Peter Hargreaves, the billionaire co-founder of Hargreaves Lansdown, is staging a surprise return to the board of the investment platform following its private equity takeover last year.
Setting up the firm in 1981 and departing from his director role a decade ago, Hargreaves will rejoin the board in a non-executive capacity, as reported by .
Additionally, he has put forward his son Robert for the position of board observer, according to individuals close to the development speaking with the Financial Times.
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Criticism was previously levelled at the former management by Hargreaves for the "shambles" that led to a plummet in the company's stock price, from a high of £24 to £7, amidst rising costs and dwindling consumer inflows.
Subsequently, the retail investment firm accepted a buyout valued at £5.4 billion by a consortium of private equity entities which included CVC Capital Partners, Nordic Capital and Abu Dhabi's Platinum Ivy, last year, pricing the shares at £11.40 each at the time of purchase.
The appointment of Peter Hargreaves in his new executive role is slated to take place within the coming weeks, an insider disclosed to the Financial Times.
Despite offloading half of his initial 20% stake for over £500 million during the private equity acquisition, Hargreaves retains a 10% holding in the business, granting him the prerogative to propose candidates for the company's board.
In other news, Stephen Lansdown, who co-founded Hargreaves, divested his entire stake of nearly 6 percent. At the time, Lansdown described the decision as a "bittersweet moment" but felt it was the opportune moment to shift focus to different enterprises.
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Subsequent to this transaction, the previous board resigned at the end of March.
Bruce Hemphill, the erstwhile head of financial services entity Old Mutual, has assumed the position of chairman of the board. Adding to the board's expertise, Peter Rutland, managing partner at CVC, has been appointed as a director.
Hargreaves Lansdown did not provide an immediate comment when contacted.