Private Equity Firm EMG Faces Backlash Over Ascent Resources Buyout

Abu Dhabi sovereign wealth fund ADIC and other investors push back on EMG's rushed plan to transfer Ascent into a new fund

Mar. 31, 2026 at 2:22pm

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A highly reflective, geometric metal sculpture or abstract corporate symbol floating on a clean, monochromatic background, dramatically lit to create sharp shadows that conceptually represent the complex financial and strategic maneuverings behind a private equity deal.A private equity firm's complex financial engineering casts a long shadow over its portfolio company's future.Houston Today

The $330 billion Abu Dhabi Investment Council (ADIC) and other investors in the Houston-based private equity firm Energy & Minerals Group (EMG) are pushing back against EMG's rushed plan to transfer its portfolio company Ascent Resources into a new continuation fund. EMG gave the investor advisory board just 5 business days to approve the deal, claiming there were no other viable options, despite proposing to invest more of its own capital into Ascent. The advisory board rejected the deal, with only 3 of 43 members voting to approve it, as they demanded more time to review the details.

Why it matters

This case highlights growing concerns about private equity firms using continuation funds and other tactics to extend their control over portfolio companies and extract more fees, even when it may not be in the best interests of outside investors. The rushed timeline and EMG's refusal to allow the advisory board to discuss the deal privately has raised suspicions about the firm's motivations.

The details

EMG, a Houston-based private equity firm founded by John Raymond, had invested in Ascent Resources, a natural gas supplier formed from the wreckage of Aubrey McClendon's fracking empire. Last October, EMG announced it wanted to transfer Ascent into a new continuation fund, giving existing investors the choice to cash out or roll their money into the new fund. EMG called a vote on the deal just 5 business days after the announcement, claiming there were no other viable options and warning the advisory board not to discuss the situation with each other. When the 43-member advisory board pushed back, EMG refused to allow them to meet privately, and only 3 members voted to approve the deal.

  • On October 23, 2025, EMG announced its plan to transfer Ascent Resources into a new continuation fund.
  • On October 30, 2025, EMG called a vote on the deal, giving the 43-member advisory board just 20 minutes for questions before the vote.

The players

Abu Dhabi Investment Council (ADIC)

A $330 billion sovereign wealth fund that is an investor in EMG.

Energy & Minerals Group (EMG)

A Houston-based private equity firm founded by John Raymond that invested in Ascent Resources.

John Raymond

The founder of EMG and son of the iconic former Exxon CEO.

Aubrey McClendon

The extravagant fracking mogul whose companies were acquired by EMG after he was forced out and later indicted.

Ascent Resources Group

The natural gas supplier formed from the wreckage of McClendon's fracking empire, which EMG now wants to transfer into a new continuation fund.

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What’s next

The advisory board members are expected to continue pushing back against EMG's rushed plan, potentially seeking more time to review the details and explore alternative options for Ascent Resources.

The takeaway

This case highlights the growing concerns around private equity firms using aggressive tactics like continuation funds to extend their control over portfolio companies and extract more fees, even when it may not be in the best interests of outside investors. The rushed timeline and EMG's refusal to allow the advisory board to discuss the deal privately has raised suspicions about the firm's motivations.