The billionaire co-founder of Hargreaves Lansdown is stepping back from his role as a board director in the wake of the company’s £5.4 billion private equity takeover.
Peter Hargreaves’ departure comes after a short return to the board – a move he had made earlier this year to “provide continuity” through the transition.
Hargreaves, now 79, will pass his board seat to his son, Robert, who has served as a board observer since the takeover.
Peter will, however, retain a stake in the Bristol-based FinTech which he has grown into a national giant and has pledged to remain available as a source of counsel.
The firm says he “will maintain a close relationship” and “has offered to make his insight and experience available if needed.”
Following the acquisition by CVC Capital Partners, Nordic Capital and a branch of Abu Dhabi Investment Authority, a deal finalised in March, Hargreaves had rejoined the board in April.
Reports at the time noted his return was also a reaction to his earlier public criticism of the company’s trajectory: before the takeover, he had castigated the prior leadership for presiding over what he called a “shambles,” as its share price tumbled from £24 in 2019 to near £7.
“I felt it was important that I had close contact with the business,” Hargreaves said of his return.
“I am confident it is now well-placed for future success.”
The appointment extended to Robert as a non-voting observer, hinting at a reintroduction of family oversight.
Peter had been CEO of the business until 2010 and remained on the board until 2015, before stepping away entirely.
Robert Hargreaves, though still an observer, had already been familiar with company governance, having held multiple roles at Hargreaves Lansdown and working at Blue Whale – the investment fund seeded by his father.
Under new private ownership, the firm has undergone a leadership reshuffle.
Dan Olley stepped down as CEO, Richard Flint was named interim leader to push digital transformation and Bruce Hemphill, formerly the boss of Old Mutual, became chair.
Even as a private company, Hargreaves Lansdown controls nearly a third of the UK “DIY” investment market.
In the terms of the takeover, Peter sold half of his 20% stake, netting more than £500 million, and retained approximately 10%.
Meanwhile, the firm has paid £119m in dividends to its new owners.
Assets under administration have risen to £172.7bn and its customer base has crossed 2m.