Hannah Rothschild talks privilege, duty, and the formation of dynasties over the centuries

Dame Hannah Rothschild has long understood that being born into one of Europe’s oldest dynasties confers not only privilege but also a deep sense of duty, and she is committed to leading her centuries-old family network into its next chapter.

At the age of nine, the eldest daughter of the late British financier Jacob Rothschild began sitting at the table with visiting businessmen, listening to their conversations about topics such as the Japanese economy, and absorbing them.

The intellectual atmosphere of her childhood was shaped by patrons such as ballet legend Rudolf Nureyev, painter Lucian Freud, and philosopher Isaiah Berlin.

Hanna, 63, currently serves on the board of Five Arrows, the alternative asset arm of Rothschild & Company, and is a director of former Rothschild investment trusts RIT Capital Partners and Windmill Hill Asset Management.

The author and filmmaker also chairs the boards of the Rothschild Foundation and the Yad Hanadib Foundation, long-standing family-oriented organizations.

“We were born to feel like it was an incredible gift and a coincidence to be born with this privilege…it’s our responsibility to make the most of it,” Hanna said during a special taping of “CNBC Meets: Legacies” at a private banking event in Singapore hosted by United Overseas Bank.

Hannah, a seventh-generation heir, admitted she was nervous about the weight of the responsibility, but told CNBC’s Tania Breyer that she was proud to have proven her worth “within and outside of my family” through her efforts.

“I think it’s fair to say that the name Rothschild comes into the room before you. It comes with a huge amount of history, quite a bit of gravitas, quite a bit of conspiracy theory, and quite a bit of responsibility,” she added.

Hannah Mary Rothschild was born in London in 1962 and grew up with her sisters Beth and Emily, and her brother Nathaniel, 5th Baron Rothschild. Her father, Jacob, 4th Baron Rothschild, was known for his work in finance, the arts and philanthropy until his death early last year.

After completing her studies, she did not join the family business, but remained involved in charity work supported by her family.

“From an early age, we were involved in our family’s philanthropy,” she said.

She explained that the UK-based Rothschild Foundation, of which she currently chairs the board, has three core missions: arts and culture, community, and the environment. “What we tend to support are existing charities and existing organizations because they are more embedded in society.”

One of the foundation’s main activities is the preservation of Waddesdon Manor in Buckinghamshire. Waddesdon Manor is a French Renaissance castle with a world-class art collection and beautiful gardens that attracts around 400,000 visitors a year.

“We basically want people to understand what the collection is, why it’s important, and why the history is important,” she says.

For Yad Hanadiv in Israel, a priority is to devote more resources to education, aiming to strengthen the foundations of an open, vibrant and democratic society. Yad Hanadib’s programs include promoting equal educational and occupational opportunities for the country’s Arab community.

“When my ancestors established this system, we established it for everyone, regardless of religion or creed,” she said. “And it affects everything we do.”

On the investment side, Hanna said he leaves decisions for RIT and other entities up to senior executives. Her personal portfolio holds 10% in gold and 1% in cryptocurrencies.

“I don’t really understand cryptocurrencies…I still think there’s an Emperor’s New Clothes aspect to them,” she said, but added that she doesn’t want to deliberately ignore trends that are likely here to stay.

When asked about the Rothschild family’s enduring success over more than two centuries, Hanna said the simple rule that binds her family together is “unity.” Mayer Amschel Rothschild, who founded his business empire in the 1760s, later sent his five sons from his home in Frankfurt to various major European capitals, and through continuous communication built an early international banking network.

Although the family’s business empire relies heavily on outside expertise, “we also believe that there is a kind of norm among the family of being thoughtful and thoughtful, and I think that’s kind of a principle,” she said.

Networking is also important, she added. Early generations of the Rothschild family understood that business was conducted 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 had to become more sophisticated and set out to become more sophisticated themselves,” she said.

She shared an anecdote about fox hunting. Fox hunting was an important activity for interaction with local landowners and a natural avenue for families to demonstrate their social status. After the Rothschilds were excluded from several hunting parties, the family purchased land and organized their own events.

Hannah explained that the most difficult aspect of running a family organization is managing sensitivities because people see things differently.

“It’s a continual readjustment, legacy and inheritance…I think as people change, the legacy has to be adjusted and the inheritance has to be adjusted as well,” she said.

As the most senior Rothschild of her generation, she sees her role as educating the next generation and making them feel like they are part of the family and have a role to play.

“My wish for the Rothschild legacy is that we continue to use our enormous privilege, the money we have earned, the good reputation we have cultivated, to help others far beyond our own families.”