India would become a meaningful part of the LGT world; complexity of regulations an obstacle: Prince Max to and from Liechtenstein

India is on track to become “a very meaningful” part of the LGT Group’s global operations, said Prince Max von und zu Liechtenstein, chairman of the private banker and asset manager of the royal family of Liechtenstein. In an interview with Nishanth Vasudevan and Sruthijith KK, Harvard Business School graduates and former JP Morgan executive spoke about the asset management industry, AI trading and precious metals. Edited excerpts: LGT Group’s assets under management have increased dramatically since you started in 2006. Where does the money come from and what kind of money comes in?

Geographically, we have Asia well covered. There are a lot of our competitors in Europe that have been much bigger than us, but they haven’t tried Asia, or they haven’t really tackled Asia properly. We have also constructed the asset classes appropriately. We recognized early on the attractiveness of the private markets: private equity and private debt, where returns have been better than in the public markets. Clients on the private banking side, but also on the institutional asset management side, do not like too many changes in strategy, relationship management and coverage. They want to tell their story on the private customer side, which is typically an intimate story that you don’t want to share all the time with too many people and too often. Can you share LGT’s expansion plans in India?
We think long and hard before entering a market and once we enter, we do so with a long-term perspective. Ideally, we want to become profitable when we enter a new market. Once we achieve profitability, it is crucial that we keep it within a good margin. Obviously, with India, we’re not concerned that it can’t become a very meaningful part of our business.

What is the biggest challenge you face in India that you don’t face in any other market?

I think the regulatory complexity in India is still higher than in other markets and is still a hurdle for investors. I’m not the greatest expert on this subject, and I think it’s improving. We are benefiting from the improvements that are taking place, but it remains a more complex and burdensome regulatory and tax regime.

How attractive are different parts of the world, especially India, in terms of deploying capital?
When I look at different economic blocs and jurisdictions, there are risks and challenges everywhere. It is very difficult to predict what the US will look like in ten years, and what China and Europe will look like in twenty years. The world has always been unpredictable, but I think it has become even more unpredictable. So there is a clear argument for disciplined diversification. 2026 has been a tough year for the AI ​​business. When you talk to customers, are they still overweight in AI?
The winning way to invest in AI is to identify which areas and companies can benefit from it, take a longer-term bet and look at valuations. Many people have seen this, which leads to excitement, fantasies and bubbles. Most technological transformations have been associated with significant bubbles that burst at some point. So if valuations fall, it’s probably healthy. I’m not too worried about it.

Is the increase in demand for gold and silver justified, given geopolitical tensions and the flight to safety?
I’m more of a cash flow-driven investor. I prefer assets that generate good cash flows and feel safe. That aspect is missing in precious metals, so I didn’t fully understand the excitement surrounding it. It is a pattern that has always existed, but does not appeal to me personally.

There is now a narrative that Europe is falling behind. You see Trump saying that Europe is in ruins, while someone like Macron said in Davos that this matter is exaggerated. As a representative of a legendary royal dynasty, how do you view the continent?
I think there is some truth in that. I think Europe’s strong recovery from the Second World War has led to a bit of laziness that we need to get rid of. The level of ambition in Europe must come back stronger. I think this is still the case with some companies in some areas, but overall I think Europe needs to step up its game a bit.

The world is falling apart into different capital blocks. Does this make your business more difficult when it comes to deploying capital globally?
Ironically, it helped us in the short term. In the past, some American companies were very strong competitors worldwide. The US and many US companies have lost sympathy over the past twelve months given the recent changes. That helped us because people make decisions emotionally and compassion matters. We are an organization from a small country that doesn’t hurt anyone, and that is appreciated. That said, I hope that the world does not continue in a more conflictual and nationalistic direction.

Private wealth management is a busy space. Are you trying to tap into a particular niche, or are you open to business with anyone?
We want to have good customers who do business with a long-term perspective, with good ethics, and who generally do well. We must set certain lines and boundaries when clients are too marginal, too difficult, or outside our legal and ethical guardrails.

Has the dilution of secrecy laws and increasing geopolitical pressure made things more challenging for you?
These changes around bank secrecy happened more than a decade ago, and we have done very well during that time. The political and economic stability of Switzerland and Liechtenstein continues to be appreciated, especially as this stability becomes increasingly exceptional.