Abu Dhabi Sovereign Fund Sued by Thrive Freeze Dry Founders

Thrive Freeze Dry’s financial backers, including an affiliate of an Abu Dhabi sovereign wealth fund, seized control of the business through a series of transactions that wrongly sidelined its founders, according to a lawsuit unsealed Friday.

The suit, filed in Delaware’s Chancery Court, says Thrive’s private equity sponsors breached the company’s limited partnership agreement and the duty of fair dealing by moving to squeeze out its founders and take a windfall for themselves. The almost completely redacted court filing names affiliates of Abu Dhabi’s Mubadala Investment Co. and Chicago-based Entrepreneurial Equity Partners, known as e2p, as defendants.

Thrive, Mubadala, and ...