Charterhouse Bank
| Company type | Private |
|---|---|
| Industry | Investment banking |
| Founded | 1920 |
| Defunct | 2000 |
| Fate | Acquired by HSBC |
| Headquarters | United Kingdom |
Charterhouse Bank was a British investment banking institution founded in 1920, which eventually became part of HSBC.
History
The establishment of Charterhouse Bank took place in December 1920. Five years later, in 1925, the Charterhouse Investment Trust was launched, initiating its inaugural sponsored offering with the International Pulp and Chemical Company in 1926. The Trust diversified into the retail sector by acquiring several London-based department stores and subsequently floated United Drapery Stores in 1927 to serve as a holding company for these assets. In 1963, Charterhouse Bank combined forces with its competitor S. Japhet and Company, resulting in the formation of Charterhouse Japhet.
In 1973, a United States division named Charterhouse Group was created; however, it gained independence during the 1980s. Charterhouse Japhet expanded by acquiring the financially troubled Keyser Ullman in 1981. Two years later, in 1983, Jacob Rothschild integrated his investment firm RIT & Northern into Charterhouse Japhet, temporarily renaming it Charterhouse J. Rothschild before divesting the banking operations to the Royal Bank of Scotland (RBS) in 1985. Between 1985 and 1996, Sir Victor Blank held the roles of chairman and CEO at the bank, which reverted to its original name, Charterhouse Bank.
In February 1993, RBS divested 90% of Charterhouse Bank to Crédit Commercial de France along with Berliner Handels- und Frankfurter Bank (BHF), while retaining a minority stake of 10%. Subsequently, Crédit Commercial de France acquired BHF, consolidating ownership prior to its own acquisition by HSBC in 2000.
Management executed a buyout of Charterhouse Capital Partners—the bank’s private equity division—in June 2001, rendering it an independent entity separate from HSBC. Likewise, in May 2011, HSBC Specialist Investments (which later became InfraRed Capital Partners) underwent a management buyout to establish itself as an autonomous infrastructure investment firm.