Hands to return £700m to Nomura

Guy Hands, outgoing head of Nomura’s principal finance group, is reported to be working on a £700m windfall profit to be handed over to the bank by the middle of next year.

According to The Sunday Times, Hands is expecting £600m from a securitisation at Annington Homes, the company that owns and manages the Ministry of Defence’s married quarters estate. This is expected for the first quarter of next year. He is also planning to release between £90m and £140m of equity from a disposal or bond issue at Inn Partnership, the pub group.

Hands is leaving Nomura to set up Terra Firma Capital Partners, his own private equity firm. He is currently raising a E3bn fund, which Nomura is understood to be planning to support with a £200m contribution.

Terra Firma will manage Nomura’s principal investments in return for 10 per cent of the profits. The assets include the hotel chain Le Meridien, Deutsche Annington, the German housing group and First Quench, the off-license chain.