Jeff Downey, former managing director of public sector recruiter Recruitment Solutions Group (RSG), has left the company.

A spokesman for Ilford-based RSG refused to comment on why Downey left, and said he had “no idea what he’d gone on to do”. Downey left the company three or four months ago, he said.

But sources inside the industry suggest Downey failed to meet the financial targets set out in last year’s £18m management buy-out (MBO). A statement was expected from the chairman, but he was unavailable for comment.

In May 2001 Downey staged an MBO with his finance director and marketing director. Barclays Private Equity and Barclays Bank each invested £9m.

Interviewed by Recruiter magazine last November, Downey said the MBO was “daunting” but remained confident: “It’s like taking on a very, very large mortgage. You can’t help but look at your repayments sometimes and think ‘oh my god!’.”

Market sources said Downey had joined a nursing agency in Ilford. RSG has not yet announced a new managing director.