The assignment was executed in New York, but the personal property was located in South Carolina at the time the assignment was executed. The issue in Merritt Dredging was the sale of a barge and the priority of parties' interests in the proceeds of the sale. On March 7, 2013, the Borrowers entered into a First Amendment to the Loan Agreements (the "First Amendment"), pursuant to which Prospect loaned the Borrowers an additional $60 million. 101 (32). 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. They were not statements of presently existing fact. 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. 2012) and West Side Fed. To summarize New York law, then, it appears that opinions can be actionable, but are not always actionable. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. An actual fraudulent conveyance is any "conveyance made . The amended complaint further states that from October 2012 to October 2013, "Ellett achieved record sales and earned revenues of approximately $1.2 billion." Description. In fact, the amended complaint states that the distributions at issue here were made in October 2012 and March 2013. 1985). 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. Wellspring Capital Management prevailed in the sponsor-driven process for Center for Diagnostic Imaging, the country's largest private . Sounds like a tidy deal at year end [2017] made a lot of sense." Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. articles a month for anyone to read, even non-subscribers! %PDF-1.5 % Innovative Custom Brands, Inc. v. Minor, 2016 WL 308805, at *2 (S.D.N.Y. [Amended Complaint, 93]. 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. The firm's objective is to bring partnership, experience and value creation to each investment. It featured lower-priced clothing and was Gymboree's direct competitor for The Children's Place and Old Navy.. 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. Asia Pacific; EMEA; Latin America; UK Solicitors; UK Bar; United States In the legal profession, information is the key to success. [Amended Complaint, 37, 40]. We are motivated and incentivised to succeed. Tenn. 1991); 11 U.S.C. 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). Wellspring Capital is a boutique discretionary management service - with a portfolio positioned for high performance. (quoting Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir. See Scheidelman v. Henderson (In re Henderson), 423 B.R. Wellspring Capital Management is a leading middle-market private equity firm headquartered in New York. 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. 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 . Another email stated, in part: "Gotta get your interest? The principal and lead portfolio manager at Wellspring Capital is Avrohom Neumann. endstream endobj startxref Designed By BM Designs. [Amended Complaint, 57]. Jan. 30, 2023). Mr. Friedman filed an amended complaint the same day. San Francisco Bay Area, Silicon Valley), Operating Status of Organization e.g. Accordingly, Wellspring did not find that the defendants in fact breached their duties, but rather held that the plaintiff, a litigation trust, had asserted a viable claim that could proceed to a trier of fact. (quoting Bell Atl. However, the Court has the discretion to sua sponte dismiss a complaint pursuant to Fed. Tow v. Rafizadeh (In re Cyrus II P'ship), 413 B.R. 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. 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. Founded in 1995, Wellspring Capital Management is a private equity firm headquartered in New York, New York. 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. 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. Brought up in a family enjoying long-term success in real estate investment, Avrohom instead turned to the stock market. Id. Ellett achieved high sales and revenues and had significant operations until sometime in 2016, when its profits began to decrease. @S1 $82N+ZJ | Therefore, the plaintiff argues that he is only required to establish constructive fraud. Wellspring Capital, Mr. Carles, and Mr. Johnson were not insiders of AcuSport, and the amended complaint does not allege that they had any special knowledge or information about AcuSport that was not available to the public. 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. It is not intended as and should not be construed as financial, investment, tax, legal, regulatory, or other advice. These tools have been used since the firm's inception in 1995 to generate consistent business improvement in its portfolios. Div. Investment Philosophy; Target Investments; Portfolio The firm, which is based in New York City, was founded in 1995 by Martin Davis and Greg Feldman. Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. at 613-14. 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. 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 court considered whether the plaintiff had proved the tort of innocent misrepresentation. Founded in 1995, Wellspring invests anywhere . 2007) (citations omitted). The Court addresses in this order only those arguments that clearly mandate dismissal. 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. Bill Dawson is taking time off from his $2.2 billion private equity firm Wellspring Capital Management, which will investigate the claims of . at 385. 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. 22-2003, 2023 WL 1098189 (3d Cir. 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. 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. 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. Instead, they may form the basis for a negligent misrepresentation claim if the party making the misrepresentation possesses some special expertise (by way of his job title or position, for example), or has some special knowledge about the particular fact that is allegedly misrepresented. Mr. Friedman was substituted as the plaintiff on January 10, 2020. A social media content creator signed an agreement with Birchbox in May of 2022 and hadn't been paid the $2,500 due as of Jan. 24, despite several emails to the company. Id. Wellspring brought its assets under management to more than $4.4 billion as of January 2018. By teaming up with strong management, Wellspring is able to unlock underlying value and. The portfolio manager is also a co-investor in the strategy. [Amended Complaint, 51]. Litigation. R. Civ. The defendants filed separate motions. California Weighs $360,000 in Reparations to Eligible Black Residents. & Loan Ass'n of New York City, the plaintiff loaned funds to the defendant, secured by a mortgage on a parking garage. REGISTRATION STATUS. 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. 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). 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. Sav. & Loan Ass'n v. Hirschfeld, 476 N.Y.S.2d 292 (N.Y. App. REGISTRATION STATUS . A constructive fraudulent conveyance exists under New York law if the conveyance was made without fair consideration and "(1) the transferor is insolvent or will be rendered insolvent by the transfer in question; (2) the transferor is engaged in or is about to engage in a business transaction for which its remaining property constitutes unreasonably small capital; or (3) the transferor believes that it will incur debt beyond its ability to pay." Wellspring targets investments with the following characteristics: In Cyrus II, the court also acknowledged that the Fourth Circuit has found otherwise and determined that state choice of law rules should be used in bankruptcy cases.