Queensgate Settles Executive’s Lawsuit Over Fraud, Racism Claims

(Bloomberg) -- Private equity fund Queensgate Investments LLP agreed to a settlement with a former executive who had made claims of fraud and racism, days after losing a bid to keep parts of the lawsuit private.

The London-based fund reached an agreement with Jonathan Millet, its former head of acquisition, who said he had recordings of anti-Semitic and racist language in the office. The fund said it believed there had been “no damage” done to any staff by the culture at the firm.

“Queensgate has self-reported to the Financial Conduct Authority and both parties are satisfied to put this matter behind them,” Millet and the fund said in a joint statement Thursday.

Terms of the settlement weren’t disclosed. The fund said it had investigated the allegations and was “absolutely certain” there had been no financial wrongdoing.

The employment tribunal was set to hear the claims after a judge ruled that investors and others shouldn’t be prevented from learning about allegations of financial misconduct. Queensgate previously had denied the allegations.

Queensgate, which is backed by Hong Kong’s Peterson Group and members of the Qatari royal family, managed about 3 billion pounds ($3.9 billion) of assets last year. The Yeung family and Sheikh Jassim Al-Thani own their stake in Queensgate through Alvarium Investments Ltd., according to U.K. corporate filings.

Queensgate’s current portfolio is dominated by hotels including the Generator Hostels business.