Terra Firma, the private equity firm set up by former Nomura financier Guy Hands, has announced the second closing of its debut fund on E1.7bn. Hands was originally targeting E3bn but admitted earlier in the year that E2bn was a more realistic figure in today's fundraising environment.
The fund was originally due to hold a final close in June this year but the deadline was delayed after early fundraising proved less successful than anticipated.
Despite these setbacks Terra Firma is confident that the fund will be able to make another closing at E1.9bn in November based on current negotiations with potential limited partners. The firm expects to hold a final close at its revised target of E2bn early next year. This would make Terra Firma’s fund Europe’s largest ever debut fundraising.
‘A year ago nobody in the US had ever heard of Terra Firma, and that is still where most of the money is coming from,’ said a spokesperson for the firm. ‘Now they have had time to get to know the team and things are looking good.’
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