LGT Crestone completes transition of CBA’s advice arm

Wealth manager LGT Crestone has successfully completed its acquisition of Commonwealth Bank’s high-net-worth financial advisory business, bringing across some $5 billion in assets under advice.

It was first announced last November that LGT Crestone had signed an agreement to acquire Commonwealth Bank of Australia’s (CBA) personal advice business, Commonwealth Private Advice.

In a statement on 2 June, LGT Crestone confirmed the deal has reached completion, seeing approximately $5 billion in assets under advice and 38 experienced professionals, including 18 investment advisers, brought across to the firm’s national advice network.

This means LGT Crestone’s assets under advice have now grown to $40 billion, with more than 400 professionals under its wing. This includes over 138 advisers, operating nationally across its offices in Adelaide, Brisbane, Melbourne, Perth and Sydney.

According to LGT, the move saw a notable 93 per cent of Commonwealth Private’s advisory clients opt to transition across, with clients continuing to maintain their existing banking relationships with CBA to ensure continuity in their broader financial arrangements.

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Commenting on the announcement, Michael Chisholm, LGT Crestone’s CEO, said: “We are incredibly proud to welcome the clients and advisers of Commonwealth Private’s advisory business to the LGT Crestone family. This transition expands on our existing long-term partnership with CBA.

“CBA undertook an extensive due diligence process to ensure its clients and advisers would transfer to a firm that shares its values and unwavering commitment to excellence. To be selected is both an honour and a responsibility – and a testament to the calibre of our people, our client-first culture, and our long-term commitment to delivering outstanding advice catering to the needs of Australia’s most sophisticated investors.”

Noting the high opt-in rates from clients, Chisholm said this “speaks volumes” as the firm looks to honour these existing relationships moving forward.

“Through our global reach and bespoke approach, we look forward to providing access to a market-leading range of investment opportunities and exclusive offerings,” he added.

“As we enter this next chapter, we’re also pleased to continue working closely with CBA. Former advisory clients of Commonwealth Private will retain their existing banking arrangements, while we collaborate to deliver a seamless experience across both banking and investment services – ensuring their broader financial needs are met with the high level of care and service they’ve come to expect.”

LGT Crestone is part of family-owned private banking and asset management group LGT Group, which has over $630 billion in client assets and is owned by the Princely Family of Liechtenstein.

Speaking to Money Management last year, Chisholm said the decision followed a competitive tender process among numerous firms bidding to purchase CBA’s advice arm.

“Gresham Partners managed the process which was a competitive tender. LGT Crestone was one of many that responded. We are delighted CBA has chosen LGT Crestone as the trusted home for their highly valued high-net-worth and ultra-high-net-worth clients and employees,” Chisholm told Money Management in November.

Unpacking this further, the chief executive highlighted LGT Crestone’s focus on private markets as a determining factor as to why the firm was chosen.

“This acquisition strengthens the industry’s move towards specialised wealth management for private markets, where demand is rising. Ultra-high-net-worth investors, particularly, are looking for exclusive access to private assets and the right investment managers to navigate them – something LGT Crestone prioritises.”