LP sues GP over CV
ADIC is suing EMG over a CV of Ascent Resources over pricing -- existing investors getting screwed in favor of new investors. Presumably the fund's LPAC approved the deal, so ADIC is going to the courts.
"An investor in Ascent Resources told the FT they believed the gas driller was worth more than $7bn when including debt. But EMG’s continuation fund plans to buy its over 30 per cent stake in Ascent at roughly a $5.5bn valuation, leaving investors with lower proceeds than what they believe they could get from an initial public offering or a sale to a third party. EMG is also asking to pay its investors over a two-year time period, further lowering the present value of the proceeds, they said."
https://www.ft.com/content/dd9fe502-b81d-4895-a6cd-ee7c42df73cd
Ah, the inherent adverse incentives of CVs coming to roost is so sweet.
If the LP believes it’s worth more, then they should roll into the CV
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