Paul Singer’s Elliott Investment Management has intensified its legal battle with Texas private equity firm Stronghold Investment Management, alleging the firm overcharged expenses and refused to liquidate two oil and gas-focused fund pools, accoring to a report by Bloomberg.
The report cites a Delaware Chancery Court filing as revealing that Elliott claims Stronghold improperly ran up tens of millions of dollars in costs on funds it invested in and continued acquiring assets in breach of an earlier settlement. In response, Stronghold has denied overcharging and argued that it properly accounted for expenses, while noting that Elliott has already realised significant returns on a $532m investment across multiple funds.
In its latest complaint, Elliott is seeking damages and the appointment of a receiver to oversee the winding down of the partnerships. The hedge fund previously requested access to Stronghold’s internal records to investigate the alleged inflated costs, which centred on a $100m investment primarily in Texas-based oil and gas assets.
