The co-founder of Hargreaves Lansdown described its sale to private equity buyers as “bittersweet” and expressed concerns about its intentions.
Stephen Lansdown, who has a 5.7 per cent stake in the investment platform, has backed the £5.4bn bid from 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.
Sell: Stephen Lansdown, who has a 5.7% stake in Hargreaves Lansdown, has backed a £5.4bn bid from a consortium of investors led by buyout giant CVC.
Directors previously rejected three proposals – including one valued at £4.7bn – from the group which, in addition to CVC, includes Nordic Capital and Platinum Ivy, owned by Abu Dhabi’s sovereign wealth fund.
HL’s largest shareholder, co-founder Peter Hargreaves, 77, told the Mail on Tuesday he would be “very happy” to support the bid.
Lansdown, 71, told the BBC yesterday that the acquisition of the company he co-founded in 1981 was “bittersweet”.
“Right now it is a fair value as long as the sales conditions 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 private equity firms “find something they think is good value that they can then invest in, grow to a certain size and move on.”
And he added: “We don’t know if they are looking long term or if in five years they will move forward again.”
HL, which went public in 2007, is the country’s largest investment platform with almost 2 million clients.