Millionaire Barry Maloney takes FTSE 100 ICG to court over unicorn spat
FTSE 100 private equity giant Intermediate Capital Group (ICG) is set to face Irish investor Barry Maloney in High Court today over a spat linked to an investment into “unicorn” firm Workhuman.
ICG provided financing to Irish-American cloud-based HR software provider Workhuman, valued at $1.2bn, which in turn granted the PE firm direct and indirect equity.
However, since then the relationship has since turned sour, with parties turning to the lawyers.
Maloney, who is venture capital fund Falcon Capital CEO, also holds a position as both the chairman and largest shareholder of Workhuman.
ICG provided Maloney with financing in 2018 to buy a 40 per cent stake in Workhuman through an investment vehicle company Falcon, giving ICG a seven per cent equity stake.
But two years later, ICG separately bought a ten per cent equity stake in Workhuman. This minority stake was a direct investment in the company and did not involve Maloney.
It is alleged that ICG attempted to prevent the Irish investor from paying off a debt and redeeming its equity stake in his holding company.
The current amount of debt that Maloney is attempting to repay ICG amounts to approximately $110.7m with a continuing interest of 15 per cent per annum.
Last January, a spokesperson for ICG declined to comment due to “ongoing legal proceedings” but said it “refutes all claims.”
Maloney said this matter caused a complete breakdown in relations, and caused the stalling of Workhuman listing on the London Stock Exchange.
The unicorn ruled out a potential London IPO after the bitter spat kicked off, as revealed by City AM in January 2024. A source told City PM that “given the company is likely to have to make another decision on where to do their IPO, this experience with ICG will have ruled out London.”
Mr Justice Andrew Baker ruled in October that ICG must disclose all documents relating to its attempt to block Maloney and the Workhuman investors from repaying what they believed they owed.
It is reported that the outcome of this case could be valued at more than £300m.
The parties meet at the London Commercial Court of the High Court Tuesday afternoon, for a hearing set to last eight days.
Maloney legal line up involves Pallas Partners managing partner Natasha Harrison, while the FTSE 100 private equity giant has Milbank partners Tom Canning and William Charles.