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LGT to acquire majority stake in Vestra Wealth

14 March 2016

LGT today announced that it has agreed to acquire a significant majority stake in Vestra Wealth LLP, primarily from external investors in the firm. The remaining stake will continue to be held by the firm’s executive partners. Vestra Wealth is a London-based wealth management partnership with GBP 5.6 billion in managed assets. With this transaction, LGT will gain a significant foothold in the important British market, while Vestra Wealth will further enhance its services to clients in its current partnership setup.

Vestra Wealth is a UK-focused wealth management boutique that has experienced significant organic growth and value creation since its inception in 2008. As at February 2016, it managed assets amounting to GBP 5.6 billion on behalf of its clients. The partnership has 234 staff and offices in London, Bristol and Jersey. It provides a comprehensive range of investment management and wealth planning services to UK high-net-worth individuals, whilst its Private Office offers an outsourced private investment office service to ultra-high net worth clients. Vestra’s Jersey office provides similar services for clients with international connections. Vestra Wealth US Ltd specialises in providing investment advice for US clients and is regulated by the FCA as well as the SEC.

LGT is the largest private banking and asset management group in the world that is wholly owned by a single family. As at 31 December 2015, LGT had CHF 132.2 billion in assets under management, which represents an increase in excess of 50% over the last five years and is attributable to LGT’s successful international growth strategy. The group benefits from a well-diversified revenue base and economies of scale, and has shown a steady increase in profitability despite continuous investments in new business areas. LGT’s culture is built on the alignment of interests between clients, employees and owners, emphasising entrepreneurship and long-term orientation. As the family office of the Princely Family of Liechtenstein, LGT possesses extensive experience in the management of family assets. This expertise also forms the basis for its collaboration with clients. LGT combines tried-and-tested private banking and asset management services and exceptional investment expertise with additional offerings in areas such as philanthropy.

Continuity for clients and staff

After completion of the transaction, which is subject to FCA approval, Vestra Wealth will be renamed LGT Vestra and will remain a partnership between LGT and the original partners. David Scott will be Chairman of the Management Board and Ben Snee the CEO. Thomas Piske, CEO LGT Private Banking, will chair the entity’s Governing Board.

Vestra will maintain its entrepreneurial approach in its quest to be the UK’s leading wealth manager by continuing to provide high quality impartial advice, free from conflicts of interest. Its partnership with LGT will allow Vestra to access the specialist capabilities of the wider group, including lending for its clients, to further enhance overall client service.

A winning solution for LGT and Vestra Wealth

After successfully expanding its private banking franchise over the last 15 years in Singapore, Hong Kong, Dubai, Austria and Switzerland, LGT will now gain a significant foothold in the British market. This important step gives the group access to UK-based clients and the independent financial adviser market. LGT will also benefit from London’s preeminent position as a hub for clients from other countries. At the same time, the partnership with LGT translates into more stability and long-term opportunities for Vestra Wealth’s clients and employees.

David Scott, Senior Partner, Vestra Wealth: "We are proud to have LGT as our main investor partner. The group and its owner, one of the most long-standing families in Europe, share our philosophy and can support us in enhancing and strengthening our offering to clients. The family’s long-term approach was a key aspect in our decision to partner with the group, as it means we can focus on building sustainable success, as well as enhancing the opportunities for our loyal staff. LGT’s purchase of a majority stake also allows some of our initial investors to be rewarded for the risk they took and their belief in our success when we started the business."

H.S.H. Prince Max von und zu Liechtenstein, CEO LGT: "With Vestra Wealth, we have found an excellent organisation and private banking platform that we can continue to grow in the years to come. We warmly welcome the Vestra Wealth partners and team to the LGT family. While our focus is on continuity for Vestra Wealth’s clients, we will cooperate in areas where Vestra can benefit from LGT’s long-standing investment expertise. For LGT, Vestra Wealth is an excellent strategic and cultural fit, and this move marks a further step in the expansion of our long-term oriented international growth strategy."