Invest NI have launched High Court proceedings but will not disclose the exact nature of the litigation
Invest NI is suing a management firm it appointed to run a number of investment funds.
E-Synergy manages Northern Ireland Spin Out (NISPO) initiatives, which invest in start-up and early stage businesses.
The NISPO initiatives were established in 2009 backed by £12m of Invest NI funds.
E-Synergy was appointed to act as fund manager and has invested in about 30 businesses.
But the latest accounts of E-Synergy NI GP Ltd describe Invest NI as "a defaulting investor."
Invest NI alleges that E-Synergy has failed to perform its obligations under a limited partnership agreement and has begun High Court proceedings.
Public funds
It says it will not disclose "the exact nature of the litigation" against the fund manager.
E-Synergy's 2014 accounts state that Invest NI "failed to comply with a quarterly drawdown notice" and accordingly became a defaulting investor.
It adds that Invest NI has forfeited its "capital contribution" and its rights are limited to "repayment of its loan commitment."
In a statement Invest NI said: "We are aware that references have been made within the financial statements of E-Synergy NI GP Ltd to the Invest Growth Fund LP and Invest Northern Ireland's role in this as a limited partner.
"This is currently the subject matter of litigation.
"Invest NI has a duty to ensure that all public funds are being utilised in the way in which they were intended and in accordance with principles such as transparency and value for money."
Invest NI launched a new suite of investment funds in 2014 - E-Synergy is not involved with them.
