The private bank is expanding organically and via acquisitions to consolidate its presence in Switzerland, Austria and Liechtenstein.

Liechtensteinische Landesbank has agreed to buy all shares of Zurich-based LB(Swiss) Investment Ltd for about SFr30 million ($32.1 million), bolstering LLB’s fund management status and a move coming a few weeks after buying an Austrian wealth management operation. 

“By means of this transaction, in line with its strategy, the LLB Group will further expand its fund business, which it will in future operate from its three locations of Liechtenstein, Austria and Switzerland,” LLB said late last week in a statement.

The purchase, due to be complete later this year, makes LLB a “fund powerhouse in the FLACH region”, the bank said. ("FLACH" stands for Liechtenstein, Austria and Switzerland.) The assets under management and administration in the fund business will increase to around SFr32 billion; the purchased business held about SFr4.9 billion of assets under administration at the end of last year.

The move fits with LLB’s StepUp2020 strategy, through which it aims to grow via organic routes and M&A in its home markets of Liechtenstein, Switzerland and Austria. Late in December the firm agreed to buy all the shares of Vienna-based Semper Constantia Privatbank AG, increasing client assets by around SFr17 billion. 

“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,” LLB said.

As at 31 December 2017, LB (Swiss) Investment Ltd had 11 employees and managed 51 funds. 

While stating that the purchase price is around SFr30 million, the exact amount will be decided after the end of the earn-out period, LLB said. 

The acquired organisation, founded in 1995, will be rebranded as LLB Swiss Investment AG. 

Natalie Epp, head of the institutional clients division of the LLB Group, will become chair of the board of directors. Other board members will be Bruno Schranz and Hans Stamm. The board of management will continue to comprise Marcel Weiss and Ferdinand Buholzer.

Last December LLB said it expects to chalk up the same net profit for the 2017 financial year as was the case a year ago, when the figure came out at SFr103.9 million ($104.9 million). The bank said its predictions took account of a deposit of a sum of money at the High Court of Justice in London in connection with a lawsuit involving its subsidiary business, LLB Verwaltung (Switzerland) Ltd. LLB Verwaltung (Switzerland) Ltd used to be called Liechtensteinische Landesbank (Switzerland).