Singer’s Elliott Sued by PE Firm in Escalating Fight Over Money

A Texas private equity firm accused Paul Singer’s Elliott Investment Management of withholding “tens of millions of dollars” from the sale of oil and gas assets, according to a new lawsuit in the escalating fight over their failed partnership.

Stronghold Investment Management claimed Elliott “furtively” sold assets worth hundreds of millions of dollars in early 2025 and has failed to pay the Texas firm its share of the proceeds, according to a complaint unsealed Wednesday in Delaware Chancery Court. Stronghold asked a judge to order Elliott to hand over the profits.

A spokesperson for Elliott declined to comment.

Elliott has denied it withheld money from Stronghold, arguing the partnership agreements gave it “sole discretion” to determine when and how much to distribute, according to a filing from a separate case it filed against Stronghold. But Stronghold claimed Elliott breached the agreements because there was no “good faith basis” for holding onto the cash.

The latest lawsuit came after Elliott sued in September, alleging Stronghold charged excessive expenses in separate private equity partnerships it managed. Stronghold denied those claims and said it had delivered strong returns for Elliott. The public feud is rare in the world of private equity, which generally involves steady partnerships targeting investments that can take years to pay off.

Elliott, known for its activist investing, first partnered with Stronghold in 2017 to buy and sell oil, gas and mineral interests. The relationship took a turn for the worse in 2022, which led to a settlement between the two sides. But more disputes emerged, prompting a bitter legal fight in Delaware, where the entities created to facilitate their partnership were incorporated.

Last month, Elliott secured an early victory when Delaware Chancery Court Judge Bonnie David concluded Stronghold breached the 2022 settlement by failing to sell all assets in two partnerships by certain deadlines. The judge asked the two sides to come up with a proposal for winding down what is known as Fund II. The dispute over costs is continuing to play out.

The new lawsuit is over a different set of investment vehicles for royalty-generating assets that Stronghold said it had identified and acquired. The Texas firm said Elliott was given greater control over those entities in 2022 as part of the restructuring of their relationship.

The dispute involves three “acquisition vehicles” named after different American automobile brands: Ford, Pontiac and Mercury. The specific amounts invested and profits claimed from the asset sale were redacted from the complaint.

Elliott also diluted Stronghold’s profit interest in one of the vehicles without warning, according to the suit. “After Stronghold did the hard work of sourcing the right interests to buy at the right price, at extraordinary benefit to Elliott, Elliott cast its business partner’s interests aside,” attorneys for Stronghold wrote.

The case is SRP Ford Holdings v. Elliott Management Corp., 2025-1379, Court of Chancery, State of Delaware.

Top photo: Paul Singer. Bloomberg.