Terra Firma Capital Partners has put its buyout fundraising plans on hold and is set to lose another one of its managing directors, providing more setbacks for the European private equity firm.

The London-based firm was targeting a May launch for a €2 billion European buyout fund, which would have been the firm's first since its €5.4 billion vehicle raised in 2007 that housed part of its ill-fated investment in music company EMI Group, now the subject of litigation with advisers Citigroup.