Henry Grunfeld Polish-Jewish businessman, prominent in the investment banking sector Date of Birth: 01.06.1904 Country: Poland

1. Early Life and Career in Germany
2. Crisis and Exile
3. Founding of S.G. Warburg
4. Growth and Success of S.G. Warburg
5. Leadership and Legacy

Early Life and Career in Germany

Henry Grunfeld was born on June 1, 1904, in the Prussian province of Upper Silesia, into a prominent Jewish family with a long-standing involvement in the steel and chemical industries. As a young man of 20, he inherited the management of his family's business, A. Niederstetter, a steel pipe manufacturer and supplier. He also represented the German steel industry in negotiations with the Weimar Republic government.

Crisis and Exile

During the global economic turmoil following the Wall Street crash of 1929, Grunfeld became heavily involved in resolving the banking crisis of 1931, serving on over 20 creditors' committees. In April 1934, with the rise of Adolf Hitler's regime, Grunfeld was arrested by the Gestapo without a warrant and held for 54 hours. Using his status as honorary consul of Spain, he secured his release and fled to London with his family after Hitler's "Night of the Long Knives" purge.

Founding of S.G. Warburg

In London, Grunfeld established a trading intermediary and joined forces with Siegmund Warburg to found the New Trading Company, which assisted European refugees in recovering their assets and investing them safely and profitably. To avoid internment as an "enemy alien" during World War II, Grunfeld strategically walked to work through Hyde Park, where arrests typically occurred later. In October 1939, he was exempted from internment and became a British citizen in 1946. The New Trading Company was renamed S.G. Warburg & Co.

Growth and Success of S.G. Warburg

Warburg and Grunfeld expanded their merchant banking business, bringing together London-based emigrants and German connections. S.G. Warburg gained international recognition after its involvement in one of the first hostile takeovers in the UK, the acquisition of British Aluminium by Reynolds Metals and Tube Investments in 1959. The bank grew rapidly with the surge in the bond market after 1963, and Grunfeld was particularly active with clients in the newspaper and commercial television industries. He also pioneered the reverse takeover with the deal involving Canadian media magnate Roy Herbert Thomson.

Leadership and Legacy

Grunfeld became Chairman of S.G. Warburg in 1964 and held the position for ten years. He continued to play an influential role until his death in 1999 at the age of 95. Known for his reserve, he rarely gave interviews but famously warned in 1987 that derivatives could cause a future financial crisis. Grunfeld was a pioneer in using graphology in the UK to assess potential employees. Outside of his business career, he served as an informal advisor to the government of Harold Wilson. His legacy includes the Henry Grunfeld Professorship in Banking at INSEAD, a leading European business school, and the Henry Grunfeld Foundation. It has been said that, given his crucial role, S.G. Warburg would have been more aptly named "Warburg, Grunfeld and Company."