Maurice Tchenio, chairman and co-founder of Paris-based international private equity firm Apax Partners, has sued his partners in the UK claiming that profits and management fees were not paid to him from the firm's investments in Europe since 2001.

Tchenio, who initially co-founded Apax Partners in 1976 along with Sir Ronald Cohen of the UK and Alan Patric of the US, is the chairman of Apax's French affiliate Apax Partners SA. He filed the suit in London's commercial court on 5 November, saying that his partners have not shared the profits from management fees and investments made in the Netherlands, Sweden and Italy. He also sought  information of the investments made in Hong Kong and Mumbai.

Apax is one of the leading buy-out firms and is a lead buyer in European private equity, which handles deals which are in excess of €1 billion.  The partners make huge amounts of money from the deals, which is shared as per the profit-share-agreement signed by them.

Tchenio claims he filed the lawsuit after having failed to negotiate successfully over several years with his partners. The lawsuit says the profit-share agreement was updated as the firm expanded its operations globally and it would be ''unconscionable and unjust'' for the partners to say that he has no claim over the profits.

Since Tchenio is the chairman of The French arm of Apax's French affiliate Apax Partners SA, which is a different entity from the rest of Europe, the court will have to decide whether he is entitled to any claim on the profits that was generated outside of France.

Apax of France did not merge with Apax Partners SA when all its operations in the US, the UK, Switzerland, Germany and Spain merged in 1999 and collectively raised funds to do deals whereas Apax of France operates as separate entity and has its own funds and does deals only in France.

Since Apax of France was doing deals exclusively in France and Apax Partners SA based in London were doing deals in the UK, Germany, Switzerland, Austria, and Spain, Apax Partners SA say that Apax of France has no legal right to claim profits from this territory.

Apax Partners SA, has offices in New York, Hong Kong, Mumbai and Madrid and, according to its last annual report, it has invested €3.2 billion ($4.1 billion) and divested €3.5 billion of assets last year, while Apax of France invested €245 million in 2007 and sold €496 million of assets in the same period.