Bates White estimates damages in a private equity fund manager’s wrongful termination case
In the matter Tarrus Richardson v. Tyson Pratcher and Raudline Etienne, Bates White Partner Karl N. Snow testified and submitted two expert reports in a dispute regarding damages to a terminated employee of ICV Partners, a private equity (PE) fund. Bates White was retained by Hogan Lovells, counsel for defendants (two employees of the New York State Comptroller’s office) in the case.
Bates White performed damages analysis by analyzing the foregone salary, share of management fees and performances fees in the PE firm’s funds, and mitigation of earnings. Dr. Snow analyzed the historical track record of investments the PE firm made, among other things. His report included the valuation of existing investments made by the PE funds in privately held companies. Dr. Snow also valued future investments of the funds and examined the risks associated with fund investments. The analysis of the present value of the share of fees was calculated by discounting at a rate that reflected the appropriate risk of the various cash flows.
The case settled following trial that was held in New York.