He believes the company can grow in future by offering bank accounts and loans to its existing customer base.
Christian Kent, a managing director within the financial services group at investment bank Houlihan Lokey, says stock market investors “have fallen out of love” with wealth management firms, and so those businesses have traded at lower valuations while being on the stock market than they would under private equity ownership.
He says that in addition to the signalled investment in technology, he expects that Hargreaves Lansdown could be used as a vehicle for the private equity owners to buy other wealth management businesses in the UK, and to potentially push further into the advice market.
David Thorpe is senior investment editor of FT Adviser
