Peter Hargreaves, the billionaire co-founder of Hargreaves Lansdown, is resigning as a board director of the personal investment firm, marking the end of his active role in the business following its £5.4bn acquisition by private equity firms.
Hargreaves, who established the 海角视频's largest DIY investment platform with Stephen Lansdown in 1981, will be passing his board seat to his son Robert, as initially reported by the Financial Times, as reported by .
The Bristol-based company said that Hargreaves made an unexpected return to the board earlier this year to "provide continuity" after its sale to CVC partners, Nordic Capital and Abu Dhabi's Platinum Ivy, a transaction that was finalised in March.
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The company was acquired for £11.40 per share, with Hargreaves retaining approximately a 10% stake after selling half of his 20% holding in the takeover, enabling him to pocket over £500m.
In contrast, Lansdown divested his entire near 6% stake, describing it as a "bittersweet moment".
Hargreaves served as the company's chief executive until 2010 and remained on the board until 2015, before rejoining earlier this year.
Although this move concludes Hargreave's active involvement with the investment platform, he will continue to hold a stake in the business, with Hargreaves Lansdown confirming he will "maintain a close relationship" and has "offered to make his insight and experience available if needed".
Handing over to the next generation
Discussing his decision, Hargreaves expressed that 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".
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Robert Hargreaves has served as a board "observer", granting him the privilege to attend meetings and receive information, yet without the ability to vote on board decisions, since the company's acquisition.
He has previously held various positions at Hargreaves Lansdown, and is currently employed at investment fund Blue Whale, which received initial funding from his father.
Mounting competition
Despite the company pioneering the direct sale of funds to individuals, bypassing financial advisers, and leading the industry with nearly a third of the market share, it is encountering increasing competition from competitors.
Global banking giant JPMorgan Chase is set to enter the sector next year, while digital-only platform Robinhood continues to strengthen its hold on the market.
Hargreaves had voiced his disappointment in the firm's share price prior to the takeover, agreed in August 2024, after it plummeted from its peak of £24 in 2019 to a mere £7 last year.
According to the firm's most recent annual report, Hargreaves Lansdown has distributed £119m in dividends to its private equity owners, whilst assets under administration have reached £172.2bn.