Liechtenstein-based investment firm LGT acquires a share in CEO consultancy Teneo.
LGT Capital Partners Invests in Teneo, Valuing the Global Advisory Firm at €1.99 Billion
Liechtenstein’s royal family's investment arm, LGT Capital Partners, has taken a minority stake in Teneo, a leading global corporate advisory and CEO advisory firm. This investment values Teneo at approximately €1.99 billion.
Founded in 2011 by Doug Band and Declan Kelly, Teneo has grown significantly over the years. The firm, which is currently majority owned by private equity group CVC Capital Partners, has a notable presence in locations such as Dublin. The Irish arm of Teneo is led by Michael O'Keeffe and includes former Fine Gael minister Frances Fitzgerald as a senior adviser.
LGT's investment aligns with its strategy of investing in high-growth companies. With more than $100 billion of assets, LGT has been acquiring minority stakes in companies since 2010. After the deal, LGT will have a double-digit percentage ownership in Teneo. Members of Teneo management will also retain shareholdings.
Teneo is among the largest public relations and financial communications groups, and also counsels on corporate turnarounds and restructuring. The firm has expanded through acquisitions, including UK PR groups Tulchan, Blue Rubicon, and Stockwell. Teneo competes globally with firms like Brunswick, FTI Consulting, and FGS Global, which was acquired by KKR at a valuation of around $1.6 billion last year.
The growth of artificial intelligence poses a threat to the sector that Teneo operates in. However, the firm's acquisition of Deloitte's British restructuring business in 2021 has performed significantly better than many of the firm's traditional business lines. Teneo's Irish business, with 100 employees and annual revenues of about €20 million, is a testament to the firm's success.
Notable figures associated with Teneo include former Ireland and Lions rugby captain Brian O'Driscoll, who is part of the Teneo Ireland advisory board. Teneo advises executives and boards of blue-chip companies such as Chevron, Unilever, and Tesco.
Bloomberg News first reported LGT's investment. However, Teneo, CVC, and LGT declined to comment.
[1] Teneo [2] LGT Capital Partners [3] CVC Capital Partners [4] FGS Global [5] Deloitte
- LGT Capital Partners' investment in Teneo is a strategic move to acquire a minority stake in a high-growth, business and finance advisory firm, aligning with their strategy of investing in companies with significant growth potential.
- The investment by LGT Capital Partners in Teneo, alongside the presence of firms like FGS Global and Deloitte in the sector, highlights the competitive landscape in the global advisory business.
