LONDON (Reuters) - Private equity firm Terra Firma will return 3 billion euros to investors through disposals within the next 12 to 18 months, the Financial Times reported on its website on Sunday.

Terra Firma, founded by Guy Hands, will also persevere with a 3 billion euro fund to buy green infrastructure assets, less than the 5 billion originally planned, after China Development Bank failed to commit to the fund, the FT said, citing unnamed people with knowledge of the matter.

Hands also approached investors regarding a 2 to 3 billion euro buyout fund that may be marketed as soon as next year, the FT said.

Terra Firma lost 1.7 billion pounds of its own and investors' money on EMI , which it bought in a highly-leveraged deal at the peak of the buyouts boom in 2007.

(Reporting by Costas Pitas; Editing by Jason Webb)