)
The Liechtenstein royal family has acquired the Commonwealth Bank of Australia’s (ASX: CBA) personal advice business in a move that will transfer more than the $5 billion in assets of high-net-worth clients to LGT Group – the world’s largest royal family-owned banking and asset management group.
LGT is owned by the Princely Family of Liechtenstein with the CBA deal poised to expand the group’s footprint in the Australian wealth-management sector.
CBA says it has entered into an agreement with LGT Crestone, the Liechtenstein group’s Australian arm, to serve the personal advice needs of Commonwealth Private’s high-net-worth clients.
The deal will see about 40 advisers, associates, and support staff join LGT Crestone which the company says will “solidify its position as a trusted partner for sophisticated private wealth clients”.
LGT Group, which has about $600 billion in assets under management globally, says the acquisition is structured to ensure a smooth integration for Commonwealth Private’s clients and employees.
LGT, originally known as The Liechtenstein Global Trust, currently has operations in Adelaide, Brisbane, Melbourne, Perth and Sydney and employs more than 350 people, including more than 100 advisers, across Australia.
"We are delighted CBA – one of Australia's leading financial institutions – has chosen LGT Crestone as the trusted home for their highly valued ultra-high net worth and high-net worth clients and employees,” says Michael Chisholm, the CEO of LGT Crestone.
“It's a terrific validation of our efforts to build a truly outstanding private wealth advice business catering to the needs of the most sophisticated investors in Australia.
“This transaction is driven by our shared purpose and values with Commonwealth Private Advice, particularly our client-centric approach to managing the wealth and financial wellbeing of sophisticated high-net-worth clients."
CBA’s group executive of retail banking services, Angus Sullivan, says the decision to sell Commonwealth Private to LGT was founded on a desire to find a specialist wealth management firm that “shares our client-first values and strong commitment to its people”.
“Our agreement with LGT Crestone will allow Commonwealth Private clients access to LGT Crestone’s premium advice offering, as well as the opportunity to sample an expanded range of personal advice services,” says Sullivan.
“We remain committed to Commonwealth Private being the number one banking proposition for our high-net-worth clients in Australia through our investment in bespoke private banking services.
“Our private bankers will continue to work closely with our clients’ advisers through the transition to deliver the best customer outcomes.”
LGT, which was founded in 1921, employs more than 5,800 people in 30 locations across Europe, Asia, the Americas, Australia and the Middle East. Its largest client is the Princely House of Liechtenstein, which is also the group’s owner.
Prince Max von und zu Liechtenstein, chairman of LGT, says the acquisition of the Commonwealth Private business strengthens the group’s role in the Australian wealth-management sector.
“Clients need stable partners who provide comprehensive and secure opportunities throughout their financial journeys, and we are committed to delivering that level of support and confidence to our new clients,” he says.
“With this acquisition, we are accelerating our growth trajectory in one of the world's most promising wealth markets, deepening our commitment to the APAC region and our clients here.
“Today, APAC represents more than a third of LGT's business, a reflection of both our strategic focus and our ambition to build a truly diversified global private banking group."
CBA will continue to provide personal financial advice to Commonwealth Private clients until the sale is finalised, which is expected in mid-2025.
Australia’s biggest bank notes that LGT Crestone has offered roles to all Commonwealth Private’s advisers and relevant support staff to transition across to LGT.
)
