Clients of the investment platform Hargreaves Lansdown (HL) are experiencing considerable losses as many of their popular investments, particularly in technology and AI stocks, have been hit hard by market volatility. These sectors heavily influence both index investing and active management funds.
One investor, who had seen good returns in their Individual Savings Account (Isa) over recent years, was reportedly shocked to find their portfolio down by 10 percent, placing it in correction territory, according to a report by the Daily Mail.
Despite the downturn for clients, the platform's private equity owners and co-founder Peter Hargreaves are said to be profiting significantly. CVC, Nordic Capital, and the Abu Dhabi Investment Authority, which acquired the platform in March 2025, have reportedly extracted £600 million in dividends in the 12 months to June 2026, with an additional £189.3 million distributed in the three months leading up to September 2026.
The article criticizes the tendency for FTSE 100 and 250 boards to accept takeover offers quickly, citing fiduciary duty to secure the best price for shareholders and ensure payouts for investment bankers and executives, including incentive shares. Executives may also receive substantial payouts upon change of ownership.
The Daily Mail also highlights Hargreaves Lansdown's past conduct regarding failed asset manager Neil Woodford's funds. The Wealth List reportedly continued to promote Woodford’s Equity Income Fund until its collapse in 2019. A significant portion of HL clients were exposed to Woodford, either directly or through HL's own fund of funds. The report notes a lack of apology or direct compensation to affected clients, with legal efforts for redress moving slowly.
While HL's private equity owners have invested £100 million in new systems, a move deemed necessary for modernization and cyber-crime protection, the author suggests these funds could have been better utilized to reduce management costs for clients. Many clients are reportedly paying higher fees compared to rivals like Aberdeen-owned Interactive Investor.
In contrast, the article commends Whitbread, the owner of Premier Inn, for resisting pressure from activist investor Corvex. Corvex had urged Whitbread to sell its property estate via a sale and leaseback deal, but shareholders overwhelmingly rejected the proposal at an extraordinary general meeting. Whitbread has instead focused on operational improvements.
The piece concludes by noting the continued success of private equity firm KKR, which reported record quarterly profits and significant returns to clients, reiterating a theme of substantial profits being made by a few at the expense of many.