Guy Hands to step down from buyout firm Terra Firm
Guy Hands leaves acquisition company Terra Firm
Retiring: Guy Hands
By Guy Hands, one of Britain’s leading financiers, is stepping down from his private equity firm Terra Firma after more than 20 years.
In an internal memo to staff, Hands, who built his company into one of Europe’s largest investors, said he “swore I’d retire when I’m 64,” according to the Beatles song of the same name. That time has now come as I approach my 64th birthday in August.’
Hands’ three-decade career spanned a wide variety of industries. Terra Firma has invested £15.6 billion in 39 companies since it was founded in 1994 as part of Japanese investment bank Nomura. It was withdrawn from the bank in 2002.
His stint as head included ownership of record label EMI and nursing home operator Four Seasons Health Care.
The first ended in tears when EMI collapsed shortly after its £4.2 billion acquisition of Terra Firma in 2007, which wiped out about £1.8 billion of the company’s cash. Hands then embarked on a high-profile legal crusade against investment bank Citigroup, which alleged fraud against him. Citi denied the claims.
He dropped his claim in 2016, but not after it cost £200 million of his own money.
The debacle left Terra Firma struggling to raise funds despite a private equity boom supported by low interest rates that left it behind rivals.
The Four Seasons ownership also ended in disaster when it plunged into administration in 2019.
In May, Hands was stabbed again after his firm Annington Homes lost a legal challenge against the government to prevent the Defense Department from taking back tens of thousands of homes privatized in 1996 for military families.
Terra Firma’s current portfolio includes the former housing branch of construction group Kier and the German group Welcome Hotels.
Hands said he would still be involved with his family office, Hands Family Investments, Sky News reported.
“To be clear, I will continue to be involved with the portfolio companies that are Hands Family Investments… I will therefore continue to sit on the boards that work with those investments,” he said.
An outspoken and at times controversial figure, Hands has been a fierce critic of Brexit, previously saying Britain’s investment outlook had deteriorated.
He also raised eyebrows in 2020 when he lashed out at his fellow dealmakers for being too focused on how much money they made instead of improving companies and creating new jobs.