Symphony Capital Partners, the Singapore private equity firm that sold its stake in hospital operator Parkway Holdings in 2008, was sued by a former partner who claims he was deprived of a share of the profit.

Sanjay Sehgal, who left Symphony in mid-2005 after almost ten years with the firm, claims in his complaint he’s entitled to a US$4.4 million ($5.8 million) bonus, which includes a share of the profit from the sale to Parkway. A hearing of the case began in Singapore’s High Court today.

Sehgal’s bonus was rightfully reduced by 60%, according to the terms of his contract. Symphony, which manages the assets of London-listed Symphony International Holdings, said in court documents. Symphony had offered him US$1.3 million, to be paid in June, ten years after the fund that originally invested in Parkway closed.

Symphony Chairman Anil Thadani asked Sehgal to sign a release which had “arbitrary, unreasonable and draconian” terms before the US$1.3 million bonus would be paid, according to the lawsuit. Sehgal refused and sought to limit the terms of the release, he said.
Thadani and Sehgal declined to comment.

Sehgal, who had been employed by LEK Consulting in the US, said in the court documents his main inducement to joining Symphony in 1994 was a promise that partners would share in 20% of the firm’s profits.

Asia Pacific Fund II
At Symphony, Sehgal managed the Asia Pacific Fund II and Schroder Ventures Asia Pacific Fund, which invested in Asia’s largest hospital operator Parkway. The Parkway stake was sold to Khazanah Nasional Bhd., Malaysia’s state investment arm for $532 million in 2008.

Sehgal set up the private equity fund East West Capital Partners after leaving Symphony.

Symphony also owns stakes in Minor International Pcl, Thailand’s biggest operator of fast-food restaurants and hotel resorts, and a residential and commercial center in Macau. Thadani is one of the founders of the luxury Aman Resorts hotel chain.

Suresh Damodara and Leonard Hazra represent Sehgal while Eddee Ng is acting for Symphony.