Id. (Bloomberg) -- 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."We are taking this matter very seriously, and have launched an immediate internal investigation," Jeffrey Gould, Wellspring's head of marketing and investor . 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. 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. SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. 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. 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"). 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 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. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). New York law regarding third party beneficiaries provides: With respect to South Carolina's choice of law analysis, South Carolina conflict of law principles provide that "the substantive law governing a tort action is determined by the state in which the injury occurred." 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. Sounds like a tidy deal at year end [2017] made a lot of sense." Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States [Amended Complaint, 32]. We look forward to hearing from you. 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. Middle Market Private Equity. 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. 93], and Bradley Johnson [Docket No. 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). . I Shall [Not] Be Released: Wellspring, Director Releases, breached their duty of care, since the directors refused to reasonably maximize corporate value by killing the restructuring on account of releases/indemnity (, breached their duty of loyalty, since they placed their own self-interests above those of their fiduciaries [. In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. Va. Mar. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. January 12, 2022 ), Create custom alerts for specific article and case topics and, I took a free trial but didn't get a verification email. Id. 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. Prior results do not guarantee a similar outcome. Designed By, https://www.wellspringcapital.co.uk/disclaimer. Wellspring Capital Management is a leading private equity firm headquartered in New York. 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. 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. endstream endobj 916 0 obj <>/Metadata 258 0 R/Pages 913 0 R/StructTreeRoot 384 0 R/Type/Catalog>> endobj 917 0 obj <>/MediaBox[0 0 612 792]/Parent 913 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 918 0 obj <>stream Gymboree - Wikipedia After the defendants filed replies, the Court held a hearing on June 18, 2020. 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. 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. Finally, one place to get all the court documents we need. 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. Friedman v. Wellspring Capital Mgmt. - Casetext 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. 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. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. 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. 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. 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. 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 2022 Wellspring Capital Management Group LLC |. View Videos. 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 [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]. 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. 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App. 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. Litigation. If you do not agree with these terms, then do not use our website and/or services. 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. P. 12(b)(6). The defendants argue that as a subsequent creditor, Prospect is required to plead actual fraud, and the amended complaint fails to do so. at 382. 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." The court considered whether the plaintiff had proved the tort of innocent misrepresentation. The defendants' motions to dismiss are granted. Therefore, the plaintiff argues that he is only required to establish constructive fraud. 1985). Wellspring Capital Management is a leading private equity firm headquartered in New York. The adviser's REGISTRATION status is listed below. A free inside look at Wellspring Capital Management salary trends based on 22 salaries wages for 17 jobs at Wellspring Capital Management. The company will explode Rich!" 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. Salaries posted anonymously by Wellspring Capital Management employees. Id. David R. Duncan US Bankruptcy Judge District of South Carolina. 541, 546 (Bankr. 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. Law360 may contact you in your professional capacity with information about our other products, services and events that we believe may be of interest.Youll be able to update your communication preferences via the unsubscribe link provided within our communications.We take your privacy seriously. 2021 by wellspring capital Management. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. Investment adviser | Wellspring Capital Management Ltd | M25 0FX 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. 112]. 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. 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 defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. 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. Note: This site is for informational purposes only. Wellspring Capital Lawsuit | PDF | Limited Partnership | Loans - Scribd The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. Will His AI Plans Be Any Different? PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. PDF In the United States Bankruptcy Court for The District of Delaware 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Wellspring Capital Management Acquires Paragon Films Wellspring Capital Management 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. Attorney advertising. Wellspring Capital Management | LinkedIn PDF Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. 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. Musk Made a Mess at Twitter. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. App'x 143 (4th Cir. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. Judge opens door for bankruptcy blame suits - Axios 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. 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). Wellspring Capital Management Acquires Steele Solutions, Inc. 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. (quoting Bell Atl. Wellspring Capital Management Portfolio Investments, Wellspring Capital Id. This is the best way to manage and repair your business reputation. R. Civ. 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." The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. REGISTRATION STATUS. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . All business will get complaints. 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. 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. 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. $46H$DrGHi`0I"DE$"J(aH! Id. 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. The Firm also has a long history of collaboration with entrepreneurs and closely held businesses to achieve outsized growth, with a large percentage of our portfolio companies being transitioned from founder ownership. The court stated that expressions of opinion are actionable under New York law, but further stated: New York courts have also stated that statements of "mere puffery", or "statements founded entirely on speculation concerning future profits from proposed business endeavors" are not actionable. The plaintiff's first and second causes of action are based on 11 U.S.C. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. 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. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. The Court further notes that here, section 548 is not available to the plaintiff due to the timing of the transfers and the bankruptcy filings. In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. Their most recent investment was on Jan 1, 2020, when Steele Solutions raised Fund VI brings the firm's assets under management to more than $4.4 billion. to hinder, delay, or defraud either present or future creditors." Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. 1991) (unpublished table decision). Industry: Investment & Asset Management. There are also no allegations concerning expenses. 70% of dealmakers say that investment managers share culpability for 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. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. Defendant Bernard Ziomek is in default in this matter. 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. Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. Blackstone to Acquire Tradesmen International from Wellspring Capital Id. Another email stated, in part: "Gotta get your interest? However, the garage actually had only 402 parking spaces. As a result, the defendants argue, it would be unjust for Prospect to now be able to avoid the distributions. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. (Compl. David Westin speaks with top names in finance about the week's biggest issues on Wall Street. The middle-market private equity firm invests in companies with strong business . It identifies undervalued companies whose share price does not properly reflect the true value of the business. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. 598, 614 (Bankr. 1984) for the proposition that under New York law, opinions are actionable in a negligence context. Angel, Fund of Funds, Venture Capital), General contact email for the organization. This approach has historically delivered returns well above inflation Our clients Law360 takes your privacy seriously. The Court does not have to decide whether Prospect is a preexisting or a subsequent creditor. This article about a private equity or venture capital firm based in the United States is a stub. The defendants' remaining arguments need not be addressed. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. 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. Wellspring Capital Management. W.D. Further, if the statement is solely a speculative prediction about some potential business venture or course of action being contemplated, it is not actionable. The. 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. However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. This matter is before the Court on motions to dismiss filed by the defendants Wellspring Capital Management, LLC ("Wellspring Capital"), Wellspring Capital Partners IV, L.P. ("Wellspring Capital Partners"), WCM Genpar IV, L.P., WCM Genpar IV GP, LLC (collectively, the "Wellspring Defendants") [Docket No. 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. Haynsworth Sinkler Boyd, P.A. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. Ashmore for Wilson v. Dodds, 262 F. Supp. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. Over the past 20 years, Wellspring has invested in over 35 platform investments across . Mr. Friedman filed an amended complaint the same day. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. 915 0 obj <> endobj Flipbooks. Sav. WELLSPRING CAPITAL MANAGEMENT LIMITED is registered in England and Wales under Company Number 12429146, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. 'Ov}b0. Id. 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 Id. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. Id. The plaintiff, Ronald J. Friedman, the trustee for the SportCo Creditors' Liquidation Trust, filed an omnibus response to the motions to dismiss [Docket No. 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 plaintiff relies on the fact that Ellett was unable to pay the debt owed to Prospect at the time that it had to be paid in full; however, this is not the only relevant point in time. @S1 $82N+ZJ | 91], Andrew Kupchik [Docket No. An action with multiple causes of action was commenced by Prospect Capital Corporation in South Carolina state court and was removed to this court on September 6, 2019. at 321. REGISTRATION STATUS . A finding that Prospect is a preexisting creditor compels the same result. Wellspring Capital Management Company Profile | Management and 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. v. Holmes (In re Holmes), 610 B.R. [Amended Complaint, 37, 40]. The first and second causes of action are dismissed. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Founded in 1995, Wellspring invests anywhere . Wellspring Capital Management is a leading private equity firm headquartered in New York. 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. Wellspring Capital Management Salaries - Glassdoor Home; About Us; Investment Approach. The parties are in agreement that New York and South Carolina law regarding negligent misrepresentations are substantially similar and that as a result, the Court is not required to engage in a choice of law analysis as to the third cause of action. There are no allegations in the amended complaint that the debtors' liabilities exceeded their assets at the time of the transfers. Otherwise you cannot get paid." 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. [Amended Complaint, 57]. By teaming up with strong management, Wellspring is able to unlock underlying value and. Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . 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. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? Federal Rule of Bankruptcy Procedure 7012(b). PLEASE SEE THIS LINK FOR FULL DISCLAIMER: https://www.wellspringcapital.co.uk/disclaimer. 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.
Who Lives At 360 Raintree Lane Wellington Fl, June 7, 2007 Wisconsin Tornado, American Standard Ovation Shower Walls, Chiswick Business Park Companies, Prattville Funeral Home Obituaries, Articles W