The middle-market private equity firm invests in companies with strong business . 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. Will His AI Plans Be Any Different? 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. (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 . There are also no allegations concerning expenses. Musk Made a Mess at Twitter. The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . In Fall 2018, SportCo Holdings, Inc. (SportCo) was facing severe financial distress. at 358. January 12, 2022 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. 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. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. Our tight-knit culture enables transparent oversight and a streamlined decision-making process. . at 613-14. 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. At Wellspring we pride ourselves on client service. The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. Full title:Ronald J. Friedman, as the trustee for the SportCo Creditors' Liquidation, Court:UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. Another email stated, in part: "Gotta get your interest? These emails can hardly be considered negligent misrepresentations. 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. SportCo later filed a free fall bankruptcy and liquidatedallegedly causing substantial losses for unsecured creditors that would not have occurred had SportCo accepted that agreement in principle allegedly reached in December 2018. Later emails berate Prospect's representative for failing to agree to the AcuSport purchase more quickly. 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. Crazy 8 was started in August 2007. If you want your business to survive, you need to understand your-self. articles a month for anyone to read, even non-subscribers! To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. See Sheehan v. Saoud, 650 Fed. 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. 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. 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. 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. 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. You have to know whats happening with clients, competitors, practice areas, and industries. 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. 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. However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. [Amended Complaint, 49]. 20-50554, 2021 WL 4823513 (Bankr. 19-80071-DD (Bankr. New York law and South Carolina law differed as to whether such a transfer was permitted. All rights reserved. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. Va. Mar. 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. (Wellspring). Prior results do not guarantee a similar outcome. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. 2005)). Use tab to navigate through the menu items. Exempt Reporting Advisers ("ERA") are investment advisers that are not required to register as investment advisers because they rely on certain exemptions from registration under sections 203 (l) and 203 (m) of the Investment Advisers Act of 1940 and related rules. 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. "[F]or purposes of Rule 12(b)(6), '[the court is] not required to accept as true the legal conclusions set forth in a plaintiff's complaint.'" Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States 609, 614 (Bankr. Marlow v. Oakland Gin Co. (In re The Julien Co.), 128 B.R. Corporate Advocacy Program. 598, 614 (Bankr. REGISTRATION STATUS . The firm's objective is to bring partnership, experience and value creation to each investment. $46H$DrGHi`0I"DE$"J(aH! The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . Cancellation and Refund Policy, Privacy Policy, and Further, if the statement is solely a speculative prediction about some potential business venture or course of action being contemplated, it is not actionable. Id. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. In an email obtained by . 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. Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. Id. Hiding negative complaints is only a Band-Aid. Wellspring is a cautionary tale for the fiduciaries of a distressed or potentially distressed corporationparticularly with respect to negotiations around release and/or indemnification provisions for those same fiduciaries. 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. The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. 'Ov}b0. 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. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. Id. 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. 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. In 2008, Wellspring Capital, through its fund Wellspring Capital Partners, acquired Ellett. 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. 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. Fund VI brings the firm's assets under management to more . Wellspring Capital manages an investment portfolio of between 10 and 15 international stocks. Wellspring Capital Management is a middle-market private equity firm that has approximately $2 billion of private equity. 1001 to 5000 Employees. Password (at least 8 characters required). 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. The plaintiff's third cause of action, for negligent misrepresentation against defendants Wellspring Capital, Mr. Carles, and Mr. Johnson, must also be dismissed. Accordingly, Wellspring reinforces the importance of disinterested governance and arms length dealing in connection with the restructuring process. There are different definitions of insolvency. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." The elements of a negligent misrepresentation claim under New York law are: The plaintiff also cites King County, Washington v. IKB Deutsche Industriebank, 863 F. Supp. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. Total number of employee profiles an organization has on Crunchbase, Total number of Crunchbase contacts associated with this organization, Descriptive keyword for an Organization (e.g. However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. Fax: 877 376-7003. These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. Ellett used $54,860,549.74 of the First Amendment loan proceeds to fund distributions to the Transferee Defendants. Jan. 25, 2016) (alteration original). 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.