* Dan Mihalopoulos and Tina Sfondeles…
A former business partner of Gov. Bruce Rauner is suing Rauner, but all court records in the case are being kept secret — allegedly at the governor’s request.
The lawsuit against Rauner was filed last week by Harreld “Kip” Kirkpatrick III and the Kirkpatrick Capital Partners Fund, according to Cook County Circuit Court records. […]
He said the lawsuit was filed as a “result of a dispute with a former partner” — namely Rauner, according to a memo that Kirkpatrick sent to Vistria employees. […]
“In consultation with our legal counsel, we do not believe the lawsuit should be sealed and we are hopeful that a judge will deny Gov. Rauner’s attempt to keep it from public view,” Kirkpatrick added.
Kirkpatrick filed paperwork in 2009 to run for state treasurer, and raised $20,000 from Mrs. Rauner that summer.
*** UPDATE *** The Tribune has more…
While the exact allegations remain unclear, the lawsuit against Rauner is tied to how settlement proceeds from a Michigan lawsuit were divvied up.
Kirkpatrick Capital Partners paid $10 million in 2011 for a 20 percent stake in what’s now Troy, Mich.-based United Shore Financial Services, according to the Michigan lawsuit.
Kirkpatrick served as the firm’s CEO from 2011 to 2013, but relations between him and the company’s founding family soured.
In 2015, Kirkpatrick Capital sued United Shore and Jeffrey and Mathew Ishbia, members of the founding family that remains the majority owner. The Ishbias, the lawsuit claimed, pulled the plug on Kirkpatrick’s efforts to sell the company — which by then was valued by Raymond James Financial Services at $400 million to $525 million. At least four firms expressed interest in buying the company in early 2013, but the Ishbia family suspended the sales process because it “did not want to give away so much of this newly created value to” Kirkpatrick Capital, the lawsuit says.
Go read the rest. Interesting stuff.
*** UPDATE 2 *** DGA…
This morning the Chicago Tribune and Chicago Sun-Times both wrote stories about Governor Bruce Rauner’s involvement in a lawsuit that he’s requesting to stay secret. Rauner is being sued by Kirkpatrick Capital, a firm he was still invested in 2016. From what little is known, the story feels familiar – Rauner and the other Kirkpatrick Capital investors intended to invest in an existing company quickly sell if off at profit while undercutting the owners.
“In 2015, Kirkpatrick Capital sued United Shore and Jeffrey and Mathew Ishbia, members of the founding family that remains the majority owner. The Ishbias, the lawsuit claimed, pulled the plug on Kirkpatrick’s efforts to sell the company — which by then was valued by Raymond James Financial Services at $400 million to $525 million. At least four firms expressed interest in buying the company in early 2013, but the Ishbia family suspended the sales process because it ‘did not want to give away so much of this newly created value to’ Kirkpatrick Capital, the lawsuit says.
‘The parties understood that Kirkpatrick Capital was not making a long-term investment in Shore,’ Kirkpatrick’s lawsuit against United Shore said. ‘Kirkpatrick was investing in Shore with the understanding that Shore would be marketed for sale in the near term.’”
Bruce Rauner leaned on his business acumen during the 2014 campaign, but investigative reports found that companies Rauner invested in were pushed into bankruptcy or stripped down for profits. Flash forward three years to when Governor Rauner called on the legislature to sustain his budget veto even though it would push the state into junk bond status, and a pattern emerges.
“Bruce Rauner sold voters a bill of goods when he said as a businessman he would turn the state around,” said DGA Illinois Communications Director Sam Salustro. “Just like he did in business, Rauner racked up Illinois’ debt and was pushed the state towards a fiscal cliff all for political profit. Now he wants to hide his true record from the public but it’s too late. Voters know they are worse off under three years of Rauner’s failed leadership in action.”