126 shares Announcing the birth just hours later, a source told Hello!: 'Mother and baby are doing well. She's perfect, everyone is overjoyed at such a happy arrival.' Grace's middle names are a nod to her grandmothers, Carole Elizabeth Middleton and Jane Matthews, while Elizabeth might also be a subtle acknowledgement of the family's royal ties. The Duchess of Cambridge 's sister, 37, who welcomed her second child Grace Elizabeth Jane with husband James Matthews last month, sported a midi patterned coat and gold-rimmed Rayban sunglasses for the stroll Hedgefund billionaire James, brother of reality TV star Spencer Matthews, and author Pippa currently reside in a £17 million six-bedroom home in London.