RIT Capital Partners, Lord Jacob Rothschild’s London-listed investment trust, has made a long-term investment in Corsair, a US-based private equity firm which invests in the financial services industry.
Once the transaction is completed, RIT proposes to issue $7.5 million worth of ordinary shares.
Corsair was launched in 1992 in the wake of the savings and loan crisis with a mission to invest across various subsectors of the financial services industry, including banking, insurance, asset management and specialty finance.
For RIT, this is its second step in the US within a short period of time, after it bought a 37 per cent equity stake in Rockefeller Financial Services from Société Générale Private Banking in May.
Lord Rothschild has previously made comments to the UK’s Sunday Times about his ambitions in the US, saying “America is in a fantastic position going forward… In technology and innovation they have the edge on everyone.” He said in the interview that RIT Capital partners hopes to pick up bargains from divesting banks, increasing its presence across the Atlantic as well as in the East.
Lord Rothschild is chairman of RIT and he and his family are the largest shareholders, holding 18 per cent of its shares.
"We are pleased to make this investment in Corsair, a firm that has a clear investment philosophy and approach to investing globally in the financial services industry. We see considerable potential to work closely together on new investment opportunities in this sector that will benefit both businesses," said Lord Rothschild.
“This investment is consistent with RIT's strategy of identifying and investing in high quality asset managers, enabling close collaboration on investment opportunities, and sharing of expertise,” said a joint statement on the London Stock Exchange.
RIT Capital Partners was listed on the LSE with net assets of £281 million (around $440.9 million) in 1988, and has since grown to a market capitalization of almost £2 billion.