Following months of speculation that Commonwealth Bank’s final foothold in personal advice was on the market, LGT Crestone has announced it has signed an agreement with CBA to acquire Commonwealth Private Advice.
LGT Crestone said the move reflected its commitment to sustainable growth and strengthening long-term client relationships
“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. It’s a terrific validation of our efforts to build a truly outstanding private wealth advice business catering to the needs of the most sophisticated investors in Australia,” LGT Crestone chief executive Michael Chisholm said.
“This transaction is driven by our shared purpose and values with Commonwealth Private Advice, particularly our client-centric approach to managing the wealth and financial wellbeing of sophisticated high-net-worth clients.
“By combining our strengths, we’ll enhance our ability to build strong, personal connections with our clients and deliver exceptional service, ensuring they have access to world-class expertise and tailored solutions to meet the very highest standards in private wealth management.”
The personal advice business for ultra-high-net-worth and high-net-worth clients currently comprises approximately 500 clients and more than $5 billion in client assets.
As a part of the transaction, LGT Crestone will integrate approximately 40 experienced advisers, associates and support employees into its business.
CBA said the decision to sell the business reflected the evolving needs of high-net-worth clients and aligns with its strategy to focus on expanding its private banking services and deliver the best long-term outcomes for them.
“Our priority was to find a specialist wealth management firm that shares our client first values and strong commitment to its people. Our agreement with LGT Crestone will allow Commonwealth Private clients access to LGT Crestone’s premium advice offering, as well as the opportunity to sample an expanded range of personal advice services,” group executive of retail banking services Angus Sullivan said.
“We remain committed to Commonwealth Private being the number one banking proposition for our high-net-worth clients in Australia through our investment in bespoke private banking services. Our private bankers will continue to work closely with our clients’ advisers through the transition to deliver the best customer outcomes.”
Crestone was established in 2016 and was acquired in 2022 by LGT, which is owned by the Princely family of Liechtenstein.
HSH Prince Max von und zu Liechtenstein, chairman of LGT, said: “LGT is delighted to reinforce our role in Australia as we welcome both the clients and colleagues of Commonwealth Private Advice to LGT. Our expertise in family advisory services, sustainable investing, and intergenerational wealth uniquely positions us to be a valued and respected partner in today’s financial landscape.
“Clients need stable partners to provide comprehensive and secure opportunities throughout their financial journeys, and we are committed to delivering that level of support and confidence to our new clients.”
CBA said that it would continue to provide personal financial advice to Commonwealth Private clients until the transaction is completed, which is expected to occur by mid-2025.
