Terra Firma is set to begin raising around €3 billion for a new buyout fund, per Sky News.
The firm founded by Guy Hands has been undergoing a transformation over the last two years, hiring former Sainsbury's CEO Justin King as head of portfolio businesses, as well as Lloyds Banking Group veteran Andrew Géczy as CEO. The buyout company has also been realising a number of investments, including
its £921 million sale of Odeon & UCI Cinemas to AMC Entertainment.
If confirmed, it would be further evidence of the prevailing
buoyant environment for capital raising in Europe, with a target size looking to beat the €2.4 billion raised in late June by fellow UK PE house Vitruvian Partners.
Worldwide, firms have already closed around 160 buyout funds this year,
gathering more than $150 billion in capital commitments. Just last month, Apollo Global Management received $23.5 billion for its latest vehicle—the largest buyout fund ever raised—while CVC Capital Partners closed the largest Europe-based fund in history, gathering €15.5 billion. Those figures don't even include the mouthwatering $93 billion SoftBank has raised for its Vision Fund.
With PE firms already sitting on a
record amount of dry powder, one can only start to wonder what the staggering amount of investable capital will do to already steep valuations.