levels made it high risk. Rusal is set to become the first Russian
firm to list in Hong Kong.
The pre-marketing is planned to start on Monday. The investor roadshow is set for
January 12, starting in Hong Kong and moving through Singapore, the UK, Europe and
the US.Bank of China International, BNP Paribas, Bank of America Merrill Lynch and
Credit Suisse are bookrunners on the deal.

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1. Organisation of the company before the sale

Several stages are frequently necessary to make the company more attractive:
Remove the companys cash assets.
Halt unpro table activities or ones which are not part of the core business.
Settle old disputes.

 Isolate the property assets that the entrepreneur wishes to keep.

Rationalise costs.
Reorganise the holding by creating a lead holding company.

2 Preparation of financial documents and company valuation

supporting banker in the sale must know the company as if it were his own so as to be able to
nego- tiate to the best of his ability with a potential investor.

There are a multitude of methods which can be classed in three groups:

Asset method: this is a fairly static, accounting method which is suitable for highly capitalised,
mature com- panies. It assumes a prior restatement of the annual accounts in order to calculate
the companys revalued net assets.
Free-cash- ow method: this is the method preferred by the profession because it takes the
company s growth prospects into account. It requires substantial prepara- tory work and the justi
cation of a business plan over several years. e business plan must be realistic and justi able to
future purchasers.
In practice, the cash- ow is discounted to the cost of debt and capital. Determining the cost of
capital entails knowing various parameters such as the sector s Beta and the risk premium.
multiples method: this method cannot be ignored. It involves identifying the mean multipliers
observed in comparable markets and sectors
These methods frequently give a signicantly different valuation. The banker establishes a
range of values and the market price is determined within the negotiating arena.