Wellspring Capital Management has acquired 38 organizations. When typing in this field, a list of search results will appear and be automatically updated as you type. 3d 341, 357 (D.S.C. Phone: 650 729-8626. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. Oct. 14, 2021) (Stickles, J.) As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. Cancellation and Refund Policy, Privacy Policy, and 85]. 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. 90], Alexander E. Carles [Docket No. 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 has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. 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. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. Over the past 20 years, Wellspring has invested in over 35 platform investments across . D. Del. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. 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 . However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. [Amended Complaint, 51]. 962 0 obj <>stream Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. The seller, PE outfit Levine Leichtman Capital Partners, purchased the company in 2015. An outside law firm will assist with the probe to determine the validity of these reports, which allege behavior that is not only shocking but completely inconsistent with our corporate values and standards., Family calls complaint pure fiction intended as a shakedown, Dawson steps away from firm to spend time with his family. Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. 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. 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. As part of the debt management process, it said it would close 375 of its 1,300 stores. 22-2003, 2023 WL 1098189 (3d Cir. Note: This site is for informational purposes only. Accordingly, Wellspring reinforces the importance of disinterested governance and arms length dealing in connection with the restructuring process. Tenn. 1991); 11 U.S.C. Less than a year later, the liquidation trustee sued Wellspring and related parties, alleging breaches of fiduciary duty of care and loyalty. The middle-market private equity firm invests in companies with strong business . The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. A finding that Prospect is a preexisting creditor compels the same result. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). Under either New York or South Carolina law, the plaintiff's third cause of action for negligent misrepresentation fails to state a claim for which relief can be granted. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. Hiding negative complaints is only a Band-Aid. On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. Importantly, however, the Wellspring court declined to dismiss the litigation trusts duty of loyalty claim, stating on a cursory basis that Drawing all inferences in favor of the Trustee, the Complaint contains sufficient allegations that the D&O Defendants breached their duty of loyalty regarding the Failed Out of Court Restructuring. Id. It identifies undervalued companies whose share price does not properly reflect the true value of the business. & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. 2012) and West Side Fed. They were not statements of presently existing fact. It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. About Wellspring Capital Management Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $4.4 billion of private equity capital. However, the garage actually had only 402 parking spaces. The firms objective is to bring partnership, experience and value creation to each investment. We have interesting videos for you to watch on my site. Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. 1984) for the proposition that under New York law, opinions are actionable in a negligence context. View Videos. In an email obtained by . Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Type: Company - Private. to hinder, delay, or defraud either present or future creditors." 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. If you want your business to survive, you need to understand your-self. As discussed in Cyrus II, the Fourth Circuit has stated that a bankruptcy court should apply the choice of law rules of the state in which it sits. The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Wellspring Capital, through defendants Mr. Carles and Mr. Johnson, allegedly represented to Prospect that: (1) Ellett could purchase assets of AcuSport for $14.8 million; (2) the purchase would result in the Debtors' capturing 20% to 30% of AcuSport sales; (3) the Debtors could acquire $14 million of AcuSport inventory at a substantial discount; and (4) Ellett would immediately realize a $7 million profit on the sale of the inventory acquired in the purchase. Fund VI will continue to pursue Wellspring's investment objective to acquire or invest in middle-market companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. Our returning and new limited partners share our belief in the unique value proposition that Wellspring brings to the investment process, with our focus on strategic partnership and tailored approach to each investment. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. Investment Philosophy; Target Investments; Portfolio Please Update this case to get latest docket information. The courts analysis of the duty of loyalty claim can be fairly characterized as limited, consisting of four short paragraphs that largely restate or simply quote the complaint. The firm's objective is to bring partnership, experience and value creation to each investment. Designed By BM Designs. My company, Asia Marketing and Management, has global ambitions but consists largely of me and the intelligence, experience, contacts, and per-sonality I bring to my clients . Id. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. 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 Uniform Commercial Code defines insolvency as the inability to pay debts in the ordinary course or when they come due, while the Bankruptcy Code defines insolvency as debts exceeding assets. The defendants' motions to dismiss are granted. As we here at Ropes & Gray look back on 2021 and ahead into 2022, we call your attention to the lessons of Friedman v. Wellspring Capital Mgmt., LLC (In re SportCo Holdings, Inc.), Case No. The court must construe the allegations in the complaint in the light most favorable to the plaintiff. However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. 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. ~p03ngx1Ai63*oP 4TP3Nt'xn0R8tJ'a7D2P6ILky6L;0;0SUNrtd t ";Qb[K-Ii 1g%\i) IZ3uAH0J40v0xt0v40Xt8 y CJ3t@y`$21kL . 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. This article about a private equity or venture capital firm based in the United States is a stub. 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. Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. Sec'y of State for Def. Consumers want to see how a business took care of business. The company will explode Rich!" Id. 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. 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." You have to know whats happening with clients, competitors, practice areas, and industries. Id. Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States Their most recent investment was on Jan 1, 2020, when Steele Solutions raised Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. Particularly where negotiations may involve releases, indemnification, or similar provisions, be advised that the ever-present tendency for counterparties to exercise 20/20 hindsight is fully in effect. 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. Va. Mar. James brought a civil suit against Trump in September, alleging the Trump organization had fraudulently inflated the value of . The South Carolina Supreme Court stated that New York law would govern the validity of the transfer before it, unless applying New York law would result in a violation of South Carolina public policy. Mr. Friedman was substituted as the plaintiff on January 10, 2020. In June 2017, Gymboree announced it was filing for Chapter 11 bankruptcy protection. The defendants' remaining arguments need not be addressed. See Sheehan v. Saoud, 650 Fed. %%EOF The plaintiff's third cause of action, for negligent misrepresentation against defendants Wellspring Capital, Mr. Carles, and Mr. Johnson, must also be dismissed. The legal team representing former President Donald Trump formally has requested a six-month delay in the civil case filed against him by New York Attorney General Letitia James. The amended complaint is dismissed. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. R. Civ. at 385.
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