Citywire - For Professional Investors

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

How much did LGT Group pay for Vestra Wealth?

How much did LGT Group pay for Vestra Wealth?

Liechtenstein’s LGT Group paid £135 million to acquire 75.57% of Vestra Wealth, Citywire Switzerland's sister website Wealth Manager can reveal.

The acquisition of the majority stake was completed in June 2016, however the details were previously undisclosed.

In its results for the year ending 31 December 2016, LGT’s UK holding company also revealed that further capital injections, worth £6 million and £10 million in June and December respectively, were poured into Vestra. The company noted that no further capital injections are anticipated.

The 75% holding was purchased primarily from Vestra’s original external investors. Following the transaction, its executive partners continued to hold the remaining stake. Senior partner and co-founder David Scott became chairman of the board, while managing partner Ben Snee took up the role of chief executive.

However, in the years 2019 and 2021, the remaining 24.43% of Vestra will be acquired by LGT, according to LGT UK Holdings’ accounts filed at Companies House. The company said that it has determined that the future payment should be treated as remuneration.

At the time of the transaction, Prince Max of Liechtenstein, chief executive of LGT, said: ‘While our focus is on continuity for Vestra Wealth’s clients, we will cooperate in areas where Vestra can benefit from LGT’s long-standing investment expertise.

‘For LGT, Vestra Wealth is an excellent strategic and cultural fit, and this move marks a further step in the expansion of our long-term oriented international growth strategy.’

According to the latest accounts of LGT Vestra, covering the 12 months to 30 April 2016, the firm made a pre-tax profit of £8.3 million on turnover of £38 million. Since the acquisition, the firm has grown its assets from £5.6 billion to £8.7 billion. 

The accounts also showed that the average number of members on the books rose from 78 to 88 over the year, with the highest paid individual member receiving £804,850.

Since the deal completed, Scott has been adamant that the company would remain independent, a sentiment echoed by LGT, which said that the company ‘does not have any control or influence over Vestra’.

With its eye on growth, over the last year Vestra has made several hires, including Andrew Davies from Barclays Wealth to head its Bristol base and Maeve Colley-Russell from Coutts to bolster its Private Office.

The company also launched a six-strong fund range, and has partnered with an ethical investment firm, Tribe Impact Capital, ahead of its launch.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.