Guy Hands’ buyout firm Terra Firma is reportedly preparing to launch a €2bn general private equity fund.
Terra Firma will kick off the fundraise in May, said Reuters, according to two people familiar with the matter.
The fund will make equity investments of €750m, half of which will be supplied by the fund and the rest will come from co-investors, said the people.
The firm has done more than 30 deals in the past 20 years and its smaller deals have been more successful, said one of the sources.
“Leverage tends to be lower in smaller deals and it is easier to change those businesses,” said the person.
Last year Terra Firma secured a two year extension to exit its investments from its €2bn second fund.
TFCP II, the firm’s first vehicle after spinning out of Nomura in 2002, was the largest debut fundraising in Europe at the time despite being downsized from its initial €3bn target.
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