Company:LGT Group

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Short description: Private banking and asset management group based in Liechtenstein
LGT Group
LGT Group
FormerlyThe Liechtenstein Global Trust
TypePrivate
IndustryFinancial services
FoundedNovember 22, 1920; 103 years ago (November 22, 1920)
FounderThe Princely House of Liechtenstein
HeadquartersVaduz, Liechtenstein
Number of locations
20+
Area served
  • Europe
  • Americas
  • Asia-Pacific
  • Middle East[1]
Key people
  • Prince Maximilian, CEO
  • Prince Philipp Erasmus, Chairman of the Board of Trustees
ProductsPrivate Banking, Asset management, Hedge fund and Private equity
RevenueIncreaseSFr 3140 million[1] (2018)
IncreaseSFr 1,675.8 million[1] (2018)
Increase SFr 314.0 million
AUMIncrease SFr 198.2 billion[1][2]
Total assetsSFr 57.3 billion
OwnerPrince of Liechtenstein Foundation
Number of employees
3,405[1] (2018)
Websitewww.lgt.com

LGT Group is the largest royal family-owned private banking and asset management group in the world. LGT, originally known as The Liechtenstein Global Trust, is owned by the princely House of Liechtenstein through the Prince of Liechtenstein Foundation and led by its royal family members H.S.H. Prince Maximilian von und zu Liechtenstein (CEO) and H.S.H. Prince Philipp von und zu Liechtenstein (chairman).[3]

Organization

LGT is headquartered in Vaduz, Liechtenstein, with a key presence in Zürich, Switzerland. The company maintains 3,405 employees in over 20 offices around the globe, Asia, Australia , Europe, the Middle East and North America.[1]

LGT operates through several divisions:

The company has made several acquisitions of high value transactions. In 2009, it acquired the Swiss operation of Dresdner Bank from Commerzbank,[6] following this in 2015 it acquired more than $12 billion of HSBC Private assets and in 2017 it acquired Dutch giant ABN AMRO Asia Private with $20 billion in assets. The ABN AMRO transaction meant that LGT now had more assets under management in Asia than it did in Europe.

History

LGT Group traces its history back to 1920, when Bank in Liechtenstein (BIL) was founded with the objective to attract capital for the economic development of the Principality of Liechtenstein. In May 1921, BIL launched its operations with 10 employees based in ground-floor offices inside the main government building. During the global economic crisis in the 1930s, BIL and its shareholders were confronted with major problems, leading the Princely House of Liechtenstein to acquire a controlling interest in the bank.[7]

Until the 1960s, the bank’s main focus was to support and provide financing for the expansion of Liechtenstein’s economy and business sector. BIL did so primarily through the provision of financial services and loans. Over time, however, the commercial opportunities available to it in the local economy became too narrow, leading it to grow its operations to become an international commercial bank. Following this transformation, BIL began to expand into various segments of the banking industry, with a particular focus on activities pertaining to mortgages, stock markets and foreign exchange.[7]

Hans-Adam II, Prince of Liechtenstein (born 1945), led the bank on an expansion course until his accession to the throne in 1989, which it has maintained ever since.

In 1970, the bank's share capital was taken over by the recently established Prince of Liechtenstein Foundation.[7] During the 1980s, BIL opened representative offices in Europe, the US and Asia, including in London, which was its first foreign business base, and in Hong Kong in 1986.[8]

In 1986, BIL went public[9] and in 1989, acquired GT Management PLC in London.[10] In 1990, BIL GT Group AG was founded and H.S.H. Prince Philipp became Chairman of the Board of Directors.[11][12] Six years later, BIL GT Group was renamed Liechtenstein Global Trust and BIL became LGT Bank in Liechtenstein AG.[13] In 1998, the GT Asset Management division was sold and the bank went private.[14] It was then that LGT decided to focus on private banking and asset management and to further expand its international operations.[15]

In 2003, LGT acquired Schweizerische Treuhandgesellschaft STG from Swiss Life,[16] opened LGT Bank Deutschland & Co. OHG[17] and was granted a banking license in Singapore.[18] Over the next four years, it launched LGT Bank Switzerland and opened LGT Bank Österreich.[19] In 2006, H.S.H. Prince Maximilian of Liechtenstein became CEO.[20]

LGT Venture Philanthropy, an independent charitable foundation, was founded in 2007,[21] on the initiative of LGT CEO H.S.H. Prince Max von und zu Liechtenstein. In 2009, LGT sold its trust and fiduciary division (LGT Treuhand) to First Advisory Group[22] and acquired the Swiss operation of Dresdner Bank.[23][24] In 2011, it sold LGT Bank Deutschland & Co. OHG.[25] In the years that followed, LGT opened a branch in Salzburg, Austria (2012),[26] as well as LGT Middle East in Dubai (2013).[27]

Between 2012 and 2017, LGT acquired several new portfolios and operations, including Clariden Leu’s ILS boutique (2012),[28] a private banking portfolio from HSBC in Switzerland (2014),[29] a majority stake in London-based wealth management partnership Vestra Wealth (2016),[30] the private banking operations of ABN AMRO Asia in Asia and the Middle East (2016)[31] and European Capital Fund Management (2017).[32]

In 2019, LGT opened a branch in Thailand (LGT Securities Thailand)[33] and also entered the Indian market through the acquisition of a majority stake in Validus Wealth (FDI approval pending).[34] Later that year, the group acquired Aspada, a leading India-focused investment fund which was previously owned by the Soros Economic Development Fund (SEDF) as a sole shareholder, to expand its impact investing platform LGT Lightstone.[35]

In December 2020, LGT group announced changes in its executive board. By 2021, Prince Maximilian of Liechtenstein assumed the chairmanship of the foundation board. Meanwhile, the former CFO of Private Banking took over the private banking branch as CEO. At the end of 2021, the current group structure will be dissolved.[36]

In December 2021, LGT announced its agreement to acquire Crestone Wealth Management, a high net worth wealth management firm with approximately AUD$25 billion in client assets under management. The acquisition was completed in 2022.[37]

Controversy

Main page: Finance:2008 Liechtenstein tax affair

The German tax authorities commenced numerous audits and prosecutions for tax fraud in the tax haven of Liechtenstein, based on information on a compact disc acquired by the German secret service Bundesnachrichtendienst. The CD, containing large amounts of information on accounts held by German citizens and other nationals with the bank, was allegedly obtained for a sum of €4 million from a former employee or contractor of the bank.[38] Information was also forwarded to many other European states and Australia, leading to successful investigations there. For its involvement in the affair, LGT agreed to settlement of with a fine of 50 million euros.

Rating

Rating: Standard & Poor's[39] / Moody's[40] (2017)

  • A+ / Aa2

Locations

Europe

Other locations

References

Note: This topic belongs to "Money " portal

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "Annual Report 2018". https://www.lgt.com/shared/.content/publikationen/geschaeftsberichte/Geschaeftsbericht_2018_Group_en.pdf. 
  2. ↑ "LGT: Bumper Profits in 2017". finews.com. 12 March 2018. https://www.finews.com/news/english-news/31019-lgt-earnings-2017?_ga=2.171518886.744008705.1543924894-1843964623.1514358967. 
  3. ↑ Bucak, Selin (13 September 2017). "A royal family office: LGT's UK connections". Citywire. https://citywire.ch/news/a-royal-family-office-lgt-s-uk-connections/a1049188. 
  4. ↑ Thompson, Jennifer (2021-05-20). "Liechtenstein royal family backs impact investing". Financial Times. https://www.ft.com/content/f977a2d0-03dc-480e-a559-8b384e8d4779. 
  5. ↑ Cua, Genevieve (7 August 2018). "An integral piece of the puzzle". The Business Times. https://www.businesstimes.com.sg/magazines/wealth-august-2018/an-integral-piece-of-the-puzzle. 
  6. ↑ "LGT Buys Swiss Unit of Dresdner From Commerzbank". 27 July 2009. https://dealbook.nytimes.com/2009/07/27/lgt-buys-swiss-unit-of-dresdner-from-commerzbank/. 
  7. ↑ 7.0 7.1 7.2 Pohl, Manfred (1994). Handbook on the History of European Banks. Edward Elgar Publishing Ltd. ISBN 9781781954218. https://books.google.com/books?id=eXvfNDHpfWwC&q=bank+in+liechtenstein+bil+foundation. 
  8. ↑ "LGT Bank: A Beacon Of Stability". https://sg.asiatatler.com/life/lgt-bank-a-beacon-of-stability. 
  9. ↑ P. Christiaan Klieger (2012). The Microstates of Europe: Designer Nations in a Post-Modern World. Lexington Books. ISBN 9780739174272. https://books.google.com/books?id=CrfwGa4aCwYC. 
  10. ↑ United States. Securities and Exchange Commission (1995). SEC Docket. 59 (9-14 ed.). Securities and Exchange Commission. https://books.google.com/books?id=zGNdqqufumEC&q=1989%2C+took+over+GT+Management+PLC+in+London&pg=PA1516. 
  11. ↑ "Long-Term Thinking and Actions Are Part of the LGT Identity". 11 May 2018. https://www.finews.asia/services/advertorials/26872-lgt-prince-may-philipp-values-banking-liechtenstein. 
  12. ↑ "Das Fürstenhaus von Liechtenstein". fuerstenhaus.li. http://www.fuerstenhaus.li/en/. 
  13. ↑ Freudenheim, Milt (11 July 1996). "Investment Firms Talk Of Merging". https://www.nytimes.com/1996/07/11/business/investment-firms-talk-of-merging.html. 
  14. ↑ "LGT asset management division is up for sale". 7 July 1998. https://www.moneymarketing.co.uk/lgt-asset-management-division-is-up-for-sale. 
  15. ↑ "LGT Capital Partners". https://www.institutionalinvestor.com/article/b18bk5xw6jr7k1/lgt-capital-partners. 
  16. ↑ "Liechtenstein's LGT buys Swiss Life's STG". https://www.ipe.com/news/liechtensteins-lgt-buys-swiss-lifes-stg/www.ipe.com/news/liechtensteins-lgt-buys-swiss-lifes-stg/7189.fullarticle. 
  17. ↑ "Liechtenstein's LGT Bank sells German unit to ABN Amro". https://www.expatica.com/de/liechtensteins-lgt-bank-sells-german-unit-to-abn-amro. 
  18. ↑ "ABN Amro sells its private banking business Hong Kong, Singapore, and Dubai to LGT". 6 December 2016. https://asianbankingandfinance.net/retail-banking/more-news/abn-amro-sells-its-private-banking-business-hong-kong-singapore-and-dubai-l. 
  19. ↑ "Interview with Meinhard Platzer, co-CEO of LGT Bank". https://www.citywealthmag.com/news/interview-meinhard-platzer-co-ceo-lgt-bank. 
  20. ↑ "Max Und Zu Liechtenstein, LGT Group Foundation: Profile and Biography" (in en). https://www.bloomberg.com/profile/person/18302219. 
  21. ↑ "New fund targets UK social impact". 23 July 2013. https://www.investmenteurope.net/investmenteurope/news/3704611/fund-targets-uk-social-impact. 
  22. ↑ "Liechtenstein's LGT Group Sells Trust Business". https://www.tax-news.com/news/Liechtensteins_LGT_Group_Sells_Trust_Business_____35560.html. 
  23. ↑ "LGT Buys Swiss Unit of Dresdner From Commerzbank". 27 July 2009. https://dealbook.nytimes.com/2009/07/27/lgt-buys-swiss-unit-of-dresdner-from-commerzbank/. 
  24. ↑ "Commerzbank sells Dresdner Swiss unit to LGT". https://www.ft.com/content/320b6328-7ac8-11de-8c34-00144feabdc0. 
  25. ↑ "LGT Bank appoints new CEO". https://citywire.ch/news/lgt-bank-appoints-new-ceo/a991987. 
  26. ↑ "LGT expands European base with Salzburg opening". https://www.verdict.co.uk/private-banker-international/news/lgt-expands-european-base-with-salzburg-opening. 
  27. ↑ "LGT opens first private banking office in Dubai". https://gulfnews.com/business/banking/lgt-opens-first-private-banking-office-in-dubai-1.1147096. 
  28. ↑ "Clariden Leu insurance-linked investment business and ILS funds sold to LGT Group". 13 March 2012. https://www.artemis.bm/news/clariden-leu-insurance-linked-investment-business-and-ils-funds-sold-to-lgt-group. 
  29. ↑ "LGT Agrees to Buy Swiss Private Banking Assets From HSBC". 24 June 2014. https://www.bloomberg.com/news/articles/2014-06-24/lgt-agrees-to-buy-swiss-private-banking-assets-from-hsbc. 
  30. ↑ "LGT Group snaps up UK's Vestra Wealth". Financial Times. 14 March 2016. https://www.ft.com/content/03860bcc-e9e6-11e5-888e-2eadd5fbc4a4. 
  31. ↑ "Liechtenstein's LGT buys ABN Amro's Asian private banking operations". 6 December 2016. https://www.scmp.com/business/banking-finance/article/2052232/lichtensteins-lgt-buys-abn-amros-asian-private-banking. 
  32. ↑ "LGT Capital Partners acquires European Capital". June 2017. https://www.privateequitywire.co.uk/2017/06/01/252377/lgt-capital-partners-acquires-european-capital. 
  33. ↑ "LGT opens Bangkok office". https://www.bangkokpost.com/business/1637202/lgt-opens-bangkok-office. 
  34. ↑ "LGT buys majority stake in Validus". 27 June 2019. https://www.livemint.com/companies/news/wealth-manager-validus-sells-majority-stake-to-lgt-1561624604444.html. 
  35. ↑ "Beef under fire; proxy power blunted; Soros' royal impact deal". Financial Times. 28 August 2019. https://www.ft.com/content/1d814f2a-c933-11e9-a1f4-3669401ba76f. 
  36. ↑ Burroughes, Tom (21 December 2020). "Change At Top Of LGT, New Chairman Named". https://www.wealthbriefingasia.com/article.php?id=189686#.YUGicZ1KjtQ. 
  37. ↑ "LGT". https://www.lgt.com/en/news/lgt-agrees-to-acquire-australian-based-crestone-wealth-management/#button2. 
  38. ↑ Fury in Liechtenstein over German tax inquiry by Tony Patterson in The Independent, 20 February 2008. Retrieved 31 August 2013. Archived here.
  39. ↑ "Standard & Poor's rating report". Standard & Poor's. https://www.lgt.com/shared/.content/publikationen/$verwaltung_publikationen/unternehmensportraets/Rating_S_P_LGT_Bank_en.pdf. 
  40. ↑ "Moody's rating report". Moody's. 12 June 2018. https://www.lgt.com/shared/.content/publikationen/$verwaltung_publikationen/unternehmensportraets/Rating_Moodys_LGT_Bank_en.pdf. 

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