Edgewater Growth Capital Partners LP v. H.I.G. Capital, Inc.

OPINION

STRINE, Chancellor:

I. Introduction

An ambitious private equity firm, Edge-water Growth Capital Partners LP (“Edgewater”), invested in several businesses that were involved in providing services to companies operating automated teller machines and put them together in one company called “Pendum.” Edgewater wrote a relatively small equity check and saddled the acquired company with the obligation to pay back a heavy load of acquisition debt.

Edgewater’s ambitions exceeded its ability to integrate the businesses, develop a clear managerial chain of command, and execute an effective business…