Terra Firm set to leave RBS aviation sale

TERRA Firma, the private equity firm run by Guy Hands, looks set to lose its place in the next stage of RBS’s £4bn auction of its aircraft leasing arm.

The firm is not expected to improve its current bid in order to make it to the next round of the auction, Sky News reported last night.

Hands’ non-binding offer was said to be “significantly lower” than other bids made.

RBS is selling off its Aviation Capital arm, which owns and manages a total of 335 commercial jets and employs 69 sales executives, as part of a huge asset sale to help repay its debts to the UK government.

Other firms linked with the sale during the first round of bids in September included Macquarie Bank and several other Asia-based players.

Terra Firma and RBS did not respond to calls for comment last night.