Hands in $5bn energy project push Terra Firma, the private equity group run by Guy Hands, is to announce plans for a $3bn-$5bn energy infrastructure fund run in partnership with the China Development Bank at its annual investor meeting this week. Shareholders in Terra Firma's four existing funds, which manage €11bn, are meeting in Dublin for a two-day update on their investments. While plans for the new vehicle are still at an early stage, Terra Firma hopes it will help to refocus the group after the seizure of its disastrous investment in EMI, the music company, last year by Citi. Terra Firma declined to comment. The new fund will be marketed in China by the CDB, although the group expects the bulk of clients to be based in the US and Europe. It will look to deploy capital in renewable energy infrastructure projects and companies worldwide. Renewable energy companies have proved to be among the most successful of the buyout group's investments. Terra Firma funds hold three renewables-focused companies: EverPower, a US wind energy business; Infinis, the UK's largest renewable energy supplier; and RTR, Italy's largest solar energy business, all looked after by Damian Darragh. The collapse of the EMI deal has cast a pall over successive fundraising attempts for the private equity firm, which Mr Hands runs from Guernsey for tax reasons. Plans to raise money for a new fund in the spring were shelved by Terra Firma in favour of a more focused fundraising effort with large sovereign-wealth backed institutions. Mr Hands has admitted scepticism over his firm's ability to meet ambitious targets for new vehicles. Speaking last year, the investor said capital available from investors for European private equity deals could fall as low as $68bn, less than a third of the amount seen during the credit boom in 2007. Other private equity firms hit by poor performance have also struggled to raise money. Duke Street, the UK mid-market buyout group, dropped an £850m fundraising plan in February amid thin demand from investors. Following the EMI deal's collapse, the past nine months have been difficult for Terra Firma. Lawsuits brought by Terra Firma against Citi, which funded the initial acquisition of EMI in 2007 for £4bn, are continuing. The seizure of the company by the lender is estimated to have cost Terra Firma £1.75bn. Mr Hands moved in May to put £20m of his own money into the firm in order to guarantee bonuses and retain key staff after the collapse in revenues. This year Terra Firma agreed to inject a further €500m of equity into its German property fund as part of a major debt restructuring.