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December 15, 2021

LGT signs $338m deal to buy Australian wealth manager Crestone

By Verdict Staff

Liechtenstein-based private lender LGT has signed a conditional agreement to acquire Australia-based Crestone Wealth Management for around $338m (A$475m).

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  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
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by GlobalData
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The transaction is expected to conclude in the first quarter of 2022, subject to regulatory approvals.

Crestone was established in 2016 following a management buy-out of UBS Wealth Management Australia.

The firm provides investment advice and portfolio management services to high-net-worth (HNW) clients and family offices, not-for-profit organisations, and financial institutions.

The firm manages $18bn in client assets. It has 250 employees, including over 90 investment advisors, in its offices in Sydney Adelaide, Melbourne, and Brisbane.

LGT expects the acquisition to add a significant foothold in the Australian wealth management market.

LGT Private Banking CEO Olivier de Perregaux said: Crestone has a successful entrepreneurial team, an attractive client franchise and very promising further growth prospects.

“This makes it an excellent strategic and cultural fit for LGT, and the intended transaction allows us to extend our already strong position in the Asia Pacific region.”

Following the deal, Crestone will be added to LGT’s private banking entity. The deal will have no effects on the firm’s existing business model and management.

The partnership with LGT will enable the firm to obtain access to a range of global services and investment opportunities and expand its global services and investment offering to LGT clients.

Crestone CEO Michael Chisholm said: “The envisaged transaction would enable us to deliver greater scale benefits to our clients whilst drawing on the experience, skills, and global insights of a leading wealth management firm like LGT.

“We believe that LGT is a natural long-term owner for our business that will provide us with further balance sheet strength while retaining the benefits of a private ownership structure that aligns with our client focused business model.”

In July this year, LGT signed an agreement to acquire a strategic minority stake in the German digital wealth manager LIQID.

The Liechtenstein lender took full control of LGT Vestra in last October.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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