Conference Program - The University of Chicago Booth School of

The Next Move for
Private Equity
PEC2010
Ninth Annual
Beecken Petty
O’Keefe & Company
Private Equity
Conference
Friday, February 19, 2010
Hyatt Regency Downtown Chicago
Ninth Annual
Beecken Petty O’Keefe & Company
Private Equity Conference
Experience:
The Next Move for Private Equity
Friday, February 19, 2010
Hyatt Regency Downtown Chicago
The Rx for profitable healthcare
investments
Polsky Center for
Entrepreneurship
Agenda
Steven N. Kaplan
Faculty Director
Neubauer Family Professor of
Entrepreneurship and Finance
Time
Event
Location
8:00–8:45 a.m.
Registration and
Networking Breakfast
Hyatt Crystal
Ballroom Foyer
8:50–9:00 a.m.
Welcome and Introductions
Greg Moerschel, Partner,
Beecken Petty O’Keefe & Company
Hyatt Crystal
Ballroom AB
9:05–9:55 a.m.
Morning Keynote
David Rubenstein, JD ’73
The Carlyle Group
Hyatt Crystal
Ballroom AB
10:00–10:50 a.m.
Panel: Creating Value in Portfolio
Companies
Hyatt Crystal
Ballroom AB
10:55–11:55 a.m.
Panel: Rethinking Exit Strategies
Sponsored by Ernst & Young
Hyatt Crystal
Ballroom AB
Afternoon Keynote
Howard Marks, ’69
Oaktree Capital Management
Hyatt Crystal
Ballroom AB
Ellen A. Rudnick, ’73
Executive Director
Clinical Professor
of Entrepreneurship
Linda Darragh
Director of Entrepreneurship
Programs
Clinical Associate Professor
of Entrepreneurship
Starr Marcello
Senior Associate Director of
Entrepreneurship Programs
Healthcare is one of today’s most attractive
investment arenas. It’s a $2 trillion, recession-resistant
market. Demographic trends assure long-term continued
Mark Harris
Associate Director of Marketing
and External Relations
growth. And industry consolidation, technological
advances and regulatory changes continually create
exciting opportunities for those with the insight to
12:00–1:25 p.m.
recognize them.
Jonathan Allan
Assistant Director
The challenge is to successfully diagnose the winners
Tom Ancona
Assistant Director
1:30–2:20 p.m.
Panel: Creating Opportunity from
Distress
Tina Quealy
Assistant Director
Hyatt Crystal
Ballroom AB
2:25–3:15 p.m.
Panel: The Future of LBOs
Sponsored by Winston & Strawn LLP
Hyatt Crystal
Ballroom AB
3:15–3:25 p.m.
Break
Hyatt Crystal
Ballroom Foyer
3:30–4:20 p.m.
Panel: Opportunities in
Infrastructure Investing
Sponsored by Kirkland & Ellis LLP
Hyatt Crystal
Ballroom AB
4:30–5:30 p.m
Cocktails and Networking Reception
Hyatt Crystal
Ballroom C
and the losers. That takes experience. And in healthcare
investing, few firms can equal the experience of Beecken
Petty O’Keefe & Company. Our partners have more than
150 years of healthcare experience in both operations
Mary Kay Loncar
Office Manager
and finance. Experience that has produced outstanding
returns for both our investors and our portfolio
companies, time and again.
To learn how our experience can help your company thrive,
call David Beecken or Ken O’Keefe at 312-435-0300.
Beecken Petty O’Keefe & Company
131 South Dearborn Street, Suite 2800
Chicago, Illinois 60603
www.bpoc.com
Polsky Center for Entrepreneurship
The University of Chicago
Booth School of Business
5807 S. Woodlawn Ave.
Chicago, IL 60637
773.834.4525
ChicagoBooth.edu/entrepreneurship
© 2010 The University of Chicago Booth
School of Business. All rights reserved.
Printed by AlphaGraphics. West Loop.
Chicago booth
1
Welcome from the Conference Hosts
Dear Conference Attendees,
Morning Keynote
Afternoon Keynote
The Private Equity Group and the Polsky Center for Entrepreneurship would
David M. Rubenstein, JD ’73
Cofounder and Managing Director
The Carlyle Group
Howard Marks, ’69
Chairman
Oaktree Capital Management
like to thank you for joining us at the ninth annual Beecken Petty O’Keefe &
Company Private Equity Conference.
Ellen A. Rudnick, ’73
and Steven N. Kaplan
Keynote Speakers
David M. Rubenstein, JD ’73, is a
Since the formation of Oaktree
Today’s event is designed to give industry professionals and Chicago Booth
cofounder and managing director of
Capital Management in 1995,
students an opportunity to hear from successful professionals in and related to
The Carlyle Group, one of the world’s
Howard Marks, ’69, has been
the private equity industry. The past year has been a time of tremendous change
largest private equity firms. Rubenstein
responsible for ensuring
in the industry, and we thoughtfully considered the most important topics
cofounded the firm in 1987. Since then,
the firm’s adherence to its
affecting students and industry professionals in today’s environment. The
Carlyle has grown into a firm managing
core investment philosophy,
panel participants, keynote speakers, and sponsors have all been recruited by
more than $85.5 billion from 28 offices
communicating closely with
students with the assistance of faculty and Chicago Booth alumni. The presence
around the world.
of our guests speaks volumes about their esteem for Chicago Booth and our
classmates’ dedication to creating a great conference.
Andy Schwartz, ’10, and Matt
Hankins, ’10
clients concerning products and strategies, and
managing the firm.
From 1973-75, Rubenstein practiced law in New York with
Paul, Weiss, Rifkind, Wharton & Garrison. He later served
Previously, Marks led the groups at The TCW Group,
The Beecken Petty O’Keefe & Company Private Equity Conference, along
as chief counsel to the U.S. Senate Judiciary Committee’s
Inc. that were responsible for investments in
with the Entrepreneurship and Venture Capital Conference and the Edward
Subcommittee on Constitutional Amendments. During the
distressed debt, high yield bonds, and convertible
L. Kaplan New Venture Challenge, complements the innovative courses,
Carter Administration, Rubenstein was deputy assistant to the
securities. He was also chief investment officer for
research, and guidance expertly provided by exceptional Chicago Booth faculty
President for Domestic Policy. After his White House service
Domestic Fixed Income at TCW and president of
in entrepreneurship and finance. We would like to thank all of our sponsors,
and before cofounding Carlyle, Rubenstein practiced law in
TCW Asset Management Company, the largest of
panelists, moderators, and volunteers who have made this conference possible.
Washington with Shaw, Pittman, Potts & Trowbridge (now
the TCW companies. Previously, Marks was with
Pillsbury, Winthrop, Shaw Pittman).
Citicorp Investment Management for 16 years,
We hope you enjoy the conference and find the discussion enlightening,
entertaining and, above all, informative.
Sincerely,
where from 1978 to 1985 he was vice president and
Rubenstein, a native of Baltimore, is a 1970 magna cum laude
senior portfolio manager in charge of convertible
graduate of Duke, where he was elected Phi Beta Kappa.
and high yield securities. He was previously an
Following Duke, Rubenstein graduated in 1973 from The
equity research analyst and, subsequently, Citicorp’s
University of Chicago Law School, where he was an editor of
director of research.
Steven N. Kaplan
Ellen A. Rudnick, ’73
Faculty Director of the Polsky Center
Executive Director of the Polsky Center for
for Entrepreneurship
Entrepreneurship
He sits on the board of directors or trustrees for various
from the Wharton School of the University of
Neubauer Family Professor of
Clinical Professor of Entrepreneurship
companies and institutions including Duke University, Johns
Pennsylvania and an MBA in accounting and
Hopkins University, University of Chicago, the Lincoln Center
marketing from Chicago Booth, where he received
for the Performing Arts (Vice Chairman), the Kennedy Center
the George Hay Brown Prize.
Entrepreneurship & Finance
the Law Review.
Marks holds a BSEc degree, cum laude, in finance
Matt Hankins, ’10
Andy Schwartz, ’10
for the Performing Arts, the Memorial Sloan-Kettering Cancer
PE Group Co-Chair
PE Group Co-Chair
Center, Johns Hopkins Medicine, the Council on Foreign
Relations, and the Institute for Advanced Study.
2
Beecken Petty O’Keefe & Company private equity conference
Chicago booth
3
Creating Value in Portfolio Companies
Panelists
Ira S. Weiss, ’99, PhD ’01
Anthony Davis, ’98
Greg Jones
Derick Prelle, ’00
Daniel Rosenberg
Clinical Associate Professor of Accounting
Chicago Booth
Partner and Founder
Linden LLC
Partner
Edgewater Growth Capital Partners
Director
KKR Capstone
Managing Director
Sterling Partners
Ira Weiss, ’99,
PhD ’01, has
been actively
investing
in private
companies
for the past
15 years,
primarily in healthcare technology
and business services. He serves
on the boards of Concerro, Retel
Technologies, as well as a few other
private companies.
He is a professor at Chicago Booth
where he teaches entrepreneurship
and a course on taxes and business
strategy. Weiss serves as the faculty
director of Hyde Park Angels,
an angel investing group that is
affiliated with the Polsky Center of
Entrepreneurship at Chicago Booth.
In his research, he has published
on valuation issues of earnings, and
on taxes and accounting regulation.
Ira has also worked as an economic
consultant specializing in tax and
corporate financial strategies, and
he started his career at Coopers and
Lybrand.
Anthony Davis,
’98, has been
involved in
principal
investing and
consulting
since 1992.
Prior to founding Linden, he was a
partner with One Equity Partners
(formerly FCEC). Davis was
previously 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, Drayer Physical Therapy
Institute, Focused Health Solutions
and Ranir. Davis is a member of the
Economic Club of Chicago and the
Chicago Council on Global Affairs.
Davis holds a BA with honors in
economics from Northwestern
University and an MBA with honors
from Chicago Booth, where he was a
Rosett Scholar and serves as a guest
lecturer on private equity.
Weiss received both his MBA and
PhD from the University of Chicago,
and his undergraduate degree in
accounting from the University of
Illinois.
4
Notes
Moderator
Beecken Petty O’Keefe & Company private equity conference
Greg Jones
is a partner
at Edgewater
Growth Capital
Partners.
Prior to joining
Edgewater,
Jones was
chairman, CEO and cofounder of
uBid, Inc., which he built to over
$500 million in annual revenues.
Prior to uBid, Jones was senior vice
president of APAC Teleservices, Inc.,
which grew during his tenure from
$100 million to $275 million and
was the top IPO for Merrill Lynch in
1996.
Jones was formerly president and
COO of Reliable Corporation of
Chicago, a $200 million direct mail
seller of office products which was
successfully sold to Boise Cascade.
Jones has received many business
leadership awards, including the
1999 Ernst & Young and KPMG
Entrepreneur of the Year Awards and
inclusion in the 1999 Crain’s Chicago
Business’ “40 Most Influential People
Under 40 Business” list.
Jones received his BS from
Miami University of Ohio, and
his MBA from the J.L. Kellogg
Graduate School of Management at
Northwestern University.
Derick Prelle,
’00, has been
with KKR
Capstone since
2006.
Prelle is the
lead operating
executive for the North American
private equity consumer and retail
practices. At KKR Capstone, he has
worked with SunGard Data Systems,
U.S. Foodservice, Dollar General,
Real Mex Restaurants, and TASC,
Inc.
He was previously an associate
partner in the Chicago office of
McKinsey & Company, where he
focused on retail and packaged
goods clients and was a leader in the
Pricing practice.
Prelle holds a BS in chemical
Engineering from Cornell University
as well as an MBA, with highest
honors, from Chicago Booth. He
is a recipient of the Bain Trophy,
awarded to Chicago’s most
outstanding MBA strategy scholar.
From his
20 years of
experience
investing in
alternative
assets, Daniel
Rosenberg has
gained insights
into the needs of Sterling’s portfolio
company managers and limited
partners as well as a service-focused
and customer-first approach to
working with them.
Rosenberg applies this experience
daily in his work with Sterling
portfolio investments and limited
partners, in the identification
and sourcing of new investment
opportunities for the firm and as a
member of Sterling’s Investment
Committee. Rosenberg’s investment
interests and experience at Sterling
Partners include healthcare,
education, and business services
companies.
Prior to joining Sterling Partners in
1999, Rosenberg was an investment
banker at Vector Securities
International, a healthcare focused
investment bank.
Rosenberg holds a BA from Duke
University and an MBA from the
J.L. Kellogg Graduate School of
Management at Northwestern
University.
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5
Kirkland & Ellis LLP
is proud to support
The University of Chicago’s
Booth School of Business
and its
Ninth Annual
Beecken Petty O’Keefe & Company
Private Equity Conference
Chicago • Hong Kong • London • Los Angeles • Munich
New York • Palo Alto • San Francisco • Shanghai • Washington, D.C.
KIRKLAND & ELLIS LLP
www.kirkland.com
Rethinking Exit Strategies
Sponsored by Ernst & Young
Moderator
Panelists
Jeff Greene
Nicholas W. Alexos, ’88
Brent Gledhill
Jim Lawson, ’81
Greg Moerschel
Brian P. Simmons
Partner
Ernst & Young
Managing Director
Madison Dearborn Partners
Global Head of Corporate Finance
William Blair
Founder and Chairman
Lincoln International
Partner
Beecken Petty O’Keefe & Company
Partner
Code, Hennessy & Simmons LLC
Jeff Greene is
the Americas
markets leader
for divestiture
advisory
services, and
the global
transactions
leader for Ernst & Young’s life
sciences sector.
Nicholas W.
Alexos, ’88, is
the managing
director of
Madison
Dearborn
Partners
(MDP). Prior
to cofounding MDP, Alexos was with
First Chicago Venture Capital for four
years. Previously, he was with The
First National Bank of Chicago.
Brent W.
Gledhill is head
of William Blair
& Company’s
Global
Corporate
Finance
business and
a member of the firm’s executive
committee.
Jim Lawson,
’81, is chairman
of Lincoln
International.
In that role he
provides overall
strategic,
operational
and financial direction to the
organization. Additionally,
Lawson actively markets the firm’s
services, and manages key client
relationships.
Prior to joining
Beecken Petty
O’Keefe &
Company as a
partner in 1997,
Greg Moerschel
was a vice
president and
senior healthcare analyst for ABN
AMRO North America from 1994 to
1997.
Brian Simmons
was a founder
of Code
Hennessy &
Simmons in
1988. Prior to
founding Fund
I, Simmons
was a vice president with Citicorp’s
Leveraged Capital Group in Chicago.
His prior roles at Ernst & Young
include global vice chairman of
corporate finance, US national
director of corporate finance, and
US national director of valuation.
Greene provides strategic valuation
advice in divestitures, acquisitions,
financings, and restructurings.
He is a recognized expert witness in
federal, district, bankruptcy, and tax
courts on valuation, fairness, and
solvency matters.
Alexos focuses on transactions that
are in the healthcare sector and
currently serves on the boards of
directors of Sirona Dental Systems,
Inc. and VWR International, Inc.
Alexos also is involved with the Boys
and Girls Clubs of Chicago as a board
trustee, the Children’s Inner City
Educational Fund, and the University
of Chicago Booth School of Business
Council.
Greene received a BA in physics from
Dartmouth College and an MBA from
the Harvard Business School.
Alexos received his CPA and BBA
from Loyola University and his MBA
from Chicago Booth.
Previously, he was the head of
European and Asian banking at the
firm from 2001 to 2009.
Gledhill has led a successful
growth and reputation surge in the
international marketplace and has
been instrumental in positioning
William Blair & Company as a
well-respected global firm. He
has successfully served more than
125 clients in both merger-andacquisition advisory and growth
financing assignments. Prior to
joining William Blair & Company in
1997, he held various positions with
PriceWaterhouseCoopers, Andersen
Consulting, and the United States
Congress where he worked with
Congressman Michael Oxley.
He is a certified public accountant
and has a BS from Miami University
an MBA from Harvard University.
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Beecken Petty O’Keefe & Company private equity conference
Prior to cofounding Lincoln
International in 1996, Lawson
served for six years as a senior officer
with Peers & Co., an international
mergers and acquisitions
advisory firm. Previously he was
a senior officer in the mergers
and acquisitions department of
PaineWebber Incorporated.
Lawson received a Bachelor of
Science degree from Washington
and Lee University and an MBA from
Chicago Booth.
Prior to that, from 1990 to 1994,
he was a member of the healthcare
investment banking group at First
Chicago (now JPMorgan Chase) and
a related joint venture, where he
worked with Dave Beecken and Ken
O’Keefe.
Moerschel serves or has served on
the board of directors of Genezen
Healthcare, Inc., Hospital Physician
Partners, The Hygenic Corporation,
NetRegulus, Inc., NeuroSource,
Inc., Preferred Homecare, Take Care
Health Systems, and TIDI Products.
Before joining Citicorp, he was
employed by Mellon Bank in
Pittsburgh and Chicago.
Simmons serves on the Board
of Directors of Gundle/SLT
Environmental, Inc.; and Penhall
LVI LLC. Simmons also serves
on the board of directors of The
Latin School, Lincoln Park Zoo, the
Greater Chicago Food Depository,
and the Visiting Committee of the
University of Chicago School of
Social Service.
He holds an AB from Cornell
University.
Moerschel received a BA in
economics from Northwestern
University and an MBA in finance
and health services administration
from the J.L. Kellogg Graduate
School of Management at
Northwestern University.
Chicago booth
9
Creating Opportunity from Distress
Moderator
Panelists
Ashley Keller, JD/MBA, ’07
Charles B. Grace, ’00
Mark Essig
William R. Quinn
David P. Trucano
Associate, Bartlit Beck Herman Palenchar
& Scott
Lecturer, University of Chicago Law School
Managing Director
Wynnchurch Capital
President and CEO
Sangamon Industries
Principal
Versa Capital
Managing Director
Centerbridge Partners, LP
Ashley Keller,
JD/ MBA ’07,
is currently
an associate
at Bartlit
Beck Herman
Palenchar &
Scott and a
lecturer at the University of Chicago
Law School.
Chip Grace
’00, joined
Wynnchurch
Capital in
February
2000, soon
after the firm’s
founding. His
career commenced in principal
investing with GE Capital’s Merchant
Banking Group which was preceded
by several years in investment
banking with Salomon Smith Barney
and A.G. Edwards & Sons.
Mark Essig
founded and
serves as the
president
and CEO of
Sangamon
Industries. A
world-class
turnaround professional, Essig is
responsible for the investment and
management activities of the firm
and its companies.
William Quinn
has over 20
years of varied
experience in
private equity
and financial
services,
including as a
principal with a buyout firm focused
on control investments in distressed
assets and as a vice president with a
major banking institution.
Prior to founding Sangamon in
early 2008, Essig held a variety of
leadership positions in corporate
management within the industrial,
manufacturing, and distribution
industries. He has been CEO, CFO
or a board member for a number
of public and private firms based
in North America, South America,
Europe, Australia, and Asia.
Specifically, he has had extensive
experience restructuring businesses
and managing operational
turnaround situations for a number
of private equity firms including
Bain Capital, Monomoy Capital
Partners, and Pfingsten Partners.
He has held a full range of equitysponsored portfolio company
responsibilities, including
acquisitions and divestitures, board
of directors accountability, senior
management recruitment and
oversight, strategic planning, and
financial reporting and structuring.
Keller’s academic interests include
bankruptcy, secured transactions,
federal hurisdiction, and habeas
corpus.
Previously, Keller clerked for Judge
Richard Posner of the U.S. Court of
Appeals for the Seventh Circuit and
then for Justice Anthony Kennedy
of the Supreme Court of the United
States.
Keller graduated magna cum laude
from Harvard College with a BA in
government. He graduated with
an MBA, with high honors, from
Chicago Booth and with highest
honors from The University of
Chicago Law School in 2007.
Grace has more than 15 years
experience in private equity
investing, corporate finance and
mergers and acquisitions, as well as
investment origination and portfolio
management.
He is well versed in a number
of industries including
business services, logistics and
transportation, building products
and the manufacturing sector.
He also serves on the board of
directors of CCI/Buse Industries,
Calyx Transportation Group, Inc.,
Highway Technologies, Inc., Senco
Brands, Inc. and Webex, Inc.
Grace earned a BA from Duke
University and an MBA from Chicago
Booth.
10
Beecken Petty O’Keefe & Company private equity conference
Notes
David P.
Trucano is
managing
director of
Centerbridge
Partners, LP.
From 2004 to
2007, he served as vice president
at Goldman, Sachs & Co. where he
worked in the Special Situations
Group within the Fixed Income,
Currencies, and Commodities
division in both London and New
York.
Prior to joining Goldman Sachs, he
worked at Houlihan Lokey Howard
& Zukin where he advised creditors
and companies involved in financial
restructuring transactions.
Quinn holds an MBA from Drexel
University, and is a graduate of
Pennsylvania State University, where
he earned a BS degree in business
administration.
Essig holds a BA in business
administration from Loyola
University in Chicago and an MBA
from the University of Illinois. He
is also a Certified Public Accountant
(CPA) and a Certified Management
Accountant (CMA).
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11
The Future of LBOs
Sponsored by Winston & Strawn LLP
Moderator
Panelists
Patrick Doyle
Craig A. Bondy
Anthony Broglio, ’04
Nathan Brown, ’02
Eric Lev, ’04
Partner
Winston & Strawn
Principal
GTCR Golder Rauner, LLC
Principal
Lake Capital
Managing Director
Windpoint Partners
Principal
Water Street Healthcare Partners
Pat Doyle
is a partner
in Winston
& Strawn’s
corporate
department and
concentrates
his practice in
mergers and acquisitions and private
equity. Doyle has represented The
Boeing Company, Morningstar, Inc.,
SPX Corporation, Bayer Corporation,
Hub Group, Inc., EBEWE
Pharmaceutical, and Northland
Holdings, Inc. in connection with a
significant 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.
Craig Bondy is
a principal of
GTCR Golder
Rauner, LLC
and has worked
at GTCR since
2000. He is the
co-head of the
firm’s technology and information
services practice. During his tenure
at GTCR, Bondy has been actively
involved in over 20 acquisitions for
GTCR and its portfolio companies.
Bondy currently serves on the board
of directors of several GTCR portfolio
companies including Six3 Systems,
Landmark Aviation, and Heritage
Golf Group.
Tony Broglio,
’04, is
responsible
for evaluating
investments,
structuring
transactions,
coordinating
and managing due diligence,
negotiating transaction and
financing agreements, and portfolio
company monitoring.
Nathan Brown,
’02, joined
Wind Point
Partners in
1997 and was
promoted
to managing
director in
2004. Brown is currently a director
of Citadel Plastics, Marshfield
DoorSystems, RailWorks and TaylorWharton International.
Eric Lev, ’04,
is a member of
the founding
team at
Water Street
Healthcare
Partners. He
has nearly
10 years of healthcare investment
experience.
Broglio has been actively involved
with the investments in a number
of Lake Capital’s current and past
portfolio companies, including
Driveline, Haggin Marketing,
Hudson Energy Services,
intraFUSION, MediaWhiz, Respond2
Communications, Soil Safe,
Vestcom, and VFM Interactive.
Prior to joining Wind Point, Brown
was an analyst with the Corporate
Finance and Mergers & Acquisitions
departments of ScotiaMcLeod (now
Scotia Capital Markets), a leading
Canadian investment bank.
In addition, Doyle advises many
clients with regard to a variety of
general corporate matters.
Doyle received a BBA, with highest
distinction from the University of
Notre Dame. He received a JD from
Northwestern University School of
Law in 1986, 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.
Doyle successfully completed the
examination for certified public
accountants in 1983.
12
Prior to joining GTCR, Bondy was
employed in the investment banking
department of Credit Suisse First
Boston in Chicago where he focused
on M&A advisory and capital markets Broglio joined Lake Capital in
transactions primarily for Midwest
2003 while completing his MBA.
industrial clients.
Prior to pursuing his MBA, he was
an associate at FMI Capital, the
Bondy holds an MBA from the
merchant banking and private equity
Stanford University Graduate School arm of FMI Corporation.
of Business. He received a degree in
finance from the Honors Business
Broglio earned an MBA with honors
Program at the University of Texas at from Chicago Booth and a BS in
Austin where he graduated with high finance with a minor in economics
honors.
from the University of Colorado.
Beecken Petty O’Keefe & Company private equity conference
Brown holds a BA with a major in
philosophy from Queen’s University
and an MBA from Chicago Booth.
Notes
Lev joined Water Street from
Beckman Coulter, where he served
as group manager of strategy and
business development, and directly
assisted the CEO on special projects.
Previously, Lev was an associate
at One Equity Partners, where he
worked with the Water Street team on
multiple healthcare investments. He
also served as an investment banking
analyst with Lehman Brothers.
Lev currently serves on the boards
of directors of ConVerge Diagnostic
Services and PLUS Diagnostics.
He received a BA in economics from
Northwestern University and an
MBA from Chicago Booth.
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13
Opportunities in Infrastructure Investing
Sponsored by Kirkland & Ellis LLP
Moderator
Panelists
Bruce Gelman
William Atwood, MA ’07
Mark Florian, ’82
Leonard Shaykin, ’73, AB ’65, MA ’66
Partner
Kirkland & Ellis LLP
Executive Director
Illinois State Board of Investment
Managing Director
First Reserve
Managing Director
LambdaStar Infrastructure Partners
Bruce Gelman
is a tax partner
in the Chicago
office of
Kirkland &
Ellis LLP.
Gelman has
extensive
experience advising fund sponsors
and investors (both offshore and
domestic).
Bill Atwood,
MA ’07, has
served as
executive
director of
the Illinois
State Board
of Investment
(ISBI) since March of 2003.
Gelman concentrates his practice on
the organization and structuring of
real estate, infrastructure, and other
alternative-asset investment funds.
He also has significant experience
representing offshore investors in
the U.S. property and infrastructure
markets and maintains a broad tax
planning practice representing
REITs and other investors in real
estate.
ISBI is responsible for investing
assets totaling over $12 billion for the
State Employees’ Retirement System
of Illinois, Judges’ Retirement
System of Illinois, and General
Assembly Retirement System of
Illinois. Since joining ISBI, Atwood
has managed the restructuring of its
investment portfolio, established
an emerging manager program,
initiated the utilization of a general
consultant, expanded the portfolio’s
exposure to alternative investments,
increased the board’s shareholder
activism, and made improvements
to the State of Illinois’ Deferred
Compensation Plan.
Atwood serves as a director of the
Chicago Stock Exchange, is a regular
speaker at professional symposia,
and has recently completed the
MA of liberal arts program at the
University of Chicago.
14
Beecken Petty O’Keefe & Company private equity conference
Mark B.
Florian, ’82,
managing
director, joined
First Reserve
in 2008 to lead
First Reserve’s
energy
infrastructure fund.
Florian’s responsibilities include
investment origination, structuring,
execution, monitoring and exit
strategy, with particular emphasis on
the worldwide energy infrastructure
sector.
Prior to joining First Reserve,
Florian was a managing director
and COO of Goldman Sachs’
Public Sector and Infrastructure
Department, managing its
Infrastructure Investment Banking
business, and was on the Investment
Committee for Goldman Sachs
Infrastructure Partners. Florian also
spent time in the public finance,
corporate finance, and mergers
groups at Goldman Sachs.
Florian holds a BS degree in
computer science and a BA in
economics, magna cum laude, from
Duke University and an MBA from
Chicago Booth.
Leonard
Shaykin, ’73,
AB ’65, MA ’66,
is founding
managing
partner of
LambdaStar
Infrastructure
Partners and has more than 35 years
of experience as an institutional
private equity investor in the United
States. Shaykin established Citicorp’s
private equity business in the
1970’s where he was responsible for
building and managing Citicorp’s
first fund dedicated to management
leveraged buyouts. Shaykin was a
director and vice president of the
company and also sat as a member
of Citicorp’s Investment Committee
for both private equity and venture
capital.
Shaykin cofounded Adler & Shaykin
(1983-1994), an investment
partnership organized to sponsor
management leveraged buyouts.
Adler & Shaykin managed
approximately $300 million of
institutional and private capital,
acquiring ten companies with total
acquisition financing in excess of
$2.4 billion.
Shaykin received his BA and MA
from the University of Chicago and
his MBA from Chicago Booth.
CPP Investment Board
Notes
The CPP Investment Board
(“CPPIB”) is a Toronto-based
corporation responsible for
investing Canada Pension Plan
contribution that are not currently
required to pay benefits. As at
September 31, 2009 CPPIB assets
under management were C$124
Billion.
The infrastructure investment team’s
focus is on assets with lower risk
and return characteristics, typically
characterized by strong regulatory
and monopolistic elements, and
with low substitution risks. Such
investments might include electricity
transmission and distribution, gas
transmission and distribution, water
utilities, toll roads, bridges and
tunnels, airports, and ports.
As a secondary focus, the team also
considers investments in more
competitive assets if they represent
an extension of our infrastructure
knowledge domain, or if they possess
significant levels of contracted
revenues. Investments in the area
of electricity generation, midstream
gas, or gas storage might fall under
this grouping.
Chicago booth
15
Career Networking Reception
16
Mark Agnew, ’06
Vice President
Dixon Midland Company
Nicholas H. Barker, ’05
Vice President
Huron Capital Partners
Mike Barzyk, ’06
Senior Associate
The Pritzker Group
Greg Bregstone, ’02
Partner
Woodlawn Capital Partners
Christopher Hill, ’04
Senior Associate
Sterling Partners
Craig M. Kahler, ’07
Senior Associate
H.I.G. Capital
Adam Lerner, ’09
Associate
McNally Capital
Eric Lev, ’04
Principal
Water Street Healthcare
Partners
Shegan Campbell, ’05
Director, Corporate Finance
Prudential Capital Group
John Chalus, ’07
Vice President
Kinetic Advisors
Brian F. Chambers, ’08
Vice President
Beecken Petty O’Keefe &
Company
Chrissie Chen Pariso, ’08
Vice President
Sterling Partners
Gordon C. C. Liao
Vice President
Baird Capital Partners
John Malloy, ’07
Senior Associate
The Edgewater Funds
Jonathan Maschmeyer, ’08
Senior Associate
The Pritzker Group
David Matthews, ’09
Associate
ClearVIEW Capital
Robert B. Codol, ’07
Senior Associate
PNC Mezzanine Capital
Tom Costello, ’07
Vice President
Baird Capital Partners
Adam Cranford, ’09
Business Development
New Capital Partners
Lori Cunningham, ’99
Vice President
Pfingston Partners
Kevin McAllister, ’04
Vice President
Sterling Partners
Brian McKiernan
Vice President, Development
Centerpoint Properties
Naveen Neerukonda, ’09
Senior Associate
LaSalle Group
Brian O’Connor, ’08
Vice President
Equity International
Kristin Custer, ’04
Chief Investor Relations
Officer
The Jordan Company
Rommel Garcia, ’09
Associate
Maranon Capital
Evan Gobdel, ’06
Partner
Woodlawn Partners
Nathan Good, ’08
Vice President
Prarie Capital
Trey Parker, ’04
Portfolio Manager
Highland Capital
Management
Craig Payne, ’06
Director
BlackRock Alternative
Advisors
Rahier Rahman, ’05
Chief Financial Officer
Schatz Investments
Nathan Saegesser, ’09
Vice President
Lake Pacific
Beecken Petty O’Keefe & Company private equity conference
Chicago booth
17
Notes
Special Thanks
Professor Steven N. Kaplan
Neubauer Family Professor of
Entrepreneurship and Finance
Mike Shopin, ’05
Vice President
WHI Capital Partners
Jason Starr, ’07
Vice President
Winona Capital Management
Jason Van Camp, ’01
Senior Associate
Industrial Opportunity
Partners
Steven J. Warner, ’97
Principal
Baird Capital Partners
Professor Scott F. Meadow
Director of Global Initiatives
Clinical Professor of Entrepreneurship
Student Volunteers
Class of 2010
Matt Hankins
Andy Schwartz
Marek Wolek
Bryan Wetta, ’09
Associate
New Capital Partners
Chris Willis, ’08
Vice Presidemt
Mid Oaks Investments
Class of 2011
Steven Xi, ’04
Regional Director
Riverwood Capital
Ben Yarbrough, ’08
Vice President
Merit Capital Partners
Bruno Baratta
Thomas Bremner
Marco Castelli
Amy Christensen
Mark Dowdle
Dan Escovitz
Bryce Fisher
Paolo Gazzola
Adam Hunia
Yutaro Kasai
Alex Kessel
Erin Kim
Charley Light
Drew Lipshutz
Assaf Littner
Jon Ludwig
Yuval Marcus
Nana Mbaeliachi
Andrew Miller
Michael Newman
Adnan Nisar
Jason Pariso
Christopher Pummill
Konrad Salaber
Rutul Shah
Vishal Shah
Rachel Skelton
Ruchi Talati
Ashish Tolia
Evan Ufer
Jesse Weaver
Mathew Webb
Dustin Worley
Shari Young, ’06
Senior Investment Analyst
Ennis, Knupp & Associates, Inc.
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Beecken Petty O’Keefe & Company private equity conference
Chicago booth
19
Relationships:
Companies we invest in get something
more valuable than our capital.
They get us.
Reaching new heights?
When Beecken Petty O’Keefe & Company makes an
investment, along with the funding comes access to the
At Ernst & Young, we believe in setting high standards, stretching
ourselves and rising to our full potential. That’s why we’re proud to
support the University of Chicago Booth School of Business and its
9th Annual Beecken Petty O’Keefe & Company Private Equity Conference.
A quality program such as this one is a soaring achievement.
knowledge, expertise and contacts of our principals,
What’s next?
We participate actively at the board level in the manage-
developed through their 150 years of collective operating
and finance experience in the healthcare industry.
ment of our portfolio companies, helping the executive
ey.com
team manage growth-related strategic and operational
issues, devise favorable capital structure solutions,
©2010 ErnsT & Young llp
Ernst & Young refers to the global organization of member firms of Ernst & Young global limited,
each of which is a separate legal entity. Ernst & Young llp is a client-serving member firm located in the us.
respond to regulatory and reimbursement changes and
attract management talent.
At Beecken Petty O’Keefe & Company, we’re about the
relationship, not the transaction. It’s how we add value
for both our investors and our portfolio companies.
For information about Ernst & Young, contact Kath Carter,
Midwest Transaction Advisory services Managing partner,
at +1 312 879 5567 or [email protected].
Beecken Petty O’Keefe & Company
131 South Dearborn Street, Suite 2800
Chicago, Illinois 60603
www.bpoc.com
If you want to learn more about how a private equity firm can
offer more than just capital, call David Beecken or
Ken O’Keefe at 312-435-0300 to get the process started.
Sponsors and Supporters
Title Sponsor
Platinum Sponsors
Bronze Sponsor
Media Sponsors
Polsky Center for Entrepreneurship
PE Group
The Entrepreneurship Center was organized in 1998 through
a grant from the Ewing Marion Kauffman Foundation and
became an endowed center in 2002 through the generous
commitment of
Michael P. Polsky,
‘87, a successful
entrepreneur and inspiration to our students and alumni. The
Polsky Center’s mission is to create entrepreneurial leaders
through a broad range of experiences, including classroom
learning, experiential learning, leading-edge research, and
community outreach.
Visit ChicagoBooth.edu/entrepreneurship
The student-led Private Equity Group complements the
innovative courses, research, and guidance provided by
exceptional Chicago Booth faculty in entrepreneurship,
finance and strategy. Our goal
is to provide students with the
opportunity to test classroom ideas,
gain practical knowledge about
the PE industry and experience
investing first hand. The PE Group at Chicago Booth is
very active within the student community, providing career
development, networking opportunities, conferences on
current topics in the industry, group activities, industryleading speakers, industry-focused trips, and many other
resources for our members.