Please see our Privacy Policy. The defendants' motions rely on Federal Rule of Civil Procedure 12(b)(6). IAPD - Investment Adviser Public Disclosure - Homepage The Wellspring ruling was not appealed, nor has any trial occurred on this matter. Attorney advertising. 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. Copyright 2023 Ropes & Gray LLP. 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. D. Del. Please Update this case to get latest docket information. We work with successful motivated individuals to help them achieve their investment and wealth management objectives. Practices: Wellspring Capital Management is a leading private equity firm headquartered in New York. 3d 473, 506 (S.D.N.Y. (Wellspring). 19.)1. 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. Contact:KekstMark Semer or Peter Hill212.521.4800, Cision Distribution 888-776-0942 [Amended Complaint, 31]. Wellspring Capital Management is an American private equity firm focused on leveraged buyout investments in middle-market companies across a range of industries. 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 Wellspring court was ruling on a motion to dismiss, and therefore accepted the plaintiffs somewhat barebones and perhaps self serving assertions as true and in the light most favorable to that plaintiff. Wellspring Capital Management Investor Profile: Portfolio & Exits 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. Ellett Brothers LLC ("Ellett"), a South Carolina limited liability company, was a sporting goods distributor. Id. Wellspring Capital Management, LLC; Wellspring Cap. Trump legal team requests six-month delay in New York civil lawsuit 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." Federal Rule of Bankruptcy Procedure 7012(b) provides that Federal Rule of Civil Procedure 12(b) applies in adversary proceedings. 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. 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . App'x 143 (4th Cir. Haynsworth Sinkler Boyd, P.A. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. 70% of dealmakers say that investment managers share culpability for San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. 19-80071-DD (Bankr. 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. Friedman v. Wellspring Capital Mgmt. - Casetext 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. 544(b). Christopher Dawson: 5 Fast Facts You Need to Know - Heavy The case status is Pending - Other Pending. The defendants filed separate motions. Sav. As part of the debt management process, it said it would close 375 of its 1,300 stores. Posted By: Imright , 3/3/2023 9:31:52 PM. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. 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. The Wellspring court dismissed the litigation trusts claim for breach of the fiduciary duty of care, holding that it was not adequately pled. 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. The firm's objective is to bring partnership, experience and value creation to each investment. The plaintiff's third cause of action, for negligent misrepresentation against defendants Wellspring Capital, Mr. Carles, and Mr. Johnson, must also be dismissed. 23, 2006) (stating that some courts characterize fraudulent conveyance actions as tort actions, while others characterize them as matters in equity). Why is this public record being published online? 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. 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. Designed By, https://www.wellspringcapital.co.uk/disclaimer. Crazy 8 was started in August 2007. to hinder, delay, or defraud either present or future creditors." This approach has historically delivered returns well above inflation. The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. at 321. Bloomberg View columnist Barry Ritholtz looks at the people and ideas that shape markets, investing and business. at 358. Gymboree - Wikipedia Since its founding in 1995, Wellspring has raised over $4.5 billion of initial capital commitments through six private equity funds. All business will get complaints. Flipbooks. 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. 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. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, It identifies undervalued companies whose share price does not properly reflect the true value of the business. 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." 2009). 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 firm's objective is to bring partnership, experience and value creation to each investment. This article about a private equity or venture capital firm based in the United States is a stub. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States Public Records Policy. In considering what choice of law provisions to apply, the Fourth Circuit stated: The Court notes that there is a specific fraudulent conveyance section of the Bankruptcy Code. Discretionary portfolio management with a difference, Make your investment with Wellspring Capital Management. Time to Read: 6 minutes 2022 Wellspring Capital Management Group LLC |. 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. 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. 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. 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. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. The plaintiff does not dispute that the amended complaint does not plead actual fraud, and it clearly does not. The basic complaint is that Wellspring directors put self-interests above those of the company and its creditors. A second amendment to the Loan Agreements (the "Second Amendment") was executed on September 30, 2014. Wellspring Capital Management is a leading private equity firm headquartered in New York. SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. Wellspring Capital Management, founded in 1995, is a middle-market private equity firm that has approximately $2 billion of private equity capital under management. Wellspring Capital Management Fund Manager Website www.wellspringcapital.com Fund Category Private Equity Close Date 0000-00-00 Fund Family Wellspring Capital Partners Native Currency USD Fund Manager's Location 605 Third Avenue 44th Floor New York, NY 10158 United States +1 (212) 000-0000 Fund Domiciles Canada wikipedia.en/Vatterott_College.md at main chinapedia/wikipedia.en The firm prefers to invest in the business services, industrial, packaging, healthcare services, restaurants . at 382. Wellspring Capital Acquires Caring Brands International Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. The parties disagree on what law should applyfederal or state, and further if state law applies, New York or South Carolina. at 385. It is Bavaria's largest city and the third largest city in Germany (after Berlin and Hamburg). Wellspring Sues Insurers To Fight Claims It Tanked Gun Seller Wellspring Capital Management ~p03ngx1Ai63*oP 4TP3Nt'xn0R8tJ'a7D2P6ILky6L;0;0SUNrtd t ";Qb[K-Ii 1g%\i) IZ3uAH0J40v0xt0v40Xt8 y CJ3t@y`$21kL Wellspring Capital manages an investment portfolio of between 10 and 15 international stocks. 609, 614 (Bankr. 2d 317 (S.D.N.Y. 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. The adviser's REGISTRATION status is listed below. The firms objective is to bring partnership, experience and value creation to each investment. 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. These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. Fund VI brings the firm's assets under management to more . You can review interesting Flipbooks on my site. Jan. 30, 2023). Wellspring Capital Management Salaries - Glassdoor Wellspring Capital is a boutique discretionary management service with a portfolio positioned for high performance. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. The middle-market private equity firm invests in companies with strong business . In the legal profession, information is the key to success. Menu Home; Rankings. Id. 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). "[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.'" 1991) (unpublished table decision). 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. Tex. Wellspring Capital Management Portfolio Investments, Wellspring Capital The plaintiff's first and second causes of action are based on 11 U.S.C. 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. 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. 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. 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). PLEASE SEE THIS LINK FOR FULL DISCLAIMER: This site is for informational purposes only. Founded in 1995, Wellspring invests anywhere . You can help Wikipedia by expanding it. Law360 provides the intelligence you need to remain an expert and beat the competition. 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. Regardless, market participantsand equity sponsors in particularshould view Wellspring as an important reminder as to how both process and substance matter in restructuring negotiations. Note: This site is for informational purposes only. Wellspring Capital Management Acquires Cadence Petroleum Group The defendants argue that Prospect is a subsequent creditor, because it had knowledge of and approved of the distributions prior to them being completed. (Compl. 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. 85]. 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. Otherwise you cannot get paid." 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). To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. 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. 93], and Bradley Johnson [Docket No. [Amended Complaint, 57]. Despite that agreement in principle, it was alleged in relevant part that: Unable to agree on the release and indemnification issue, SportCos out-of-court restructuring failed, and SportCo defaulted on its funded debt shortly thereafter. Wellspring Capital Management Closes Fund VI at $1.415 Billion 1994)). Wellspring Capital Management, LLC; Wellspring Cap v Barry, III et al By teaming up with strong management, Wellspring is able to unlock underlying value and. Wellspring Capital Exits Strategic Investment in Great Lakes Caring Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . A finding that Prospect is a preexisting creditor compels the same result. (quoting Bell Atl. In Ashmore for Wilson, the District Court considered the question of how a fraudulent conveyance claim should be characterized for conflict of law purposes. Business Restructuring, 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. Antares Capital Supports Wellspring Capital Management's Acquisition of However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. 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. Law360 takes your privacy seriously. A litigation trust formed through the SportCo bankruptcy then sued, among others, SportCos former directors and its equity sponsor. PDF In the United States Bankruptcy Court for The District of Delaware The amended complaint is dismissed. Salaries posted anonymously by Wellspring Capital Management employees. Your livelihoodand your sanitydepend . D.S.C. The court considered whether inaccurate credit ratings can form the basis for a negligent misrepresentation claim. 1997) (citing Bannister v. Hertz Corp., 316 S.C. 513 (Ct. App. At all times relevant to these claims, Wellspring Capital controlled (a) Wellspring Capital Partners Wellspring CEO takes leave after explosive rape allegations against his 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. [Amended Complaint, 49]. Munich, German Mnchen, city, capital of Bavaria Land (state), southern Germany. Sec'y of State for Def. Wellspring Capital buys Center for Diagnostic Imaging - Minneapolis 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 - Wikipedia $46H$DrGHi`0I"DE$"J(aH! 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. (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 .

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