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. We look forward to hearing from you. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. Active, Closed, This describes the type of investor this organization is (e.g. If you want your business to survive, you need to understand your-self. Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. 2d 317 (S.D.N.Y. Attorney advertising. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. 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. (quoting Bell Atl. ~p03ngx1Ai63*oP 4TP3Nt'xn0R8tJ'a7D2P6ILky6L;0;0SUNrtd t ";Qb[K-Ii 1g%\i) IZ3uAH0J40v0xt0v40Xt8 y CJ3t@y`$21kL Angel, Fund of Funds, Venture Capital), General contact email for the organization. Cancellation and Refund Policy, Privacy Policy, and 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. A New York buyout baron has taken a leave of absence from his fund after an explosive lawsuit claimed last week that he threatened an ex-employee to keep quiet after she accused his son of raping her. The. The amended complaint does not allege that either Ellett or SportCo was insolvent at the time of the transfer or became insolvent as a result of the transfer. Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of Dawson's threats, according to an internal memo. Please see our Privacy Policy. 609, 614 (Bankr. [4] Wellspring completed fundraising on its sixth fund in 2018 with $1.45 billion of investor commitments as a successor to its $1.2 billion 2011 Fund V.[3], Wellspring focuses on the packaging, healthcare, niche manufacturing and distribution sectors.[5][6]. Haynsworth Sinkler Boyd, P.A. Id. Jan. 30, 2023). 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 The company will explode Rich!" 24. The third cause of action asserts that those parties "made numerous representations to Prospect concerning the AcuSport Purchase, including that the purchase would allow the Debtors to acquire $14 million worth of AcuSport inventory at a substantial discount; that it would result in the Debtors' immediate realization of a $7 million profit on the sale of the AcuSport inventory so purchased; and that it would result in the Debtors' capturing 20% to 30% of AcuSport sales." Designed By, https://www.wellspringcapital.co.uk/disclaimer. 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). Wellspring Capital formed SportCo Holdings, Inc. ("SportCo") to serve as a holding company for United Sporting Company, Inc. ("United Sporting"), Ellett's direct parent; Ellett; and its subsidiaries. The Wellspring court dismissed the litigation trusts claim for breach of the fiduciary duty of care, holding that it was not adequately pled. Id. Read More Key Principal: William Dawson Junior See more contacts Industry: Management investment, open-end Printer Friendly View Address: 605 3RD Ave FL 44 New York, NY, 10158-0011 United States See other locations Phone: Website: www.wellspringcapital.com Employees (this site): Actual Wellspring Capital Management has acquired 38 organizations. The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. 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. They are not actionable. Reputation Management. In 2010, Bain Capital acquired the company for US$1.8 billion. We are taking this matter very seriously, and have launched an immediate internal investigation, Jeffrey Gould, Wellsprings head of marketing and investor relations, told investors last week in a note seen by Bloomberg News. 2009). We see how Bembury is able to walk the line of business convention while taking his art to new heights, turning ordinary items into extraordinary footwear. 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. 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 . From October 2017 to April 2018, Mr. Carles and Mr. Johnson sent numerous emails to representatives of Prospect, attempting to induce Prospect to agree to forego exercising its rights in the event of a default. 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." In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. . This is the best way to manage and repair your business reputation. Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. 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. 93], and Bradley Johnson [Docket No. 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. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). The plaintiff responds that the express terms of the choice of law provisions provide that the clause applies only to the parties to the Loan Agreements and the Amendments and that the defendants' indirect connection to the parties to the agreements, and the nature of their received benefit, a distribution, are not sufficient to render them third-party beneficiaries of the Loan Agreements and the Amendments. 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. Wellspring Capital Management is a middle-market private equity financing firm. The portfolio manager is also a co-investor in the strategy. Find More Contacts for Wellspring Capital Management, Edit Lists Featuring This Company Section, European Regulation Ushers In Global Future For Fundraising, Wellspring Capital Management Acquires Caring Brands International, Private Equity Firms with Investments in United States, Greater New York Area Investors with Funds Raised in 2017, Private Equity Firms with Investments in Asia. 2016) (citing numerous cases, recognizing disagreement among courts regarding whether fraudulent conveyance action is a tort action); MainStreet Bank v. Nat'l Excavating Corp., 791 F. Supp. SEC / JURISDICTION. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Fund VI brings the firm's assets under management to more . Wellspring Capital Management is a leading private equity firm headquartered in New York. . 1984) for the proposition that under New York law, opinions are actionable in a negligence context. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. After all, corporate decisionmakers are often tasked with choosing a path where outcomes are at best uncertain. 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. 'Ov}b0. If our offering sounds like something you would like to discuss, please get in touch on any of our contact details or the form below. All business will get complaints. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Flipbooks. To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. (Wellspring). Designed By BM Designs. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. Id. The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). View contacts for Wellspring Capital Management to access new leads and connect with decision-makers. [Amended Complaint, 37, 40]. 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. The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . These are high quality companies, essential to the national, regional, or global economy but whose fundamental qualities are underappreciated and undervalued by the market. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. 598, 614 (Bankr. Financial terms of the transaction were not disclosed. 92], Todd Boehly [Docket No. The first and second causes of action are dismissed. When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. Wellspring Capital Management, LLC; Wellspring Cap. As part of the debt management process, it said it would close 375 of its 1,300 stores. 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. Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. Fax: 877 376-7003. Fund VI brings the firm's assets under management to more than $4.4 billion. 20-50554, 2021 WL 4823513 (Bankr. Most of them do not even contain any concrete information about the proposed AcuSport purchase or the likelihood of the Borrowers' default. Law360 takes your privacy seriously. While New York law and South Carolina law have slightly different tests for avoiding constructive fraudulent conveyances, there exists a common thread which is not satisfied hereinsolvency at the time of the transfer. Why is this public record being published online? Wellspring targets investments with the following characteristics: It identifies undervalued companies whose share price does not properly reflect the true value of the business. Wellsprings facts, as alleged, are fairly straightforward. If you do not agree with these terms, then do not use our website and/or services. your most valuable capital, your ultimate resource. Adversary Proceeding No. For the reasons set forth below, under the law of either state, the plaintiff's first and second causes of action must be dismissed. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. They were not statements of presently existing fact. 3d 341, 357 (D.S.C. Investment Philosophy; Target Investments; Portfolio 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. Over the past 20 years, Wellspring has invested in over 35 platform investments across . January 12, 2022 A customer lawsuit filed earlier this month against Sequoia, Paradigm, and Thoma Bravo, alleges these funds gave an "air of legitimacy" to FTX andvia their hundreds of millions in funding and. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. Follow along as he lays out the blueprint for his career, and takes us all the way from his first sketch to his thriving personal brand, Spunge. In the legal profession, information is the key to success. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States The defendants filed separate motions. In an email obtained by . E-mail: sandra@wellspring-cap.com; Videos. e""8*&B We are motivated and incentivised to succeed. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. Todd Boehly filed a joinder to the Wellspring Defendants' motion to dismiss. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. The Firm takes pride in its ability to marshal its resources quickly and focus on the issues that matter, resulting in speed and certainty during the acquisition process. Wellspring Capital Management is a leading private equity firm headquartered in New York. Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. Wellspring Capital Management Group LLC ("Wellspring"), a New York-based private equity firm, announced that on May 29, 2020, it closed the acquisition of Steele Solutions, Inc. ("SSI" or the "Company"), a value-add supplier into the industrial automation sector. Their most recent acquisition was Caring Brands International on Oct 25, 2021. Va. June 8, 2011) (acknowledging that Maryland law is not clear regarding whether a fraudulent conveyance action sounds in tort, but concluding that "given that the gravamen of the fraudulent conveyance claim is the wrongfulness of the conveyance and the injury to the creditor, rather than balancing equities or fairness, it is appropriate to conclude that fraudulent conveyance claims sound in tort. James brought a civil suit against Trump in September, alleging the Trump organization had fraudulently inflated the value of . The defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. D.S.C. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. 2100 Geng Road, Suite 210 Palo Alto, CA 94303. The Debtors in the bankruptcy cases, pending in the District of Delaware, are SportCo Holdings, Inc.; Ellett Brothers, LLC; United Sporting Company, Inc.; Bonitz Brothers, Inc.; Evans Sports, Inc.; Jerry's Sports, Inc.; Outdoor Sports Headquarters, Inc.; Quality Boxes, Inc.; and Simmons Guns Specialties, Inc. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, iPhone Maker Plans $700 Million India Plant in Shift From China, Stock Traders Are Ignoring Blaring Bond Alarms, S&P 500 Notches Best Week Since Late January: Markets Wrap. Description. Charles E. Walker, Jr. argued in support of dismissal due to lack of a triggering creditor based on Prospect's secured status, failure to state a claim under New York law due to lack of insolvency, on equity grounds because Prospect failed to obtain a personal guaranty from Mr. Walker and because the distributions were specifically contemplated by the loan transaction, and due to failure to state a claim for fraudulent conveyance under South Carolina law. Ashmore for Wilson v. Dodds, 262 F. Supp. On December 31, 2018, the Borrowers defaulted on their obligations under the Loan Agreements and the Amendments. 2005)). Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. Prospect is a sophisticated party and, to the extent that it wanted to confirm the predictions made by Mr. Carles and Mr. Johnson were in fact accurate, it could have exercised due diligence. [Amended Complaint, 49]. D. Del. Fed. Their most recent investment was on Jan 1, 2020, when Steele Solutions raised The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. articles a month for anyone to read, even non-subscribers! 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. It is notable that the first and second causes of action are based only on South Carolina law; however, because the parties disagree as to whether South Carolina or New York law should apply, the Court will analyze the first and second causes of action under both. From reading the Financial Times at school to managing his first portfolio at just 18, he has built Wellspring Capital into a nationwide wealth management boutique. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners Relevant here: the plaintiff/litigation trust alleged that SportCos directors: Finally, the litigation trust also asserted a variety of other counts in its complaint related to other facts, circumstances, and actions that are not the subject of this Alert. [Amended Complaint, 93]. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. Sav. 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 also rejected in cursory fashion the defendants argument that it is not necessarily a breach . These emails can hardly be considered negligent misrepresentations. Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. at 385. Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. Wellspring Capital Management prevailed in the sponsor-driven process for Center for Diagnostic Imaging, the country's largest private . Mar 19, 2019 New York private equity firm Wellspring Capital Management said Monday it has acquired Center for Diagnostic Imaging, a Minneapolis-based operator of MRI and CT scanners that. from 8 AM - 9 PM ET. View Videos. WELLSPRING CAPITAL MANAGEMENT ( CRD # 135455/SEC#:801-64341 ) WELLSPRING CAPITAL MANAGEMENT, WELLSPRING CAPITAL MANAGEMENT, INC. View latest Form ADV filed Part 2 Brochures. At Wellspring we pride ourselves on client service. A constructive fraudulent conveyance exists under New York law if the conveyance was made without fair consideration and "(1) the transferor is insolvent or will be rendered insolvent by the transfer in question; (2) the transferor is engaged in or is about to engage in a business transaction for which its remaining property constitutes unreasonably small capital; or (3) the transferor believes that it will incur debt beyond its ability to pay."
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