The Qatar Investment Authority (QIA) will back the chairman of the London Stock Exchange (LSE) in a vote next week on removing him, dealing a significant blow to the efforts of the activist hedge fund behind the campaign.

The Children’s Investment (TCI) fund, led by Sir Chris Hohn, wants LSE chair Donald Brydon to step down, accusing him of removing former chief executive Xavier Rolet arbitrarily.

Hohn needs majority backing from shareholders for his resolution to pass, which will be put to the vote next Tuesday at a Southwark hotel. The QIA holds 10.31 per cent of the LSE’s shares, according to Morningstar.

Read more: Glass Lewis says LSE chairman Brydon would ‘destabilise’ search for CEO

The removal of Brydon would not benefit the LSE “at this time”, according to a person briefed on the QIA’s plans quoted by the Financial Times.

Hohn has so far received little in the way of public backing in his campaign from investors, who have almost uniformly come out against the resolution to remove Brydon.

Two influential investor advisory groups, Glass Lewis and Institutional Shareholder Services, have recommended investors vote against the resolution, while large investor Aviva has said it will not back the call.

However, TCI has previously received public backing from Egerton Capital, another hedge fund.

TCI declined to comment.

Read more: Crunch time: LSE shareholders to decide fate of chairman on 19 December

Full story: Qatar puts weight behind LSE chairman in battle with investor: City A.M.