The news that Guy Hands was negotiating a split from Nomura caused a few shockwaves through the City - and the pub industry - last week. While no one seemed to be expecting the headlines, on reflection few appeared surprised that one of the most profitable partnerships in the Square Mile might be coming to an end.
There should also be no surprise that Hands is likely to take Nomura's portfolio of investments and its London-based Principal Finance team with him, when his plans to set up on his own are fulfilled. Quite simply Hands is Nomura in London.
He created the Principal Finance Group having convinced Nomura of the potential for making money through the then little used financial technique of securitisation.
That was six-and-a-half years ago. Since then he has spent over £10bn on pubs, ministry of defence housing, TV rental and the railways. Last week, Nomura was named preferred bidder for Compass Group's Le Meridien hotel chain. He has made profits for himself û amassing around £150m according to the Sunday Times û and for his Japanese employer.
So what now? The only option for Nomura would seem to be to let Hands continue to take care of its UK investments, while he spreads his wings by raising a further £2bn for deals, according to reports, from other international investors.
However, the move would make it easier for Nomura to realise some of its assets.
Some commentators have asked if Hands will be able to do it again on his own. The fact is that this move is little more than a natural extension of what he has created virtually single-handed. The one weakness Hands has, according to those closer to the inside, is that he is not a natural delegator and tries to do everything himself.
One thing does seem sure. The leisure and hospitality market has not seen the last of Guy Hands. As well as Nomura's high profile investments in pubs, off-licences (it owns First Quench) and soon upmarket international hotels, Hands's private investments include the Hand Picked country house hotel group and a motor racing track at Corby in Northants.
Hands has been good news for leisure and it has profited him. That is likely to continue.
There should also be no surprise that Hands is likely to take Nomura's portfolio of investments and its London-based Principal Finance team with him, when his plans to set up on his own are fulfilled. Quite simply Hands is Nomura in London.
He created the Principal Finance Group having convinced Nomura of the potential for making money through the then little used financial technique of securitisation.
That was six-and-a-half years ago. Since then he has spent over £10bn on pubs, ministry of defence housing, TV rental and the railways. Last week, Nomura was named preferred bidder for Compass Group's Le Meridien hotel chain. He has made profits for himself û amassing around £150m according to the Sunday Times û and for his Japanese employer.
So what now? The only option for Nomura would seem to be to let Hands continue to take care of its UK investments, while he spreads his wings by raising a further £2bn for deals, according to reports, from other international investors.
However, the move would make it easier for Nomura to realise some of its assets.
Some commentators have asked if Hands will be able to do it again on his own. The fact is that this move is little more than a natural extension of what he has created virtually single-handed. The one weakness Hands has, according to those closer to the inside, is that he is not a natural delegator and tries to do everything himself.
One thing does seem sure. The leisure and hospitality market has not seen the last of Guy Hands. As well as Nomura's high profile investments in pubs, off-licences (it owns First Quench) and soon upmarket international hotels, Hands's private investments include the Hand Picked country house hotel group and a motor racing track at Corby in Northants.
Hands has been good news for leisure and it has profited him. That is likely to continue.
