Private equity firms make takeover bid for Hargreaves Lansdown at £11.40 per share

From Morningstar: 2024-06-20 05:15:00

Shares in Hargreaves Lansdown have surged after a takeover bid from private equity firms CVC Capital, Nordic Capital, and Abu Dhabi Investment Authority at £11.40 per share, valuing the company at £5.4 billion. The bid is the fourth attempt, with a deadline set for July 19 for finalization.

If sold, Hargreaves Lansdown will be delisted from the FTSE 100, becoming privately owned. UK’s capital markets face challenges, leading companies like Arm Holdings and Flutter to choose listings in the US over London. Expectations are high for Hargreaves under private equity ownership, focusing on strategic changes like advisory services integration.

Founded in 1981, Hargreaves Lansdown has achieved success by offering investment funds to retail investors at lower costs and simpler processes. With over £150 billion in assets under management and 1.86 million clients, the firm made £402 million in profits in 2023. However, facing competition from other platforms, stagnating growth, and reputation tarnished by the Neil Woodford scandal.

Despite struggles, fund manager Nick Train remains optimistic about Hargreaves Lansdown, highlighting its growth potential. Train’s funds, including WS Lindsell Train UK Equity and Lindsell Train Global Equity, hold a combined exposure of 12% to Hargreaves. The firm has the opportunity to utilize customer data for future growth and success.



Read more at Morningstar: Hargreaves Shares Bounce as Private Equity Firms…