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Laxman Pai, Opalesque Asia:

LGT, originally known as The Liechtenstein Global Trust, is set to buy Abrdn Capital, the discretionary fund management (DFM) arm of the global investment company and asset manager Abrdn, for GBP140m ($168m).

The DFM business, which has GBP6.1bn ($7.3bn) in assets under management and about 140 employees, will be absorbed into LGT Wealth Management. Abrdn Capital delivered GBP40m in revenue last year and serves about 4,000 clients.

LGT Group is the largest royal family-owned private banking and asset management group in the world

According to a joint press release, to succeed in the longer term in the DFM market, abrdn's view is that this part of the business would need to build a much greater scale.

With abrdn's strategy for its Personal vector focused on integrating the high-tech, high-touch model of interactive investor (ii) with financial planning, abrdn has concluded that another owner would be better placed to invest to deliver greater scale in the DFM business.

abrdn's Managed Portfolio Service (MPS) business, which is currently part of the DFM business, is better aligned to its group strategy and will be carved out and retained before the completion of the transaction, said the release.

abrdn views MPS as an important growth channel that aligns well with the way that the UK personal investment market is developing. The MPS team will be moved to sit within abrdn's Adviser vector to maximize opportunities available thro......................

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