Key Takeaways
- • Alex Brummer argues that private equity owners of Hargreaves Lansdown (HL) have extracted £600 million in dividends in the 12 months to June 2026 and a further £189.3 million in the three months to September, according to figures he attributes to The Times.
- • HL's private equity owners, alongside co-founder Peter Hargreaves, took the platform off market after the previous board and shareholders accepted an offer from CVC, Nordic Capital and the Abu Dhabi Investment Authority in March 2025.
- • Brummer contends that HL's clients are suffering losses, with popular funds battered by volatility in technology and AI stocks, and one family member's Isa portfolio down 10 per cent.
- • The column criticises HL's conduct over the Neil Woodford funds, noting HL's Wealth List promoted Woodford's Equity Income Fund until its 2019 collapse and that no apology or direct compensation has been offered.
- • Brummer contrasts HL's situation with Whitbread, which rejected activist Corvex's 6.3 per cent stake push for a sale and leaseback, with 91 per cent of votes cast (excluding Corvex) backing the board.
Summary
This Money columnist Alex Brummer examines the post-buyout position of Hargreaves Lansdown, the UK investment platform now owned by private equity investors after its takeover in March 2025. Brummer writes that HL clients are having a difficult period, as many of the platform's popular funds have been hit by volatility in technology and AI stocks, which dominate both index investing and active management. He cites a family member whose Isa portfolio fell 10 per cent on the HL app, placing it in correction territory, though that investor had taken profits before the latest market turmoil.
Brummer argues the private equity owners, along with co-founder Peter Hargreaves, have benefited substantially. Citing The Times, he reports that the owners extracted £600 million in dividends in the 12 months to June 2026 and a further £189.3 million in the three months to September. The column also notes that the owners have invested £100 million in new systems, which Brummer views as a necessary step for modernisation and cyber-security rather than a reason for praise. He suggests the proceeds could instead have funded lower management costs, noting that many clients already pay higher dealing and management fees than rivals such as Aberdeen-owned Interactive Investor.
The column is also critical of HL's past handling of the Neil Woodford funds. Brummer writes that HL's Wealth List continued promoting Woodford's flagship Equity Income Fund until its collapse in 2019, and that one-third of HL clients were exposed to Woodford directly or through HL's own fund of funds. He states there has been no apology or direct compensation, and that legal redress has been slow.
Brummer contrasts the HL takeover with Whitbread, where chairman Christine Hodgson and executives resisted activist Corvex, which held a 6.3 per cent stake and had urged a sale and leaseback of the property estate. At an extraordinary general meeting, 91 per cent of votes excluding Corvex's shares backed the board. He also references KKR, which he says reported record quarterly profits and promised $40 billion of returns to clients, and argues that such outcomes concentrate gains among a few at the expense of many.
Brummer argues the private equity owners, along with co-founder Peter Hargreaves, have benefited substantially. Citing The Times, he reports that the owners extracted £600 million in dividends in the 12 months to June 2026 and a further £189.3 million in the three months to September. The column also notes that the owners have invested £100 million in new systems, which Brummer views as a necessary step for modernisation and cyber-security rather than a reason for praise. He suggests the proceeds could instead have funded lower management costs, noting that many clients already pay higher dealing and management fees than rivals such as Aberdeen-owned Interactive Investor.
The column is also critical of HL's past handling of the Neil Woodford funds. Brummer writes that HL's Wealth List continued promoting Woodford's flagship Equity Income Fund until its collapse in 2019, and that one-third of HL clients were exposed to Woodford directly or through HL's own fund of funds. He states there has been no apology or direct compensation, and that legal redress has been slow.
Brummer contrasts the HL takeover with Whitbread, where chairman Christine Hodgson and executives resisted activist Corvex, which held a 6.3 per cent stake and had urged a sale and leaseback of the property estate. At an extraordinary general meeting, 91 per cent of votes excluding Corvex's shares backed the board. He also references KKR, which he says reported record quarterly profits and promised $40 billion of returns to clients, and argues that such outcomes concentrate gains among a few at the expense of many.
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