Key Takeaways
- • LGT Private Banking has shifted its client base composition dramatically over a decade, now sourcing approximately 50% of its CHF 220 billion ($256 billion) in client assets from family offices and ultra-high net worth individuals, reflecting substantial market share gains in the UHNW segment.
- • The bank's Princely Strategy—a $18 billion European endowment fund launched 25 years ago—allocates 57% to alternatives (including 22% private equity, 6% private credit, 5% insurance-linked securities, and 17% liquid alternatives), demonstrating institutional-grade diversification designed to deliver equity-like returns with fixed income volatility.
- • LGT's competitive differentiation centers on owner alignment, with the princely family of Liechtenstein maintaining "quite a substantial" capital deployment in the flagship strategy, creating credibility advantages that resonate with family office clients evaluating manager commitment.
- • The Princely Strategy share class, made available to UHNW clients seven years ago, requires a minimum CHF 20 million ($23 million) commitment and represents a scalable vehicle for ultra-rich individuals and family offices seeking institutional alternatives expertise historically inaccessible at private banking scale.
- • LGT Capital Partners, the group's asset management arm, manages $95 billion in AuM with $53 billion concentrated in private equity, positioning the bank as a material player in the alternatives space for wealth management at the UHNW level.
Summary
LGT Private Banking, the Switzerland-based international private bank controlled by the princely family of Liechtenstein, is establishing meaningful market traction in the ultra-high net worth segment through specialized expertise in alternative investments and private markets. According to Riccardo Petrachi, the bank's head of UHNWI EMEA, approximately 50% of the bank's CHF 220 billion in client assets now derive from family offices and ultra-high net worth individuals—a significant increase from the composition a decade ago that Petrachi characterizes as a "tectonic shift" in the bank's business model.
The foundation of this strategic repositioning rests on the Princely Strategy, an institutional-grade investment approach launched 25 years ago that has grown to $18 billion in assets under management. The strategy targets "equity-like returns with fixed income volatility" through a heavily alternatives-weighted allocation: 57% to alternatives, 30% to equities, and 10% to fixed income. Within the alternatives sleeve, the strategy deploys 22% to private equity, 6% to private credit, 5% to insurance-linked securities, 7% to real assets, and 17% to liquid alternatives including hedge funds. This diversified multi-asset framework has been made available to qualifying ultra-high net worth clients through an exclusive share class introduced seven years ago, requiring a minimum commitment of CHF 20 million to participate.
LGT's competitive positioning in the UHNW space derives in part from demonstrated owner alignment. The princely family of Liechtenstein maintains material capital invested alongside clients in the Princely Strategy, a structural feature that Petrachi emphasizes carries substantial weight with family office clients evaluating manager credibility. "Having skin in the game matters to family offices a lot, because you have a different credibility," he stated. This alignment of interests contrasts with external asset managers lacking proprietorial stakes in their own flagship products.
Supporting this wealth management strategy is LGT Capital Partners, the group's dedicated asset management platform, which manages $95 billion in total assets under management with $53 billion concentrated in private equity. The scale of alternatives infrastructure underpinning the Princely Strategy reflects institutional-grade capabilities in deal sourcing, portfolio construction, and risk management—capabilities increasingly demanded by ultra-high net worth investors as allocations to alternatives continue to expand across the UHNW wealth management industry.
The foundation of this strategic repositioning rests on the Princely Strategy, an institutional-grade investment approach launched 25 years ago that has grown to $18 billion in assets under management. The strategy targets "equity-like returns with fixed income volatility" through a heavily alternatives-weighted allocation: 57% to alternatives, 30% to equities, and 10% to fixed income. Within the alternatives sleeve, the strategy deploys 22% to private equity, 6% to private credit, 5% to insurance-linked securities, 7% to real assets, and 17% to liquid alternatives including hedge funds. This diversified multi-asset framework has been made available to qualifying ultra-high net worth clients through an exclusive share class introduced seven years ago, requiring a minimum commitment of CHF 20 million to participate.
LGT's competitive positioning in the UHNW space derives in part from demonstrated owner alignment. The princely family of Liechtenstein maintains material capital invested alongside clients in the Princely Strategy, a structural feature that Petrachi emphasizes carries substantial weight with family office clients evaluating manager credibility. "Having skin in the game matters to family offices a lot, because you have a different credibility," he stated. This alignment of interests contrasts with external asset managers lacking proprietorial stakes in their own flagship products.
Supporting this wealth management strategy is LGT Capital Partners, the group's dedicated asset management platform, which manages $95 billion in total assets under management with $53 billion concentrated in private equity. The scale of alternatives infrastructure underpinning the Princely Strategy reflects institutional-grade capabilities in deal sourcing, portfolio construction, and risk management—capabilities increasingly demanded by ultra-high net worth investors as allocations to alternatives continue to expand across the UHNW wealth management industry.
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