Japanese bank Nomura has finally reached a detailed agreement with its one-time employee Guy Hands for him to manage the investments of its principal finance group through his new company Terra Firma Capital Partners.
Nomura has also agreed to invest up to ten per cent in the firm’s new E3bn buy-out fund.
Hands was the former head of Nomura’s principal finance group, where he shot to fame for undertaking bold takeovers and securitising the cash flows of enormous businesses like pub chains. Nomura had already reached an agreement with Hands about his spin-off in late 2001 but this latest episode resolves outstanding issues.
Nomura will also help Hands market the new fund in Asia, while Schroder Salomon Smith Barney and Merrill Lynch will cover the US and Europe. Fund raising is reportedly progressing well and Hands hopes to close by the end of the year.
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