Hands Postpones Buyout Fund, Opts to Try Deal-by-Deal FundingKiel Porter
Terra Firma Capital Partners, Guys Hands’s private equity firm, postponed plans to raise a fund dedicated to leveraged buyouts and will instead seek capital from investors to finance individual deals.
The firm, which had planned to raise a 2 billion-euro fund ($2.2 billion), has 1 billion euros available to fund deals, the London-based company said in a statement Monday.
Hands has struggled to raise money from investors after losing his investment in British record label EMI Group Ltd. and hasn’t made an acquisition since 2012. Over the last three years, the firm has returned more than 6 billion euros to investors, much of which came from the sale of Deutsche Annington, Germany’s largest private residential landlord.
The decision marks a departure for Hands, 55, in that his firm previously raised blind pools of capital from which it charged fees to pay employees and could complete deals without spending time persuading investors to provide money for each investment.
Terra Firma is still seeking to raise a separate pool for renewable energy investments.