Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech Mahindra is an IT outsourcing giant, and even sponsors its own racing team. Photo by Xavier Bonilla/NurPhoto via Getty Images.

Private equity firms rarely sue their limited partners, let alone well-heeled ones. But that's exactly what's happening between San Francisco-based Northgate Capital and Indian outsourcing giant Tech Mahindra, according to court documents.

The bottom line: The dispute had remained behind the closed doors of arbitration, but spilled out into the public after a witness didn't show up to testify.

  • June 2015: Tech Mahindra commits to invest $40 million into a fintech-focused fund being raised by Northgate.
  • September 2016: Northgate calls $1.04 million, in order to cover expenses. It is the first capital call, and does not relate to an investment. Tech Mahindra doesn't pay.

Seems at first like a cut-and-dry contract violation, but then you need to factor in the major personnel turnover at Northgate, which was originally founded in 2000 by former pro football players Brent Jones and Tommy Vardell.

  • In between Tech Mahindra's commitment and Northgate's call, both Jones and Vardell left their full-time roles at Northgate.
  • Their departures were at first denied by The Capital Partnership, an overseas investment firm that had acquired a majority stake in Northgate from another third party.
  • This mattered because the limited partnership agreement included a keyman clause related to the departure of Jones, Vardell and a third person who had already bailed. Tech Mahindra claims it didn't receive the notice to which it was entitled and that its non-payment came after it learned the truth.
  • Tech Mahindra also alleges that Northgate didn't make a good-faith effort to find other investors, as it had been promised, while Northgate claims Tech Mahindra initially refused to pay because it claimed to have not received Indian regulatory approvals that it actually had received.

Complicating things is the matter of Hosein Khajeh-Hosseiny, who was promoted from Northgate managing partner to CEO once The Capital Partnership assumed control. He also was listed as a sole keyman in the LPA, but left this past summer.

  • His departure doesn't affect the LPA, per se, but Tech Mahindra wants him to testify in-person at an arbitration hearing.
  • Khajeh-Hosseiny agreed to testify tomorrow (Nov. 2), saying it was best for his schedule. But when the broader arbitration hearing commenced this past Monday, Khajeh-Hosseiny's lawyer said he was overseas and would be unavailable indefinitely.
  • That lawyer tells me that Khajeh-Hosseiny, a British citizen who already provided hours of testimony via a taped deposition, is stuck in London, awaiting administrative approval of his travel visa. He had expected to have it by now, but doesn't.

Tech Mahindra is asking for Khajeh-Hosseiny to be held in contempt of court — and it was his non-appearance that moved all of the relevant court docs from private arbitration into the public sphere.

Go deeper

21 mins ago - Health

Axios-Ipsos poll: America looks for the exits after a year of COVID

Data: Axios/Ipsos poll; Chart: Danielle Alberti/Axios

A year after the coronavirus abruptly shut down much of the country, Americans are watching for a clear signal of when the pandemic will be over — and most won't be ready to ditch the masks and social distancing until they get it, according to the latest installment of the Axios/Ipsos Coronavirus Index.

The big picture: The poll found that more Americans are expecting the outbreak to be over sooner rather than later, as vaccinations ramp up throughout the country — but that very few are ready to end the precautions that have upended their lives.

Caitlin Owens, author of Vitals
22 mins ago - Health

Many vulnerable Americans have received the coronavirus vaccine

Data: CDC, U.S. Census Bureau; Chart: Andrew Witherspoon/Axios

More than two-thirds of Americans 75 and older have received at least one dose of the coronavirus vaccine, as have more than half of those 65-74, per CDC data.

Why it matters: Any future surge in cases almost certainly wouldn't be as deadly as previous waves, because older people are the most likely to die from the virus.

3 hours ago - World

Report: "Clear evidence" China is committing genocide against Uyghurs

The scene in 2019 of a site believed to be a re-education camp where mostly Muslim ethnic minorities are detained, north of Kashgar in China's northwestern Xinjiang region. Photo: Greg Baker/AFP via Getty Images

Chinese authorities have breached "each and every act prohibited" under the UN Genocide Convention over the treatment of Uyghurs and other Muslim minorities in China's Xinjiang province, an independent report published Tuesday alleges.

Why it matters: D.C. think-tank the Newlines Institute for Strategy and Policy, which released the report, said in a statement the conclusions by dozens of experts in war crimes, human rights and international law are "clear and convincing": The ruling Chinese Communist Party bears responsibility.