Sky News has learnt that Justin King, who was named as vice-chairman and head of portfolio businesses at Terra Firma Capital Partners in the autumn of 2015, is to relinquish responsibilities for the day-to-day management of the firm.

Mr King, who ranks among Britain's leading business figures, will retain his vice-chairman title but will become a senior adviser at Terra Firma, the private equity group founded by City financier Guy Hands.

The former Sainsbury's chief will also retain his boardroom seats at Terra Firma-backed companies including Wyevale Garden Centres and Annington, the vast residential property empire leased to the Ministry of Defence.

Investors in Terra Firma's funds were informed of the move on Monday, which private equity industry insiders said was a reflection of Mr Hands's revised ambitions for the future of his business.

The full Sky News report can be read by clicking here