LGT Private Banking, LGT Capital Partners and Lightstone, the three business units of the current LGT Group, will in future be held directly by the Prince of Liechtenstein Foundation and operate as independent pure-play companies in their fields.
Prince Philipp von und zu Liechtenstein will step down from his role of LGT group chairman, while Prince Max von und zu Liechtenstein, group chief executive officer since 2006, will become chairman of the three new companies. Olivier de Perregaux, group chief financial officer since 2001, has been appointed chief executive officer of LGT Private Banking. The new management structures will come into force at the beginning of 2021.
The decision to create three stand-alone businesses in private banking, asset management and impact investing coincides with the upcoming retirement of Prince Philipp von und zu Liechtenstein, who – after almost 40 years in various management positions at LGT and as its chairman since 2001 – will step down from his role.
“We are convinced that in an increasingly dynamic and complex market environment, our private banking, asset management and impact investing businesses will be able to pursue their strategic goals in a more targeted manner as independent companies,” says Prince Philipp von und zu Liechtenstein, chairman of the LGT Group Foundation.
The three business units operate in different markets and competitive environments, pursue individual strategic objectives and are faced with increasingly different challenges and opportunities, while economies of scale and synergies within the group are decreasing.
LGT Private Banking aims to further expand its international market position through organic growth and acquisitions in existing and new markets, and to enhance its focus on tailored advice and service.
LGT Capital Partners aims to make greater inroads in its global expansion, develop its product offering for institutional investors, and build out its market and investment expertise and its thought leadership in the sustainable and alternative investments space.
The youngest of the three units, Lightstone, aims to take on a leading global role in the growing area of impact investing, planning to make its investment portfolio of around US$500 million accessible to external investors via a fund structure in the fourth quarter of 2020.
“Positioning LGT Private Banking, LGT Capital Partners and Lightstone as independent companies will allow the three businesses to develop their strategy in line with their specific needs and in response to the changing market conditions,” says Prince Max von und zu Liechtenstein, chief executive officer of LGT Group. “This will enable us to even better bring to bear LGT’s strengths for the respective clients, employees and other stakeholders, while remaining committed to our shared history and values as well as to a long-term sustainable development.”
In its year-to-date performance, LGT, which has 228 billion Swiss francs (US$235 billion) in assets under management, recorded positive net asset inflows and further revenue growth.