LLB to acquire LB(Swiss) Investment Ltd

As part of its StepUp2020 strategy, the LLB Group is focusing on sustained profitable growth. It is aiming to increase its business volume by means of both organic growth and acquisitions in its home markets of Liechtenstein, Switzerland and Austria.

Significant expansion and geographic enlargement of fund business

The acquisition of LB(Swiss) Investment Ltd will provide the LLB Group with access to the attractive Swiss fund market. LB(Swiss) Investment Ltd offers its clients customised and efficient services in the areas of fund management, compliance and risk management. Its clients are discerning asset managers, family offices and other financial services providers that demand a reliable, flexible and professional service. As at 31 December 2017, LB(Swiss) Investment Ltd had 11 employees and managed 51 funds with assets under administration of CHF 4.9 billion. The purchase price is approximately CHF 30 million. The exact amount will be decided after the end of the earn-out period.

Acquisition to be completed in the second quarter of 2018

Subject to approvals from supervisory authorities, the LLB is set to complete the acquisition of LB(Swiss) Investment Ltd in the second quarter of 2018 and will rename the company LLB Swiss Investment AG. Natalie Epp, Head of the Institutional Clients Division of the LLB Group, will become Chair of the Board of Directors. The other members of the Board of Directors will be Bruno Schranz and Hans Stamm. The Board of Management will continue to comprise Marcel Weiss and Ferdinand Buholzer.

Long-term solution for clients and staff

Commenting on this step, Group CEO Roland Matt says: "The acquisition is a further important step in the implementation of our StepUp2020 strategy, which focuses on sustained profitable growth. The purchase will provide us with access to the Swiss fund market. This will allow the LLB Group to realise its strategic goal of geographically expanding and developing the fund business with its preferred partner."

Natalie Epp, Head of the Institutional Clients Division of the LLB Group, adds: "The LLB Group is a pioneer in the fund business in Liechtenstein and can look back on many years of experience and expertise. With the acquisition of LB(Swiss) Investment Ltd, our clients will in future be able to count on a diversified and innovative fund powerhouse in the FLACH region. This makes us unique."

Holger Mai, Chairman of the Board of Directors of LB(Swiss) Investment Ltd and CEO of the company's current sole shareholder Frankfurter Bankgesellschaft (Switzerland) Ltd states: "The LLB contacted us to discuss possibilities for joining forces. During the discussions, it quickly became apparent that in the form of the LLB we had found a partner that will secure a long-term successful future for our subsidiary. We were convinced by its strategy and business case. This is reflected by the fact that the funds of Frankfurter Bankgesellschaft (Switzerland) Ltd will continue to be administered by LB(Swiss) Investment Ltd. I am sure that this step will support the growth trajectory seen in recent years to the benefit of our clients and also our employees."

Fund powerhouse in the FLACH region

The fund business is a strategic business field of the LLB Group in which it has been active for more than two decades. The LLB is a pioneer in the Liechtenstein fund centre. As early as 1996, it launched Liechtenstein's first fund with LLB Liechtenstein Banken Invest. Upon assuming the role of custodian bank for the first private label fund 20 years ago, the LLB also established itself as a trailblazer in the third-party fund business. As a custodian bank for third-party funds, the LLB is now Liechtenstein's market leader. LLB Fund Services AG, the LLB Group's own fund management company and competence centre, sets up, manages and structures tailored funds in accordance with the all-in-one-shop concept. It does so both on an in-house basis and for independent asset managers, family offices and other fund promoters under Liechtenstein law, ensuring state-of-the-art risk management in the process.

LB(Swiss) Investment Ltd, founded in 1995, has been active in the Swiss fund market for more than 20 years. It acts as a representative for foreign funds, sets up fund products, assumes all associated statutory tasks specified under the Swiss Federal Act on Collective Investment Schemes (CISA) and thus perfectly rounds off the LLB Group's profile in the Swiss market.

With the announcement in December 2017 of the takeover of Semper Constantia, which can look back on more than 30 years of experience in the Austrian fund business, the LLB Group will be able to expand its fund expertise to the Austrian market and offer tailored complete solutions in the areas of mutual funds, major investor funds, special funds and multi-manager fund concepts.

Cumulatively, the LLB Group will thus possess more than 70 years of experience in the fund space and be the first-choice partner of more than 500 funds for the structuring, safekeeping and administration of their funds as well for portfolio and risk management in Switzerland and the EEA. It has around 100 employees working in the fund business and manages and administers assets of approximately CHF 32 billion.

Important dates

• Thursday, 8 March 2018, presentation of the annual results for 2017

• Wednesday, 9 May 2018, 26th General Meeting of Shareholders