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Total number of employee profiles an organization has on Crunchbase, Total number of Crunchbase contacts associated with this organization, Descriptive keyword for an Organization (e.g. 2021 by wellspring capital Management. Broker-Dealers Business & Commercial Litigation Business Restructuring California Consumer Privacy Act Capital Markets Capital Solutions & Private Credit Charitable Foundations China Life Sciences Committee on Foreign Investment in the United States (CFIUS) Consumer Protection and Advertising Law Corporate & Securities Litigation Revenue: $500 million to $1 billion (USD) Competitors: Unknown. Wellspring Capital Acquires SupplyOne | Markets Insider Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. Finally, although the plaintiff asserts that federal conflict of law principles should apply, he argues that even under South Carolina conflict of law rules, South Carolina law should apply. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners In connection with this contemplated purchase, Alexander Carles, a managing partner of Wellspring Capital and an officer and director of SportCo and its subsidiaries, and Bradley Johnson, the president and chief executive officer of SportCo and its subsidiaries, sought to convince Prospect to forbear from exercising any remedies in the event of a payment default. . your most valuable capital, your ultimate resource. When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. With respect to which state's law applies, the defendants argue that the elements required to find that a party is a third party beneficiary are all met in this case and therefore New York law, as specified in the Loan Agreement's and Amendments' choice of law provisions, should apply to the plaintiff's causes of action against them. Investors in its most recent fund include the Washington State Retirement System, Minnesota State Board of Investment, Connecticut Retirement Plans & Trust Funds, Kansas Public Employees' Retirement WELLSPRING CAPITAL MANAGEMENT LIMITED is registered in England and Wales under Company Number 12429146, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Wellspring buys PE-backed Center for Diagnostic Imaging Wellspring Sues Insurers To Fight Claims It Tanked Gun Seller At the conclusion of the hearing, the Court took the motions under advisement. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. Wellspring Capital buys Center for Diagnostic Imaging - Minneapolis Wellspring Capital Management is a leading private equity firm headquartered in New York. Attorney advertising. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. The portfolio manager is also a co-investor in the strategy. The choice of law provision in the Loan Agreements states: In October 2017, Wellspring Capital was contemplating a purchase of AcuSport, a competitor, by Ellett, for $14.8 million. F. Hewitt Grant asserted the lack of a triggering creditor due to Prospect Capital Corporation's knowing participation in the transfers and failure to state a claim under New York law due to lack of insolvency and under South Carolina law due to failure to plead actual fraud. View Videos. Finally, in West Side Fed. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. By Zachary Zagger (July 31, 2020, 9:56 PM EDT) -- Private equity firm Wellspring Capital Management LLC on Friday hit a slew of its insurers with a suit in New York state court alleging they must defend it against claims that it plundered millions of dollars from gun seller United Sporting Cos. Inc., which blamed its bankruptcy on Donald Trump's win in the 2016 election. Access to case data within articles (numbers, filings, courts, nature of suit, and more. 22-2003, 2023 WL 1098189 (3d Cir. Munich | Germany, History, Population, Oktoberfest, & Facts - Britannica San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. Specifically, Mr. Carles and Mr. Johnson represented to Prospect that a purchase of AcuSport would result in: (1) Debtors' capturing 20 to 30 percent of AcuSport sales; (2) Acquisition of $14 million worth of AcuSport's inventory at a significant discount; and (3) Realization of an immediate $7 million profit from the sale of the inventory acquired in the purchase. These emails may be a lot of things, but negligent misrepresentations they are not. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. Va. Mar. These are high quality companies, essential to the national, regional, or global economy but whose fundamental qualities are underappreciated and undervalued by the market. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, No Major Offer Expected on Childcare in UK Budget, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Climate Change Is Launching a MutantSeed Space Race, UK Braces for Rare Weather Event That Risks Late-Winter Freeze, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his. Similarly, Merritt Dredging suggests that federal law would apply to a section 548 cause of action, but that state law should apply to fraudulent conveyance claims based on state law. Over the past 27 years, Wellspring has invested in over 50 platform investments and completed over 80 add-on acquisitions across various segments of the U.S. and global economies. Oil Producers Hand $128 Billionto Investors as Doubts Grow About Future of Fossil Fuels, Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Italys CDP Is Nearing Offer for Telecom Italia Network. 1988) (adopting rule from Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487 (1941) stating that a federal court sitting in diversity should apply the choice of law rules of the state in which it sits). If you want your business to survive, you need to understand your-self. Wellspring CEO Bill Dawson is taking a leave of absence, the firm said Tuesday Last week a shocking lawsuit was filed against his son Christopher It claims he drugged and violently raped and. 2018) (distinguishing cases where the courts dismissed negligent misrepresentation claims based on "puffery" or founded solely on speculative statements regarding future profits as a result of proposed transactions, and finding that the misrepresentations at issue were actionable because they involved present facts). Wellspring Capital Management is a leading private equity firm headquartered in New York. Musk Made a Mess at Twitter. 915 0 obj <> endobj The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." at 382. D.S.C. New York law requires insolvency at the time of the transfer, and South Carolina law requires insolvency both at the time of the transfer, and at the time the creditor seeks to collect the debt. I Shall [Not] Be Released: Wellspring, Director Releases, and the Duty As part of the debt management process, it said it would close 375 of its 1,300 stores. The adviser's REGISTRATION status is listed below. Reputation Management. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Wellspring Capital Management - Wikipedia In particular, the bankruptcy court held that the allegations failed to support a conclusion that the SportCo directors were somehow acting on an uninformed basis or that the rejection of the out-of-court restructuring was grossly negligent. Gymboree - Wikipedia Id. 2005)). The first and second causes of action are dismissed. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. [Amended Complaint, 37, 40]. Wellspring Capital Management is a leading private equity firm headquartered in New York. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. York Capital Management Feb 2021 - Present2 years 1 month New York, New York, United States Wellspring Capital Management LLC 13 years 5 months Partner Dec 2016 - Dec 20204 years 1 month. App'x 143 (4th Cir. The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. 20-50554, 2021 WL 4823513 (Bankr. All business will get complaints. 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. We believe that this breadth and depth of experience enables the team to efficiently evaluate and complete acquisition opportunities across a broad range of industries. 19-80071-DD (Bankr. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. An actual fraudulent conveyance is any "conveyance made . Please see our Privacy Policy. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. July 5, 2017). Sav. 541, 546 (Bankr. 89], Charles E. Walker, Jr. [Docket No. [Amended Complaint, 49]. Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. Wellspring Capital Management Portfolio Investments, Wellspring Capital Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit See Scheidelman v. Henderson (In re Henderson), 423 B.R. We have interesting videos for you to watch on my site. to negotiate for release or indemnification, with the defendants arguing that such releases may have saved the post-restructuring company the expense of indemnifying the D&O Defendants in subsequent litigation. Under certain conditions, section 548 allows the avoidance of a transfer made within two years of the date of the filing of the bankruptcy petition. NEW YORK, Jan. 10, 2018 /PRNewswire/ -- Wellspring Capital Management LLC ("Wellspring") today announced the successful closing of Wellspring Capital Partners VI L.P. ("Fund VI") with capital commitments totaling the hard cap of $1.415 billion. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. (Wellspring). The amended complaint contains no allegations that either Ellett, with respect to the first cause of action, or SportCo, with respect to the second cause of action, was insolvent at the time of the distributions or became, at the time of the transfers, insolvent as a result of the transfers. Jan. 30, 2023). Id. The defendants argue that in the event the Court finds the choice of law provision does not apply, South Carolina choice of law principles should be consulted to reach a finding that New York law applies. The plaintiff, however, asserts that federal conflict of law principles should govern what state's law applies in this case, because "[a] claim under 544(b) incorporates 'applicable law,' but it is a claim under federal law with a substantive federal law recovery scheme." A former Wellspring Capital Management employee filed a lawsuit against the son of Wellspring chief executive Bill Dawson, alleging that he raped her and that Bill Dawson threatened to. The United States Court of Appeals for the Third Circuit wasted no time getting the new year off to a roaring start through its ruling in In re LTL Mgmt., LLC, Case No. v. Holmes (In re Holmes), 610 B.R. [cV3ljHkT/bx @A,20p1 ks Wellspring Capital Management LLC Chief Executive Officer Bill Dawson has taken a leave of absence, days after a former employee alleged in a lawsuit that he threatened her for accusing his son of sexual assault. Christopher Dawson: 5 Fast Facts You Need to Know - Heavy Lawsuit: Wellspring CEO Told - Institutional Investor The emails, often using colorful language and harassing tones, essentially represent to Prospect that if the AcuSport transaction is not completed, Prospect will not get paid on its obligations. The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. 544(b). Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. Wellspring Philanthropic: An Ocean of "Dark Money" on the Left 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. A former employee of Wellspring Capital Management filed a lawsuit in a New York Thursday alleging that the CEO's son, Christopher Dawson, drugged and repeatedly raped her one night in the. In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. D. Del. Todd Boehly filed a joinder to the Wellspring Defendants' motion to dismiss. Instead, they may form the basis for a negligent misrepresentation claim if the party making the misrepresentation possesses some special expertise (by way of his job title or position, for example), or has some special knowledge about the particular fact that is allegedly misrepresented. In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. Will Others Follow? The plaintiff responds that Prospect is a preexisting creditor because the distributions were not made until after Prospect became a creditor when the Loan Agreements and the Amendments were signed. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App. The defendants argue that New York law should apply, first, because the Loan Agreements and the First and Second Amendments contain choice of law provisions stating that New York law will apply and second, because South Carolina choice of law analysis dictates that New York law should apply. The District Court stated that "[w]hether a fraudulent conveyance claim should be characterized as a tort action is uncertain and disputed among American jurisdictions." Public Records Policy. Judge opens door for bankruptcy blame suits - Axios 987, 999-1000 (Bankr. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. Another email stated, in part: "Gotta get your interest? at 385. The amended complaint is dismissed. The firm's objective is to bring partnership, experience and value creation to each investment. [Amended Complaint, 51]. Type: Company - Private. Litigation. Wellspring CEO takes leave after explosive rape allegations against his son For the reasons set forth below, under the law of either state, the plaintiff's first and second causes of action must be dismissed. Wellspring Capital Management | LinkedIn Div. However, the garage actually had only 402 parking spaces. Wellspring Capital Management In early 2018, Wellspring Capital notified SportCo's secured lenders that SportCo would default on a $4.7 million interest payment due in the second quarter of 2018. Aug. 27, 2020). The plaintiff, Ronald J. Friedman, the trustee for the SportCo Creditors' Liquidation Trust, filed an omnibus response to the motions to dismiss [Docket No. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. SEC / JURISDICTION. In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. Wellspring Capital Management is a middle-market private equity firm that has approximately $2 billion of private equity. Menu Home; Rankings. [Amended Complaint, 31]. Jan. 25, 2016) (alteration original). ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Crazy 8 was started in August 2007. In April 2018, Prospect agreed to defer two quarters of cash interest payments. To this end, Wellspring reinforces two key principles in particular: We encourage you to contact your Ropes & Gray team to discuss these matters more fully. Therefore, the plaintiff argues that he is only required to establish constructive fraud. Many of the facts underlying the Wellspring decision are neither unique nor unusual. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! at *3 (quoting In re Sharp Int'l Corp., 403 F.3d 43, 53 (2d Cir. The amended complaint asserts three causes of action: (1) avoidance and recovery of fraudulent transfers by Ellett against the Transferee Defendants pursuant to 11 U.S.C. Otherwise you cannot get paid." Wellspring Capital Management Acquires Paragon Films Their most recent investment was on Jan 1, 2020, when Steele Solutions raised On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. Wall Street tycoon takes leave of absence after lawsuit claims his son Adversary Proceeding No. View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. Wellspring Capital Management, LLC; Wellspring Cap. Andrew Kupchik argued dismissal was necessary due to Prospect's ratification and/or consent to the distributions, due to failure to state a claim under New York law because of lack of insolvency and failure to state a claim under South Carolina law due to failure to plead actual fraud, due to the expiration of the statute of limitations on the fraudulent conveyance claims, and due to failure to plead the existence of a triggering unsecured creditor. Try our Advanced Search for more refined results. 930 0 obj <>/Filter/FlateDecode/ID[<6781EE974E7B2C4D9274E8F359D28E60>]/Index[915 48]/Info 914 0 R/Length 80/Prev 600062/Root 916 0 R/Size 963/Type/XRef/W[1 2 1]>>stream Frustrated stakeholders can be further inclined, and incentivized, to view all corporate decisions with an eye towards litigation first through a 20/20 hindsight lens. Wellspring partners with highly qualified and motivated senior management teams, actively working together to unlock a companys potential by providing ongoing financial, strategic and operational support. Wellspring is a cautionary tale for the fiduciaries of a distressed or potentially distressed corporationparticularly with respect to negotiations around release and/or indemnification provisions for those same fiduciaries. Our tight-knit culture enables transparent oversight and a streamlined decision-making process. These emails can hardly be considered negligent misrepresentations. We charge a minimal base fee and the rest is performance fees we generate for clients and not on the amount of capital clients allocate. REGISTRATION STATUS . Because the Court dismisses the complaint as to all other defendants, the Court sua sponte dismisses the causes of action against Mr. Ziomek as well. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. S.D. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. 401(k)/403(b) Plan Litigation Risk Management, Analytics & Behavioral Science Consulting (R&G Insights Lab), Committee on Foreign Investment in the United States (CFIUS), E-Discovery, Discovery Strategies & Data Analytics, Executive Compensation & Employee Benefits, Government Enforcement / White Collar Criminal Defense, Life Sciences Licensing, Collaborations & Joint Ventures, The Music Stops on the Texas Two-Step: Third Circuit Dismisses LTL Bankruptcy Case. In Wellsprings view, the extent to which releases might have benefitted SportCo (as opposed to benefiting the directors alone) was at least in part a question of fact that could not be resolved on a motion to dismiss. Their most recent acquisition was Caring Brands International on Oct 25, 2021. Wellspring Capital Management Closes Fund VI at $1.415 Billion The Wellspring ruling was not appealed, nor has any trial occurred on this matter. The plaintiff's first and second causes of action both assert claims for fraudulent conveyances pursuant to 544(b) and S.C. Code 27-23-10. These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. Additionally, the plaintiff argues that the third element of New York's third-party beneficiary test is not met because there is no express intent in the Loan Agreements or the Amendments to compensate the defendants in the event the distributions were not paid and in fact, the Loan Agreement indicates the opposite by virtue of the inurement clause found in Section 13.1.