Alchemy Partners boss Jon Moulton has quit the private equity firm after a bust-up over strategy.

Moulton resigned in a letter to investors, in which he attacked managing director Dominic Slade, and undermined the future of the private equity group he founded in 1997.

He objected to the strategy which saw him sidelined by Slade. Moulton wrote: “Events and performance mean that I am unable to recommend that Dominic succeed me.”

He added: “Dominic Slade now wishes to convert the firm to a specialist financial services firm. I do not support this strategy.”

Alchemy currently has a 25% stake in fashion retailer Jacques Vert, and in the past Moulton said his best retail investment was in AG Stanley – owner of Fads and Homestyle – which he bought from Boots for £2 and sold for £38m.

Moulton said in his letter: “With profound regret, Alchemy is not what it once was. The state the firm is now in leads to the view that the best solution for investors and the partnership is an early, orderly plan termination.”

At the end of the letter: “It may be that my action today will catalyse a better outcome than would otherwise happen.” He added: “I would do it again – but better.”