What the Hargreaves Lansdown takeover means for your finances

The largest investment platform in the UK has agreed to a takeover worth £54 billion, which is expected to be finalized next week

What implications does it have for shareholders and customers?

As a group of private equity investors closes in on their 5.4 billion takeover of the company, investing platform giant Hargreaves Lansdown is scheduled to leave the stock market next week.

Earlier in the year, the CVC Capital Partners-led consortium submitted multiple bids for the investment platform; in August 2025, the Hargreaves Lansdown board ultimately accepted an offer.

The recommendation was made to shareholders at 11 points 40 per share, and in October 2024, 87 percent of them voted the deal through.

Consequently, the London stock market will no longer be home to the FTSE 100 company. The buyers are a division of the Abu Dhabi Investment Authority and CVC, Sweden's Nordic Capital.

According to a stock market update earlier this week (18 March), in order to prepare for the completion of the deal, Hargreaves Lansdown shares will be suspended starting on March 24 and the company is anticipated to delist on March 25.

This week, it was also announced that Amy Stirling, the chief financial officer at Hargreaves Lansdowns, will be leaving the company.

Hargreaves Lansdown has 11.8 million customers, making it the biggest investment platform in the UK. In recent years, it has reduced the fees for junior and lifetime ISAs and introduced a savings marketplace called Active Savings.

Retail investors were granted access to primary gilt markets by Hargreaves Lansdown earlier this year. With a less expensive, index-focused option, it has also increased the number of managed funds it offers.

We examine the implications of the takeover for you as a customer or shareholder.

As a shareholder, what impact does it have on me?

Stephen Lansdown and Peter Hargreaves established Hargreaves Lansdown in 1981. The combined percentage of their shares is 26%.

The offer is more than 15% higher than the 9.85 per share offer made in April, which the Hargreaves Lansdown board rejected as grossly undervaluing the company. The offer values the company at 11.40 per share.

As a result of the takeover, the billionaire founders will receive hundreds of millions of pounds in compensation.

When ordinary shareholders were asked to vote on the takeover, 87 percent of them supported it, while 13 percent opposed it.

Given that a 75 percent majority was required for the takeover to proceed, it indicates that Hargreaves Lansdown's deal has successfully cleared a significant obstacle.

Investors will now have to choose between accepting cash for their shares or transferring their stake to the new, unlisted business.

Those who wish to sell their holding will receive 11p10 in cash for each share, plus a 30p dividend, for a total of 11p40. An overall ownership cap of 35 percent will apply to shareholders who want to keep their stake.

It is anticipated that the majority of shareholders will choose to accept the money instead of owning stock in an unlisted business. It was confirmed in August that Lansdown would sell all of his shares in the new business, while Hargreaves would only contribute 50% of his shares.

Is it better to sell or hold onto my shares?

Due to their listing on the UK stock exchange, Hargreaves Lansdown shares are currently easily traded. You won't be able to buy and sell them in the same manner after the business enters private ownership.

Keeping unlisted shares can be challenging to sell and manage. To sell shares, you will need to either find a buyer or wait for the new owners to decide whether to sell or relist the company on a stock exchange.

It can be challenging to obtain a precise picture of an unlisted company's operations and performance because they are not subject to the same reporting regulations as those on a stock exchange. You might not know the value of your holdings because it can be challenging to value unlisted companies.

Our post on what happens when a company delists from a stock exchange contains a wealth of additional information on this subject.

What impact will it have on me as a customer?

The investment platform is unlikely to undergo any changes in the immediate aftermath of the takeover or at this time.

It's crucial to realize that the offer has no bearing on how your assets are held or managed, and that the security of your assets remains unaffected," says Hargreaves Lansdown.

We also have no plans to make any changes to our services, products, or your platform investments or funds.

Regardless of the business's ownership, you should be able to access and trade your investments and account (whether it's in an ISA, savings account, pension, or fund and share account).

According to the consortium, it has no plans to move the investment firms' Bristol headquarters, where the majority of its 2,400 employees are employed.

Hargreaves Lansdown was commended by the private equity buyers for its powerful, reputable brand and its significant mission of assisting individuals in managing their financial wealth and empowering clients to achieve the best results.

To propel the company's next stage of growth and development, it is necessary to invest heavily in an "extensive technology-led transformation," according to the report. The investment platform's digital channels and technological infrastructure may therefore change over time.

Based on its most recent results, Hargreaves Lansdown saw a 16 percent decrease in new business in the three months leading up to September 2024.

The company reported a net new business of 500 million, down from 600 million in the prior quarter.

Are my funds in jeopardy?

The Financial Conduct Authority (FCA) will remain the regulatory body for Hargreaves Lansdown.

The investment platform says: "The company that owns the client's assets (HL Nominee) is not connected to the business or its liabilities.

In compliance with the FCA's client money guidelines and regulations, we hold all client funds in trust and keep them separate from our own.

Customers will still be able to file complaints with the Financial Ombudsman Service thanks to the FCA regulation. Additionally, you will remain protected under the Financial Services Compensation Scheme (FSCS), which pays up to 85,000 in assets held in any failing company.

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