Investors attempting to bypass private equity fees by doing direct deals and co-investments will not save money and are likely to get their fingers burnt, according to Guy Hands, the founder and chairman of Terra Firma Capital Partners.

Speaking at the PFM's Investor Relations and Communications Forum Europe on December 3, Hands said: "I don't think directs give people any greater return than the savings on fees. Those fees are worth paying, that's where I would be."