Id. Wellspring Capital Management Acquires Cadence Petroleum Group Id. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. 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. Wellspring Capital Management Company Profile | Management and James Chan - Spare Room Tycoon - The Seventy Lessons of Sane Self 541, 546 (Bankr. %PDF-1.5
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Aug. 27, 2020). The defendants filed separate motions. In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. your most valuable capital, your ultimate resource. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. 962 0 obj
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Wellspring Capital Management LLC - Dun & Bradstreet 6. These emails may be a lot of things, but negligent misrepresentations they are not. Industry: Investment & Asset Management. 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. 22-2003, 2023 WL 1098189 (3d Cir. 1985). Wellspring Capital Management is a middle-market private equity financing firm. The amended complaint is dismissed. Wellspring Capital Lawsuit | PDF | Limited Partnership | Loans - Scribd Angel, Fund of Funds, Venture Capital), This describes the stage of investments made by this organization (e.g. In Sheldon, the defendant, a New York citizen, assigned some personal property to Mr. Dickinson. [Amended Complaint, 49]. SaaS, Android, Cloud Computing, Medical Device), Where the organization is headquartered (e.g. Fed. Id. Wellspring buys PE-backed Center for Diagnostic Imaging %%EOF
Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States Id. 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. The firms objective is to bring partnership, experience and value creation to each investment. 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. 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 . Cancellation and Refund Policy, Privacy Policy, and Designed By, https://www.wellspringcapital.co.uk/disclaimer. The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." Probitas Partners acted as exclusive placement agent and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel with respect to formation of Fund VI. The defendants argue that New York law should apply, first, because the Loan Agreements and the First and Second Amendments contain choice of law provisions stating that New York law will apply and second, because South Carolina choice of law analysis dictates that New York law should apply. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. 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. 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. 2022 Wellspring Capital Management Group LLC |. 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. 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Phone: 650 729-8626. D.S.C. . 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. Wellspring Capital is a boutique discretionary management service with a portfolio positioned for high performance. A finding that Prospect is a preexisting creditor compels the same result. 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. 2010); Saifullah v. Johnson, 948 F.2d 1282, at *1 (4th Cir. 544 and 550 and S.C. Code 27-23-10; and (3) negligent misrepresentations against Wellspring Capital, Mr. Carles, and Mr. Johnson. [cV3ljHkT/bx
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Federal Rule of Bankruptcy Procedure 7012(b). The seller, PE outfit Levine Leichtman Capital Partners, purchased the company in 2015. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. 93], and Bradley Johnson [Docket No. REGISTRATION STATUS. 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). 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. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. 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 Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. Section 544(b) states: The defendants' motions assert numerous arguments in support of the assertion that the Court must dismiss the plaintiff's causes of action. These are high quality companies, essential to the national, regional, or global economy but whose fundamental qualities are underappreciated and undervalued by the market. This is despite the fact that 57% of Californians and 37% of California Democrats do not want President Joe Biden to run, according to a poll from the Berkeley Institute of Governmental Studies. New York law prohibits both actual and constructive fraudulent conveyances. Wellspring targets investments with the following characteristics: Cases involving other matters not classified elsewhere, 890, 1890, 1990, 2890, 2899, 2999, 3375, 3890, 3896, 3899, 3999, 4890, 4896, 4999, Wellspring Capital Management, LLC; Wellspring Cap v. Barry, III et al. .JFY+h!Hkw;s"$
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}9.&>5/n2n/OefX Wellspring Capital Management Acquires Paragon Films The February 20, 2018 stated, "You're [sic] economics are going down and the risk of chapter is going up. R. Civ. Alexander Carles' and Bradley Johnson's arguments are limited to the negligent misrepresentation cause of action, the only cause of action asserted against them. Judge opens door for bankruptcy blame suits - Axios 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. Corporate Advocacy Program. 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." Wellsprings facts, as alleged, are fairly straightforward. What happened to Birchbox? | Retail Dive Designed By BM Designs. 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. Type: Company - Private. At Wellspring we pride ourselves on client service. 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. from 8 AM - 9 PM ET. [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]. Founded in 1995, Wellspring invests anywhere . 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. 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. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. You have to know whats happening with clients, competitors, practice areas, and industries. F. Hewitt Grant asserted the lack of a triggering creditor due to Prospect Capital Corporation's knowing participation in the transfers and failure to state a claim under New York law due to lack of insolvency and under South Carolina law due to failure to plead actual fraud. 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. Wellspring Capital Acquires SupplyOne | Markets Insider Another email stated, in part: "Gotta get your interest? 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. Adversary Proceeding No. Id. 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 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. articles a month for anyone to read, even non-subscribers! Consumers want to see how a business took care of business. Wellspring Capital Management Portfolio Investments, Wellspring Capital 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." 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. 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. 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. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Reputation Management. The adviser's REGISTRATION status is listed below. In re Merritt Dredging Co., Inc., 839 F.2d 203, 205 (4th Cir. IAPD - Investment Adviser Public Disclosure - Homepage Sav. Wellspring CEO Takes Leave After Son Accused of Rape in Lawsuit Wellspring Capital Management Home; About Us; Investment Approach. . 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 court considered whether the plaintiff had proved the tort of innocent misrepresentation. Pentec Health Inc. Acquired by Wellspring Capital Management at 385. 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.