Hargreaves Lansdown co-founder to step down from board
The billionaire co-founder of Hargreaves Lansdown is stepping down as board director of the personal investment business months after its £5.4bn acquisition by private equity firms, marking an end to his involvement in the business.
Peter Hargreaves, who created the UK’s largest DIY investment site with co-founder Stephen Lansdown in 1981, will be handing his board position to his son Robert, the Financial Times first reported.
The company said Hargreaves made a surprise return to the board earlier this year to “provide continuity” following its sale to CVC partners, Nordic Capital and Abu Dhabi’s Platinum Ivy, in a deal that was completed in March.
The firm was taken over for £11.40 a share, with Hargreaves retaining roughly a 10 per cent stake, after selling half of his 20 per cent holding in the take over, allowing him to scoop over £500m.
Meanwhile, Lansdown sold off his entire near 6 per cent stake, hailing it a “bittersweet moment”.
Hargreaves held the role of chief executive of the company until 2010, and sat on the board until 2015, before rejoining earlier this year.
While the move brings Hargreave’s involvement with the investment platform to an end, he will continue to hold a stake in the business, with Hargreaves Lansdown confirming he will “maintain a close relationship” and “offered to make his insight and experience available if needed”.
Handing over to the next generation
Speaking of his decision, Hargreaves said he felt “it was important that I had close contact with the business” following the takeover” but was confident it was “now well-placed for future success”.
Robert Hargreaves has been a board “observer”, allowing him the right to attend meetings and receive information but leaving him unable to vote on board decisions, since the company was taken over.
He has previously worked across various roles at Hargreaves Lansdown, and currently works at investment fund Blue Whale, which was seeded by his father.
Mounting competition
While the company introduced selling funds directly to individuals, rather than through financial advisers, and leads the industry, occupying nearly a third of the market, it is facing mounting competition from rivals.
Global bank JPMorgan Chase is planning to enter the sector next year, while digital-only platform Robinhood is also growing its grip on the market.
Hargreaves had expressed his disappointment in the firm’s share price prior to the takeover, which was agreed in August 2024, after it dropped from its high of £24 in 2019 to just £7 last year.
According to the company’s latest annual report, Hargreaves Lansdown has paid £119m in dividends to its private equity owners, while assets under administration hit £172.2bn.