Hannah Rothschild on privilege, duty and shaping a centuries-old dynasty
Hannah Rothschild during a special taping of “CNBC Meets: Legacies” at a special banking event hosted by United Overseas Bank in Singapore on November 19.
CNBC
Dame Hannah Rothschild has long been aware that being born into one of Europe’s most established dynasties brings not only privilege but also a deep sense of duty; He is trying to guide the next chapter of a centuries-old family network.
The eldest daughter of the late British financier Jacob Rothschild, she began visiting businessmen at the age of nine, sitting at the dinner table, listening to and absorbing conversations on topics such as the Japanese economy.
The intellectual atmosphere of his childhood was shaped by regular guests such as ballet legend Rudolf Nureyev, painter Lucian Freud and philosopher Isaiah Berlin.
I think it would be fair to say that the name Rothschild entered the room before you. It comes with a huge amount of history, a lot of seriousness, a lot of conspiracy theories, and a lot of responsibility.
Hannah Rothschild
President of the Rothschild Foundation
Hannah, now 63, sits on the boards of RIT Capital Partners, the former Rothschild Investment Trust and Windmill Hill Asset Management, and serves as a director at Five Arrows, the alternative asset arm of Rothschild & Co.
The writer and filmmaker also heads the Rothschild and Yad Hanadiv foundations, both long-established family institutions.
“We were born to feel like it’s an incredible gift and serendipity to be born with this privilege… It’s our responsibility to make the most of it,” Hannah said during a special taping of “CNBC Meets: Legacies” at a private banking event hosted by United Overseas Bank in Singapore.
While the seventh-generation daughter admitted to feeling nervous about the weight of that responsibility, Hannah told CNBC’s Tania Bryer that she’s proud to have proven her worth “both within and outside the family” through hard work.
“I think it’s fair to say that the Rothschild name entered the room before you did. That brings with it a tremendous amount of history, a great deal of seriousness, a great deal of conspiracy theory and a great deal of responsibility,” he added.
Charity at heart
Hannah Mary Rothschild was born in London in 1962 and grew up with her sisters Beth and Emily and her brother Nathaniel, the 5th Baron Rothschild. Jacob, whose father was the 4th Baron Rothschild, was known for his work in finance, arts and philanthropy until his death early last year.
Although he did not enter the family business after his studies, he remained committed to the charity work supported by his family.
“We were involved in family charities from a very young age,” he said.
He defined the three main missions of the UK-based Rothschild Foundation, of which he is currently president, as art and culture, local society and the environment. “What we tend to support are existing charities and existing organizations because they are much more integrated into society.”
Exterior of Waddesdon Manor, a country house in the village of Waddesdon. It was built in the Neo-Renaissance style of a French chateau.
Universal History Archive | Universal Images Group | Getty Images
One of the foundation’s main activities is the conservation of Waddesdon Manor in Buckinghamshire, a French Renaissance-style castle with a world-class art collection and landscaped gardens that attracts around 400,000 visitors a year.
“Basically, we want people to understand what the collection is, why it’s important, and why the history is important,” he said.
As for Yad Hanadiv, which operates in Israel, its priority is to strengthen the foundations of an open, vibrant and democratic society by allocating more resources to education. Yad Hanadiv’s programs include promoting equal educational and professional opportunities for the Arab community in the country.
“When my ancestors established this, we established it for everyone, regardless of religion or belief,” he said. “And that informs everything we do.”
Building a lasting dynasty
On the investment side, Hannah said he leaves decisions at RIT and other organizations to senior executives. His personal portfolio includes 10% gold and 1% cryptocurrency.
“I don’t really understand crypto… I still think it’s an aspect of the Emperor’s New Clothes,” he said, but added that he didn’t want to deliberately ignore a trend that’s likely here to stay.
When asked about the Rothschilds’ success over more than two centuries, Hannah said the simple rule that binds family members together is “togetherness.” Having built his business empire in the 1760s, Mayer Amschel Rothschild would later send his five sons from their base in Frankfurt to different major capitals of Europe, creating an early international banking network through constant communication.
Hannah Rothschild during a special taping of “CNBC Meets: Legacies” at a special banking event hosted by United Overseas Bank in Singapore on November 19.
CNBC
Although the family’s business empire relies heavily on outside expertise, “we also believe that there is some code of common sense and thoughtfulness within the family, which I think is a kind of principle,” he said.
Networking is also important, he added. Previous generations of Rothschilds understood that business was done not only in the boardroom, but also in the “ballroom.”
“Business is about who you know and how you interact with people. So they realized they needed to be more sophisticated, and they started to make themselves more sophisticated,” he said.
He shared an anecdote about fox hunting, an important activity for socializing with local landowners and a natural way for the family to show off their social standing. After the Rothschilds were excluded from some hunting parties, the family purchased land and organized their own events.
Guiding the next generation
Hannah noted that the most challenging aspect of running a family business is managing sensitivities because people have different perspectives on things.
“It’s a constant readjustment, legacy and succession… I think you have to adjust legacy and succession as people change,” he said.
As the most senior Rothschild of his generation, he sees his role as educating the next generation and making them feel like they are part of the family and have a role to play.
“My hope for the Rothschild legacy is that we continue to use our tremendous privilege, the money we have earned, the good name we have developed, to help other people far beyond our own family.”
