In a world dominated by multinational corporations and global conglomerates, the tiny Alpine nation of Liechtenstein has been making waves with its royal finance empire, LGT Group.
This dynasty, led by Prince Hans-Adam II, boasts a legacy dating back nearly a thousand years, surviving wars, floods, and scandals.
LGT Group, the royal family’s private banking and asset management firm, recently reported record-breaking assets under management (AUM) of almost 306 billion Swiss francs ($334 billion) as of June 30, marking a remarkable 6% increase since the end of the previous year.
The Vaduz-based firm’s success is not limited to its home nation; it has been expanding its footprint globally. This month, LGT Group acquired Abrdn Plc’s discretionary fund-management business in the UK and Jersey, adding to its list of external investments since 2021.
Olivier de Perregaux, the CEO of LGT Private Banking, revealed, “We continue to look for opportunities, but we are primarily focusing on organic growth.”
LGT’s impressive growth mirrors the resurgence of Liechtenstein, which has shifted from being notorious as a tax haven to a thriving financial hub. The firm more than doubled its AUM and operating income over the past decade, bouncing back from challenges following the 2008 financial crisis.
The acquisition of talent has also played a crucial role in LGT’s ascent. The firm has been actively recruiting former Credit Suisse staff, especially after the collapse and acquisition of Credit Suisse by UBS Group AG.
This has contributed to a significant increase in LGT’s headcount, which now stands at approximately 5,000 employees.
Prince Hans-Adam’s wealth has also been on the rise, propelling him to the position of Europe’s richest royal. As the sole beneficiary of LGT, he is now ranked as the 215th richest person globally, with a fortune estimated at around $9.2 billion, a remarkable 71-spot jump since the beginning of the year.
Unlike other European monarchs, Prince Hans-Adam personally owns the family’s most valuable assets, making it the oldest fortune on Bloomberg’s wealth ranking.
The origins of this wealth date back to the 12th century when the family acquired land across what is now Germany, Austria, Hungary, and the Czech Republic.
LGT itself was established in 1921 and acquired by the royal family during the Great Depression.
Under Prince Hans-Adam’s leadership, LGT expanded internationally, opening its first international branch in Hong Kong in 1986. Besides LGT, the royal dynasty also owns land, real estate, and an extensive art collection, with the finance empire serving as the driving force behind their fortune.
Liechtenstein’s transformation from a secretive tax haven to a transparent financial center has further bolstered LGT’s success. While the bank faced challenges during the 2008 tax evasion scandal, it rebounded in 2010 and has been on a steady growth trajectory since.
With Prince Hans-Adam’s son, Max, now serving as the chairman of LGT Group, and the family actively involved in major financial decisions, the future appears promising for this enduring royal finance empire.
LGT’s commitment to growth, both organically and through strategic acquisitions, suggests that Liechtenstein’s royal legacy in the world of finance is far from fading.