LGT Wealth Management has announced 11 new partners, capping off a year of growth that saw the firm acquire Abrdn Capital and cement its position as one of the UK’s leading wealth managers.
As well as recognising the ‘significant contributions’ of long-standing figures at LGT, the acquisition of Abrdn’s discretionary fund management business in the UK and Jersey has seen four of its senior managers become LGT partners: Caroline Tye, Matthew Grange, Laurence Gagen and Gregg Henderson.
Tye, who formerly served as the Abrdn’s CIO and managing director, now serves as the bolstered firm’s head of proposition.
As a result of the £140 million deal, which was completed last February, LGT’s UK headcount rose by 134 to 650, with assets under management rising from £22 billion to £28 billion. LGT also benefited from the addition of two regional bases, in Birmingham and Leeds.
Among the internal promotions, Henry Wilson has become a partner after work as a senior portfolio manager for two years, while Daniel Fresnais has been promoted from senior investment manager.
‘Our new Partners are testament to LGT’s entrepreneurial ethos and collegiate culture,’ said Ben Snee, CEO of LGT Wealth Management. ‘We pride ourselves on taking the long view when cultivating talent and are delighted to recognise our new partners, who have all worked hard to reach this milestone in their careers.’
New LGT Wealth Management partners come into environment of mergers
The last 18 months has seen a flurry of takeover and merger activity in the wider wealth management industry. September saw Rathbones merge with Investec Wealth, creating the country’s largest discretionary wealth managers, with a combined £100 billion in AuM. Meanwhile, in September 2022, RBC purchased Brewin Dolphin to create a £58 billion wealth management juggernaut.
The trend towards a whittled-down set of supersized players is not accidental: PwC predicts that by 2027, as many as one in six wealth managers (16 per cent) will either be acquired by competitors or ‘fall by the wayside’ given regulatory pressures and the need for greater efficiency and scalability.
‘When you get to a certain size, and with fixed costs rising, putting two firms together creates a single platform and higher profit margins – that’s what everyone has in mind,’ Paul Abberley, CEO of Charles Stanley Group, told Spear’s 500 Live 2023.