Hargreaves Lansdown co-founder returns to board after £5.4bn takeover
The billionaire co-founder of Hargreaves Lansdown has made a surprise return to the investment platform’s board following its private equity takeover last year.
Peter Hargreaves, who helped set up the investment site in 1981 and stepped down as a director a decade ago, will reappear on the company board in a non-executive role.
Hargreaves has also nominated his son Robert to become a board observer, people familiar with the matter told the Financial Times.
Hargreaves had previously blasted the firm’s previous management for the “shambles” that sent its stock tumbling. A series of woes involving rising costs and slowing consumer inflows led to the company’s share price falling to £7 from a peak of £24.
The retail investment company later agreed to its £5.4bn sale to a group of private equity firms including CVC Capital Partners last year.
The new owners, a consortium that also includes Nordic Capital and Abu Dhabi’s Platinum Ivy, paid £11.40 a share for the then FTSE 250 firm.
Peter Hargreaves to assume role ‘within weeks’
Hargreaves Lansdown went public in 2007, floating at 160p a share, reaching a value of £759m.
Peter Hargreaves is expected to assume the director role within weeks, a source told the Financial Times.
Despite selling half of his 20 per cent stake during the private equity buyout – scooping over £500 million – Hargreaves maintained a ten per cent share, giving him the right to nominate board members.
Meanwhile, Hargreaves’ co-founder Stephen Lansdown sold off his entire near-6 per cent stake. Lansdown said at the time it was a “bittersweet moment” but the right time to move on and focus on other ventures.
Following the deal, the old board stepped down at the end of March.
Bruce Hemphill, former boss of financial services group Old Mutual, became the board’s chair. Peter Rutland, managing partner at CVC, joined as a director.
Hargreaves Lansdown did not immediately respond to a request for comment.