Can Hands maintain his grip?

Guy Hands is a straight-talking sort of man. "I want recruits, not conscripts," he told his principal finance team before they officially left Nomura in March. Some left. Those that stayed with him have just completed their first fund closing as an independent private-equity firm.

The success of Terra Firma's first fund since moving away from Nomura is crucial for the firm. Many in the market would like to see Hands fail. This negative sentiment stems from two sources: personal dislike of the man and the fact that success at this stage of a first-time fund in such a tough fundraising environment reflects poorly on more established players unable to raise at least as much.

One banker involved with private equity says of Hands: "You rarely hear good things about him. He's not everybody's cup of tea." Another says of the recent critical press that everyone has his or her own agenda. Citing...