LGT Group, a family-owned asset management firm based in Vaduz, Liechtenstein, is expanding to the Australian market after it agreed to acquire Crestone Wealth Management for A$475 million ( US$338 million ).

Crestone says the proposed transaction would allow it to accelerate its growth strategy in Australia and expand the investment opportunities available to Australian high-net-worth clients while providing them with access to the expertise of the largest privately owned global private banking and asset management group.

The privately owned structure of LGT would also offer long-term alignment with Crestone’s longstanding business model, according to a statement.

Crestone’s board and executive management team believe the offer to be attractive and have commissioned an independent expert’s report to assess the offer. In the absence of a superior proposal and subject to the expert report, the Crestone board recommends that shareholders vote in favour of the proposal. It also notes that board directors intend to vote all their shares in favour of the offer.

Crestone will remain Australian-domiciled.

Crestone chief executive Michael Chisholm says the firm’s employees and clients would benefit from access to a broadened range of global services and investment opportunities, new international perspectives, a seamless cultural and operational fit, and the extension of the firm’s existing high client service standards.

“This is an exciting opportunity that would provide Australian high-net-worth investors with seamless access to global opportunities and would cement Crestone’s position as Australia’s leading high-net-worth investment adviser,” Chisholm says.

“Crestone has come a long way in five years in its pursuit of always bringing the very best approach to portfolio construction and investment solutions to our clients.”

Prince Max von und zu Liechtenstein, chairman of LGT, says: “Crestone is a preeminent wealth advisory firm with excellent further growth opportunities in the attractive Australian market. We look forward to working closely with them in the future. I’m convinced we can help Crestone further enhance its market position through access to our longstanding investment expertise, especially in alternative asset classes, ESG and impact investing.”

Under the proposal, the consideration will comprise of two payments – an upfront payment of A$250 million and a further payment in five years that may reach A$225 million, with an escalation provision should Crestone exceed future year forecasts.

An extraordinary general meeting will be convened early next year where shareholders will have the opportunity to vote on the offer. Subject to receiving the necessary approvals, the acquisition is expected to complete in the first quarter of 2022.

LGT is wholly owned by the princely House of Liechtenstein. As of June 30 2021, LGT managed 275 billion Swiss francs ( US$297.6 billion ) in assets for wealthy private individuals and institutional clients.