By Lynda Kiernan

Private global banking and asset management group LGT has agreed to acquire Aspada, a leading India-focused holding company and venture capital impact investment fund, from Aspada’s sole shareholder, Soros Economic Development Fund.  Terms of the deal were not disclosed. 

In the hands of the Liechtenstein Princely Family for more than 80 years, LGT has more than 20 locations across Europe, Asia, the Middle East, and the Americas, and manages assets valued at US$218 billion (as of June 2019) for both wealthy private individuals and institutional clients.

The acquisition of Aspada follows a restructuring at LGT, which earlier this year announced the departure of its senior impact investment team, upon the firm’s decision to integrate its impact unit into the rest of its business. The names or number of staff leaving was not disclosed at the time, however, LGT stated, “The existing senior central team of LGT Impact will over the course of the next few months move on to other initiatives.”

A New Foundation

The Princely House of Liechtenstein acquired the management organization, and significant majority position in Aspada, and will use Aspada to expand its impact investment platform, LGT Lightstone.

With current assets exceeding $400 million, LGT Lightstone focuses on scalable businesses that provide access to information, services, and improved livelihoods for underserved communities. In the future, LGT’s impact investments made in India will be under the name, LGT Lightstone Aspada. 

“The acquisition of Aspada and the launch of the brand [reflects] LGT Group’s pioneering commitment to impact investing and sustainability,” said H.S.H. Prince Max von und zu Liechtenstein, CEO, LGT. “We believe that there is significant opportunity to harness breakthrough developments in technology to deliver scalable business solutions focusing on the economic advancement of underserved populations globally. LGT is deeply committed to building LGT Lightstone as a large and relevant player in this cause.”

Founded in 2013 and launched by the Soros Economic Development Fund, Aspada has invested in 15 companies to-date focused on agricultural supply chains, logistics, education, healthcare, and financial services with the goal of improving the livelihoods of low-income groups.

Some of its portfolio companies include Mumbai-based InI Farms Pvt Ltd, a fresh fruit supply chain facilitating company focused on the pomegranate and banana segments, acquired in 2015; Delhi-based EM3 AgriServices Pvt Ltd, also acquired in 2015; and Chennai-based fresh produce distribution company, Waycool, acquired in 2017.

With the addition of Aspada as a foundation, LGT will be aiming to build out Lightstone into a multi-billion dollar global impact investment platform. And with LGT, Aspada in turn, will be better able to make larger investments in its chosen targeted channels.

“To go to the next level, to be able to expand the amount and type of capital they were able to commit to these businesses, Aspada needed to find other partners to work with,” SEDF’s Sean Hinton told ImpactAlpha. 

“We see significant opportunity in scaling Aspada’s impact investing model, which brings together a thematic ecosystem development effort to help build large businesses that have outsized developmental impact,” said Dartik Srivasta, managing partner, Aspada.

“In LGT and Prince Max we have found an aligned and committed long-term partner not only for building out the next phase of Aspada’s evolution in India, but also for co-creating a distinctive global platform that can be the vanguard of impact investing.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.