RIT Capital Partners and Edmond de Rothschild Group have formed a joint venture, with RIT holding a 49% stake, to enhance investment cooperation and fund management.

Transaction Summary

On March 16, 2012, RIT Capital Partners plc and Edmond de Rothschild Group announced the formation of a strategic partnership. This joint venture will see RIT Capital Partners acquire a 49% stake, while the Edmond de Rothschild Group will hold the remaining 51%. As part of this agreement, the Edmond de Rothschild Group will contribute its interest in the management company, Capital Holdings, into the joint venture. Additionally, RIT Capital Partners will issue new ordinary shares valued at £14 million to Edmond de Rothschild Group as compensation for their stake in the joint venture. The two parties aim to collaborate more closely on investment opportunities and fund management initiatives.

Target Information

RIT Capital Partners plc operates as an investment trust and is listed on the London Stock Exchange. The company is chaired by Lord Rothschild, whose family has maintained a significant ownership stake. In recognition of its impressive performance during 2011, RIT Capital Partners was awarded the Best Large Trust award by the Investment Trust Journal.

Industry Overview in the UK

The investment trust industry in the United Kingdom is characterized by a strong regulatory framework and a wide range of investment vehicles. Companies like RIT Capital Partners have capitalized on this environment to offer dive

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RIT Capital Partners plc

invested in

Edmond de Rothschild Group

in 2012

in a Joint Venture deal

Disclosed details

Transaction Size: $22M

Equity Value: $22M

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