Luxury house Chanel’s owners, the Wertheimer family, are reportedly considering investing in investment bank Rothschild & Co as the bank explores the possibility of leaving the Paris stock exchange through a takeover bid. This potential investment has attracted the attention of other notable families such as Peugeot and Dassault, indicating the level of interest in Rothschild.
The Wertheimer brothers, Alain and Gérard, along with their half-brother Charles Heilbronn, plan to make the investment through their family office Mousse Partners. The investment bank is currently owned 38.9% by Concordia, which is the holding company of the French branches of the Rothschild family. The Rothschild family itself holds 47.5% of the voting rights. The overall valuation of Rothschild & Co is estimated to be around €3.6 billion.
Gérard Wertheimer, who resides in Geneva, and Alain Wertheimer, who lives in the United States, are astoundingly wealthy individuals. It is estimated that they have a combined net worth of 38 to 39 billion Swiss francs (approximately €38.5 to 39.5 billion), although other estimates from Challenge suggest that their fortune is closer to 80 billion euros. In addition to their ownership of Chanel, the Wertheimer brothers have investments in racehorses and wine estates.
Chanel itself has been experiencing remarkable success, with a turnover of $15.6 billion (around €14.6 billion) reported in 2021. This represents a 27.4% increase compared to its pre-pandemic levels in 2019. The fashion house also achieved a net profit of $4 billion (approximately €3.7 billion).
The potential investment by the Wertheimer brothers and other prominent families in Rothschild & Co underscores the interest in the investment bank and the potential impact of its takeover bid. This move could bring about significant changes in the financial landscape of the Paris stock exchange. As Rothschild evaluates its future options, the investment from the Wertheimer family and others will undoubtedly play a significant role in shaping the outcome.
Helpful links:
1. Rothschild & Co Careers
2. Chanel Official Website
