Global Counsel has moved to cut ties with Lord Peter Mandelson and is in the process of divesting his shareholding after colleagues concluded there was "no way back" for the former cabinet minister following the publication of emails about his links to Jeffrey Epstein, multiple people familiar with the matter said.
The advisory firm, which Mandelson co-founded in 2010, said colleagues had determined he should not return to any operational role; the process to sell his remaining stake — reported to be about 28% — is nearly complete. Based on a reported £30 million valuation for the business, his holding has been estimated at roughly £8.4 million.
The development came after the UK government removed Mandelson from the role of British ambassador to the United States following the emergence of previously unseen emails that showed him defending Epstein around the time of the financier's 2008 conviction. Downing Street said the messages, which were reported by Bloomberg, had come from a long-disused account and had not been available to the vetting authorities.
Sir Keir Starmer initially backed Mandelson after his appointment in December, but the prime minister and his foreign secretary later concluded the new material changed the picture materially and decided to remove him. In a letter to staff in Washington, Mandelson said the posting had been "the privilege of my life" and that he was "utterly awful about my association with Epstein 20 years ago and the plight of his victims."
The emails include messages in which Mandelson urged Epstein to "fight for early release" and said, a day before Epstein reported to prison in June 2008, that "your friends stay with you and love you," according to accounts of the correspondence. Downing Street acknowledged Mandelson had continued a friendship with Epstein after the 2008 conviction and said some details in the newly surfaced messages were "reprehensible."
Global Counsel, founded by Mandelson with Benjamin Wegg-Prosser after Mandelson left government in 2010, advises corporations and governments and lists clients that have included TikTok and the US technology firm Palantir. Mandelson resigned as a director last May but retained his shareholding. People familiar with the firm said the move to divest had been underway for months and that Mandelson had not held an operational role for some time.
Bloomberg and other outlets reported the firm had told colleagues it had no business dealings with Epstein and that partners were "appalled" by the revelations. The firm declined to comment publicly and Mandelson did not respond to requests for comment, according to news reports.
The episode has prompted cross-party scrutiny of the government's vetting and decision-making. Opposition politicians called for publication of all documents related to Mandelson's appointment and for an inquiry into what ministers and senior officials knew and when. Conservative frontbenchers said the episode raised questions about reputational risk in diplomatic appointments and criticised the government for initially defending Mandelson.
Within the governing Labour party, the prime minister's initial support for Mandelson drew sharp criticism from some MPs and ministers, triggering crisis talks in Downing Street. Several senior ministers and backbenchers had privately warned that the appointment would be politically damaging. Labour officials said the decision to appoint Mandelson had been championed by a senior aide to the prime minister, a claim that aides said was under review.
The timing of the controversy added to its salience: Mandelson's removal came days before a planned state visit to the UK by the US president, who had met Mandelson in the Oval Office earlier this year. Government officials said the president was informed of the removal after it had been carried out.
Mandelson has a long political history, having twice left cabinet posts in the past, and his post-government career included establishing Global Counsel as a strategy and communications advisory. The Financial Times previously reported a valuation that underpins estimates of his remaining holding. The firm operates several offices internationally.
The government said the newly disclosed emails altered the assessment of Mandelson's relationship with Epstein and that officials were examining how correspondence held in old accounts had been missed during vetting. Calls for transparency and an independent review of the appointment process have intensified as ministers seek to contain the political fallout.
Global Counsel's confirmation that it is cutting formal links with Mandelson and the near-complete divestment of his shares leave the former minister without a formal role at the firm he helped found. The long-term diplomatic and political repercussions for the government and for UK relations with the United States remain a subject of scrutiny in Westminster and Washington.