The payment was five times the £2.3m Terra Firma reported in after-tax profits and was far higher than any other dividend Hands has received since the private equity firm was set up nine years ago.

Previous payments had been in the order of £25,000 a year or less.

A Terra Firma spokesman declined to comment, however it is understood that Hands has decided to tap into cash that had built up in the company to help pay down debt at ...