Law360 takes your privacy seriously. Designed By, https://www.wellspringcapital.co.uk/disclaimer. Id. at 385. However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. UNITED STATES BANKRUPTCY COURT DISTRICT OF SOUTH CAROLINA. R. Civ. 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. The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. "); Terry v. Walker, 2006 WL 736861, at *5 (W.D. 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. See Francis v. Giacomelli, 588 F.3d 186, 192 (4th Cir. You have to know whats happening with clients, competitors, practice areas, and industries. If you want your business to survive, you need to understand your-self. Note: This site is for informational purposes only. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. Wellspring Capital Management is a leading private equity firm headquartered in New York. This article about a private equity or venture capital firm based in the United States is a stub. The Partners of Wellspring constitute a long-tenured team, having worked together an average of 15 years over three funds. Wellspring Capital Management is a middle-market private equity financing firm. This is the best way to manage and repair your business reputation. When it comes to helping companies that show promise, Wellspring Capital Management is overflowing with support. 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. The Company specializes in private companies buyouts, acquisitions of divisions and subsidiaries of public companies, and going . SportCos negotiations were led by a SportCo director, who was also the managing partner of Wellspring Capital, SportCos equity sponsor. These facts, as recited in the complaint, are taken as true for purposes of the motions to dismiss. The legal team representing former President Donald Trump formally has requested a six-month delay in the civil case filed against him by New York Attorney General Letitia James. to hinder, delay, or defraud either present or future creditors." Nor is it necessary for the Court to decide whether New York or South Carolina law applies under South Carolina's choice of law principles. from 8 AM - 9 PM ET. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. 19.)1. *aUQBT&1#J$8Q)=WE9M'v1s_)GG+.kbN;yELi.UD1N{f'u$y`'GCJfS;4yXwbW${%^tcxG2}+/P@U `a$b6? 2d 317 (S.D.N.Y. They are simply not statements of preexisting fact that were false when made. 2021 by wellspring capital Management. Wellspring has one of the best track records in middle-market private equity; its people, capital and reputation bring certainty to transactions. at 321. Wellspring, 2021 WL 4823513, at *10. [Amended Complaint, 31]. Use tab to navigate through the menu items. Posted By: Imright , 3/3/2023 9:31:52 PM. 89], Charles E. Walker, Jr. [Docket No. 24. Our tight-knit culture enables transparent oversight and a streamlined decision-making process. Id. 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." 2008) (citing Southmark Corp. v. Crescent Heights VI, Inc. (In re Southmark Corp.), 95 F.3d 53, 53, n.7 (5th Cir. An actual fraudulent conveyance is any "conveyance made . 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. 1001 to 5000 Employees. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American. The amended complaint is dismissed. 8h`6$67Xn@,`& 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. The firm's objective is to bring partnership, experience and value creation to each investment. 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. 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 District Court stated that "[w]hether a fraudulent conveyance claim should be characterized as a tort action is uncertain and disputed among American jurisdictions." Wellspring brought its assets under management to more than $4.4 billion as of January 2018. 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. SEC / JURISDICTION. 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. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through . Id. We have interesting videos for you to watch on my site. 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. The defendant represented to the plaintiff, and to an appraiser who performed an appraisal of the garage, that the parking garage had 500 parking spaces. Investment Philosophy; Target Investments; Portfolio These all relate to a proposed business transactionthe purchase by Ellett of AcuSport. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States It identifies undervalued companies whose share price does not properly reflect the true value of the business. However, the garage actually had only 402 parking spaces. Please see our Privacy Policy. Business Restructuring, Litigation. Wellspring targets investments with the following characteristics: at 382. 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. The defendants asserted common arguments in support of dismissal, but all arguments made in support of dismissal were not asserted by each defendant. They are not actionable. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. Its success is based on a portfolio that, since inception in 2014, has delivered double digit returns on an annualised basis. It identifies undervalued companies whose share price does not properly reflect the true value of the business. 1996)). As part of the debt management process, it said it would close 375 of its 1,300 stores. 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. 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. Consumers want to see how a business took care of business. 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 CAPITAL MANAGEMENT ( CRD # 135455/SEC#:801-64341 ) WELLSPRING CAPITAL MANAGEMENT, WELLSPRING CAPITAL MANAGEMENT, INC. View latest Form ADV filed Part 2 Brochures. GitHub export from English Wikipedia. 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. 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. Wellspring Capital Management prevailed in the sponsor-driven process for Center for Diagnostic Imaging, the country's largest private . 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 [. 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. Sav. W.D. 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. 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. 92], Todd Boehly [Docket No. In Ashmore for Wilson, the District Court considered the question of how a fraudulent conveyance claim should be characterized for conflict of law purposes. your most valuable capital, your ultimate resource. There are different definitions of insolvency. In April 2018, Prospect agreed to defer two quarters of cash interest payments. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. The firm prefers to invest through means of carveout, buyouts, add-on, public to private and growth capital. Headquarters Location Lever House 390 Park Avenue New York, New York, 10022, United States 3d 473, 506 (S.D.N.Y. 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). 0 . The middle-market private equity firm invests in companies with strong business . Prior results do not guarantee a similar outcome. At Wellspring we pride ourselves on client service. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through . The alleged statements simply do not constitute actionable statements that can form the basis of a negligent misrepresentation claim. 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 2020) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). The court stated: See Credit Alliance Corp. v. Arthur Anderson & Co., 65 N.Y.2d 536 (NY App. 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. [Amended Complaint, 93]. e""8*&B The plaintiff responds that the express terms of the choice of law provisions provide that the clause applies only to the parties to the Loan Agreements and the Amendments and that the defendants' indirect connection to the parties to the agreements, and the nature of their received benefit, a distribution, are not sufficient to render them third-party beneficiaries of the Loan Agreements and the Amendments. 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. 2022 Wellspring Capital Management Group LLC |. Musk Made a Mess at Twitter. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. 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. 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 Id. The amended complaint fails to allege insolvency at the time of the transfer, an essential element of a fraudulent conveyance claim under either New York or South Carolina law, and therefore fails to state a claim under 544(b). There are no allegations in the amended complaint that the debtors' liabilities exceeded their assets at the time of the transfers. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. at 385. 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 After the defendants filed replies, the Court held a hearing on June 18, 2020. The plaintiff does not dispute that the amended complaint does not plead actual fraud, and it clearly does not. 2005)). (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. The District Court discussed the South Carolina Supreme Court's decision in Sheldon v. Blauvelt, 29 S.C. 453 (1888). . Wellspring has earned the reputation as a trusted, reliable partner and is often the preferred partner of a portfolio companys senior management team. Financial terms of the transaction were not disclosed. v. Holmes (In re Holmes), 610 B.R. Will His AI Plans Be Any Different? 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). [Amended Complaint, 49]. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. 915 0 obj <> endobj Time to Read: 6 minutes Wellspring also rejected in cursory fashion the defendants argument that it is not necessarily a breach . Try our Advanced Search for more refined results. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. Id. The 2011 Wellspring Capital Partners V LP was fully invested at $1.2 billion and has generated positive returns for its investors to-date. The firm's objective is to bring partnership, experience and value creation to each investment. 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. By continuing to use this website, you agree to UniCourts General Disclaimer, Terms of Service, Id. We charge a minimal base fee and the rest is performance fees we generate for clients and not on the amount of capital clients allocate. 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. 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 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. Wellspring Capital Management is a leading private equity firm headquartered in New York. $46H$DrGHi`0I"DE$"J(aH! 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 . & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. D.S.C. 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. 22-2003, 2023 WL 1098189 (3d Cir. hXO8WtVH,~W"I/ {;N7'0HAA0%`Ih5L!p! Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. For purposes of South Carolina law, the parties disagree whether Prospect was a preexisting creditor or a subsequent creditor. Industry: Investment & Asset Management. A free inside look at Wellspring Capital Management salary trends based on 22 salaries wages for 17 jobs at Wellspring Capital Management. 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. @S1 $82N+ZJ | Defendant Bernard Ziomek is in default in this matter. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. We look forward to hearing from you. Id. On 05/20/2022 Wellspring Capital Management, LLC Wellspring Cap filed an Other lawsuit against Barry, III.This case was filed in U.S. Bankruptcy Courts, New York Southern Bankruptcy. 987, 999-1000 (Bankr. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). However, whether a fraudulent conveyance action is characterized as a tort action is unsettled. %PDF-1.5 % .JFY+h!Hkw;s"$ 4AuF~!D =j]4z*g7i>B 1NEDm @@,!ptz"Br}-rh>wI }9.&>5/n2n/OefX Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. For example, the October 27, 2017 email stated, "The only way to optimize is to merge with Acusport." articles a month for anyone to read, even non-subscribers! If you do not agree with these terms, then do not use our website and/or services. The plaintiff's first and second causes of action are based on 11 U.S.C. 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. Lister v. NationsBank of Delaware, N.A., 329 S.C. 133, 143 (Ct. App. [Amended Complaint, 32]. Wellspring Capital manages an investment portfolio of between 10 and 15 international stocks. 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. 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. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. The defendants argue that as a subsequent creditor, Prospect is required to plead actual fraud, and the amended complaint fails to do so. 609, 614 (Bankr. Adversary Proceeding No. Will Others Follow? Ashmore for Wilson v. Dodds, 262 F. Supp. 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. Active, Closed, This describes the type of investor this organization is (e.g.
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