Guy Hands Said to Explore Modifying Fund to Gain Cash

  • Terra Firma chairman looking for new investors for Fund III
  • Firm hired Sainsbury’s Justin King as vice-chairman this month

Guy Hands, the founder of U.K. buyout group Terra Firma Capital Partners, is looking into modifying the firm’s 2007 fund to allow existing investors to cash out and to bring in new cash, people with knowledge of the matter said.

Terra Firma would allow existing investors to cash out, likely at a discount to the sum originally committed, paving the way for new backers who could be asked to commit to new funds, said the people, who asked not to be identified because the information is private. Hands, 56, is working with Credit Suisse Group AG on the effort, the people said.

No existing investor would be obligated to exit the fund, nor would any
incoming backer be obliged to commit capital to any subsequent Terra Firma
fund, should a liquidity option be offered, one person said. No final decisions have been made and the buyout firm may decide not to proceed with the process, the person said…

Guy Hands Said to Explore Modifying Fund to Gain Cash

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