@S1 $82N+ZJ | 70% of dealmakers say that investment managers share culpability for 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. R. Civ. 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. wikipedia.en/Vatterott_College.md at main chinapedia/wikipedia.en You can help Wikipedia by expanding it. 2021 by wellspring capital Management. Sec'y of State for Def. Id. Litigation. 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. 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. 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. Wellspring Capital Management is a middle-market private equity financing firm. The firm's objective is to bring partnership, experience and value creation to each investment. David R. Duncan US Bankruptcy Judge District of South Carolina. Wellspring Capital Management Acquires Paragon Films Wellspring Capital Exits Strategic Investment in Great Lakes Caring UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. 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. Mr. Friedman was substituted as the plaintiff on January 10, 2020. Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. Wellspring targets investments with the following characteristics: Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. 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. In this process, SportCo initially exchanged a term sheet with certain of its lenders in early November 2018 and allegedly reached an agreement in principle in late December 2018. Using a sophisticated network of for-profits, shell corporations, and consultancies, Wellspring has poured out an incredible $1.1 billion into nonprofits, most of which is hidden from prying eyes in donor-advised funds. IAPD - Investment Adviser Public Disclosure - Homepage 22-2003, 2023 WL 1098189 (3d Cir. All business will get complaints. 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. The firm's objective is to bring partnership, experience and value creation to each investment. 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. 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. As with the plaintiffs assertions around disinterested governance, such allegations may (or may not) bear any semblance to the actual facts. 1991) (unpublished table decision). Crazy 8 was started in August 2007. James Chan - Spare Room Tycoon - The Seventy Lessons of Sane Self Finally, in West Side Fed. PLEASE NOTE: A verification email will be sent to your address before you can access your trial. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation Trust, Plaintiff, v. Wellspring Capital Management, LLC, Wellspring Capital Partners IV, L.P., WCM Genpar IV, L.P., WCM Genpar IV GP, LLC, Alexander E. Carles, Bradley Johnson, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik, Defendants. Wellspring has the flexibility to complete transactions ranging from $100 million to as much as $1.5 billion in total value in a wide range of industries. Wellspring Capital and the D&O Defendants grossly and recklessly mismanaged the business and carried out their respective roles in a manner that was devoid of reasonable inquiry and diligence in dereliction of their fiduciary duties to Prospect as a creditor of the increasingly insolvent enterprise. At the conclusion of the hearing, the Court took the motions under advisement. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. A social media content creator signed an agreement with Birchbox in May of 2022 and hadn't been paid the $2,500 due as of Jan. 24, despite several emails to the company. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Wellspring Capital buys Center for Diagnostic Imaging - Minneapolis It had previously received notification, in early 2018, that the Borrowers would default on their obligation under the Loan Agreements and the Amendments in the second quarter of 2018. Oct. 14, 2021) (Stickles, J.) endstream endobj startxref We look forward to hearing from you. ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. Designed By, https://www.wellspringcapital.co.uk/disclaimer. In an email obtained by . At Wellspring we pride ourselves on client service. Wellspring Capital Management Acquires Steele Solutions, Inc. at 358. The District Court in Ashmore for Wilson stated: The parties' arguments regarding what law applies to the plaintiff's fraudulent conveyance claims present some complicated and novel questions; however, it is not necessary for the Court to decide whether the defendants are third party beneficiaries of the Loan Agreements or the Amendments. Section 544(b) states: The defendants' motions assert numerous arguments in support of the assertion that the Court must dismiss the plaintiff's causes of action. The defendants' motions rely on Federal Rule of Civil Procedure 12(b)(6). 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. [Amended Complaint, 54]. EFFECTIVE DATE; SEC: Terminated: 3/2/2007: 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. In June 2019, SportCo and its subsidiaries (the "Debtors") filed chapter 11 bankruptcy cases in the United States Bankruptcy Court for the District of Delaware. Jan. 25, 2016) (alteration original). Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. 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. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. Limited partners include leading pension funds, endowments, fund of funds and family offices from the U.S., Europe and Asia. Even California Democrats don't want Newsom to run for president 962 0 obj <>stream P. 12(b)(6) provides for dismissal of an action if the complaint "fail[s] to state a claim upon which relief can be granted." The first and second causes of action are dismissed. 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 amended complaint is dismissed. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). 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 Acquires Cadence Petroleum Group Contribute to chinapedia/wikipedia.en development by creating an account on GitHub. 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 . When typing in this field, a list of search results will appear and be automatically updated as you type. A free inside look at Wellspring Capital Management salary trends based on 22 salaries wages for 17 jobs at Wellspring Capital Management. While property interests are defined by state law in the absence of a compelling federal interest, the Court would look to the Bankruptcy Code in making a determination of whether property is property of the estate under section 541. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Wellspring Capital Management is a middle-market private equity firm that has approximately $2 billion of private equity. Munich | Germany, History, Population, Oktoberfest, & Facts - Britannica They are not actionable. Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. Wellspring Capital Management | LinkedIn Tex. Seth Pearson - Managing Director - Private Equity - York Capital The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. The firm's objective is to bring partnership, experience and value creation to each investment. Wellspring Capital Acquires Caring Brands International [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]. at 385. Already a subscriber? Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. Shoe designer and creative Salehe Bembury takes us on a journey from his childhood growing up in Manhattan, to an invaluable degree in industrial design, to working with some of the biggest names in fashionbefore breaking off to make his own name. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. 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. Click here to login, 2023, Portfolio Media, Inc. | About | Contact Us | Legal Jobs | Advertise with Law360 | Careers at Law360 | Terms | Privacy Policy | Cookie Settings | Help | Site Map, Enter your details below and select your area(s) of interest to stay ahead of the curve and receive Law360's daily newsletters, Email (NOTE: Free email domains not supported). What happened to Birchbox? | Retail Dive 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App. 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. 20-50554, 2021 WL 4823513 (Bankr. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. In 2012, the year that the amended complaint alleges Ellett "achieved record sales and earned revenues of approximately $1.2 billion," Ellett and its operating subsidiaries (the "Borrowers") entered into a Third Amended and Restated Loan and Security Agreement and a Second Lien Loan and Security Agreement (collectively, the "Loan Agreements") with lenders including Prospect Capital Corporation ("Prospect"), pursuant to which Prospect and the other lenders loaned $280 million to the Borrowers. 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. Fed. Industry: Investment & Asset Management. 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. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. 89], Charles E. Walker, Jr. [Docket No. The Loan Agreements and the First and Second Amendments each contain a choice of law provision, providing that New York law applies. Wellspring Capital Management has acquired 38 organizations. Wellspring Capital Management, LLC; Wellspring Cap. 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. Sounds like a tidy deal at year end [2017] made a lot of sense." Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. In Wellspring, the Delaware bankruptcy court held that an alleged duty of loyalty breach could survive a motion to dismiss where: Bear in mind that alleged is the operative word here. 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. 1985). Business Restructuring, Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit New York law and South Carolina law differed as to whether such a transfer was permitted. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. 987, 999-1000 (Bankr. Judge opens door for bankruptcy blame suits - Axios [Amended Complaint, 57]. Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit If you do not agree with these terms, then do not use our website and/or services. 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. 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. Cancellation and Refund Policy, Privacy Policy, and We work with successful motivated individuals to help them achieve their investment and wealth management objectives. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. Id. 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. The defendants' remaining arguments need not be addressed. In June 2017, Gymboree announced it was filing for Chapter 11 bankruptcy protection. Tow v. Rafizadeh (In re Cyrus II P'ship), 413 B.R. There are also no allegations concerning expenses. 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. The December 26, 2017 email stated, "So you will waive [your interest payments]. "To survive a motion to dismiss, 'a complaint must contain sufficient factual matter, accepted as true, to "state a claim to relief that is plausible on its face."'" Defendant Wellspring Capital Management LLC is a Delaware limited liability company with its principal place of business at 390 Park Avenue, New York, New York 10022. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. Private equity firm Wellspring Capital Management has acquired Caring Brands International, parent company of home health and hospice franchise company Interim Healthcare, for an undisclosed amount.