He was elevated to the rank of prince in 1608, and the Lichtensteins occupied the role of one of the most politically influential families in the Habsburg imperial court. Today, the dwarf state, situated entirely in the Alps, is not only home to one of the richest families, but also ranks among the world’s leading countries by economic parameters.
Millennial entrepreneurial spirit and diversification
Many well-known representatives of other circles and professions bear the Liechtenstein surname. However, business spirit and entrepreneurship are clearly part of the DNA of the princely house. It is these that underpin the longevity of the financial empire over 900 years and 26 generations. Logically, land acquisition and management were the backbone of the family business in earlier centuries. In a spirit of modesty, the dynasty attributes its success largely to “skill, innovative spirit, long-term perspective, a great deal of discipline, and a little bit of luck”.
However, what really lies at the heart of the success is the diversification strategy that allowed the Liechtenstein dynasty to overcome a series of crises and setbacks, and at the same time to preserve and multiply its wealth over the centuries.
To this day, investments in a wide variety of sectors – agriculture, forest ownership, property ownership and management, green energy production, financial activities, etc. – have proven to be a winning strategy. Despite this diversity, companies are united by three characteristics: “They are managed according to family values, operate sustainably, and healthy growth is more important than making a quick profit”.
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One of the most important factors in preserving and multiplying wealth over generations is good family laws, according to which the prince as head of the family has the sole right to dispose of the family wealth.
Prince Hans Adam II – the most successful businessman among monarchs
Prince Hans Adam II has been the head of Liechtenstein since 1989. Under his rule, Liechtenstein became part of the United Nations (UN) in 1990, an act that greatly increased the international visibility of the otherwise small country.
Currently, with a personal fortune of 9.2 billion dollars, Hans Adam II is among the 215 richest people in the world. His position has changed by more than 70 places since the beginning of the year alone, according to the Bloomberg Billionaires Index.
A financial institution with centuries of family tradition
The values of the princely family stand firmly at the heart of LGT’s values to this day. The financial institution was established in 1920 and 10 years later the monarchical family became its majority shareholder.
Thus it was the Liechtenstein dynasty that brought the bank through all the difficulties, including global upheavals such as the Great Depression and the Second World War. Thus, thanks to centuries of tradition and business foresight, the former bank with regional status in Liechtenstein is today one of the most significant players on the financial scene.
According to the latest figures, the leading private banking and asset management group has more than 25 locations worldwide and over 5,000 employees. LGT is also the family office of the princely family, managing assets in the range of almost CHF 306 billion as of 30 June, representing a 6% increase compared to 2022 year-end results.
In just a decade, LGT has more than doubled its assets and operating income, having managed to recover from the collapse of its business in 2008. Then, as a consequence of the financial crisis, the US and other nations turned to offshore financial centers.
LGT Wealth Management – the logical step
In 2008, LGT upgraded its portfolio and through the creation of LGT Wealth Management began offering a top-class service. In its resume, the now 25-year-old company again draws on the long-standing family traditions and experience of the Princely family, as well as their successful transmission from generation to generation. At the latest figures as of September 2023, LGT Wealth Management looks after £29 billion of assets, has 6 offices, and over 650 employees.
