LGBT Capital, a boutique investment management advisory firm specialising in the lesbian, gay, bisexual and transgender consumer sector has joined with Financial Partners, a Hong Kong-based independent advisory firm, to launch the first wealth management operation focused on the LGBT community in Asia.

The new arm, LGBT Wealth, has been established to provide specialist advice and services through its regulated entity, Financial Partners, in a number of areas including: retirement planning and saving; insurance; property and wealth protection, LGBT said in a statement released yesterday.

“Many people in the LGBT community do not have access to advisors who truly understand their needs, and the LGBT life cycle can be very different. Important issues like saving for retirement can be overlooked, and with a generally higher disposable income, there is real opportunity with the right advice for the LGBT community to achieve their financial goals,” Paul Thompson, chairman of LGBT Wealth and founder of LGBT Capital, said.

Howard Clark Burton, chief executive of Financial Partners added: “We are delighted to be introducing a service for the LGBT community which we believe is under served in financial advice. Very often, the legal protections for LGBT partners are not in place in Asia and we believe the correct advice can help LGBT individuals protect their wealth and their partners."

The launch of such a service comes at a time when wealth management firms, mindful of changing trends in society and the need to provide more tailored offerings, are looking at such areas. In January 2011, Northern Trust, the US-headquartered bank, launched a LGBT service, for example.

Significant market

The LGBT market is a significant and growing market, according to the firms. It is estimated that the LGBT population in the Asia region is over 200 million and represents some $800 billion in spending power each year. Globally, the LGBT population is estimated at over 400 million with a spending power of some $3 trillion.

Highlighting the opportunity the LGBT sector presents for wealth managers, Thompson stressed the importance of understanding the individual’s specific needs. He added: “And in Asia, where many LGBT individuals are more private about their lifestyle, it is even more important to have a trusted advisor with whom they feel comfortable discussing their situation and objectives. We believe that LGBT Wealth will provide this.”

LGBT Capital has operations in the UK and Greater China and is part of the Galileo Group of companies, launched in 2004. LGBT Capital was established more recently to provide a specialist corporate advisory and investment management service focused on the LGBT consumer market.

Financial Partners was established in Hong Kong in 1988 and holds licenses with HKSFC, HKCIB and MPFSA. The firm advises on both onshore and offshore wealth management, with particular expertise in building wealth, succession planning, wealth preservation and asset protection.