Hargreaves Lansdown Acquisition: Exploring Its Potential Impact on Your Financial Resources
Hargreaves Lansdown's Departure from the Stock Market
Get ready to bid adieu to Hargreavestown next week, as the £5.4 billion takeover from a private equity consortium is nearing completion. This consortium, led by CVC Capital Partners, has been pursuing the investment platform since late last year, and the Hargreaves Lansdown board finally agreed to their offer in August 2025.
The consortium's offer of £11.40 per share came recommended for shareholders, and 87% voted in favor during October 2024. This move will propel the FTSE 100 company off the London stock market, with the buyers being CVC, Sweden's Nordic Capital, and a subsidiary of the Abu Dhabi Investment Authority.
A stock market update from earlier this week (18 March) confirmed that Hargreaves Lansdown shares will be suspended from 24 March, and the company is expected to delist on 25 March to finalize the deal.
This week also saw the announcement of Amy Stirling, Hargreaves Lansdown's CFO, leaving the business.
Hargreaves Lansdown is the UK's largest investment platform, serving over 1.8 million customers. In recent years, it has launched Active Savings, slashed the fees on lifetime ISAs and junior ISAs, given retail investors access to primary gilt markets, and expanded its range of managed funds with a cheaper, index-focused alternative.
The Takeover: A New Era for Hargreaves Lansdown
So, what does this mean for you? Let's break it down for both shareholders and customers.
Shareholders: Time to Case Out or Hang Tight?
As Hargreaves Lansdown's co-founders, Peter Hargreaves and Stephen Lansdown, own 26% of the shares between them, this move is set to bring in a hefty payday, netting them hundreds of millions of pounds.
The offer of £11.40 per share, valued at over 15% higher than the April offer that was dismissed as undervaluing the company, has been welcomed by a majority 87% of shareholders. However, 13% of shareholders have voted against the takeover.
For those who wish to sell their shares, they'll receive £11.10 per share in cash, plus a dividend of 30p per share, totalling £11.40. Shareholders looking to keep their stake will be subject to a cap of 35% ownership in the new unlisted company. Given the majority of shareholders are expected to opt for the cash, the announcement in August confirmed that Hargreaves and Lansdown will take only 50% and sell the rest, respectively.
Customers: Business as Usual for the Time Being
Rest assured that, for now, there should be no changes to the investment platform. Hargreaves Lansdown maintains that the takeover won't affect how assets are held, managed, or traded, and there are no immediate changes to products, services, or investments. Customers will continue to have access to their accounts, and the firm's Bristol headquarters, where most of its 2,400 staff work, will reportedly remain intact.
However, the new ownership may bring about technological transformations in the future to drive growth and development. While this is exciting news, it's essential to stay informed and keep tabs on any changes that might come your way.
So, while this is a significant turning point for Hargreaves Lansdown, customers can expect business as usual for the time being. Keep those investments rolling, and remember: it's a wise investor who knows when to adapt and roll with the punches.
Is My Money Safe?
Despite the change in ownership, Hargreaves Lansdown will still comply with Financial Conduct Authority (FCA) regulations, offering continued protection under the Financial Services Compensation Scheme (FSCS) up to £85,000 for funds held in any firm that fails. Customers can still bring complaints to the Financial Ombudsman Service if necessary. Money may be tight, but your investments are safe, folks. Let's roll on with the market—we ain't seen nothing yet!
- The takeover of Hargreaves Lansdown by a private equity consortium, led by CVC Capital Partners, could mean a shift in focus towards technology, aiming to drive growth and development.
- As shareholders, the ultimate decision remains whether to sell shares for a lump sum or maintain the stock, subject to a cap of 35% ownership in the new unlisted company.
- For customers, there should be no immediate changes to the investment platform, with assets remaining held, managed, or traded in the same manner as before, and the Bristol headquarters of Hargreaves Lansdown expected to remain intact.
- In terms of financial security, Hargreaves Lansdown will adhere to Financial Conduct Authority (FCA) regulations, offering continued protection under the Financial Services Compensation Scheme (FSCS) up to £85,000, ensuring customer funds are safe.
