The Liechtenstein royal family has struck a £140 million deal to buy Edinburgh-based abrdn’s discretionary fund management business in the UK and Jersey, which has £6.1 billion in assets under management and nearly 140 employees.
LGT, the international private banking and asset management group owned by the Princely Family of Liechtenstein, said the deal further strengthened its position in the UK wealth management market.
It added that the “high-quality” UK and Jersey-based discretionary fund management business it had agreed to acquire from abrdn “encompasses a profitable and longstanding portfolio of high-net-worth clients and charities”.
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UK-based LGT Wealth Management will assume the client relationships of the acquired business and all of its employees, after the deal closes.
The transaction will increase LGT Wealth Management’s assets under management from around £22bn at the end of January to £28bn.
LGT said: “In view of the integration of the additional staff, LGT Wealth Management plans to expand its existing locations in London, Edinburgh, Bristol and Jersey, while also increasing its UK footprint to take on the offices in Birmingham and Leeds currently operated by abrdn’s discretionary fund management business.”
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Ben Snee, chief executive of LGT Wealth Management, said: “We see a strong strategic fit between abrdn’s discretionary fund management business and LGT. There is clear similarity in ethos and approach between the two businesses, with a genuine desire to provide first-class client solutions and passion for conviction-based investing.
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"We very much look forward to welcoming our new colleagues to the team and are convinced that by combining our footprint and offerings, including abrdn’s proven experience in the charities sector, we’re set to achieve further successful growth in the UK market.”
Around 45 of the 140 staff involved are understood to be based in Scotland.
Completion of the transaction, which is by way of a share deal, is expected in the second half of 2023, following receipt of customary regulatory approvals.
LGT’s offer values the business for acquisition at an amount of £140m (around ChF158m).
LGT Wealth Management, formerly known as Vestra Wealth, was founded in 2008 and was acquired by LGT in 2016. LGT Wealth Management currently employs more than 475 staff.
His Serene Highness Prince Max von und zu Liechtenstein, chairman of LGT, said: “We very much look forward to welcoming abrdn’s discretionary fund management clients to LGT. The business’ strong investment performance and ESG-strategy make it a perfect fit for LGT. We are convinced that, in turn, our stability, entrepreneurial spirit, focus on excellent client service and investment expertise, make us a reliable and attractive partner for our future clients.”
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