Photo:

Candice Chavez / Eclipse Sportswire

Resolute Racing owner John Stewart agreed to settle breach-of-contract litigation brought against him and his private-equity firm.

The complaint was filed Dec. 19 by Archean Capital Partners against MiddleGround Management and three principals including Stewart. Archean Capital is an investor that provided funds for Stewart’s company to manage.

Stewart told BloodHorse that the parties in the case came to an agreement and that the case, filed in New York County Supreme Court, has ended. The court posted a document that said the case had been settled in principle and set a Feb. 23 for it to be made final, according to the BloodHorse report. Details of the settlement were not disclosed.

MiddleGround and its partners were accused by Archean Capital Partners of acting in “bad faith” for not paying a share of the company’s revenue, using that money for their businesses or personal obligations, and that the company or its principals “acquired other businesses without first obtaining Archean’s contractually required consent.” Archean alleged that they were due more than $22 million under the investment contract.

Archean did not allege that Stewart used its funds to operate Resolute Racing, which was not a party to the litigation. But Archean claimed that MiddleGround principals agreed to “devote the substantial majority” of the time they spent working on managing the fund in question. Instead, Archean alleged that the time Stewart spent in the Thoroughbred industry detracted from the time he spent managing the fund. Archean also alleged that it entitled to notice of Stewart’s racing investments under the contract because it was supposed to be notified if a MiddleGround principal acquired another business.

Since starting in 2023, Resolute has purchased Shadwell’s former Shadayid Stud, which is now Resolute Farm. Resolute acquired a high-profile broodmare band including Puca, the dam of Kentucky Derby winner Mage and Belmont winner Dornoch; Forte’s dam Queen Caroline; and Breeders’ Cup winners Caravel, Goodnight Olive and Pizza Bianca. Resolute also campaign horses, mainly in partnership, including Grade 1 winner Didia and Grade 1-placed Kentucky Derby starter Just a Touch. Resolute Racing also is the title sponsor of the 2025 Eclipse Awards.