East Meets West: Rothschild’s Investment in Indonesia’s Bakrie Group Harvard Case Solution & Analysis

"This case illustrate the confrontation encountered by Nathaniel Rothschild in succession to making a US$3 billion investment in 2010 in a family-owned business group in Asia. Private equity fund manager and Scion of the Rothschild banking dynasty, Rothschild and his business associates formed an LSE-listed shell firm, Bumi PLC, which dig up PT Bumi Resources and Berau Coal.

These were amongst Indonesia's prime coal mines as well as the largest coal exporters in the whole world, and were controlled by the Bakries, a dominant Indonesian family whose patriarch was a nominee for the presidency in 2014. Subsequent to losing up at least 70% of his investment in three years, Rothschild finally requisitioned an astonishing general meeting in February 2013, trying to eliminate the Bakries and their associates from the management team of Bumi.

Despite western-style corporate governance manoeuvres, the PE investors found it tough to control the connected family in Indonesia. "

PUBLICATION DATE: December 20, 2013 PRODUCT #: INS301-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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