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Chicago Booth Private Equity Conference2
As the preferred consulting partner for several leading PE firms worldwide, BCG provides a full spectrum of services covering the entire PE value chain from focused due diligence assignments to transformative profit improvement programs for their portfolio companies.
Our core PE team works extremely closely with experts from our functional and industry practice areas with over 5,600 professionals. BCG is a private company with 74 offices in 42 countries. For more information, please visit bcg.com.
For the second consecutive year, BCG has been ranked number two overall on Fortune magazine’s list of the “100 Best Companies to Work For.”
Please contact:
Thomas Lutz Senior Partner Leader of the PE practice in the Americas [email protected] 214-849-1520
Carl RutsteinSenior PartnerLeader of the PE practice in the [email protected]
3Chicago Booth Private Equity Conference
11th AnnualBeecken Petty O’Keefe & CompanyPrivate Equity ConferenceExpanding Private Equity beyond Traditional Models
Friday, February 24, 2012InterContinental Chicago
Polsky Center forEntrepreneurship
The University of ChicagoBooth School of Business5807 S. Woodlawn Ave.Chicago, IL 60637773.834.4525ChicagoBooth.edu/entrepreneurship
Steven Kaplan Faculty Director; Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance
Ellen Rudnick, ’73Executive Director; Clinical Professor of Entrepreneurship
Linda DarraghDirector of Entrepreneurship Programs; Clinical Associate Professor of Entrepreneurship
Starr MarcelloDirector of Operations
Tracey KellerAssociate Director, Marketing, Communications, and External Relations
Erika MercerAssociate Director
Jonathan AllanAssociate Director, Innovation Programs
Tom AnconaAssociate Director, Entrepreneurship and Angel Investor Programs
Hannah WilliamsProgram Manager
Mary Kay LoncarOffi ce Manager
© 2012 The University of Chicago Booth School of Business. All rights reserved.
Printed by AlphaGraphics1017 West Washington Blvd.Chicago, Illinois 60607
Agenda
Time
8:00–9:00 a.m.
9:05–9:15 a.m.
9:15–10:05 a.m.
10:20-11:10 a.m.
11:25–12:15 p.m.
12:15–12:45 p.m.
12:45–1:35 p.m.
1:50–2:40 p.m.
2:55–3:45 p.m.
3:45–5:45 p.m.
Event
Registration & Networking Breakfast
Welcome & IntroductionsTim Sheehan, Beecken Petty O’Keefe & Company
Morning KeynoteSteven Taslitz, Sterling Partners
Concurrent PanelsNew Ways of Finding Value
Sponsored by Winston & Strawn
Alternatives to Traditional Exit Strategies
Sponsored by McDermott Will & Emery
Concurrent PanelsDue Diligence and the 100 Day Plan
Sponsored by The Boston Consulting Group
Active Ownership: Keys to Success in a New
Economic Environment
Sponsored by Ernst & Young
Lunch
Lunch KeynoteGlenn Hutchins, Silver Lake
Afternoon PanelFundraising: A New Paradigm
Sponsored by Kirkland & Ellis
Afternoon KeynoteJeff Burgis, Adams Street Partners
Networking Cocktail Reception
Location
Empire Ballroom,
7th Floor
Grand Ballroom,
7th Floor
Grand Ballroom,
7th Floor
Renaissance
Ballroom, 5th Floor
Exchange Ballroom,
11th Floor
Renaissance
Ballroom, 5th Floor
Exchange Ballroom,
11th Floor
Grand Ballroom,
7th Floor
Grand Ballroom,
7th Floor
Grand Ballroom,
7th Floor
Grand Ballroom,
7th Floor
Empire Ballroom,
7th Floor
Chicago Booth Private Equity Conference4
Boston Brussels Chicago Düsseldorf Houston London Los Angeles Miami Milan Munich New York
Orange County Paris Rome Silicon Valley Washington, D.C.
Strategic alliance with MWE China Law Offices (Shanghai)
McDermott Will & Emery conducts its practice through separate legal entities in each of the countries where it has offices. This communication may be considered
attorney advertising. Previous results are not a guarantee of future outcome.
www.mwe.com
We know your business, we know your industry. McDermott Will & Emery is proud to support The University of Chicago’s Booth School of
Business. We are honored to sponsor the 11th Annual Private Equity Conference.
McDermott is a leading international firm, with 1,000 lawyers across 16 offices worldwide.
Recognized nationally, our private equity lawyers pride themselves on acting as trusted
advisors to the private equity community.
5Chicago Booth Private Equity Conference
Dear Conference Attendees,
The Private Equity Group and the Polsky Center for Entrepreneurship would like to
thank you for joining us at the 11th Annual Beecken Petty O’Keefe & Company Private
Equity Conference.
Today’s event is designed to provide industry professionals and Chicago Booth
students with an opportunity to gain valuable insights from leaders within the private
equity industry. This year’s conference, themed “Expanding Private Equity beyond
Traditional Models,” will focus on new strategies for achieving industry-leading
performance in today’s challenging PE environment. The keynotes and panels will
focus on best practices to inform practitioners in their fundraising and due diligence
eff orts, as well as new approaches to exit and investment strategies. We hope that you
will leave with new ideas and enthusiasm to help guide your investment decisions in
the coming years.
The Beecken Petty O’Keefe & Company Private Equity Conference complements the
innovative courses, research, and guidance expertly provided by exceptional Chicago
Booth faculty in entrepreneurship and fi nance. Thank you to all of our sponsors,
panelists, moderators, and volunteers who have made this great event possible.
We hope you enjoy the conference and fi nd the discussion enlightening, engaging,
and, above all, informative.
Sincerely,
Welcome from the Conference Hosts
Steven Kaplan
Faculty Director, Polsky Center for
Entrepreneurship; Neubauer Family
Distinguished Service Professor of
Entrepreneurship & Finance, Chicago Booth
Max Lin, Class of 2012
Private Equity Group Co-Chair
Ellen Rudnick, ’73
Executive Director, Polsky Center for
Entrepreneurship; Clinical Professor of
Entrepreneurship , Chicago Booth
Kaushik Ravi, Class of 2012
Private Equity Group Co-Chair
Ellen Rudnick, ’73and Steven Kaplan
Max Lin, Class of 2012, and Kaushik Ravi, Class of 2012
Chicago Booth Private Equity Conference6
Distinguished Speakers
Since co-founding Sterling
Partners in 1983, Taslitz has
been a key force in building
the fi rm into one of the most
preeminent mid-market
private equity groups in the
US. In addition to molding the
fi rm’s strategy and working
with teams, he helps create
and implement the strategy
and road map for the future. He assists all of Sterling’s
portfolio investments across the fi rm’s industry sectors
and builds teams within Sterling. He also identifi es and
sources new investment opportunities and works closely
with portfolio company CEOs to discover and share
best practices. In addition, he helped develop Sterling’s
proprietary Business Value Accelerator methodology, a
series of fi rm-wide best practices and processes.
Taslitz has more than 25 years of professional experience
and has always believed in the power of strong
partnerships. This philosophy is refl ected across all of
his work–with portfolio investments, limited partners,
and internal Sterling deal teams. He helped establish the
fi rm’s approach to invest in industries with positive, long-
term trends that leverage the fi rm’s experience, expertise
and network. He and the management team continue
to look for the same kind of partners today as they did
when the fi rm started – entrepreneurs looking for growth
partners; proven industry executives searching for a new
platform opportunity; and founders seeking a balance
between liquidity and retaining an ownership interest for
participation in future growth. Steven received a BA with
honors from the University of Illinois.
Hutchins is co-founder and
co-chief executive of Silver
Lake, one of the world’s
largest fi rms investing in
technology and technology-
enabled businesses. He
has spent his business
career investing in the most
rapidly-growing and dynamic
companies in the US and
around the world. He is chairman of the board of SunGard
Corp. and a director of the NASDAQ OMX Group, Inc.,
and Mercury Payment Systems.
Hutchins is active in public and charitable service. He
served former president Clinton in both the transition
and the White House as a special advisor on economic
and healthcare policy. He is a director of the Federal
Reserve Bank of New York and vice chairman of the board
of the Brookings Institution. He is also a director of the
Harvard Management Company, which is responsible for
the University’s endowment. He is the chairman of the
National Advisory Board of the W.E.B. DuBois Institute
for African and African-American Research at Harvard
and of the New York-Presbyterian Hospital. He is also a
member of the Advisory Council of the Hamilton Project
and director of the Partnership for New York City.
Hutchins holds an AB from Harvard College, an MBA
from Harvard Business School, and a JD from Harvard
Law School.
Steven TaslitzCo-Founder and Senior Managing Partner,Sterling Partners
Glenn HutchinsCo-Founder and Co-Chief Executive,Silver Lake
Morning Keynote Lunch Keynote
7Chicago Booth Private Equity Conference
Distinguished Speakers
Burgis is a partner at Adams
Street Partners, primarily
specializing in leveraged
buyouts and growth capital,
mezzanine, and distressed
debt fund investments. He
is responsible for managing
relationships with several
of Adams Street’s managers,
including ABRY Partners,
Bain Capital, Caltius Mezzanine, Genstar Capital, Leonard
Green & Partners, and TPG. He actively participates in all
fund investment decisions at Adams Street.
Prior to joining Adams Street in 2002, Burgis was an
equity research analyst at Goldman, Sachs & Co, providing
research coverage of the US telecommunication services
sector. In addition, he has over six years of consulting
experience with A.T. Kearney, IPC Group, and Arthur
Andersen in the areas of strategy development, valuation,
operational improvement, and litigation support.
Burgis is a member of the NVCA and a certifi ed public
accountant. He sits on advisory boards for six fi rms within
the Adams Street Partners portfolio. He received a BA
from the University of Notre Dame and an MBA from
Chicago Booth.
Jeff Burgis, ’01Partner,Adams Street Partners
Afternoon Keynote
The private equity industry continues to face headwinds on several fronts. Investors in private equity remain selective when making new commitments. Volatile capital markets limit the ability to raise debt fi nancing and to exit through IPOs. Fierce competition for deals keeps valuations high, while economic and political uncertainties continue to pressure portfolio companies.
Successful fi rms will continue to adapt and expand their business plans beyond traditional private equity models. For this year’s conference, we will explore the many challenges private equity fi rms face, as well as new tactics and incremental strategic changes adopted by leading fi rms to remain competitive.
Conference Theme:Expanding Private Equitybeyond Traditional Models
Chicago Booth Private Equity Conference8
Faculty Advisors
Kaplan conducts research
on issues in private
equity, venture capital,
entrepreneurial fi nance,
corporate governance,
mergers and acquisitions,
and corporate fi nance. He has
published papers in a number
of academic and business
journals and has testifi ed
to the US Senate Finance Committee and the US House
Financial Services Committee about his research. He is
a research associate at the National Bureau of Economic
Research and an associate editor of the Journal of Finance
and the Journal of Financial Economics.
At Chicago Booth, Kaplan teaches advanced courses in
entrepreneurial fi nance and private equity, corporate
fi nancial management, corporate governance, and wealth
management. BusinessWeek named him one of the top 12
business school teachers in the country.
Kaplan serves on the board of directors of Accretive
Health, Columbia Acorn Funds, and Morningstar. He
also serves as a director of the Illinois Venture Capital
Association and as the academic dean of the Kauff man
Fellows Program, an educational and mentoring
program for new venture capitalists. Kaplan received
an AB, summa cum laude, in applied mathematics and
economics from Harvard College and a PhD in Business
Economics from Harvard University.
Since 1982, Meadow has been
a principal investor in the
private equity industry. He
is the 2011 recipient of the
Richard J. Daley Award, which
recognizes an individual
who has given extraordinary
support to the state of
Illinois by participating in
or advocating for the venture
capital and private equity industry. At Chicago Booth,
Meadow is the faculty director of global initiatives and
clinical professor of entrepreneurship. He was awarded
the 2002, 2003, 2004, and 2005 Phoenix Prize and The
Faculty Excellence Award in 2010. He has taught more
than 7,000 students and serves as the faculty advisor for
the Venture Capital Investment Competition.
Meadow has over 25 years’ experience as a general partner
with William Blair Venture Partners, The Frontenac
Company, The Sprout Group, and most recently with
the Edgewater Funds, where he remains a senior
advisor. Over his career, he has approved hundreds
of equity fi nancings, been active in fundraising, and
personally led, originated, or created more than
60 investments including 24 healthcare services
companies and over a dozen consumer services and
retail companies. Representative investments include
Coventry Corporation, HEALTHSOUTH, Sunrise
Assisted Living, Sunrise International, Managed Health
Network, Aspen Education Services, Pathology Partners,
Heritage Healthcare, MedPartners, The Sports Authority,
CompUSA and Staples. He earned his AB, magna cum
laude, from Harvard College and his MBA from Harvard
Business School.
Steven KaplanFaculty Director, Polsky Center; Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance, Chicago Booth
Scott MeadowFaculty Director of Global Initiatives and Clinical Profes-sor of Entrepreneurship, Chicago Booth
9Chicago Booth Private Equity Conference
Rudnick spent 25 years in
business management and
entrepreneurial activities,
primarily in healthcare
and information services
industries, before joining
the faculty at Chicago Booth.
She served as chairman of
Pacifi c Biometrics, a medical
diagnostics company she
co-founded (1993-1999); president of HCIA and CEO
of Healthcare Knowledge Resources, both healthcare
information service companies (1990-1992); and
corporate vice president of Baxter Healthcare and
President of Baxter’s Management Services Division.
In 1987, BusinessWeek named Rudnick one of the top
50 women in US business. She serves on the boards of
Liberty Mutual Insurance, Patterson Companies, First
Midwest Bank and HMS. She also serves on the board of
the Northshore University Research Institute. She has
won numerous community honors, is a member of the
Chicago Network, the Health Alliance, the Economic
Club of Chicago, and WPO/YPO.
Rudnick received a BA from Vassar College and an MBA
from Chicago Booth.
Ellen Rudnick, ’73Executive Director, Polsky Center; Clinical Professor of Entrepreneurship, Chicago Booth
Lubna AhmedCristian Aparicio
Blake Apel Amit Bapat
Kevin CondonSemanti DattaPaul DeMott
Darina DenkovaAdi Filipovic
Gautam GanguliKrati Gokharu
Simona GolebiowskaFederico Gonzalez
Griff GordonMichael Goy
BJ HansenKyson HawkinsAlex Hodgkin
Mark HolmquistDwight Hutchinson
Alexis JiRicardo JimenezLaura Johnson
Vladan JovanovicSanjiv Kalevar
John KellyLucas Lagos
Kevin LauwickBrian Leach
Jason MaloneTom McGuinessGarrett MondaKevin O’HareKatie Ossman
Ankit PatelWill Pauly
Donnie PhillipsJoseph Phua
Brian SchwartzSpandan Sharma
Michael ShengSteve Southwick
Manisha VarshneyAlex Wahllof-MalinconicoCailleach Weingart-Ryan
Tom WellsSteve Wierema
Ross WongZach WoodPhoebe Xu
William YoonRob Young
Thank you to the following Private Equity Group co-chairs and Private Equity
Conference volunteers for helping to make this event a success:
Special ThanksFaculty Advisors
Chicago Booth Private Equity Conference10
New Ways of Finding Value
Gone are the days when above-market returns could be realized solely through fi nancial engineering and rising exit multiples.
Many funds are now seeking new and creative ways to fi nd value in their investments, through roll-up strategies, expansion into new geographies and sectors, and operational improvements.
This panel will feature industry experts who have successfully crafted and implemented value-creating strategies throughout their transactions and portfolios.
Panel Description
Sponsored by Winston & Strawn
Doyle is a partner in Winston & Strawn’s corporate
department and concentrates his practice in mergers and
acquisitions and private equity. He has represented The
Boeing Company, Morningstar, Inc., Hub Group, Inc., John
Crane, Inc., Great Lakes Dredge & Dock Company, SPX
Corporation, and Northland Holdings, Inc. in connection
with a signifi cant number of acquisitions and divestitures. His
private equity work has included representing Baird Capital
Partners, Macquarie Capital, Booth Creek Management
Corporation, and KCA Partners, Ltd. In addition, he advises many clients with
regard to a variety of general corporate matters. Doyle is chair of the Leadership
Council of Horizons for Youth, a not-for-profi t organization providing scholarship,
mentoring, and enrichment activities to school children from low income families
in Chicago. He received a BBA with highest distinction from the University of Notre
Dame and a JD from Northwestern University School of Law, where he was elected
to the Order of the Coif and was coordinating executive editor of the Northwestern
University Journal of Criminal Law and Criminology. He successfully completed the
examination for certifi ed public accountants.
Patrick Doyle, Partner, Winston & Strawn
Moderator
Egan has over 24 years of experience in commercial fi nance,
credit administration, and banking. Prior to working at
Monroe Capital, he served as executive vice president and
chief credit offi cer of Hilco Capital. Before that, he was with
the CIT Group/Business Credit, Inc. for a 10-year period,
where he was senior vice president and regional manager
for the midwest US Region responsible for all credit, new
business, and operational functions that region. Earlier
in his career, Egan was a commercial lending offi cer with
the National Community Bank of New Jersey (The Bank of New York) and a credit
analyst with Key Corp, where he completed a formal management and credit
training program. Egan received a BS in business management from Ithaca College.
He is also a graduate of the American Bankers Association Commercial Lending
School at the University of Oklahoma and is a member of the Commercial Finance
Association and the Turnaround Management Association.
Michael Egan, Managing Director, Monroe Capital
Panelist
11Chicago Booth Private Equity Conference
Before joining Compass Partners, Marden led the investment activities in the information, media, and
services sectors at DLJ Merchant Banking Partners. He also served as president of the information and
media segment of The McGraw-Hill Companies, Inc., where he oversaw multiple operating businesses,
including J.D. Power and Associates, McGraw-Hill Construction, Platts, and BusinessWeek. Previously,
he was a partner at Compass Partners European Equity Fund. His executive experience includes serving as
president of Marvel Entertainment Group, Inc., where he directed the company’s publishing, licensing,
and international businesses and served as a member of Marvel’s board of directors. He also served as
president and CEO of Philips Media, a $1B division of Philips Electronics N.V., where he held worldwide
operating responsibility for Philips’ software, digital broadband, and service businesses. He held senior
investment banking roles at Bear Stearns & Co. and Bankers Trust Company and served as president of CBS Inc.’s International
Publishing division. He has served on a number of corporate boards, including Advanstar, Inc., General Magic, Inc., Marvel
Entertainment Group, Inc., Metro Goldwyn Mayer, Inc., NavTech, Inc., United Pan European Communications N.V., and Whittle
Communications, Inc. He currently serves on the board of directors for DANTOM Systems, Inc. He holds a bachelor’s degree
from Fordham University and a master’s degree from the University of Chicago’s Harris School of Public Policy Studies.
Scott Marden, MPP ’81, Managing Partner, Compass Partners
Panelist
Malchow joined Lincoln International at its founding in 1996. He is a member of the fi rm’s management
committee and co-heads the global industrial group, where he completes transactions for niche
manufacturing and value-added distribution companies, as well as clients within such growth-end
markets as power, energy, infrastructure, and process industries. He is also very active in coordinating
the fi rm’s activities with the private equity community. He manages key client relationships, leads deal
teams, and helps market the services of Lincoln International. Malchow has approximately 20 years of
transactional experience focused in middle-market mergers and acquisitions assignments. His clients
include leading private equity groups and publicly-traded corporations. He has experience advising on
the sale and acquisition of companies that are market-leading, overleveraged, distressed, or proceeding
through the bankruptcy process, as well as advising on numerous cross-border transactions. He worked as an associate with
Peers & Co., an international M&A advisory fi rm, and was an offi cer at Heller Financial, Inc.’s (now GE Antares) corporate fi nance
group. He earned a Bachelor of Business Administration from the University of Iowa and an MBA from Chicago Booth.
Eric Malchow, ’94, Managing Director, Lincoln International
Panelist
At Baird, Pan concentrates on acquisition opportunities in the manufactured products sector with a
particular focus in consumer and healthcare companies. He also oversees Baird Asia Limited, an operating
company headquartered in Hong Kong which provides operations, sales, and distribution support to
portfolio companies in China. Prior to joining Baird, Pan served as a principal with One Equity Partners.
He was also the founder and CEO of The Pangaea Group, an international consulting fi rm that specialized
in assisting the portfolio companies of private equity fi rms to establish strategic alliances in China. Pan
currently serves on the boards of directors of Backyard Leisure Holdings, Ellman International, Medical
Education Technologies, Inc., NAC Marketing, Inc. (New Vitality), and Baird Asia Limited. He earned a BA
from Colgate University and an MBA from the Kellogg School of Management at Northwestern University.
Gordon Pan, Partner, Baird Private Equity
Panelist
Chicago Booth Private Equity Conference12
Alternatives to Traditional Exit Strategies
Current market conditions and market forces require investment professionals to think creatively beyond traditional approaches when considering exit strategies for their portfolio company investments.
This panel, comprised of industry veterans with deep and direct experience using creative strategies, will discuss alternatives to traditional exit strategies and evaluate the benefi ts, challenges, applicability, and implementation of each option.
Panel Description
Sponsored by McDermott Will & Emery
Carroll is a partner and co-founder of Victory Park Capital,
an alternative investment fi rm that provides direct fi nancing
solutions to small cap and middle market companies across a
wide range of industries. Previously, he was a member of the
solutions group at Magnetar Capital. Prior to joining Magnetar
Capital, he held various investment banking positions
at William Blair and Company and Robertson Stephens,
where he specialized in corporate fi nance and mergers and
acquisitions. He also worked in various capacities for US
Senator Joseph Lieberman. Carroll serves on the boards of directors of Victory Park
Resources, Energy Maintenance Services Group I, LLC, and Best Buddies Illinois. He
is also on the leadership advisory board of Cristo Rey Jesuit High School in Chicago
and a member of The Chicago Council on Global Aff airs. He received a BA with
honors from Georgetown University and an MBA from Harvard Business School.
Brendan Carroll, Partner and Co-Founder, Victory Park Capital
Panelist
At McDermott Will & Emery (MWE), Harris counsels both
public companies and private equity funds on M&A, corporate
governance, securities, and general corporate matters. He
frequently represents entrepreneurs and their businesses on
a variety of general corporate, M&A, executive compensation,
and other matters. During his over 25-year legal career, he
has handled a wide range of corporate, technology, tax, and
litigation matters for clients of all types and sizes. Recent
transactions include representing Merge Healthcare in its bid-
topping acquisition of AMICAS, its pending public acquisition of Ophthalmic Imaging
Systems, and several other transactions; Health Care Service Corporation in several
strategic transactions; Munich Re in its acquisition of Windsor Health Group; and
the management teams of CDW Corporation and Nuveen Investments, Inc. in their
going-private transactions led by Madison Dearborn Partners. His public company
clients include Las Vegas Sands, Heritage Crystal-Clean, Covance, HCP, and Snap-On
Tools. Before joining MWE, Mark was the COO and a principal portfolio manager of
GTCR Golder Rauner, LLC, a Chicago-based private equity fi rm. He has also served
as a senior executive and chief legal offi cer for two venture-backed technology
companies, PrairieComm, Inc. and Click Commerce, Inc. He has been an outside
director of two public companies, including Global Imaging, which was acquired by
Xerox in 2007. Mark earned a BA, summa cum laude, from Saint Louis University and
a JD, cum laude, from Northwestern University School of Law.
Mark Harris, Partner, McDermott Will & Emery
Moderator
13Chicago Booth Private Equity Conference
Coetzee is head of Baird’s fi nancial sponsor group, co-head of the Chicago offi ce, and a member of the
fi rm’s investment banking management committee and M&A fairness opinion committee. He has 21
years of investment banking experience. Since joining Baird, he has provided fi nancing and advisory
services to companies in the business services, telecommunications, consumer, and industrial sectors.
He was previously a vice president with Kidder, Peabody & Co.’s Midwest investment banking group.
Coetzee is also a Chartered Accountant and a Certifi ed Public Accountant and has six years of experience
in public accounting with Grant Thornton in the US and Ernst & Whinney in South Africa. He is a
member of the board of directors of Teach for America, Chicago. He received a Bachelor of Honors in
fi nancial management and commerce from the University of Cape Town and an MBA from the Kellogg
Graduate School of Management at Northwestern University.
Chris Coetzee, Managing Director and Head of Financial Sponsor Group, Robert W. Baird & Co.
Panelist
Karch is a managing director at Butcher Joseph Hayes, a middle-market merchant banking partner based
in Chicago. He brings more than 20 years of investment banking and leveraged fi nance experience and
has structured numerous middle-market transactions for a list of clients, most of which are in the food
and beverage, manufacturing, and distribution segments. He has worked with private equity sponsors
throughout the country and also has signifi cant ESOP related experience, having served for a number of
years on the ESOP Association’s Advisory Committee on Finance. In his role at Butcher Joseph Hayes,
Karch is responsible for establishing and managing relationships for the fi rm, originating transactions
on behalf of the fi rm, and managing the transactions to closing. Karch earned a Bachelor’s degree in
marketing from Indiana University and an MBA with distinction from DePaul University.
Garry Karch, Managing Director, Butcher Joseph Hayes
Panelist
Chicago Booth Private Equity Conference14
Due Diligence and the 100 Day Plan
As competition for deals and valuations does not appear to be waning, it is becoming ever more important for private equity fi rms to conduct thorough business diligence on acquisition candidates.
Increasingly, this analysis is being performed by third-party diligence providers with deep expertise in their respective functional areas. In addition to understanding the industry, business (both positives and shortcomings), and key drivers, this analysis can help set the tone for the investment early in the hold period, which is typically the most critical time for the investment.
This panel will examine the benefi ts that experienced service providers can bring to a deal both during the auction process and post-closing. The panel will delve into the unique ways in which today’s private equity fi rms use diligence providers to win auctions and fi nd and create value.
Panel Description
Sponsored by The Boston Consulting Group
Copans joined Madison Dearborn Partners in 2005.
Previously, he was with Thomas H. Lee Partners and Morgan
Stanley & Co. He currently serves on the boards of directors
of BWAY Holding Company and The Yankee Candle Company,
Inc. He received a BA from Duke University and an MBA from
Northwestern University’s Kellogg School of Management.
Richard Copans, Director, Madison Dearborn Partners
Panelist
Rutstein is the leader of Boston Consulting Group’s Americas
Payment Practice and has over 20 years of experience in
banking and payments. He works with banks, networks,
and merchant acquirers, as well as new players in mobile
payments. His work focuses on profi t and growth strategies,
product innovation, business model transformation, and
related support processing operations. Recently, he has
advised several networks, banks, and mobile network
operators on their m-payments strategy, including
partnerships and go-to-market plan. He also leads BCG’s private equity practice in
the Midwest and Canada. Selected work includes: leading the support of Blackstone
during their purchase of Travelport, which included Orbitz; serving as the fi rst CEO
of Orbitz.com, an online travel company created by BCG for the major US airlines;
signifi cant recent work helping large clients adjust and respond to CARD Act, Reg E
and Durbin Amendment; and online banking strategy and implementation for large
banks, including executing a comprehensive benchmarking report working directly
with 20 of the top 30 US banks. Earlier in his career, Rutstein worked at Salmon
Brothers in corporate fi nance and M&A. He received an MBA with high honors
from Chicago Booth.
Carl Rutstein, ’94, Senior Partner, The Boston Consulting Group
Moderator
15Chicago Booth Private Equity Conference
Cunningham joined GTCR in 2001 and became a principal in 2011. GTCR is a leading private equity
fi rm focused on investing in growth companies in the fi nancial services and technology, healthcare
and information services, and technology industries. The Chicago-based fi rm pioneered the “leaders
strategy,” fi nding and partnering with world-class leaders as the critical fi rst step in identifying,
acquiring, and building market-leading companies through acquisitions and organic growth. Since
its inception, GTCR has invested more than $8.5 billion in over 200 companies. Cunningham was
instrumental in GTCR’s investment in Ovation Pharmaceuticals. He currently serves as a director of
Devicor Medical Products and Sterigenics. Previously, he was a consultant with The Boston Consulting
Group. He holds AB and BE degrees in engineering sciences from Dartmouth College and an MBA from
the Wharton School at the University of Pennsylvania.
Sean Cunningham, Principal, GTCR
Panelist
Henderson is a core member of The Boston Consulting Group’s (BCG) fi nancial institutions practice and
works with leading alternative asset managers, investment banks, commercial banks, and exchanges. He
leads one of BCG’s largest private equity relationships as well as their undergraduate recruiting eff orts
for the midwest region. Henderson currently serves as the board president for ACCION US Network,
a recently-created national organization to support the fi ve regional ACCION small business micro-
lenders in the US. He serves as chair of the marketing and development of the Association House of
Chicago, a social services agency in Chicago and is a fellow for Leadership Greater Chicago. He earned a
BA (Phi Beta Kappa) and MA from the University of Chicago, as well as an MSc in economic history and
an MBA from Oxford University, where he was a Rhodes Scholar.
Brad Henderson, MA ’01, Partner and Managing Director, The Boston Consulting Group
Panelist
McGowan is the general partner of CJM Ventures, a private equity investment vehicle focused on
industrial businesses located in the Midwest. McGowan recently retired as managing director at
Madison Dearborn Partners (MDP), where he co-headed their basic industries practice. At MDP, he
oversaw $1.2B of equity investments focused on growth equity and buyout investment opportunities in
natural resources, building products, construction materials, mining and metals, chemicals, capital
goods, paper and packaging, manufacturing, and diversifi ed industrials. Prior to his work in basic
industries, he focused in the consumer and energy and power sectors. On behalf of MDP, he serves
on the boards of directors of Boise Cascade, LLC and Smurfi t Kappa Group plc, and formerly served
on or advised the boards of the Illinois Venture Capital Association, FirstWind, US Power Generating
Company, OPENLANE, iExplore, RedEnvelope, Mascot Networks, Atelier America, and Direct Equity Partners. Previously,
McGowan was with the private equity fi rm AEA Investors, Inc. and Morgan Stanley. He is also an active angel investor and
serves on the Limited Partner Advisory Committee for Hyde Park Venture Partners. He has an undergraduate degree in
theoretical mathematics from Columbia University and an MBA from Harvard Business School.
Chris McGowan, General Partner, CJM Ventures
Panelist
Chicago Booth Private Equity Conference16
Active Ownership: Keys to Success in a New Economic Environment
With the LBO boom of 2005-2007 long gone, private equity investors can no longer rely on fi nancial engineering to generate returns.
The sharp decline in leverage in the global fi nancial system necessitated a shift among private equity towards active management. In this environment, the private equity industry adapted to a new model, and operational improvements are now core to many funds’ successes.
This panel will discuss comparisons of passive versus active ownership styles, the implications of active ownership on human and capital resources, case studies of successful operational improvement, and more. Our panelists will share lessons learned and outlooks for the future in this changing environment.
Broglio is a principal and member of the executive
committee of Lake Capital. He is responsible for identifying
investment opportunities, evaluating investments,
structuring transactions, managing due diligence, negotiating
transactions and fi nancing agreements, and working with
portfolio company management teams to execute organic
growth strategies, add-on acquisitions, and leadership
team development initiatives. He has been actively involved
with the investments in a number of Lake Capital’s current
and past portfolio companies, including Driveline, Empower Software Solutions,
Hudson Energy Services, intraFUSION, MediaWhiz, Respond2 Communications,
SolutionSet, Soil Safe, Trailer Park, Vestcom, VFM Leonardo, and Viamedia. Broglio
has 14 years of experience as a principal investor, investment banker, and corporate
director. Previously, he was an associate at FMI Capital, the merchant banking and
private equity arm of FMI Corporation, and an analyst with the investment banking
fi rm of Hanifen Imhoff , where he helped execute private and public equity and debt
off erings and merger and acquisition transactions. Broglio earned a BS from the
University of Colorado and an MBA with honors from Chicago Booth.
Panel Description
Tony Broglio, ’04, Principal, Lake Capital
Sponsored by Ernst & Young
Panelist
Novak joined Ernst & Young Transaction Advisory Services
in 1999 and is experienced in both fi nancial due diligence
and restructuring advisory services. In his role at Ernst &
Young, he provides advisory services related to all aspects of
fi nancial and business due diligence, including the quality
and sustainability of earnings, the quality of net assets, and
working capital requirements of target businesses. Novak has
extensive experience serving private equity clients, including
Madison Dearborn Partners, GTCR, Lake Capital, Linden,
Baird Capital Partners, and several other funds. He led due diligence teams on closed
transactions in 2010 and 2011 in a wide range of industries and supported clients
on completed transactions with enterprise values ranging from $10B to $7B. He
has experience in both buy side and sell side due diligence, as well as in public-to-
private, international, carve-out, and consolidations/roll-up transactions. Novak
is a certifi ed public accountant with more than 16 years of professional experience.
Prior to joining Ernst & Young, he worked in the audit practice of another Big Four
fi rm, specializing in audits of life and property and casualty insurance companies.
He received an ABS, summa cum laude, from Illinois State University and is a
member of the American Institute of Certifi ed Public Accountants.
Todd Novak, Partner, Transaction Advisory Services, Ernst & Young
Moderator
17Chicago Booth Private Equity Conference
Prior to joining Beecken Petty O’Keefe & Company in 2007, Sheehan was a director at Madison Dearborn
Partners (MDP), a private equity investment fi rm based in Chicago, where he focused exclusively on
healthcare transactions. Before MDP, he was a member of the investment banking group of Solomon
Brothers. Sheehan serves or has served on the boards of directors of Hospital Physician Partners, Path
Lab Holdings, Sirona Dental Systems (NASDAQ: SIRO), Team Health Holdings, Valitás Health Services,
and VWR International. He received a BA from the University of Virginia.
Timothy Sheehan, Partner, Beecken Petty O’Keefe & Company
Panelist
Ospalik is a partner with Baird Private Equity (BPE) and director of portfolio management for BPE Funds,
consisting of Baird Capital Partners, Baird Venture Partners, Baird Capital Partners Europe, and Baird
Capital Partners Asia. He is responsible for BPE’s Portfolio Management Program, which focuses on
management of and value creation initiatives within the BPE portfolio of approximately 50 companies.
BPE invests in the commercial, specialty consumer, healthcare, business services, and life sciences
industry sectors. Ospalik also works closely with Baird’s Asia operations team, Baird Asia Limited (BAL),
which is a team of over 15 professionals based in Shanghai, China, and Bangalore, India, who directly
support the Asia-related initiatives of BPE portfolio companies. He also works with BPE’s investment
team, portfolio company management, and BAL on portfolio company integration and support through
BAL, cross-portfolio spend programs, and targeted value creation projects. Ospalik has been with Baird for 14 years, having
joined BPE after two years in Baird’s Investment Banking Group. Prior to this, he was with Price Waterhouse LLP in the audit
and business advisory services practice. He is a director of Pentagon Technologies Group and graduated with a BS in Accounting
from Washington University in St. Louis.
Rob Ospalik, Partner, Baird Private Equity
Panelist
Davis has been involved in principal investing and consulting since 1992. Prior to founding Linden LLC,
he was a partner with One Equity Partners (formerly FCEC) and a strategy and operations management
consultant with Cresap, McCormick and Paget in Chicago and Hong Kong. Davis currently serves on the
boards of directors of Behavioral Centers of America and Drayer Physical Therapy Institute and was a
board member of Focused Health Solutions and Ranir. He is a member of the Economic Club of Chicago
and the Chicago Council on Global Aff airs. He holds a BA with honors from Northwestern University
and an MBA with honors from Chicago Booth, where he was a Rosett Scholar and now serves as a guest
lecturer on private equity.
Tony Davis, ’98, Managing Partner, Linden LLC
Panelist
Chicago Booth Private Equity Conference18
Fundraising: A New Paradigm
A panel of limited partners, placement agents, and private equity managers will discuss conditions, trends, and strategies in the private equity fundraising market.
The discussion will examine factors infl uencing whether investors opt to invest in new or continue with existing fund managers; the consolidation of private equity fi rms; new fund structures; and the impact of changing regulations.
Panel Description
Sponsored by Kirkland & Ellis
Ettelson is a partner at Kirkland & Ellis and leads the fi rm’s
private funds group. His practice focuses on structuring and
forming premier private equity funds and their management
companies, including billion dollar plus funds for multiple
fi rms. He has represented over 75 private equity fi rms in the
formation of more than 300 private equity funds. He is also
involved in the structuring and formation of private equity
funds associated with commercial and investment banks;
representing investors in making and monitoring investments
in private equity funds; representing buyers, sellers, management teams, and fund
sponsors in their investments in the secondary market; and acting for private equity
clients in general corporate counseling. Ettelson was selected as one of “40 Illinois
Attorneys Under 40 to Watch” by The Law Bulletin Publishing Company and named
as one of “The International Who’s Who of Private Funds Lawyers” by Law Business
Research Ltd. every year it has been published. The Legal 500 US has recognized him as
a leading lawyer in the private equity funds category every year since its fi rst edition in
2007. Ettelson received a JD, cum laude, from the University of Chicago Law School,
where he was a John M. Olin fellow in law and economics, and a BSE, magna cum
laude, from the Wharton School of the University of Pennsylvania.
Bruce Ettelson, JD ’89, Partner, Kirkland & Ellis
Moderator
Kelly is a partner at Adams Street specializing in US and
non-US corporate fi nance fund investments (leveraged
buyouts, mezzanine, distressed debt, and special situation
funds). He actively participates in all fund investment
decisions and is responsible for managing relationships
with many of Adams Street’s managers, including Anacap
Financial Partners, Clayton Dublier & Rice, Birch Hill Capital,
Odyssey Investment Partners, MHR Capital, Sterling Capital
Partners, and Olympus Capital. Before joining Adams Street,
Kelly was the managing director of GE Commercial Finance, where he managed
their domestic and international private equity fund portfolio (formerly Heller
Financial). He also worked for 10 years at Allstate Insurance Company as a senior
investment manager, practiced law at Allstate and Mayer, Brown & Platt, and
managed Goldman, Sachs & Co’s Chicago trading desk. Kelly sits on advisory boards
for 22 private equity fi rms within the Adams Street portfolio and is a member of the
Adams Street Primary Partnership Sub-Committee and the NVCA. He holds a BA
from Dominican University, a JD from the John Marshall Law School, and an MBA
from Chicago Booth. He has completed all coursework towards a PhD in industrial/
organizational psychology from Northcentral University and is writing a dissertation
on entrepreneurial traits and their infl uence on private company performance.
Tim Kelly, ’00, Partner, Adams Street Partners
Panelist
19Chicago Booth Private Equity Conference
Roth joined The University of Chicago Offi ce of Investments team in 2007. Prior to working at the
University, she was vice president of fi nance and corporate development at optionsXpress, an online
trading and brokerage fi rm. Previously, she was a vice president in the mergers and acquisitions group
of BMO Capital Markets, and prior to that she was with Merrill Lynch in the private sales and divestiture
group, where she was engaged in merger and acquisition assignments for middle market companies.
Roth earned a BA in economics from Tufts University an MBA from Georgetown University.
Elisabeth Roth, Senior Portfolio Manager of Private Equity, University of Chicago
Panelist
Mitchell is managing partner in the private equity investment fi rm Thoma Bravo, LLC. The fi rm currently
has about $3.4B in assets under management and invests across multiple industries with a particular
focus on software and services industry sectors. Previously, Mitchell was a partner with private equity
fi rm Golder, Thoma, Cressey, Rauner (GTCR) and, before that, the president and CEO of The Field
Corporation and its predecessor, Field Enterprises, Inc., which owned and operated businesses in
newspaper publishing (including the Chicago Sun-Times), direct marketing, television, and cable
television. He also has been a practicing attorney and partner with Sidley Austin in Washington, DC and
Chicago and later oversaw that fi rm’s Asian offi ces. Mitchell is the former chairman of The Chicago Stock
Exchange, which makes an alternative market in NYSE, AMEX and NASDAQ stocks, and past chair of the
Metropolitan Planning Council, a nonpartisan group of business and civic leaders committed to the promotion of an equitable
and economically competitive Chicago region. He is a trustee of Northwestern University and Northwestern Memorial Hospital
and is chair and co-chair, respectively, of their investment committees. He also serves as a member of the board and an offi cer of
the Illinois Venture Capital Association and on committees of the Private Equity Growth Capital Council. Mitchell received an AB
degree from Wesleyan University and a JD from the University of Chicago Law School.
Lee Mitchell, JD ’68, Managing Partner, Thoma Bravo
Panelist
Thuet is a co-founder of the Park Hill Group and is head of Park Hill’s secondary advisory group. Before
joining Park Hill, he was a principal with Atlantic-Pacifi c Capital. Previously, he was a senior vice president
in the institutional management group of Putnam Investments, where he was responsible for new business
development and client service in the Midwest. Thuet is a member of the Economic Club of Chicago and
a member of the board of regents at the Mercy Home for Boys and Girls. He received a BS in Business
Administration from the University of Colorado and an MBA from Chicago Booth.
Lawrence Thuet, ’98, Senior Managing Director, Park Hill Group
Panelist
Chicago Booth Private Equity Conference20
Grant Thornton LLP is the U.S. member fi rm of Grant Thornton International Ltd.
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Chicago Booth Private Equity Conference22
Thank you to this year’s marketing and media sponsors for their support:
is proud to sponsor the 2012 Private Equity Conference
Richard Moran, MBA ‘82President
23Chicago Booth Private Equity Conference
Kirkland & Ellis is proud to support
The University of Chicago’sBooth School of Businessand its
11th AnnualPrivate Equity Conference
www.kirkland.com
Chicago • Hong Kong • London • Los Angeles • MunichNew York • Palo Alto • San Francisco • Shanghai • Washington, D.C.
Chicago Booth Private Equity Conference24
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Whether you’re preserving, optimizing, raising or investing capital, Ernst & Young’s 8,700 transaction advisory professionals
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Sponsors and SupportersTitle Sponsor
Platinum Sponsors
Marketing Sponsors
The Polsky Center for
Entrepreneurship launched
in 1998 through a grant from
the Ewing Marion Kauff man Foundation and became an endowed
center in 2002 through the generous commitment of Michael Polsky,
‘87, a successful energy entrepreneur. The Polsky Center aims to
create entrepreneurial leaders through a broad range of experiences,
including classroom and experiential learning, leading-edge research,
and community outreach. ChicagoBooth.edu/entrepreneurship
The Private Equity Group complements
the innovative courses, research, and
guidance provided by exceptional
faculty in entrepreneurship, fi nance,
and strategy at Chicago Booth. The Group is very active within the
student community, providing career development, networking
opportunities, conferences on current topics in the industry, group
activities, industry-leading speakers, industry-focused trips, and
many other resources for its members. Student.chicagobooth.edu/
Silver Sponsors