GLOBAL: The Abu Dhabi Investment Council (ADIC), one of the world’s largest sovereign wealth funds, aims to block Energy & Minerals Group (EMG) from selling its stake in Ascent Resources to one of the PE firm’s sister funds. In a court filing, ADIC claims the deal undervalues Ascent while generating a windfall for the new fund managed by EMG.
The Financial Times reported that Ascent, one of America’s largest private gas drillers, was likely worth more than US$7 billion – but the EMG proposal would instead be roughly a US$5.5 billion valuation. The paper also noted that other energy-focused PE groups felt Ascent was overvalued.
The lawsuit reveals potential conflicts of interest when PE firms increasingly exit aging deals by selling companies between funds they manage, FT said. Such transactions, known as continuation fund deals, have grown in popularity in recent years – but are viewed warily by investors – as PE groups have struggled to find buyers for trillions of dollars in unsold assets. Continuation deals amounted to a record 19% of all PE asset sales in the first half of 2025, FT previously reported.
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