Successful and sustainable businesses require robust governance
Terra Firma is committed to the highest standards of corporate governance and we have a well-established and effective corporate governance framework.
Terra Firma Senior Management Team
The Senior Management Team manages Terra Firma's operations and comprises Guy Hands, Andrew Géczy, Tim Pryce, Justin King, Trudy Cooke and Dominic Spiri. It meets regularly to discuss all aspects of the firm’s day-to-day management including strategic direction, stakeholder relations, personnel and corporate responsibility matters.
Each of Terra Firma’s private equity funds is managed by a General Partner which is responsible for all investment, divestment and portfolio management decisions.
There are two Executive Directors: Guy Hands and Tim Pryce. They each undertake a general evaluation of every deal and bring a particular focus to the approval of potential investments based on their own experience. Either Executive Director can veto a deal.
Guy Hands focuses on determining whether the risk/reward ratio of a proposed transaction is attractive. He reviews the proposed strategy for the target business and forms a view on its likelihood of success and economic value add.
Tim Pryce focuses on determining whether a transaction has acceptable levels of legal and reputational risk, whether it is a transaction that is attractive to Terra Firma in the context of its investment strategy, and if Terra Firma has the internal resources to deliver what the sponsoring team is proposing.
Tim also focuses on the financial structure of transactions and the make-up of the portfolio in the fund as a whole. He reviews the jurisdictional risk within a deal, whether the financial and structural imperatives needed for the transaction exist and ensures that there are sufficient ongoing dedicated operational resources within Terra Firma, and within the portfolio business to deliver the objectives of the business plan.
We aim to build exceptional management teams in our portfolio businesses. We put in place the necessary capability and incentives to ensure robust governance at a company level and see that our strategy and performance improvements are implemented effectively.
We typically strengthen management by combining the existing team with our own experts and with new hires. These often come from outside the sector to bring a fresh perspective.
Terra Firma's portfolio businesses have corporate governance boards with audit, finance and remuneration committees, to whichTerra Firma appoints directors. Terra Firma Managing Directors, deal team Directors and Finance Directors will typically take seats on each board. Part of their role is to ensure that the executives provide the Board with reporting of sufficient detail and frequency to enable it to perform its governance role.
In addition, Terra Firma supports the portfolio businesses through its operational team which includes Business Directors, a financial monitoring team, tax and legal support and communications.