Josh Matthews meets Prince Hubertus von und zu Liechtenstein

Written by Josh Matthews, HBA

During breakfast, he talked about the 400-year-old governance structures of the Lichtenstein family, their generational learnings and how values can be created and preserved. The Liechtenstein family are the owners of LGT private bank and holders of one of the world’s largest art collections. They engage in a diverse range of investments including agriculture, forestry, real estate, and energy.

Prince Hubertus explained that multi-generational wealth planning is difficult and that only 30% of wealth families pass down assets to the next generation, only 13% will survive the third generation and only 3% will survive beyond that. In order to beat these terrible odds, the Liechtenstein’s family has been very entrepreneurial, and has needed to develop a strategy to survive the centuries.

Prince Hubertus highlighted that his family places a strategic focus on ownership, corporate governance, family dynamics, and wealth management. Across numerous generations, they have accumulated invaluable insights that have strengthened family bonds and protected their assets. A pivotal lesson learned over the years is the importance of asset diversification of their investments, in terms of both asset class and geography. Central to their approach is also the transfer of assets to the head of the family; all family members have their education paid for and then they are subsequently encouraged to be self-sufficient. In rare instances of financial distress, family assets are mobilised. By employing a disciplined strategy of robust governance structures, shared values, centralised asset management and prudent payouts to the succeeding generation. This approach has protected the Liechtenstein family against asset erosion and facilitated sustainable, long-term investments.

Finally, Prince Hubertus emphasised the significance of cultivating an entrepreneurial spirit and generating fresh wealth and achievements through innovation, particularly by the younger members of the family.