Firmus shares on the line as Simon Raftery pursues Ben Madsen in private credit lenders’ war
Sydney financier Ben Madsen turned his luck around with a small fortune investing in hot IPO prospect Firmus. But after a falling out, former business partner Simon Raftery wants a cut.
Remagen Capital boss Simon Raftery has gone to war with his former business partner, Archibald Capital’s Ben Madsen, over the control of nearly 1.1 million shares in Australia’s hottest data centre business Firmus Technologies after they fell out.
Firmus, which will make its co-founders Oliver Curtis and his cousin Tim Rosenfield rich when it floats, has recruited a roster of high-profile investors before going public netting it a $6bn valuation.
One of those investors is Mr Madsen. A NSW Supreme Court trial has been scheduled for April next year, where Mr Raftery will argue his claim over Mr Madsen’s shares.
However, key details of the case have been withheld by the court, which blocked the release of documents filed by both sides. It is known that the dispute centres on the ownership of shares reflecting nearly 10 per cent of those controlled by the Dubai-based Madsen brother, James. James Madsen lives on the Palm Jumeirah artificial island in the gulf state.
In September, James Madsen transferred nearly 11 million shares in Firmus as part of an ownership shake-up for the data centre operation as investors like Ashok Jacob’s Ellerston Capital piled in. Documents show that as part of the shake-up, Firmus issued nearly 502,000 new shares for a $1.9bn valuation. That has since ballooned to $6bn in a follow-on raising last month.
Firmus co-CEO Curtis served one year in prison for insider trading in 2016 and is married to public relations maven Roxy Jacenko. Curtis is the son of mining executive Nick Curtis, and Ben Madsen attended Curtis’ 40th birthday in Mykonos with his wife Tania.
In the NSW court case, supported by affidavits from Mr Raftery and lawyer Jonathan O’Loughlin, Mr Raftery is seeking to block the disposal of 1,020,408 shares in Firmus.
Documents were sent to James Madsen in October 2022, amid attempts by Mr Raftery’s lawyers to reach the financier’s brother.
Mr Raftery and Ben Madsen worked on funding the Wilkie Creek coal mine but fell out in mid-2021.
Mr Raftery and Ben Madsen, who were contacted for comment, had arranged $150m in financing for the mine, which failed in 2021 labouring under debts of $304m.
Waste management player James Hallinan and his family’s Hi-Quality Finance group are suing the two men over the troubled deal.
Mr Raftery has succeeded in reinstating the registration of a corporate entity known as Meribel Invest FIR, whose purpose is undefined. The company, which was registered in June 2022, was shut down in February 2023. But the NSW court re-registered the company in November, and Mr Raftery was appointed director.
Ben Madsen was previously a director of Meribel Invest FIR.
Mr Raftery wants the court to find he is the “legal owner” of the Firmus shares “and is entitled to be registered as such” on the data centre company’s register.
Ben Madsen holds no Firmus shares in his own name, even though Archibald Capital was an early backer of Firmus.
Ben Madsen’s investment operation has also been heavily exposed to the misfortunes of Sydney pub baron Jon Adgemis. In a bankruptcy report for Mr Adgemis, trustees noted Ben Madsen has recognised debts of $136m tied to the bankrupt pub baron.
Ben Madsen is rapidly accumulating litigation, with Sydney nightclub owner John Ibrahim launching legal action against him over a troubled deal to vendor finance a pub purchase. Mr Ibrahim is alleging Ben Madsen and a company that he controlled failed to come up with nearly $3.3m owed on the Oxford Tavern in Sydney’s Petersham.
The pub had been vendor financed by Mr Ibrahim amid plans to transform the venue known for jelly wrestling into a trendy Greek restaurant and pub.
Sources said Ben Madsen has been hoping the Firmus windfall may deliver him the cash needed to pay back some of his creditors. Ben Madsen is also facing court action from HG Investment Capital, a wealth manager with ties to wealthy members of the Sydney Vietnamese community.
HG Investment Capital is seeking to seize Ben Madsen’s sprawling Centennial Park mansion, claiming a company he and Mr Adgemis controlled took $10m from investors but lacked a bank account and kept no books nor records.
Mr Raftery was a former employee of BRI Ferrier, the same firm now charged with the clean-up of Ben Madsen’s dispute with HG Investment Capital.
His Remagen Capital has been backed by investors including BlackRock.
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Originally published as Firmus shares on the line as Simon Raftery pursues Ben Madsen in private credit lenders’ war
