Australia-based wealth management business LGT Crestone has agreed to acquire Commonwealth Bank of Australia (CBA)’s Commonwealth Private Advice business.
Under the terms of the agreement, LGT Crestone will acquire CBA’s personal advice business for ultra-high net worth and high net worth clients.
It currently comprises around 500 clients and more than A$5bn ($3.3bn) in client assets.
As part of the transaction, LGT Crestone will add around 40 experienced advisers, associates and support employees from CBA’s Private Advice business into its business.
CBA will continue to provide personal financial advice to Commonwealth Private clients until the transaction is completed, which is expected by mid-2025.
The acquisition will provide Commonwealth Private’s clients with access to LGT Crestone’s premium advice offering, along with the opportunity to use personal advice services.
CBA retail banking services group Executive Angus Sullivan said: “Our agreement with LGT Crestone will allow Commonwealth Private clients access to LGT Crestone’s premium advice offering, as well as the opportunity to sample an expanded range of personal advice services.
Sullivan said: “We remain committed to Commonwealth Private being the number one banking proposition for our high-net-worth clients in Australia through our investment in bespoke private banking services.
“Our private bankers will continue to work closely with our clients’ advisers through the transition to deliver the best customer outcomes.”
LGT Crestone, a specialist wealth management firm owned by LGT Group, is one of Australia’s largest independently owned wealth management groups.
It manages around A$32bn in assets under management (AUM) and employs over 350 people, including around 100 advisers across Australia.
LGT Crestone said the acquisition will strengthen its national presence with offices in Adelaide, Brisbane, Melbourne, Perth, and Sydney.
Furthermore, the wealth management firm will retain all advisers and relevant support staff from Commonwealth Private, allowing its clients to maintain existing adviser relationships.
LGT Crestone CEO Michael Chisholm said: “We are delighted Commonwealth Private has chosen LGT Crestone as the trusted home for their highly-valued high-net-worth and ultra-high-net-worth clients and employees.
“We look forward to welcoming a team of advisers and staff who share our purpose and values, particularly our client-centric approach.
“I’m confident Commonwealth Private clients will soon see the benefits of LGT’s unique combination of stability, scale and expertise while maintaining deep personal relationships with clients.”
