LIFE AFTER TESCO: WHAT SIR TERRY DID NEXT

Leaving the supermarket giant allowed its former boss to focus onstart-up businesses. He talks to James Thompson

Until March, Sir Terry Leahy had rather a big job. As chiefexecutive of the world's third largest retailer Tesco, he was incharge of nearly 500,000 staff in 14 countries, and deliveredprofits of 3.54bn there last year. After 14 years in this role and32 at the grocer, he could therefore be forgiven for taking it easy.

But Sir Terry has been "busy" since hordes of Tesco staff wavedhim a goodbye outside the grocer's head office in Cheshunt,Hertfordshire, more than four months ago. He has made investmentsin, or taken roles at, about 10 companies but is prepared to divulgeonly eight of them. Of these eight he has taken stakes in seven,including The Hut, the online retailer; Stuckonhomework.com, awebsite providing educational videos for GSCE students; and EagleEye Solutions, a mobile coupon company.

Speaking to The Independent, Sir Terry says: "I like business soin terms of a life after Tesco, I wanted to stay in business.Private investment allows you to do pure business so you canconcentrate on business itself, not the wider governanceactivities."

However, in his short time away from Tesco, he has seen anotherside of business life in the UK in the way that smaller, successfulfirms find it "difficult" to raise funding. That said, he believesthere is an economic recovery taking place but warns that soaringpetrol prices currently mean that its trajectory is not yet clear.

What is already clear is that Sir Terry's private investmentportfolio has largely focused on fast-growing start-up companies,which typically have the internet, mobile commerce or innovativetechnology at their heart. For instance, his investments alsoinclude Kind Consumer, a healthcare firm developing inhalationtechnologies, and MetaPack, a provider of online delivery systems.

Sir Terry says he was keen to get involved with businesses thathave "some IP [intellectual property], adding that working with"entrepreneurs and interesting people" was also key. He cites KindConsumer's breath-operated technology - which has a valve toregulate nicotine intake - for smokers who are unwilling or unableto give up, as an example of attractive IP.

In other areas, he describes his investment inStuckonhomework.com, in which he has taken a 47 per cent stake, as"socially interesting". The site, which is based on the schoolcurriculum, features real teachers providing learning videos online.

Of all his investments, Sir Terry could make a substantial returnon his 3 per cent stake the most quickly at The Hut Group, which isconsidering a flotation later this year. Founded by Matthew Mouldingin 2004, The Hut has acquired websites from Zavvi, the formerentertainment product retailer, to Mankind.co.uk, the men's styleand grooming site, over the past three years. Sir Terry says: "Thereis a good management team and they are very focused. They seem to bedeveloping some of the good traditional retail disciplines intointernet retailing in terms of logistics and customer acquisitions."

However, while he has largely been involved with high-growth,start-ups since leaving Tesco, the battles smaller companies face inraising finance has shocked him. Sir Terry says: "I have beensurprised at how companies with good IP struggle to raise finance."The strong growth of online players and the recent struggles ofnumerous high-street chains have led to talk of a major structuralshift among the sector's stronger and weaker players. This schism isbeing driven by the internet driving down prices, but also thelingering and painful squeeze on household budgets, which hasoutlasted the patterns seen after previous recessions.

But Sir Terry takes a positive stance on the impact of emergingonline and mobile technologies. He says "you have to embrace it -you cannot avoid it. There is quite a dynamic change taking place,which is a good thing. And whilst it is clear that some businessesare struggling in the current climate, there are others that aredoing well."

He adds: "I would say there are a lot of opportunities in retaildown to the new possibilities of e-commerce and m-commerce, and alsothe possibilities from emerging markets." At Tesco, Terry investedheavily in the emerging economies of Asia and while for now, hisonly project in the region appears to his long-standing investmentin a 48-acre West Sands eco-resort site in Phuket, Thailand, it isunlikely to be his last in the region.

Closer to home, Sir Terry has been consistent in his view since2009 that the UK economy is in recovery and while his view hasn'tchanged since March, he says that record petrol prices have hit theconsumer hard. "It has been a terrible blow to the consumer. If youare putting your money in the petrol tank you cannot put it into theshops."

Sir Terry adds: "There is a recovery happening but consumers havebeen hit hard by rising petrol prices - probably it is as simple asthat and once they get through this it will be clearer to see."Details of Sir Terry's other investments will no doubt emerge soonbut he has already given many clues about where they may lie. Hesays: "It is quite good fun to invest and advise companies about howto grow. I am busy but I have more control over my time." No doubthe has not been short of firms begging him for advice and a slice ofhis personal fortune.

SIR TERRYS PROJECTS

E-LEARNING

A website providing educational videos for GSCE students that wasset up by former ITV and BBC executives.

Private equity

Sir Terry joined as a part-time senior adviser to the US firm,whose investments include Hertz, the car rental company.

Mobile coupons

It delivers coupons to mobile users and allows retailers to trackredemption payments.

Online retailing

The company has acquired e-commerce sites, including Zavvi, andis eyeing an IPO. Sir Stuart Rose is an investor.

Thai eco-resort

Sir Terry invested in the 48-acre West Sands resort in Phuket,Thailand, with his business partner Paul Mercer in 2006.

Online delivery

Founded in 1999, the company works with UK parcel carriers tohelp improve their delivery services on behalf of UK retailers.

Charity

He joined the board of the charity which aims to improve thesocial mobility of young people from lower-income backgrounds inFebruary.

Healthcare technology

It develops pioneering inhalation devices that intend to tacklesignificant, unmet health problems, such as smoking addiction.