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Private Equity News Liechtenstein: Key Updates and Insights

Private equity news in Liechtenstein has been gaining attention in recent years. As a small but wealthy country, Liechtenstein has attracted the interest of private equity firms looking for investment opportunities in a stable and prosperous economy. One of the key players in the private equity industry in Liechtenstein is the LGT Group, which is owned by the royal family of Liechtenstein.

The LGT Group has a significant presence in the private equity industry in Liechtenstein, with a focus on impact investing and sustainable investments. However, the group has recently undergone a shake-up of its senior impact investment team, which has raised questions about the future direction of the group's investment strategy. Despite this, the LGT Group remains a major player in the private equity industry in Liechtenstein, and its influence is likely to continue to be felt in the years to come.

Key Takeaways

• The LGT Group is a major player in the private equity industry in Liechtenstein, with a focus on impact investing and sustainable investments.

• The recent shake-up of the LGT Group's senior impact investment team has raised questions about the future direction of the group's investment strategy.

• Despite this, the LGT Group remains a significant force in the private equity industry in Liechtenstein, and its influence is likely to continue in the years to come.

Private Equity in Liechtenstein

Liechtenstein is a small European country that has become a hub for private equity firms. Private equity is a type of investment that involves buying and selling shares in private companies. The country's favorable tax laws and business-friendly environment make it an attractive destination for private equity firms.

One of the most prominent private equity firms in Liechtenstein is the LGT Group, which is owned by the country's ruling family. LGT Group's impact investment arm has been making headlines recently due to senior staff leaving the business unit as part of a shake-up of the firm. Despite this, LGT Group remains a major player in the Liechtenstein private equity scene.

Other private equity firms that operate in Liechtenstein include Trinity Partners AG, a Liechtenstein-based independent asset management company that specializes in professional portfolio management of private equity and real estate projects. Trinity Partners is fully licensed and supervised by the Financial Market Authority (FMA) of the Principality of Liechtenstein.

Private equity firms in Liechtenstein invest in a variety of businesses, from technology startups to established companies in industries such as healthcare and finance. These firms provide capital to businesses that may not have access to traditional financing options, allowing them to grow and expand.

Investments made by private equity firms in Liechtenstein are subject to the country's regulations and laws. Liechtenstein's regulation is well-balanced and still business-friendly, with the government highly committed to offering non-discriminatory access to the financial markets abroad. Economically speaking, Liechtenstein has a long liberal tradition.

In summary, Liechtenstein's favorable tax laws and business-friendly environment have made it an attractive destination for private equity firms. LGT Group and Trinity Partners AG are just a few of the private equity firms that operate in the country, providing capital to businesses in a variety of industries.

Role of LGT Group

LGT Group is a Liechtenstein-based financial institution that offers a range of services, including private banking, asset management, and impact investing. The Group's three business units in private banking, asset management, and impact investing will operate as independent pure-play companies in their fields. This decision was made by the Foundation Board of LGT Group, in close consultation with the Princely Family, in light of LGT's strong market position.

LGT Private Banking

LGT Private Banking is one of the three business units of LGT Group. It is a leading private bank in Liechtenstein, Switzerland, and Asia. LGT Private Banking offers a wide range of services, including wealth management, investment advisory, and financial planning. The bank caters to high-net-worth individuals, families, and institutions. It is known for its long-term investment approach, which focuses on sustainability and social responsibility.

LGT Impact

LGT Impact is another business unit of LGT Group. It is a pioneer in impact investing, which seeks to generate positive social and environmental impact alongside financial returns. LGT Impact invests in companies and funds that address social and environmental challenges, such as climate change, poverty, and inequality. The business unit has a global presence and manages several impact funds. LGT Impact is committed to measuring and reporting the impact of its investments.

Overall, LGT Group plays a significant role in Liechtenstein's financial industry. The Group's commitment to sustainability and social responsibility aligns with the values of the Princely Family, which has a long history of promoting social and environmental causes. LGT Group's decision to create three independent companies reflects its strategic vision and adaptability to changing market conditions.

Influence of Key Personnel

Private equity funds are often structured around the expertise and experience of key personnel. These individuals are responsible for making investment decisions, managing portfolio companies, and maintaining relationships with limited partners. As a result, the success of a private equity fund is often closely tied to the performance of its key personnel.

CEO and COO

The CEO and COO are typically responsible for the overall management of a private equity fund. They are responsible for setting investment strategy, managing the fund's portfolio, and overseeing fundraising efforts. In addition, they are responsible for maintaining relationships with limited partners and ensuring that the fund is in compliance with all regulatory requirements.

The CEO and COO are also responsible for hiring and managing other key personnel, such as investment professionals and operations staff. They must ensure that these individuals have the necessary skills and experience to execute the fund's investment strategy and achieve its goals.

Board of Directors

The board of directors plays a critical role in the governance of a private equity fund. They are responsible for overseeing the CEO and COO, ensuring that the fund is being managed in the best interests of its limited partners, and providing strategic guidance to the fund's management team.

The board of directors is typically composed of a mix of internal and external members. Internal members may include the CEO and COO, while external members may include industry experts, investors, and other stakeholders. The board of directors may also include independent directors who provide an objective perspective on the fund's operations.

Private Equity News Liechtenstein Guide

The board of directors is responsible for approving major investment decisions, such as the acquisition or sale of portfolio companies. They are also responsible for approving the fund's budget and ensuring that it is being managed in a financially responsible manner.

Overall, the influence of key personnel on the success of a private equity fund cannot be overstated. It is essential that these individuals have the necessary skills and experience to execute the fund's investment strategy and achieve its goals. In addition, it is important that the fund has a strong governance structure in place, with a board of directors that is capable of providing strategic guidance and oversight.

Investment Strategy and Outlook

Private equity investments have been gaining popularity in Liechtenstein, and the outlook for the industry is optimistic. According to a UBS report, the investment outlook for the country is positive, with the global economy expected to grow at a steady pace.

Investors are focusing on a wide range of sectors, including technology, healthcare, and real estate. The strategy is to invest in companies that have a strong growth potential, a solid business model, and a competent management team. Private equity firms are also looking for companies that can benefit from their industry expertise and operational improvements.

Private Equity News Liechtenstein Guide

Interest rates are expected to remain low, which will continue to support the growth of the private equity industry. This will enable firms to continue to raise capital and invest in new opportunities. The low-interest-rate environment will also drive companies to seek alternative sources of financing, making private equity a more attractive option.

The outlook for the private equity industry is optimistic, with investors showing a strong interest in the sector. According to a Roland Berger study, private equity firms are expected to continue to raise funds, and deal-making activity is expected to remain strong.

Investors are also showing interest in impact investing, which involves investing in companies that have a positive social or environmental impact. The Liechtenstein royal family has also joined the impact investing movement, indicating a growing trend towards socially responsible investing.

In summary, the investment strategy for private equity firms in Liechtenstein is to invest in companies with a strong growth potential, solid business model, and competent management team. The outlook for the industry is optimistic, with low-interest rates and strong investor interest driving growth. Private equity firms are also exploring impact investing opportunities, indicating a growing trend towards socially responsible investing.

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Impact of Sustainable and ESG Investments

Private equity investors are increasingly recognizing the importance of sustainable and ESG (Environmental, Social, and Governance) investments.

The Liechtenstein royal family, one of Europe's wealthiest families, has joined the impact investing movement, using funds to achieve positive social or environmental change while making a financial return [1].

This trend is not unique to Liechtenstein, as private equity firms around the world are incorporating sustainability and social responsibility into how they invest and operate.

According to a Bain & Company report, ESG investing continues to face skepticism in the private equity industry, especially in the US. However, proactive firms are not waiting for ROI studies to pan out before incorporating sustainability and social responsibility into how they invest and operate [2]. A recent survey of LPs by INSEAD's Global Private Equity Initiative found that 90% of them factor ESG into their investment decisions and 77% use it as a criterion in selecting general partners [3].

Sustainable investment is "rebooting" Europe's private markets, according to research by PwC. The report predicted that ESG assets under management in European private equity funds would hit €292bn by the end of 2025 under its base-case scenario, while real estate ESG assets would almost double, reaching €1,154bn [4].

Private equity investors have the opportunity to make a disproportionate impact on sustainability challenges by deploying capital to transform "grey assets." Collaborating to address key barriers is also crucial for progress. The private equity industry as a whole has the chance to develop differentiated capabilities, and individual investors have the opportunity to make a difference [5].

Private Equity News Liechtenstein Guide

Overall, sustainable and ESG investments are becoming increasingly important to private equity investors, and firms that incorporate these principles into their investment and operational strategies are likely to be well-positioned for success in the long run.

[1] Financial Times. "Liechtenstein royal family backs impact investing." https://www.ft.com/content/f977a2d0-03dc-480e-a559-8b384e8d4779

[2] Bain & Company. "The Expanding Case for ESG in Private Equity." https://www.bain.com/insights/esg-investing-global-private-equity-report-2021/

[3] Harvard Business Review. "Private Equity Should Take the Lead in Sustainability." https://hbr.org/2022/07/private-equity-should-take-the-lead-in-sustainability

[4] Financial Times. "Sustainable investment 'rebooting' Europe's private markets, research shows." https://www.ft.com/content/92715635-17c6-4e4a-9c71-7b5ab270bd46

[5] World Economic Forum. "How private equity investors can progress on sustainability." https://www.weforum.org/agenda/2022/04/private-equity-investors-sustainability/

Analysis of Investment Portfolio

The Liechtenstein royal family has a portfolio of private equity investments that is managed by LGT Capital Partners. LGT Capital Partners is a global leader in alternative investing and has been managing the Princely Family of Liechtenstein's endowment for over 25 years.

The family's private equity investments are diversified across various sectors, including healthcare, real estate, infrastructure, and growth equity. They have a principal investor approach, which means that they invest in the whole portfolio or individual components or subsets alongside their clients.

According to a guest article by FINVIA, a client of VP Fund Solutions, private equity can protect portfolios from rising inflation, higher interest rates, and high volatility. Private equity investments are not correlated with the public markets, which means that they can provide diversification benefits to investors.

The private equity market has been growing in recent years, with global funds raised across the full private capital spectrum hitting $1.2 trillion in 2021, a 14% increase from the 2020 total and the highest level ever reached. Buyout funds raised $387 billion in 2021, their second-best year ever, according to Bain & Company's Global Private Equity Report 2022.

Private wealth units have become increasingly popular among private equity and alternative asset managers. A survey conducted by Private Equity International found that more than 60% of senior buyout, growth, private debt, VC, real estate, and infrastructure executives globally have, or plan to have, private wealth units.

Overall, the Liechtenstein royal family's private equity investments are well-diversified and managed by a reputable global alternative investment firm. Private equity investments can provide diversification benefits and protection against market volatility, making them attractive to high-net-worth individuals and institutional investors alike.

Abraaj Group Controversy

The Abraaj Group, once the largest private-equity firm in the Middle East, collapsed in 2019 after allegations of mismanagement and misuse of investor funds. The founder of the firm, Arif Naqvi, was fined $135.6 million and banned from Dubai's financial center for his role in the collapse.

The scandal was a "wake-up call" for the advisory industry, highlighting the importance of transparency and accountability in private-equity investments. The Abraaj Group had been a trailblazer for emerging market investment, but its downfall has cast a shadow over the industry.

Sev Vettivetpillai, the former co-chief executive officer of the Abraaj Group, has been charged with fraud and conspiracy in the United States, accused of inflating the value of the firm's holdings to attract investors. Vettivetpillai has denied the charges.

The controversy surrounding the Abraaj Group has led to increased scrutiny of the private-equity industry and its practices. Investors are more cautious about investing in emerging markets, and regulators are taking a closer look at the industry to ensure that best practices are being followed.

Despite the controversy, the private-equity industry continues to grow, with firms seeking to invest in emerging markets and other high-growth areas. However, the Abraaj Group scandal has shown that investors need to be vigilant and do their due diligence before investing in any private-equity fund.

Leaving the Abraaj Group has been a common theme among former employees in the wake of the scandal. Many have moved on to other firms or started their own ventures, while others have been caught up in the legal fallout from the firm's collapse.

Overall, the Abraaj Group controversy has had a significant impact on the private-equity industry, highlighting the need for transparency, accountability, and due diligence. Investors and regulators are paying closer attention to the industry, and firms are under pressure to ensure that they are operating in a responsible and ethical manner.

Role of Education in Private Equity

Private equity is an asset class that involves investing in companies that are not publicly traded. Private equity firms raise capital from institutional investors, such as pension funds and endowments, and use that capital to acquire companies or make strategic investments in existing companies. Private equity firms typically have a longer investment horizon than other types of investors, and they often seek to actively manage the companies they invest in to improve their performance.

Education plays a critical role in the success of private equity investments. Private equity firms must have a deep understanding of the industries and companies they invest in, and they must be able to identify opportunities for growth and improvement. This requires a team of experienced professionals with a diverse set of skills and backgrounds.

In addition to experience, private equity professionals must also have a strong educational foundation. Many private equity firms look for candidates with advanced degrees in business, finance, or related fields. These degrees provide a solid understanding of financial analysis, accounting, and other critical skills that are essential for success in private equity.

Moreover, education is also important for innovation in private equity. As the industry continues to evolve, private equity firms must be able to adapt to new technologies and changing market conditions. This requires a commitment to ongoing education and professional development.

Private equity firms also place a high value on the education of the management teams of the companies they invest in. Private equity firms often work closely with management teams to develop strategic plans and identify opportunities for growth. By providing education and training to these teams, private equity firms can help ensure the long-term success of their investments.

In summary, education is a critical component of success in private equity. Private equity firms must have a team of experienced professionals with a diverse set of skills and backgrounds, and they must be committed to ongoing education and professional development. By investing in education, private equity firms can improve their performance and help ensure the long-term success of their investments.

Private Equity in Neighboring Countries

Liechtenstein is a small country located in Central Europe, bordered by Switzerland and Austria. As such, it is part of a larger region with a thriving private equity industry. This section will provide an overview of private equity in Liechtenstein's neighboring countries, Switzerland and Austria.

Private Equity in Switzerland

Switzerland is known for its strong economy and stable political environment, making it an attractive location for private equity investors. According to the Swiss Private Equity & Corporate Finance Association (SECA), there are over 200 active private equity firms in Switzerland, managing assets worth over CHF 80 billion.

Swiss private equity firms invest in a variety of sectors, including healthcare, technology, and financial services. Notable private equity firms operating in Switzerland include Partners Group, Capvis, and Helvetica Capital.

Private Equity in Austria

Austria is another neighboring country with a growing private equity industry. According to the Austrian Private Equity and Venture Capital Organization (AVCO), there are over 200 private equity firms operating in Austria, managing assets worth over €10 billion.

Austrian private equity firms invest in a range of sectors, including manufacturing, healthcare, and consumer goods. Notable private equity firms operating in Austria include Quadriga Capital, Trigon Equity, and Capital Dynamics.

In conclusion, Liechtenstein's neighboring countries, Switzerland and Austria, have well-established private equity industries with a range of active firms investing in various sectors.

Website and Digital Presence

LGT Private Banking, the international private banking and asset management group owned by the Princely Family of Liechtenstein, has a well-established digital presence. The company's website, available in multiple languages, provides comprehensive information about the company's services and products. The website is user-friendly, easy to navigate, and features a clean design.

Visitors to the LGT website can access a range of resources, including market insights, research reports, and news updates. The website also includes a section on careers, where individuals can learn about job opportunities and apply for positions. LGT has a strong social media presence, with active accounts on LinkedIn, Twitter, and Facebook. These channels are used to share news, insights, and updates about the company and the industry.

LGT's website uses cookies to improve user experience and track website usage. The company's cookie policy is transparent and clearly explains what cookies are used and why. Users have the option to accept or decline cookies when visiting the website.

Overall, LGT Private Banking has a strong digital presence that reflects the company's commitment to providing innovative and user-friendly services to its clients. The company's website and social media channels provide valuable resources and insights for clients and individuals interested in the private banking and asset management industry.

Business Profitability

Liechtenstein has a thriving financial industry that offers a range of services to businesses and individuals. Private equity is one of the key areas of focus for Liechtenstein's financial institutions. The profitability of businesses operating in Liechtenstein is an important metric that is closely monitored by investors and regulators alike.

According to a recent report by Private Banker International, Liechtensteinische Landesbank (LLB) saw a fall in operating income and net profit in 2020, due to the turbulence caused by the Covid-19 pandemic. The bank posted a net profit of $117.9m (CHF109.8m) in 2020, a decrease of 11% compared with a profit of CHF123.4m in the prior year. However, despite the challenging market conditions, LLB remains a profitable business, with a strong balance sheet and a solid reputation in the market.

Another key player in Liechtenstein's financial industry is LGT, the private bank owned by the Princely Family of Liechtenstein. LGT generated an increased Group profit of 420.8 million Swiss francs in financial year 2022, representing growth of +19 percent. This impressive growth is a testament to the bank's strong business model and its ability to adapt to changing market conditions.

Liechtenstein's VP Bank Group also reported a rise in profit in H1 2021 compared to the year-ago period. The Vaduz-based private bank grew its assets, including contributions from the private banking activities of Öhman Bank in Luxembourg, which it acquired recently. The bank's strong focus on client relationships and its ability to provide tailored solutions to meet their needs has helped it to maintain its profitability in a highly competitive market.

Overall, Liechtenstein's financial industry remains a profitable sector, with a range of institutions offering a variety of services to businesses and individuals. While market conditions can be challenging at times, the industry has proven to be resilient, with many businesses continuing to operate profitably despite the headwinds.

Frequently Asked Questions

What is LGT Capital Partners and what do they do?

LGT Capital Partners is a global alternative investment specialist. They manage a broad range of alternative investment strategies on behalf of institutional investors, including private equity, private debt, hedge funds, real estate, infrastructure, and insurance-linked investments.

How many assets does LGT Capital Partners manage?

As of June 2021, LGT Capital Partners has over USD 80 billion in assets under management across its various alternative investment strategies.

Who owns LGT Capital Partners?

LGT Capital Partners is owned by the Princely Family of Liechtenstein, one of Europe's oldest noble families. The current CEO, Tycho Sneyers, is also a partner in the firm.

What is the portfolio of LGT Capital Partners?

LGT Capital Partners manages a diversified portfolio of alternative investments, including private equity, private debt, hedge funds, real estate, infrastructure, and insurance-linked investments. Their investments span a wide range of industries and geographies.

What is the revenue of LGT Capital Partners?

LGT Capital Partners is a privately held company and does not disclose its revenue figures publicly.

Who is the CEO of LGT Capital Partners?

The current CEO of LGT Capital Partners is Tycho Sneyers. Sneyers joined the firm in 2004 and was appointed CEO in 2020. He has over 20 years of experience in the alternative investment industry and has held senior positions at several leading firms in the sector.

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