LGT Group spins out alternative investing, private banking and impact arms
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Swiss investor LGT Group will split its private banking, alternatives and impact investment businesses into three separate and independent units.

The units – LGT Private Banking, LGT Capital Partners and Lightstone – will be directly held by the Prince of Liechtenstein Foundation, LGT Group said in a statement.

The Group CEO Prince Max von und zu Liechtenstein will take over as chairman from Prince Philipp von und zu Liechtenstein, it added.

Separately, Group chief financial officer Olivier de Perregaux has been appointed as the CEO of LGT Private Banking. The new structures will come into effect from the beginning of next year.

LGT Private Banking will seek to grow its international market presence through both organic growth and acquisitions. At the same time, LGT Capital Partners says it will aim to increase its product offerings for institutional investors.

Impact investment arm Lightstone, meanwhile, says it will aim to grow its business, specifically through making its $500 million investment portfolio accessible to external investors through the fund route in the fourth quarter of this year.

The Group said the moves were reflective its growing international presence as a diversified private banking and asset management institution.

Max von und zu Liechtenstein said positioning the three units as independent firms would allow them to develop strategies in line with their specific needs and operating environments.

“Our family has always been driven by entrepreneurial thinking and actions – and we now want to take advantage of our position of strength to set the right course for the future,” outgoing chairman Philipp von und zu Liechtenstein added.

LGT Group, the princely family of Liechtenstein-controlled private banking and asset management group, says it has around 228 billion Swiss Francs (around $234.36 billion or Rs 17.72 lakh crore at current rates) in assets under management.

The Group has over 3,600 employees across 20 locations in Europe, Africa, Asia and the Middle East.

In India, LGT has made several investments through impact investment arm LGT Lightstone Aspada, which was formed after the Swiss investor acquired Aspada.

Last month, for example, it invested $7 million (around Rs 54 crore) in Akna Medical Pvt. Ltd, which operates a healthcare supply chain. Before that, in March, it led another $7 million round in SmartCoin Financials Pvt. Ltd, which operates a self-employed worker and small merchant-focussed microlending startup.

Also in March, it invested $50 million (around Rs 350 crore) in Vivriti Capital Pvt. Ltd, as part of the online enterprise debt platform and lender’s Series B funding round.

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Aspada’s Thomas Hyland on why the firm decided to raise third-party capital.

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