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• A look at allegations of fraud leveled at Miami-based 777 Partners

Miami-based investment firm 777 Partners, known for its recent high-profile sports deals, has been hit with allegations of fraud from one of its lenders. Leadenhall Capital Partners, a London-based asset manager, filed a lawsuit in federal court in New York on Friday, accusing 777 Partners of running a yearslong scheme that involved borrowing against $350 million of assets that the firm allegedly did not actually own.

"To induce Leadenhall to fund their operation, [777's founders], along with [their] group of alter ego entities, 'pledged' over $350 million in assets as collateral to Leadenhall, knowing all along that the assets either did not exist, were not actually owned by [777's] entities, or had already been pledged to another lender," the complaint alleges.

Also named in the suit is Advantage Capital Holdings, LLC, or A-Cap, a New York-based insurance firm with close ties to 777’s reinsurance business. Leadenhall says that when it attempted to restructure outstanding loans to 777, A-Cap’s murky relationship with the debtor allowed it to effectively block Leadenhall from its efforts.

“Through these attempted restructuring negotiations, 777 Partners has admitted time and again that it does not control its own operations and ability to perform,” claims Leadenhall.

An A-Cap representative told Bloomberg that the allegations are “yet another desperate attempt by Leadenhall to elevate its collateral seniority and seek payment from A-Cap while undermining A-Cap policyholders.”

The lawsuit follows a string of legal actions against 777 Partners in recent months over disputed loans and payments. Norwegian football outlet Josimar reported in 2023 that 777 was facing allegations of financial impropriety at its sporting assets, including fraud and unpaid bills, which the firm condemned as "wholly misleading." The firm has also been accused of improper related-party loans, failure to fund portfolio company employee pension obligations, and has had its assets seized by Bermudan authorities.

Separately, the Justice Department opened an investigation last November into potential 777 violations of U.S. money-laundering laws, as first reported by Semafor. This February, the firm’s CFO abruptly resigned.

The allegations come at an inopportune time for 777 Partners, with the firm's long-pending bid to acquire English Premier League club Everton on the verge of collapse. The deal, agreed in principle last September, would see 777 purchase current owner Farhad Moshiri's 94.1 percent stake. Initially stalled pending league approval, the acquisition now depends on 777’s ability to repay a £158 million loan to MSP Sports Capital as part of the takeover.

The repayment deadline had been set to April 15th, though 777 requested a last-minute extension as it works to secure funding. Everton is struggling under a $500 million debt burden, including the MSP loan, related to the construction of a new stadium. The club has hired restructuring advisors and could cede ownership to MSP if the 777 deal fails to close.

For its part, 777 Partners has declined to comment on the Leadenhall lawsuit or the status of its bid for Everton, stating that it does not discuss ongoing litigation. The firm has previously touted its "patient, long-term approach" to investing and its ability to "create value by fortifying team rosters with new talent." Other key value creation strategies include the “strengthening [of] earnings potential via … NFTs and Web3.”

Founded in 2015 by Steven Pasko and Joshua Wander, 777 Partners has quickly built a portfolio of investments across sports, media, and aviation. The firm holds a number of majority or minority stakes in prominent soccer clubs, including Italy's Genoa, Belgium's Standard Liège, France's Red Star, Brazil's Vasco da Gama, Germany's Hertha Berlin, and Spain's Sevilla.

The firm’s aviation assets include ultra-low-cost carriers Flair Airlines in Canada and Bonza in Australia—both of which have faced recent operational and financial turbulence. In March, four of Flair's leased aircraft were seized by lessor Airborne Capital over missed lease payments. This week, Bonza entered voluntary administration and suspended all flights after its entire fleet was repossessed.

• EQT AB, through BPEA Private Equity, agreed to acquire Perficient Inc. (Nasdaq: PRFT), a global digital consultancy, for around $3 billion.

• Occidental Petroleum (NYSE: OXY) is exploring a sale of its assets in the Permian Basin's Barilla Draw region that could fetch over $1 billion.

• Glencore Plc and PT Chandra Asri Pacific are in advanced talks to acquire Shell Plc's Singapore assets in a potential $1 billion deal, per Bloomberg.

• L Catterton is set to take Italian luxury shoemaker Tod's private, alongside the company's founding Della Valle family, after the group successfully secured the required shares.

• Eutelsat, a global satellite communications provider, is considering the sale of its ground station network, which could be worth more than €800 million, per Bloomberg.

• PAI Partners agreed to acquire a 67 percent stake in Fresenius SE & Co.'s Vamed rehabilitation business at a valuation of €853 million.

• KKR agreed to acquire Healthium Medtech, a medical devices manufacturer, from Apax Partners for around $839 million.

• Ontic, a British aerospace parts manufacturer, received a $450 million growth capital commitment from Canada Pension Plan Investment Board.

• Littlejohn & Co. sold Motion Recruitment Partners to Kelly for $425 million up-front, with an additional performance-based consideration of up to $60 million.

• Will Ferrell acquired a minority stake in Leeds United FC, joining other celebrity investors including Russell Crowe, Jordan Spieth, Justin Thomas and Michael Phelps.

• L2 Capital acquired Kosmos Q, a barbecue rubs, sauces, and accessories brand.

• Summa Equity acquired a majority stake in FAST LTA, a German provider of long-term data storage solutions, from Afinum Management.

• Traffic & Mobility Consultants, backed by Grovecourt Capital Partners, acquired Lincks & Associates, a Tampa-based transportation and traffic engineering firm.

• Wynnchurch Capital acquired Reagent Chemical & Research, a specialty distributor of hydrochloric acid.

• Creditors, including hedge fund Arini, are set to take over Consolis, a manufacturer of precast concrete products, from Bain Capital.

• Cin7, backed by Rubicon Technology Partners, agreed to acquire Inventoro, a provider of AI-driven sales forecasting and replenishment optimization solutions.

• Emerald Technologies, a Crestview Partners-backed manufacturing services provider, agreed to acquire Optimum Design Associates, an electronic design and engineering services company.

• Zeekr, a Geely-owned EV brand, set terms for its planned NYSE IPO to 17.5 million shares at a price range between $18 and $21.

Tech, Vertical SaaS, & Misc. Enterprise

• Eywa, a digital signal processing startup, raised $7 million in seed funding from Michael Egorov, Fenbushi Capital, GBV Capital, Big Brain Holdings, Marshland Capital, Mulana Capital, and Ah! Ventures.

• Deltia.ai, developer of an AI-powered process analytics platform, raised $4.8 million in seed funding led by Cavalry Ventures, with participation from Merantix.

Consumer & Media

• SoBet, a Nashville-based sports betting platform focused on content creation and community engagement, raised $3.7 million in seed funding led by Third Kind Venture Capital.

Healthcare

• Delphia Therapeutics, a biotech focused on novel oncogenic pathway targets, raised $67 million in Series A funding from GV, Nextech Invest, Polaris Innovation Fund, and Alexandria Venture Investments.

• Allozymes, a biotech focused on developing custom enzymes, raised $15 million in Series A funding. Seventure Partners, NUS Technology Holdings, Thia Ventures, and ID Capital co-led, with support from Xora Innovation, SOSV, Entrepreneur First, and Transpose Platform.

• AISAP, a developer of AI-powered diagnostic ultrasound technology, raised $13 million in seed funding led by Harel Insurance Group, with participation from Shoni Top Ventures.

• Hona, a provider of an AI medical records system, raised $3 million in seed funding led by General Catalyst, with participation from Samsung, Rebel Fund, and Allegis Capital.

Industrials, Greentech, & Other

• EnviroSpark Energy Solutions, an EV charging station provider, raised $50 million in new funding from Basalt Infrastructure Partners.

• Iconiq Growth raised $5.75 billion for two new vehicles as part of its 7th family of funds.

• Palm Beach Capital raised $350 million for its sixth buyout and growth-focused fund.

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