Guy Hands May Have Timing Wrong

He specialises in acquiring poorly managed assets and paying for them with bonds backed by their cashflows. His track record was second to none and his activities made him one of the best paid people in the City.

He has now started his own firm, Terra Firma Capital Partners Ltd and is currently looking to raise $2.6bn for the first fund, which he hopes to close in September.

But Hands may find it more difficult than he thinks to raise the money. It is notoriously difficult for new buyout firms to raise capital at the best of times. And these are not the best of times, with returns from US firms specialising in Europe - which will be Hands' market - in freefall to 0.1% in the twelve months to 30.9.01, from 18.5% the year before and 58.8% in 1999.

Hands will not reveal how much he has managed to raise so far.