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Grade was born in Tokmak, Taurida Governorate, Russian Empire to Isaak and Olga Winogradsky. In 1912, when Grade was six, the Jewish family emigrated to escape Cossack violence and anti-Semitism, from Odessa via Berlin to Brick Lane in Bethnal Green in the East End of London. Isaak worked as a trouser-presser while his three sons (Grade and his younger brothers, Bernard (later Bernard Delfont) and Leslie) attended the Rochelle Street Elementary School near Shoreditch, where Yiddish was spoken by 90% of the pupils. For two years the Winogradskys lived in rented rooms at the north end of Brick Lane, before moving to the nearby Boundary Estate.

At the age of 15, Grade became an agent for a clothing company, and shortly afterwards started his own business. In 1926, he was declared Charleston Champion of the World at a dancing competition at the Royal Albert Hall. Fred Astaire was one of the judges. Grade subsequently became a professional dancer going by the name Louis Grad; this form came from a Paris reporter's typing error that Grade liked and decided to keep. Decades later, the then octogenarian Lord Grade once danced the Charleston at a party Arthur Ochs Sulzberger gave in New York.  Signed as a dancer by Joe Collins (father of Jackie and Joan Collins) in 1931, around 1934, Grade went into partnership with him and became a talent agent in their company Collins & Grade. Among their earliest clients were the harmonica player Larry Adler and the jazz group Quintet of the Hot Club of France.  Following the beginning of the Second World War in 1939, Grade became involved in arranging entertainment for soldiers in Harrogate, and later joined the British Army. He was discharged after two years when an old problem with swelling of the knees, which had earlier ended his dancing career, recurred. In 1945, the arrangement with Collins having been terminated, Grade formed a partnership with his brother Leslie (Lew and Leslie Grade Ltd., or the Grade Organisation). That year, the brothers traveled in the United States, where they developed their entertainment interests. His connections included, among others, Bob Hope and Judy Garland, who performed in Britain for the first time. The brothers became the main bookers of artists for the London Palladium in 1948, then managed by Val Parnell for the Moss Empires Group owned by the family of Prince Littler.
Lew Grade