Robert Fleming & Co: A Century of Financial Leadership

Robert Fleming & Co was founded in 1873 in Edinburgh, Scotland by Robert Fleming.

The company's early success was largely due to its focus on investment banking and asset management.

In its early years, Robert Fleming & Co was known for its innovative approach to investment and its commitment to providing high-quality financial services to its clients.

The firm's founder, Robert Fleming, was a pioneer in the field of investment banking and played a significant role in shaping the industry.

Robert Fleming & Co's success can be attributed in part to its strong leadership and commitment to excellence.

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Robert Fleming & Co. was founded in 1792 by Robert Fleming, a Scottish merchant.

The firm's early years were marked by its involvement in the slave trade, with Fleming & Co. owning at least 20 slave ships.

Fleming & Co. was a prominent player in the transatlantic slave trade, with its ships traveling between Scotland and the West Indies.

The firm's success in the slave trade helped establish it as a major player in the merchant banking industry.

Fleming & Co.'s early years were also marked by its involvement in the sugar trade, with the firm owning several sugar plantations in the West Indies.

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Fleming got his start in the workforce at the age of 13 working for a local textile firm, Messrs Edward Baxter and Son. By 21, he was Edward Baxter's private clerk.

Fleming's business skills and knowledge of investment procedures allowed him to oversee the firm's American holdings. He launched the Scottish American Investment Company in 1873, the first of the Scottish investment trusts.

As a respected financier, Fleming was known for his shrewd investments and expertise in financing American railroads. He was a contemporary of J. P. Morgan and a close business associate and friend of Jacob Schiff of Kuhn, Loeb & Co.

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The Stonehage Journey began with Robert Fleming setting up his business to invest in opportunities, which included the emerging American economy.

This forward-thinking approach allowed the company to grow and evolve over time, eventually leading to the formation of Jardine Fleming as a joint venture between Jardine Matheson and Robert Fleming & Co.

Robert Fleming's willingness to take calculated risks in emerging markets helped lay the foundation for the company's future success.

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Fleming got his start in the workforce at the age of 13 working for a local textile firm, Messrs Edward Baxter and Son.

By 21, he was Edward Baxter's private clerk, learning the ins and outs of the business and gaining valuable experience.

He launched the Scottish American Investment Company in 1873, a pioneering move that marked the beginning of his illustrious career as an international financier.

Fleming was a contemporary of J. P. Morgan and a close business associate and friend of Jacob Schiff of Kuhn, Loeb & Co., solidifying his reputation in financial circles.

He was widely known and respected on both sides of the Atlantic for his shrewd investments and expertise in financing American railroads.

One of his notable ventures was the establishment of the investment bank that bore his name, which remained a leading independent British investment house in London for over a century.

Fleming's wealth and influence grew exponentially, making him one of the wealthiest men in Europe by the turn of the century.

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Robert Fleming & Co. had a significant presence in the world of finance, but it's also worth noting that the company's founder, Robert Fleming, was a close friend of Lord Rothschild, a prominent figure in the British banking world.

The company's connections to the British aristocracy were further solidified through its involvement with the Royal Family, particularly with King Edward VII, who was a business associate of Robert Fleming.

Robert Fleming & Co. was also known for its involvement in the development of the Russian bond market, which was a major financial undertaking at the time.

The company's expertise in the Russian bond market was likely influenced by its connections to the British government, which had significant interests in Russia during the late 19th and early 20th centuries.

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The Fleming name was tarnished by a scandal in 1996, when Jardine Fleming was ordered to pay $19 million to fund investors for alleged abusive and unsupervised securities allocation practices by asset management head Colin Armstrong.

The firm's reputation took a further hit in 1997 with the Asian crisis, which severely impacted both Robert Fleming and Jardine Fleming.

Robert Fleming was forced to approve massive layoffs in late 1998, a clear sign of the company's struggles during this time.

In 1999, the firm restructured, buying the remaining 50% stake in Jardine Fleming in return for giving Jardine Matheson an 18% stake in Robert Fleming's Holdings.

Despite these efforts, Flemings continued to see its investment banking and asset management market share decline as global investment banks like Morgan Stanley and Lazard moved into their markets.

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In April 2000, Robert Fleming Holdings was sold to Chase Manhattan Bank for $7.7 billion.

The sale was a significant event in the company's history, marking a major shift in its ownership and direction. The sale came about as a result of consolidation in the financial services industry, with large U.S. commercial banks acquiring investment banks following the repeal of the Glass-Steagall Act.

About 130 Fleming family members pocketed approximately $2.3 billion for their 30% stake in the company.

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The sale to Chase Manhattan Bank in 2000 was a pivotal moment for Robert Fleming Holdings. It was sold for $7.7 billion, a significant sum that would have a lasting impact on the company.

The sale was a result of Fleming's weakened position, but it was also part of a larger trend of consolidation in the financial services industry. The repeal of the Glass-Steagall Act allowed large U.S. commercial banks to acquire investment banks, and Chase was no exception.

In the sale, 130 Fleming family members pocketed approximately $2.3 billion for their 30% stake. That's a staggering amount, and it's clear that the family members were well-rewarded for their investment.

The sale of Fleming to Chase also marked a shift towards globalization in the financial industry. Chase, with its assets largely in the United States, saw Fleming as a good fit for its increasingly global ambitions.

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Robert Fleming's privately owned structure is a significant factor in its ability to remain independent. It can afford to be more indulgent than others, as it doesn't have to prioritize shareholder value like publicly quoted companies do.

The bank's shares are traded at a discount, which discourages outside investors from joining the shareholder register. This keeps the ownership within the family and a select group of City institutions and individuals who are unlikely to cause trouble.

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Robert Fleming is only 46% owned by family and staff, with the remaining shares held by a tight-knit group of investors. A large chunk of the bank is even owned by its own investment trusts, which is an unusual arrangement that has hurt the performance of those trusts in the past.

The bank's investment management side is its strongest area, with a great name and franchise that's been built through partnerships with Jardines in the Far East and Rowe Price in the US. However, its other areas, such as securities and corporate finance, are smaller and less reputable.