Terra Firma has overhauled its business model in the wake of its failed investment in EMI Group, with measures including cutting staff, aiming for a smaller next fund and restricting its ability to invest too much in a single asset.

The European buyout firm said in its 2010 annual review that it has reduced its total permanent staff by around 10% since 2009 to 90 and that it expects to have in the mid-90s by the end of the year. Tim Pryce, the firm's chief executive said: "It was a sensitive balancing act to keep a high level of experience in the organisation, and at the same time create opportunities for some of our up-and-coming professionals, whilst providing openings for fresh talent."