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Ex-Charterhouse executive says he ‘got mugged’ by the firm

29 Jan 2014

court 5_sqFormer Charterhouse Capital executive Geoff Arbuthnott told a London court that he “got mugged” by the firm.

Arbuthnott, who has accused Charterhouse of malpractice at a trial over the value of his stake, said in his testimony yesterday that chairman James Gordon Bonnyman tried to cut his cut his carried interest in the firm’s eighth fund in half in 2006, according to Dow Jones.

“All I was told was that everyone thinks your carried interest should be cut but I wasn’t told why,” said Arbuthnott, according to the report.

“Bonnyman was in a bit of a tizz, he was not looking forward to this meeting. I said I’m just getting mugged here. I had been there 20 years and had great performance appraisals and then this. I was scared. I didn’t see this coming. There was no warning.”

Charterhouse’s €2.7bn seventh fund generated carried interest of £353m for the firm’s executives, according to court documents.

Arbuthnott has previously said that Charterhouse offered him £1.4m for his stake in 2011 that was worth £27m, while Bonnyman and 16 other shareholders said he tried to blackmail them to make them raise the price.

He said he suspected the firm of “pervasive malpractice, primarily in the form of secret access to the senior management of acquisition targets,” according to a Bloomberg report.

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