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Sovereign Wealth Fund Sues PE Firm over Continuation Vehicle Process
On November 26, 2025, the sovereign wealth fund, Abu Dhabi Investment Council (ADIC), filed a lawsuit in the Chancery Court of Delaware against Energy & Materials Group LP and several affiliate private investment funds (collectively EMG). The complaint seeks a preliminary injunction to stop the sale of an EMG portfolio company, Ascent Resources LLC, to a continuation vehicle that is also managed by EMG in a so-called “GP-led secondary” transaction. ADIC alleges that by selling to a continuation fund, EMG is engaging in self-dealing in breach of its fiduciary duties as manager of the selling private investment fund, in which ADIC is also a limited partner.
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