In 2014, Paul Singer's Elliott Management sued Perry Capital LLC in a New York state court, accusing the hedge fund of breaching a confidentiality agreement related to their joint efforts to purchase distressed debt of Energy Future Holdings (EFH), a Texas utility company. Elliott alleged that Perry Capital shared confidential information with third parties, including EFH's creditors, to gain an advantage in the bankruptcy proceedings. The case was settled out of court, with terms remaining confidential.

Richard Perry founded Perry Capital LLC in 1988 after leaving Odyssey Partners. He served as President and Chief Investment Officer until the firm's wind-down in 2016. The firm was a direct organizational spin-off from Perry's prior role at Odyssey Partners, where he gained experience in investment strategies.