Chairman's letters and speeches


01 December 2008

2008 Annual Review Letter

I am delighted to present the second Annual Review of Terra Firma and its portfolio businesses.In the time since our last Annual Review, the financial world has changed beyond recognition.

20 November 2008

Speech to Super Investor, Paris - “The Future of Private Equity, how low can returns go?”

In what will be the worst recession since the 1930s, Guy Hands predicts that fund raising in private equity will fall by more than 50%.  However, he sees a vital role for the private equity industry to play in re-establishing growth.  It can help by doing deals which deliver fundamental change, particularly as the stock market correction is now generating substantial investment opportunities.  In order to succeed though, the industry needs to become more transparent to gain the support of the politicians and the public.

01 November 2008

2008 Q3 Investor Letter

Eighteen months ago, private equity was very much in the news. The focus and the attention that private equity was receiving were relentless. The heads of some of the largest funds appeared in front of Parliamentary committees in the UK and Senate committees in the US.

23 September 2008

Speech at Super Return Asia, Hong Kong - “What were the mistakes made by US and European private equity and how might Asian private equity learn from them?”

How three simple rules eventually proved right when the market crashed: what goes up, will come down and may never go up again; you are only as good as your last trade; and politicians will eventually mess it all up.

01 July 2008

2008 Q2 Investor Letter

The evidence continues to mount that the liquidity crunch that began last year will not be resolved anytime soon. There has been nothing but bad news in the financial markets so far this year.

19 June 2008

Guy Hands' speech at the Terra Firma Investor Conference - June 2008, Abbey Road Studios (London)

The markets have entered a ‘perfect storm’ which will impact investments including EMI.  Guy Hands does not see leverage returning and therefore expects that contrarian thinking, operational intervention and strategic redirection will be particularly valuable. 

01 May 2008

2008 Q1 Investor Letter

Most of you know that I have been gloomy about the economic environment for some time. At Terra Firma’s annual conference in 2006, I gave a speech with the main theme “There may be trouble ahead,” in which I pointed out that most in private equity were ignoring the signs of an economic downturn and that we were living in the “Woodstock summer” for private equity.

01 February 2008

2007 Q4 Investor Letter

There seems to be a daily sea of articles and analysis about the causes of the current “credit crunch”. Of course, at this stage, this “credit crunch” is really only the drying up of liquidity for certain types of deal. In my view, the banks are only dealing with a fraction of their true potential credit losses.