Toby Mitchenall
Toby Mitchenall is the Senior Editor for private equity at PEI Media. He is responsible for and regular contributor to the private equity coverage across Private Equity International, Secondaries Investor and private funds management and is based in PEI’s London office. Toby was previously a consultant advising private equity firms on marketing and public relations.
Terra Firma is splitting its chairman and CEO roles, with Terra Firma veteran Tim Pryce taking on the day-to-day running of the business. Hands’ responsibility will cover investors, investments and strategy as the group’s chairman and CIO.
The listed Permira investor, which is now 20%-owned by Coller Capital, saw two-thirds of the book value wiped off its portfolio during 2008. Chief executive Andrew Williams has stepped down.
The UK buyout house has booked a €1.3bn impairment – half the value of the equity investment – on the 2007 deal. It will also return €80m of carry to investors, because according to chief executive Guy Hands, 'our investors have suffered and therefore our rewards should suffer'.
The long-standing fixture of the UK buyout landscape has told its new teams in Asia and Eastern Europe to either raise their own funds or face closure, as the firm seeks to slash costs.
Europe’s private equity industry has submitted a 300-page document to the European Parliament to begin a debate on industry regulation without ‘political colour’. An enforced code of conduct has become a necessary step, according to EVCA secretary general Javier Echarri.
Guy Hands’ firm has avoided shrinking its €5.4bn third fund by buying out three cash-strapped LPs at ‘a small premium’.
The firm is revising its investment strategy for the fund as well as allowing investors to slash their commitments. Before any reductions the fund stands at €3bn.
As the industry steels itself against a potential regulatory backlash in Europe, certain members of the European Parliament, including Poul Nyrup Rasmussen, have railed against the pro-private equity stance of the internal markets commissioner.
The listed Permira investor has taken a number of measures to boost liquidity, including reducing by £796m its original commitment to Permira’s fourth buyout fund.
As unfunded commitments are looking harder to meet, the Euronext-listed fund of funds is receiving increased calls from its managers of distressed funds.