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This is despite the fact that 57% of Californians and 37% of California Democrats do not want President Joe Biden to run, according to a poll from the Berkeley Institute of Governmental Studies. Wellspring Capital Management - Investments, Portfolio & Company Exits The Wellspring Defendants asserted all of these arguments and also asserted failure to state a claim under section 550 against certain defendants. 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 Court addresses in this order only those arguments that clearly mandate dismissal. 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 . This approach has historically delivered returns well above inflation. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). 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. At the conclusion of the hearing, the Court took the motions under advisement. Wellspring Capital Management is a middle-market private equity financing firm. Lawsuit: Wellspring CEO Told - Institutional Investor 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. 70% of dealmakers say that investment managers share culpability for 24. Investment Approach Target Investments Wellspring's objective is to acquire or invest in companies that are well-positioned to capitalize on change and can benefit from Wellspring's operating and financial expertise. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States A finding that Prospect is a preexisting creditor compels the same result. Practices: Gymboree - Wikipedia 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. 544(b). 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. 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. Wellspring Capital Management is a leading private equity firm headquartered in New York. And the best part of all, documents in their CrowdSourced Library are FREE. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. Your livelihoodand your sanitydepend . The plaintiff's first and second causes of action are based on 11 U.S.C. 1001 to 5000 Employees. GitHub export from English Wikipedia. 2009). The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. 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. PDF In the United States Bankruptcy Court for The District of Delaware 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. The December 26, 2017 email stated, "So you will waive [your interest payments]. 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. 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. Home; About Us; Investment Approach. 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. 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. Note: This site is for informational purposes only. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. Industry: Investment & Asset Management. Wellspring Capital Management has acquired 38 organizations. 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. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. Trump legal team requests six-month delay in New York civil lawsuit Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. Why is this public record being published online? Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. 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. Sec'y of State for Def. McDermott Will & Emery LLP > San Francisco > United States | The Legal 609, 614 (Bankr. Will His AI Plans Be Any Different? 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. Salaries posted anonymously by Wellspring Capital Management employees. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? W.D. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. The court considered whether inaccurate credit ratings can form the basis for a negligent misrepresentation claim. There are also no allegations concerning expenses. You can review interesting Flipbooks on my site. We look forward to hearing from you. Id. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . 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. Law360 takes your privacy seriously. 3d 341, 357 (D.S.C. Password (at least 8 characters required). 19.)1. 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. Div. Wellspring Capital Acquires SupplyOne | Markets Insider 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. & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. 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." 91], Andrew Kupchik [Docket No. You have to know whats happening with clients, competitors, practice areas, and industries. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. 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." %%EOF Wellspring Capital Management, LLC; Wellspring Cap v Barry, III et al 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App. 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). The Court also notes that, setting the other factors aside, given the extreme nature of the urgent tone of these emails, and the highly sophisticated status of Prospect, Prospect satisfying the justifiable reliance element of a negligent misrepresentation claim is questionable, at best. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. CDI's smaller Atlanta peer said to weigh sale in '18. Christopher Dawson: 5 Fast Facts You Need to Know - Heavy 90], Alexander E. Carles [Docket No. 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. Judge opens door for bankruptcy blame suits - Axios Flipbooks. Wellspring Capital Exits Strategic Investment in Great Lakes Caring 2007) (citations omitted). 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. The case status is Pending - Other Pending. v. Holmes (In re Holmes), 610 B.R. The firms objective is to bring partnership, experience and value creation to each investment. Id. Ripoff Report | scalp-med complaints, reviews, scams, lawsuits and For the reasons set forth above, the first, second, and third causes of action set forth in the plaintiff's amended complaint fail to state claims for which relief can be granted. This preference is a result of the Firms differentiated and conservative approach to leverage, in addition to a transparent oversight model, which is driven by our small group of senior professionals and absence of bureaucracy. REGISTRATION STATUS. Try our Advanced Search for more refined results. The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . We have interesting videos for you to watch on my site. (quoting Bell Atl. 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. See Sheehan v. Saoud, 650 Fed. 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. 112]. 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. Id. with actual intent . The complaint must provide more than mere "labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." 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. 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. at 321. Even among California Democrats, Newsom is still in the negatives, with 54% wanting him to sit out in 2024 and only 35% wanting him to run. 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. Middle Market Private Equity. 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. Time to Read: 6 minutes 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. Working at Wellspring Capital Management | Glassdoor 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. Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Id. IAPD - Investment Adviser Public Disclosure - Homepage However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. Wellspring Capital Management is a middle-market private equity firm that has approximately $2 billion of private equity. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. 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. Another email stated, in part: "Gotta get your interest? Investments Number of Investments 2 Wellspring Capital Management has made 2 investments. 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. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. 541, 546 (Bankr. Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. Posted By: Imright , 3/3/2023 9:31:52 PM. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). 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 . Over $134 million of the loan proceeds were used to fund distributions to Wellspring Capital Partners, WCM GenPar IV, L.P., WCM GenPar IV GP, LLC, F. Hewitt Grant, Charles E. Walker, Jr., Todd Boehly, Bernard Ziomek, and Andrew Kupchik (collectively, the "Transferee Defendants"). Accordingly, SportCo began negotiations with certain of its lenders around a potential restructuring transaction. 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. 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. The elements of a negligent misrepresentation claim under South Carolina law are as follows: Turning now to the present case, the third cause of action must be dismissed under either New York or South Carolina law because the statements that the plaintiff asserts constituted negligent misrepresentations were all statements regarding potential outcomes of a potential business endeavor; thus, they relate to future events and cannot form the basis of a negligent misrepresentation claim. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. 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. Wellspring, 2021 WL 4823513, at *10. A free inside look at Wellspring Capital Management salary trends based on 22 salaries wages for 17 jobs at Wellspring Capital Management. Please see our Privacy Policy. Wellspring Capital Management, LLC; Wellspring Cap. 101 (32). The Wellspring court dismissed the litigation trusts claim for breach of the fiduciary duty of care, holding that it was not adequately pled. 2005)). The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. View Videos. 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 89], Charles E. Walker, Jr. [Docket No. Wellspring Capital Management Company Profile | Management and The defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. Wellspring Capital Management. 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. Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. 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. Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. July 5, 2017). 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. 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 Wellsprings investment professionals possess diverse and complementary backgrounds that combine valuable experience in private equity, restructuring, corporate finance, capital markets and corporate law. 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. v. Trimble Navigation Ltd., 484 F.3d 700, 705 (4th Cir. 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. This article about a private equity or venture capital firm based in the United States is a stub. The amended complaint further states, "As recently as 2015, Ellett was the fifth largest private company in South Carolina and the largest distributor of firearms in the United States, with annual revenues of $750 million, over 350 employees nationwide, and 175 employees in South Carolina." WELLSPRING CAPITAL MANAGEMENT, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. 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. See Francis v. Giacomelli, 588 F.3d 186, 192 (4th Cir. Contribute to chinapedia/wikipedia.en development by creating an account on GitHub. The Court now issues this order, granting the motions to dismiss for the reasons set forth below. 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. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. We are motivated and incentivised to succeed. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. Litigation. It is not unusual for an entity facing distress to engage with their stakeholders and to negotiate any number of transaction alternatives and terms. Cases involving other matters not classified elsewhere, 890, 1890, 1990, 2890, 2899, 2999, 3375, 3890, 3896, 3899, 3999, 4890, 4896, 4999, Wellspring Capital Management, LLC; Wellspring Cap v. Barry, III et al. "); Terry v. Walker, 2006 WL 736861, at *5 (W.D. After the defendants filed replies, the Court held a hearing on June 18, 2020. Martin Davis, 72; Created Modern Paramount, "Financial Firm Wellspring Capital to Take Penthouse at 605 Third Avenue", "Wellspring Capital Management taps $1.45bn Fund VI for Cadence Petroleum Group buyout", "SupplyOne Acquires Fellow Packaging Distributor Romanow Container", "Healthcare & Life Sciences Private Equity Deal Tracker: Wellspring Acquires Pentec Health", https://en.wikipedia.org/w/index.php?title=Wellspring_Capital_Management&oldid=1118006247, This page was last edited on 24 October 2022, at 18:15. Wellspring Capital Management - Crunchbase 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 The amended complaint also details numerous emails sent by Mr. Carles and Mr. Johnson to a representative of Prospect, urging Prospect to defer its right to payment in the event of a default. (Compl. 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. Wellsprings facts, as alleged, are fairly straightforward. See Silvercreek Mgmt., Inc. v. Citigroup, Inc., 346 F. Supp. 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 also rejected in cursory fashion the defendants argument that it is not necessarily a breach . In King County, the court considered suits by investors seeking to recover losses incurred after the collapse of a structured investment vehicle. 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. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. 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. [cV3ljHkT/bx @A,20p1 ks But Wellspring would arguably undermine the ability to negotiate for what are customary and, indeed, necessary protections for corporate decisionmakers in those same transactions, such as releases, indemnity, or exculpation. Cancellation and Refund Policy, Privacy Policy, and [Amended Complaint, 49]. 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. 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. at *3 (quoting In re Sharp Int'l Corp., 403 F.3d 43, 53 (2d Cir. Limited partners include leading pension funds, endowments, fund of funds and family offices from the U.S., Europe and Asia. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. The defendants argue that this cause of action must be dismissed because the alleged misrepresentations were forward-looking statements and opinions; therefore, they are not actionable and cannot form the basis for a negligent misrepresentation cause of action. In considering whether to grant a motion to dismiss under Rule 12(b)(6), the court may take judicial notice of matters of public record and may consider documents attached to the complaint and the motion to dismiss, "so long as they are integral to the complaint and authentic." 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. Sav. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Please Update this case to get latest docket information. 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.