Guy Hands

Guy Hands
Born (1959-08-27) 27 August 1959
London, U.K
Nationality British
Education Mansfield College, Oxford
The Judd School
Occupation Private equity investor
Employer Terra Firma (2002- )
Nomura Securities (1994-2002)
Goldman Sachs (1982-1994)
Known for Founder of Terra Firma Capital Partners, Founder of Nomura Principal Finance Group

Guy Hands (born 27 August 1959)[1] is an English financier and investor. He is most notable as the founder and chairman of Terra Firma Capital Partners, one of the largest private equity firms in Europe. Hands also previously served as Chairman of the UK music company, EMI.

Hands is well known for his frequently outspoken comments about the private equity industry.[2][3] In April 2009 he moved from the UK to Guernsey where Terra Firma is based.

Biography

Guy Hands was born in London to South African parents.[1] He was educated at Holy Trinity School, Cookham, where he was diagnosed as severely dyslexic.[1] Subsequently, he was sent to Ravenscroft Preparatory School, a special needs school, aged 9 and The Judd School, Tonbridge.[4] More recently, Hands contributed the funds for the construction of the Guy Hands Library at the Judd School. In a Ravenscroft production of Macbeth in 1970, he played the part of Lady Macbeth opposite Christopher Newbury as Macbeth.[4]

Hands studied Philosophy, Politics and Economics at Mansfield College, Oxford,.[5] At Oxford, Hands held the office of Bursar of the Oxford Union and was also President of the Oxford University Conservative Association in Michaelmas Term 1980.[4] Hands later provided funding for construction of the Hands Building at Mansfield College.

Early career

Hands started his career in 1982 as a eurobond trader at Goldman Sachs. He was appointed Head of Eurobond trading in 1986 and later rose to become head of global asset structuring world-wide for Goldman's European division in 1990.[1] In 1994, Hands left Goldman to found Nomura's Principal Finance Group, which focused on European private equity investments. Hands joined Nomura after three other banks, including Goldman, turned down his investment plan.[6] At Nomura, Hands and his team completed over $20 billion of leveraged buyouts. By 2000, Hands was reported to have generated profits for the bank in excess of $1.9 billion making him a star financier in London.[7][8][9] Hands' most notable acquisitions at Nomura included Annington Homes, as well as William Hill, the bookmaker, and Angel Trains, the UK rolling stock operating company.[10] As well, Hands effectively became the UK's biggest pub landlord through a series of acquisitions in the 1990s.[4]

Terra Firma

In 2002, Hands founded Terra Firma Capital Partners, as a spinout from Nomura, which he had built into one of the largest private equity investors in Europe.[11][12] Terra Firma debuted with a €2 billion private equity fund, immediately making it one of the larger private equity investors in Europe.[13]

The firm's early investments, while still a division of Nomura, focused on housing (Annington Homes), leasing companies and pubs. Since 2002, the firm has made major investments in the waste management (Waste Recycling Group), energy (BGCL, East Surrey Holdings, Phoenix Natural Gas, aircraft leasing (AWAS), cinema (Odeon Cinemas/UCI) and music sectors (EMI). TFCP has also made significant investments in German residential housing (Deutsche Annington) and motorway services (Tank & Rast).

Terra Firma is now also one of the world’s leading private equity investors in renewable energy.[14][15] Its investments include the UK-based green energy business (Infinis), a US wind energy business (EverPower) and an Italian solar energy business (RTR).

Hands and Terra Firma are also known for the failed investment in British music company EMI, which was later taken over by Citigroup, the main lender in the investment.[16] Citigroup took ownership of EMI Group from Terra Firma on 1 February 2011, wiping out the firm's investments and writing off £2.2 billion of debt.[17][18] Despite implementing an operational turnaround,[19][20] Terra Firma was reported to have lost $2.5 billion in the EMI transaction, representing roughly one-third of Terra Firma's investor's capital as well as more than 60% of Hands' personal net worth.[21][22] Hands had spent much of 2010 engaged in litigation with Citigroup, claiming the bank engaged in fraud during its auction of EMI in 2007.[23] The lawsuit went to trial in New York in late 2010[24] and resulted in a jury finding in favor of Citigroup and against Terra Firma and Guy Hands.[25] Hands acknowledged that the EMI deal had been a mistake when he said, "If we hadn’t done that, we’d have 90% of our funds still to invest and we’d look like complete geniuses. Instead, having written off well over a billion, we look like chumps." [26][27]

Personal life

Hands started an art business before going to University. Once at Oxford it became known as ‘Artsake’ and employed a large number of Hands’ fellow students. While at university, he became friends with William Hague, who was later best man at his wedding, in 1984, to Julia Caroline Ablethorpe.[1] The couple have two sons and two daughters.[1] His wife's house in Kent, just outside Sevenoaks, was once presented to Winston Churchill, while his family's estate in Tuscany, Villa Saletta, produces wine and olive oil.[1] The estate’s wines have won several awards.[28][29]

Hands and his wife own the Hand Picked Hotels chain of 17 country-house properties, which is run by Julia Hands.

Hands is a dedicated wine collector, and is a customer of Octavian Vaults for storage. [30]

In April 2009, in protest at the UK tax system, Hands moved to the tax haven of Guernsey. Since then, he has not been to the UK and his family travel to Guernsey to see him.[31] The writer Malcolm Gladwell called the move to Guernsey an “incredibly interesting pathology”, seeing exile from the UK as a significant reverse in the benefits of being immensely wealthy.[32] In litigation against Citigroup on the EMI deal, Terra Firma chose to bring the litigation in New York. Part of the justification for the New York forum was due to Hands' residence in Guernsey, and he told the Court that he could not attend the trial in London if the trial took place there.[33]

The Hands family support a number of charities including the Princes' Trust, Mansfield College Oxford,[34] King's College Cambridge, Duke of Edinburgh Awards,[35] The Kid’s Company, The Eve Appeal, Hospice in the Weald, ICAN, and Outward Bound.

Honours and appointments

References

  1. 1 2 3 4 5 6 7 Wray, Richard (18 January 2008). "'Profile: Guy Hands'". London: The Guardian. Retrieved 2010-02-07.
  2. ↑ Guy Hands: 'the days of speculation and quick returns must end' Daily Telegraph online. 13 November 2011
  3. ↑ Private equity is being forced to face new reality. City A.M. 9 December 2011
  4. 1 2 3 4 Kennedy, Siobhan, Business big shot: Guy Hands dated 30 July 2007, online at timesonline.co.uk
  5. ↑ Guy Hands Profile. Terra Firma Capital Partners website
  6. ↑ Hands edges toward Nomura exit door. 7 May 2001
  7. ↑ Guy Hands. Financial News, 14 June 2000
  8. ↑ The Man Who Loves Disasters. Business Week, 5 June 2000
  9. ↑ Nomura's guy hands: Dealmaker extraordinaire. Global Finance, November 2001
  10. ↑ UK Terra Firma to seal debut deal. AltAssets, 9 Jun 2003
  11. ↑ Hands seen dropping plans for major bank role in new fund. AltAssets, 30 July 2001
  12. ↑ COWELL, ALAN. "World Business Briefing | Europe: Britain: Nomura Investor To Open Fund." New York Times, 10 November 2001
  13. ↑ Guy Hands’ Terra Firma holds first close on debut independent fund. AltAssets, 1 November 2002
  14. ↑ Bloomberg New Energy Finance Report. Bloomberg, 2011
  15. ↑ Bloomberg New Energy Finance Names Top Clean Energy Investors. Bloomberg.com, 2010
  16. ↑ Joshua R. Wueller, Mergers of Majors: Applying the Failing Firm Doctrine in the Recorded Music Industry, 7 Brook. J. Corp. Fin. & Com. L. 589, 597–604 (2013) (describing Terra Firma's purchase of EMI, Citigroup's seizure of the company, and the subsequent breakup, sale, and antitrust scrutiny surrounding the music company).
  17. ↑ Citigroup wrestles EMI from Guy Hands' grasp, The Guardian 1 February 2011
  18. ↑ "EMI announces successful capital restructuring, and change of ownership". EMI Music. 1 February 2011. Retrieved 2011-11-16.
  19. ↑ Give Guy credit for EMI's Brits success. London Evening Standard. 18 February 2011
  20. ↑ EMI Annual review 2009/2010. EMI Music 2009/2010
  21. ↑ Guy Hands on life after EMI. Business Monitor, 10 March 2011
  22. ↑ Guy Hands Offers EMI Post-Mortem. New York Times, 22 February 2011
  23. ↑ Suit Accuses Citigroup of Fraud in EMI Deal. New York Times, 12 December 2009
  24. ↑ Financier And Banker To Face Off On EMI Sale. New York Times, 14 October 2010
  25. ↑ Citigroup Is Cleared of Fraud in EMI Sale, a Setback for British Financier Guy Hands. New York Times, 5 November 2010
  26. ↑ Terra Firma Loses EMI Case vs. Citigroup. Financial News, 4 November 2010
  27. ↑ Hands loses EMI battle with Citi. Daily Mail, 5 November 2010
  28. ↑ Wine Details: Borgo Saletta - IGT Rosso Toscana 2006. International Wine and Spirit Competition 2006
  29. ↑ Saletta wine description. Villa Saletta website
  30. ↑ http://www.worldoffinewine.com/news/years-end-the-big-picture-4209693
  31. ↑ Finch, Julia (7 February 2010). "I save tax by never visiting my family, says tycoon Guy Hands". London: The Guardian. Retrieved 2010-02-07.
  32. ↑ Foley, Stephen (19 September, 2014) Running with the FT: Malcolm Gladwell FT.com
  33. ↑ "Tax Exile Guy Hands Finds Lonely Guernsey Haven Is No Heaven". Bloomberg. 17 February 2010.
  34. ↑ Access to Excellence fundraising prospectus. Mansfield College, Oxford
  35. ↑ DofE Supporters. The Duke of Edinburgh's Award

External links

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