LGT has led a series D funding round in Germany-based digital wealth manager LIQID. Both companies focus on wealthy clients but have different strengths and capabilities.
Liechtenstein-based LGT has announced to acquire a minority stake in Berlin-based digital wealth manager LIQID. The bank led an 88 Million Euro Series D Financing Round. Other investors included the UK-based Toscafund and the HQ Trust, which belongs to the Harald Quandt family.
In the future, LGT will contribute to the development of LIQID’s investment strategy for its wealth management offering, making LGT’s investment expertise available to LIQID clients.
Christian Schneider-Sickert, CEO and founder of LIQID, says, “We are delighted that LGT is now part of our group of investors. Our ambition is to provide discerning private investors with unique access to outstanding investment solutions that were previously unavailable to them. LGT is not only a benchmark in private banking and asset management but also an established investor in growth companies. With its focus on sustainability and entrepreneurship, LGT ideally complements our ambitions and values. Together with LGT, I look forward to developing LIQID into Europe’s leading provider of digital private banking.”
Differences in size
LIQID was launched in late 2016 and has since provided private investors access to professional wealth management solutions. Investors can access various asset classes such as private equity, venture capital as well as comprehensive investment strategies in traditional asset classes through LIQUID’s digital platform.
The LIQID Wealth offering is available to private investors investing EUR 100,000 or more. The company’s assets exceeded one billion euros in January 2021, making LIQUID one of Germany’s largest digital wealth managers. In terms of size, however, the company is not nearly in the same league as LGT, which has more than 220 billion euros in Assets under Management.
Synergies and focus on wealthy clients
Despite the massive difference in size, there are many synergies. Like LIQID, LGT also has a focus on wealthy clients. LIQID, on the other hand, has digital expertise that can benefit LGT. Prince Max von und zu Liechtenstein, Chairman at LGT, is quoted in the company’s official press release:
“LIQID has an impressive track record of growth, and we are convinced that the provision of professional investment expertise in a digital format – in combination with LIQID’s dedicated client focus and commitment to quality – constitutes a promising business model. We are delighted to be supporting LIQID in its ongoing expansion and also expect this to provide an impetus for the further digitalization of our own services. The collaboration with LIQID will enable a broader segment of private investors in Germany to access LGT’s investment expertise.”
LIQID is now considering an international expansion. After the recent funding round, LGT and Toscafund each own 30 percent of the company, and HQ Trust owns less than 10 percent. The transaction will be completed as soon as the necessary approvals have been obtained from the supervisory authorities.
Image: © https://www.lgt.li/de/