British private equity pioneer Guy Hands said he would share ownership of buyout firm Terra Firma Capital Partners for the first time with Justin King, former chief executive officer of J Sainsbury, who is joining as vice chairman, as part of a succession plan.

Hands and King intend to raise a new buyout fund for Terra Firma, which last raised a €5.4 billion ($6 billion) fund in 2007. The new fund will target €2 billion, people familiar with the situation said.