Stockholm-based private equity company Triton has admitted making “mistakes” following allegations, published in a string of German and Swedish newspaper articles, of a “toxic old boys’ culture” and sexism that has led to an exodus of staff.
According to a report in the German business newspaper Handelsblatt, and evidenced by photos, a corporate holiday in the exclusive alpine resort of Zürs am Arlberg included a raucous apres-ski party held behind closed doors in which Triton’s founder and chief executive, Peder Prahl, paraded topless while playing spin the bottle and another partner, named in the article, only wore underpants.
During the team-building “winter offsite” in the resort favoured by European royals, several rounds of the party game were played by half-naked and drunk managers and employees, according to Handelsblatt, and included tasks such as drinking shots in one go, removing clothing, kissing and singing.
The article, based on interviews with more than a dozen former and current male and female employees and backed by video evidence, claimed that Triton – one of Europe’s largest private equity firms – has a management culture dominated by “alcohol and chauvinism”, with one former employee describing the firm as “a mixture of Scientology and The Wolf of Wall Street”.
After checking into the Hotel Edelweiss, some employees found it inappropriate at a corporate meeting to find complimentary condoms on their bedside tables, though the report says the “welcome kits” were placed there by hotel management rather than at the behest of Triton.
The allegations have led the British private equity trade body, the BVCA, to hold talks with Triton about its code of conduct.
Meanwhile, the London-based finance industry equality organisation Level 20 has described the reported behaviour as “unacceptable” and could potentially decide to exclude the firm from the body. “Level 20’s priority is to support women across the industry and we are taking this very seriously,” said a spokesperson. “This situation is currently under review.”
Last week Börsen Zeitung reported that an unspecified number of staff had left the company following the Tyrolean offsite meeting but that the company would be retaining 60-year-old Prahl as chief executive. The Frankfurt-based newspaper reported that just three of Triton’s 29 partners were women.
In a joint interview with Börsen Zeitung, co-chief executive and managing partner Martin Huth said: “Peder Prahl is an excellent investor and I continue to believe he is the right leader for our company. He is aware of his misconduct and has apologised.”
“Naturally, investors have questions, because the events that have been reported on are not in line with the values they apply in their investment criteria – nor are they in line with our own,” he said.
Claus von Hermann, managing partner at Triton, said that the firm has launched an internal investigation into management culture at the firm that would be conducted by an external consultant.
“It is important to us to offer a positive working environment for all employees,” he said. “The incidents mentioned in the report are completely at odds with the vision of our corporate culture and also with our own standards. They are unacceptable. We apologise for them.
“There is obviously a gap between our vision and how things are actually perceived by employees. We are addressing this and want to ensure that something like this never happens again. We have also issued warnings and parted ways with some of the employees involved.”
The article in Börsen Zeitung added that some investors in the company, currently fundraising for its sixth buyout fund, were reviewing the allegations including the California Public Employees Retirement System and German nuclear waste fund Kenfo.
A report in Sweden’s Dagens Industri said that Danish investor Bibukenfonden was following the allegations “with concern”.
“In the light of these stories, we have asked our asset managers to have a dialogue with Triton to obtain clarity on how they plan to improve the situation,” Bibukenfonden chief executive Soren Kaare-Anderson was quoted as saying.
