JenCap Sued Over Carlyle Group’s Sale of Insurer to Oak Hill

Carlyle Group Inc. affiliate JenCap Holdings LLC was sued for records in Delaware by a co-founder of JenCap’s insurance business, who claims Caryle cut him out of it, transformed it into Galway Insurance Holdings LLC, and turned over control of it to Oak Hill Capital Partners in an unfair deal.

The Chancery Court complaint alleges a complex scheme by JenCap’s Carlyle-linked board to “marginalize” Jeffery Cappel by excluding him from meetings, withholding information he was entitled to as a manager, and eventually ousting him from the board and partly buying him out against his will.

Those “bad-faith” moves were ineffective ...