Peter Hargreaves intends to pour £25 million into a new fund firm set up by a former Artemis fund manager, according the Sunday Times.
The news comes after Wealth Manager revealed in July that the Hargreaves Lansdown founder was named a partner in Blue Whale Capital, which was established by Stephen Yiu.
Yiu, who worked at Hargreaves Lansdown as an analyst prior to running money for five years until 2007, made his name as Tim Steer's co-manager at both Artemis and New Star.
It is understood the fund is set go live in the third quarter and will be based on Yiu's expertise in UK equities, while also looking beyond these shores for investment opportunities.
'It is my belief that the UK investor has been very insular in their approach,' Hargreaves (pictured) told the Sunday Times.
'As a consequence of Brexit, Britain needs to look more internationally.'
Yiu is said to have approached Hargreaves around a year ago about his plan.
'He said, "Do you like the concept?" And I said that is exactly what I am looking for. Stockbrokers give their clients very little overseas choice,' Hargreaves said.
Somerset-based Hargreaves added: 'I will not be involved in the day-to-day running of the business because it's based in London. I hope the guys running it will find me a useful sounding board.'
According to documents seen by Wealth Manager, Yiu established Blue Whale Capital LLP in October last year, in which he holds a 75% stake or more.
Hargreaves, who stepped down from the HL board in April 2015, became a member of the partnership in February this year, roughly the same time as the firm received authorisation from the Financial Conduct Authority (FCA).
According to the FCA register, Robert Lloyd, a former employee of Stockholm-based hedge fund manager Brummer & Partner, is also a member of Blue Whale.
Hargreaves son, Robert, is in charge of Blue Whale's marketing.
Yiu started his career at Hargreaves Lansdown in 2002 working as an investment analyst after graduating in Engineering in Information System Engineering from Imperial Colleague, London.
Five years later, he joined John Duffield's New Star Asset Management, where he forged a strong partnership with UK equity fund manager Steer. In a profile with Citywire back in 2008, Steer credited Yiu with developing a quant screen for his Gemini hedge fund.
The pair subsequently joined Artemis in 2009, taking control of the Artemis UK Growth fund, which regularly featured at the top of its peer group.
In April 2013, Yiu resigned from Artemis to return to Hong Kong. Overall, the pair returned 110.6% while working alongside each other on the Artemis fund, beating the peer group average of 99.9%.
Steer eventually left Artemis in the summer of 2015 and at the time said he was to preparing to retire from fund management. There is no indication that he is involved in Yiu's new venture.