Hargreaves Lansdown’s co-founder has described its sale to private equity buyers as ‘bittersweet’ as he voiced concerns about their intentions.
Stephen Lansdown, who has a 5.7 per cent stake in the investment platform, has backed the £5.4billion offer by a consortium of investors led by buyout giant CVC.
His comments came after HL’s board said this week it would accept the £11.40 per share deal.
Selling up: Stephen Lansdown, who has a 5.7% stake in Hargreaves Lansdown, has backed the £5.4bn offer by a consortium of investors led by buyout giant CVC
Directors previously rejected three approaches – including one worth £4.7billion – from the group which as well as CVC includes Nordic Capital and Platinum Ivy, owned by the Abu Dhabi sovereign wealth fund.
HL’s biggest shareholder, co-founder Peter Hargreaves, 77, told the Mail on Tuesday that he would be ‘very happy’ to support the bid.
Lansdown, 71, yesterday told the BBC that the takeover of the firm he co-founded in 1981 was ‘bittersweet’.
‘At this point in time it’s a fair value as long as the conditions of the sale are correct,’ he said.
He added that the board ‘has done a good job’ but said he ‘naturally has concerns about private equity’.
Lansdown said that private equity firms ‘find something they think is good value that they can then invest into and grow to a certain size and move on again’.
He added: ‘We don’t know if they’re looking long term or if in five years’ time they’ll move on again.’
HL, which floated in 2007, is the country’s biggest investment platform with nearly 2m customers.