New Orleans — Texas-based private equity company Ancor Holdings LP argued before the Fifth Circuit on Tuesday that it was wrongfully excluded from an acquisition deal involving electric golf cart manufacturer ICON EV by another private equity group, Landon Capital Partners LLC, which Ancor had initially brought in as a backup investor.
Ancor’s attorney, Jeffrey Travis of Travis & Inman PC, told a three-judge panel that Landon and ICON went behind its back to close the deal without its involvement, despite a binding letter of intent and a non-circumvention clause in place. This clause, Ancor argues, entitles it to a “promote interest” fee, representing 20% of the company’s growth after its eventual sale.
In 2020, Ancor sued Landon and ICON after a deal to invest in ICON, preparing for its sale, fell apart. Ancor claims that Landon breached the contract by proceeding with the deal independently, violating the non-circumvention clause. Ancor also argues that ICON tortiously interfered with the contract.
