Peter Hargreaves, the co-founder of broker Hargreaves Lansdown, intends to pour £25 million into a new investment firm set up by a former Artemis fund manager.
The news comes after Citywire's Wealth Manager revealed in July that Hargreaves was named a partner in Blue Whale Capital, 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. Until April 2013, when Yiu left Artemis to return to Hong Kong the pair returned 110.6% on the Artemis UK Growth fund, beating their sector average of 99.9%.
It is understood the fund is set to launch 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 Citywire, Yiu established Blue Whale Capital LLP in October last year, in which he holds a 75% stake or more.
Hargreaves, who stepped down from Hargreaves Lansdown's 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.
Steer left Artemis two years ago 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.