LGT Crestone tries to nab nation’s richest families from UBS

People close to UBS argue its family office capability, which will eventually sit under the bank’s global family and institutional wealth unit established last year, will make it difficult to match in Australia due to the breadth of services coming.

But the wealth management industry is increasingly competitive. Peers like Crestone, Goldman Sachs, Morgan Stanley and HSBC have advanced their interests in catering to Australia’s wealthiest families.

LGT Crestone denied it was attempting to take customers from rivals. “We don’t design our product and service offering targeting any one competitor, but continuously look for opportunities to better service the needs of wealthy Australians,” it said.

Private banking

UBS memorably exited Australian wealth management in 2016, when its former staff took over the business from the Swiss bank through a management buyout. LGT subsequently acquired that business in a $475 million deal which closed last year.

Credit Suisse’s Australian business was powered by its dominant private banking arm, led by Michael Marr, which counted large chunks of the Financial Review Rich List as clients. Credit Suisse adviser Shane Galligan is known for his glittering rolodex of clients, such as the Stokes family, and previously, Lex Greensill.

Aside from its relationships with billionaires, Credit Suisse’s No.1 position was enhanced by the services of an international investment bank and its lending offerings under an Australian banking licence. Wealthy people typically take out loans against their shares and properties to free-up money for other investments.

Two people familiar with LGT Crestone’s business confirmed the new mortgage offering. Mr Chisholm clarified it would not be doing “retail mortgages”.

“We are currently looking to leverage the broader capabilities of LGT Group’s financing offering to cater for the investment needs of our sophisticated client base,” he said. “This would be a natural progression following the successful launch of our multi-currency Lombard lending solution last year.”

Lombard loans are granted against a pledge of assets such as shares, investment funds or bonds.

Credit Suisse’s more than 30 private bank advisers and roughly 110 staff are already part of UBS, but have yet to move into its offices, as UBS attempts to find room for them all. They are still operating under Credit Suisse’s banking licence, and expect to obtain their own next year.

Mr Marr was this year appointed head of global wealth management in Australia at UBS. Michael Walsh, a UBS veteran known for his strong relationships with top family offices, and Ben Freischmidt, a Credit Suisse director, are expected to cover the space, alongside Joe Azoulay, a Credit Suisse private banking managing director.