Rothschild, banker and champion of the arts, dies at 87
FINANCIER and philanthropist Lord Jacob Rothschild has died aged 87.
Born into the influential banking dynasty, the peer broke away from the family business to found St James’s Place, Britain’s biggest wealth manager, and chair RIT Capital, one of the largest investment trusts.
But it was his dedication to the arts that made him a renowned figure in British society, notably his funding of the £16 million renovation of Spencer House in London.
Princess Diana – herself a Spencer – described the restoration of the 18th-century mansion as ‘the most exciting present’ of her life.
Another personal project was the reinvigoration of Waddesdon Manor, the Buckinghamshire neo-Renaissance chateau built in the 1880s by Lord Jacob’s ancestor Ferdinand de Rothschild.
He filled it with artworks by contemporary artists and designers such as Jeff Koons, and it became one of the National Trust’s most visited houses.
Lord Rothschild also served as chairman of trustees of the National Gallery between 1985 and 1991 and chairman of the Heritage Lottery Fund from 1994 until 1998, overseeing the distribution of £1.2 billion in grants from lottery proceeds.
Former prime minister Sir Tony Blair, who now runs the Tony Blair Institute for Global Change think-tank, said: ‘Jacob was a dear friend and a wonderful human being. I will miss him immensely.
‘He was, of course, a towering figure in Britain’s Jewish community but his impact was global in his support for great causes, including in the arts and the environment, and in his tireless work to advance peace in the Middle East.’
Born in Berkshire, Lord Rothschild was educated at Eton College and then went on to study history at Christ Church, Oxford.
A veteran of the Square Mile, he started at NM Rothschild, the family banking group, in 1963. He left in 1980 after a falling out with his cousin Sir Evelyn de Rothschild.
He then took control of RIT Capital, which now has a stock market value of more than £2.6 billion. His family have an estimated fortune of about £825 million, according to last year’s Sunday Times Rich List, and have given away a reported £66 million to Jewish causes, education and the arts.
In 2002 he was awarded the
‘A towering presence’
order of merit for his service in the field of arts, literature, learning and science.
His daughter Hannah – who, like him, was also appointed chair of the National Gallery – will succeed him as chair of the Rothschild Foundation, which he founded. In 2019, he lost his wife Serena to cancer after 58 years of marriage. He is survived by three daughters and a son.
The family said: ‘Our father Jacob was a towering presence in many people’s lives, a superbly accomplished financier, a champion of the arts and culture, a devoted public servant, a passionate supporter of charitable causes in Israel and Jewish culture, a keen environmentalist and much-loved friend, father and grandfather.
‘He will be buried in accordance with Jewish custom in a small family ceremony.’
JACoB Rothschild’s death yesterday at 87 could result in a succession- style battle between his heirs for his sprawling property and investment empire.
A colossal figure in the City, he bestrode the square Mile for several decades.
starting at the family banking group NM Rothschild in 1963, he left 17 years later after falling out with his cousin sir evelyn de Rothschild over a merger with rival sG Warburg. At the time, it was the talk of the town. one financial journalist described it as the ‘the most notorious bank-family split in City of London history’.
striking out on his own, he took charge of RIT Capital Partners, which is worth £2.6bn and a stalwart of the FTse 250.
His deal-making skills and easy charm saw the business grow fast, while his market commentaries were highly anticipated, such as when in 2019 he described the postBrexit deadlock as the UK’s biggest political challenge since the 1956 suez crisis. While doing all this, he also co-founded wealth manager st James’s Place in 1991, money manager GAM in 1983 and made an unsuccessful bid for British American Tobacco in 1989, which, had it come off, would have been one of the biggest takeovers of all time.
A source close to the family said: ‘He was viewed as an establishment figure. Business-wise he was far from it. He took plenty of risks.’
To this day, RIT Capital remains one of the most popular trusts in London with offices based in spencer House overlooking Green Park. Its investments are varied and include WeBull, the New york investment platform, and Motive, the logistics group.
In the UK, the firm backs technology investor Firstminute Capital. The annual return of 10.7pc remains impressive to this day and RIT has turned a £10,000 investment in 1988 to £345,000 in 2024.
But the big question is who will step into Rothchild’s shoes and what happens to his 13pc stake in the business.
To the Rothschilds, leadership succession is treated like that of an accession to the throne in a monarchy – not unlike the fictional Roy family in the popular TV series succession. It is an obsession that has enabled them to keep their name alive while other traditional City families – such as Kleinworts and Warburgs – have disappeared.
For many years, Nat, 52, appeared to be the natural successor, ‘a chip off the old block’ who moved effortlessly in the world of high finance. But his father disliked his playboy lifestyle and rebellious streak.
Born in 1971, he is the youngest child and as the only son is heir apparent. But he does not have a direct stake in RIT Capital, but instead holds an indirect holding through the family’s private equity firm Five Arrows. He upset his parents in 1995 when he eloped with socialite Annabelle Neilson, but the marriage lasted just three years.
Relations with his family became strained and, in 2016, Nat refused to invite his father to his second wedding to former glamour model Loretta Basey.
He has since rebuilt his name with Volex, a cable manufacturer to Tesla.
But it is his sister Hannah, 61, an author, and Jacob’s eldest daughter, who has emerged as the frontrunner.
Known for her savvy and calm head, she has a 10pc stake in RIT and sits on the board as a non-executive director.
A divorced mother of three, she is also chairman of yad Hanadiv, the Rothschild charitable foundation in Israel.
Whether Hannah or Nat win out, both will have big shoes to fill.