ACT Exam’s Private Equity Restructuring Hit With Court Challenge

The private equity firm that owns a majority of the organization behind the ACT college admissions exam is forcing through a restructuring to spin off part of the enterprise, according to an unsealed lawsuit.

A testing nonprofit is suing Nexus Capital Management LP over its reshuffling of Gateway Impact Corp., the corporate parent created when the investment firm took an 80% stake earlier this year. The reorganization last month allegedly involved eliminating an intermediate holding company to get around a veto the nonprofit held over mergers and other key aspects of the business, including the right to ensure it promotes ...