LGT to Create 3 Independent Companies the Will Focus on Private Banking, Asset Management, and Impact Investing
Posted on 05/05/2020
LGT Group is doing a massive reorganization. LGT Private Banking, LGT Capital Partners, and Lightstone, the three business units of the current LGT Group will in the future be held directly by the Prince of Liechtenstein Foundation and operate as independent pure-play companies in their fields.
In addition, Prince Philipp von und zu Liechtenstein (born August 19, 1946) will step down from his role of Group Chairman at LGT, while H.S.H. Prince Max von und zu Liechtenstein, Group CEO since 2006, will become Chairman of the three new companies. Olivier de Perregaux, Group CFO since 2001, has been appointed CEO of LGT Private Banking. The new management structures will come into force at the beginning of 2021. Prince Philipp von und zu Liechtenstein is a son of the former reigning prince Franz Joseph II and the younger brother of current reigning prince Hans-Adam II.
In a press release, “The Foundation Board of LGT Group, in close consultation with the Princely Family, has decided that the Group’s three business units in private banking, asset management and impact investing will be directly held by the Prince of Liechtenstein Foundation in the future. LGT Private Banking, LGT Capital Partners and Lightstone will thus operate as independent pure-play companies in their fields, and the Group structure will be dissolved. This step reflects the successful development of LGT with its strong international growth into a diversified private banking and asset management group with (as at year-end 2019) CHF 228 billion in assets under management, CHF 4.6 billion in equity and over 3600 employees in more than 20 locations in Europe, Asia, the Americas and the Middle East. In its year to date performance, LGT recorded positive net asset inflows and further revenue growth.
The decision to create three stand-alone businesses coincides with the upcoming retirement of H.S.H. 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. H.S.H. Prince Philipp was instrumental in the realignment and going private of LGT (formerly Liechtenstein Global Trust) in 1998 and later initiated the Group’s international growth and diversification strategy that is still being pursued today. From 2006 onwards, this strategy was further developed and successfully implemented by H.S.H. Prince Max von und zu Liechtenstein as Group CEO allowing the Group to achieve its current size and strong market position. H.S.H. Prince Philipp will continue to be closely linked with LGT as Honorary Chairman.”
No changes will arise for private banking and asset management clients as a result of the new structure. LGT Private Banking and LGT Capital Partners will continue their collaboration. No redundancies are foreseen due to the reorganization.
