Terra Firma staff are reportedly attempting to hand off £100m of equity they put into their firm’s £3.2bn buyout of UK Army housing manager Annington Homes from Nomura last month.
Employees initially planned to part with £150m of equity towards the deal but were persuaded to up that to £250m if the remainder could be syndicated, Dow Jones reports.
It said Terra Firma founder and chairman Guy Hands was among the employees who put up the £250m, which represented half of the deal’s £500m equity.
Hands first bought Annington Homes 16 years ago while working for the Japanese investment banking giant. Annington kept on £2.2bn of debt following the transaction.
The company, which manages almost 60,000 army homes, is understood to have made Nomura close to £2bn in profit since the bank bought the “lease and leaseback” assets in 1996 from the Ministry of Defence for just £1.66bn.
Terra Firma has been managing Annington for Nomura, but has only been looking to take full control of the business at the beginning of the summer.
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