Guy Hands's private equity firm Terra Firma appears to be looking for a quieter life, after an eventful few years that followed its disastrous acquisition of EMI, by turning to the more stable world of infrastructure.

A source close to the firm confirmed that talks were at an early stage with the China Development Bank to team up for the launch of a dedicated infrastructure fund. The Financial Times first reported on the plans over the weekend. The proposals will involve the CDB providing some financing for the new $5bn fund while jointly running it alongside Terra Firma to invest in renewable infrastructure projects across the globe.