Volume 1, Issue 1 Spring 2009

The Kellogg School of Management ALUMNI NEWSLETTER The and Club

Inside this issue: Introduction

Kellogg PE Confer- 3 Alumni involvement in the Private Equity and Venture Capital Club is the cornerstone of our contin- ence: PE Sessions ued success. From participating in speaker events to involving your firms in our Venture- and Buy- San Francisco KSM 4 out-Lab programs, you enable us to meet our mission and make Kellogg a premier business school Bay Area PE/VC Club for future private equity investors and venture capitalists. As a ‘thank you’ to our dedicated alumni, Alumni Insights: 5 we would like to provide an update on 2008 and 2009 activities with our annual Alumni Newsletter. Harsha Marti and Venture 6 PEVC Boot Camp Series Lab Programs Article by Kathy Lai, KSM 2010 November 25, 2008 Interview Tips from 7 Shane Sugino The PEVC boot camp series is Director of Career Management to discuss Private Ways for Alumni to 8 designed to provide students Center Dean Roxanne Hori and Equity from the Limited Partner Get Involved with an intensive and in-depth Co-Director of the Heizer Center Perspective. The event was at- introduction to the fields of pri- Professor Mitchell Petersen – tended by nearly one-hundred vate equity and venture capital. Glen Vasel Professor of Finance. first and second year students. On October 11th 2008, the Private We were also honored to wel- The second boot camp session, Equity and Venture Capital Club come back alumni Lauren held on October 18th 2008, was a kicked off the first of three boot Albrecht (KSM ‘05) of American breakout session focused on pri- camp sessions. The first session Capital and Mike Teplitsky (KSM vate equity. Once again, we lever- provided a general overview on ‘08 and NU ‘02) of Wynnchurch aged the experience and knowl- private equity and venture capital. Capital for a career panel on Ad- edge base of our leadership team, It included speakers from the vice from Recent Graduates, as which led discussions on Relevant club‘s leadership team, Kellogg‘s well as Ross Posner of Allstate (continued on Page 2) Kellogg PE Conference: VC Sessions Article by Jason Robinson, KSM 2010 March 9, 2009 The annual Kellogg Private Equity Con- C. Draper, Founder and Managing Director ference features VC, PE, Portfolio CEO, of Draper Fisher Jurvetson, addressed an and alumni keynote speakers, as well as auditorium full of students (Kellogg and three PE panel breakout sessions and visitors), faculty, and alumni. In a speech three VC panel breakout sessions. that resonated well with the job seekers in February 11th, 2009 marked the Tenth the audience, Draper noted that downturns Annual Kellogg Private Equity Confer- often lead to innovation and prosperity for ence. The morning began with a hearty those who correctly recognize the opportu- alumni breakfast at the Allen Center, fea- nities among the gloom. His speech culmi- turing an in-depth industry status and out- nated in an electrifying rendition of his look assessment by Kirkland & Ellis Sen- signature cult classic, ―The RiskMaster‖. of the Venture Capital Industry. ior Partner and Head of Global Private The three VC Breakout Sessions consisted The Cleantech Investing Panel was moder- Equity Jeffrey C. Hammes (NU JD ‘85). of the following panels: Cleantech Invest- ated by Michael A. Marasco, Northwestern The Morning Keynote Speaker, Timothy ing, Ubiquitous Computing, and the State (Continued on Page 2) ALUMNI NEWSLETTER

PEVC Boot Camp Series (Continued from Page 1)

Classes and Activities, the Credit Process session included a recurring focus on cur- Maxwell (KSM ‗82) of MK Capital. and the Basics of an LBO Model. The sec- rent market trends. Fundraising, availabil- Professor Petersen kicked off the last ses- ond session also featured alumni Chris ity of credit and average purchase price sion with an overview of Kellogg‘s ven- McLaughlin (KSM ‗05) of CIVC Partners, multiples are on the retreat. Additionally, ture capital resources, including the Danny Rosenberg (KSM ‗97) of Sterling the economic downtown has led to higher Heizer Center, which segued into detailed Partners, Demian Kircher (KSM ‗99) of default rates on leveraged loans, particu- sessions by second-year students provid- Maranon Capital and Matt Raino (KSM larly in the real estate, automotive, trans- ing advice on course planning and intern- ‗07) of Madison Dearborn Partners. portation and gaming sectors. All of the ships. Two recent Kellogg graduates of- The second session equipped students with above factors will deflate private equity fered career decision insights as they de- knowledge and analytical tools needed in returns in the near term and reinforce the scribed and analyzed their career private equity investing. Furthermore, the importance of proprietary deal sources choices—one chose to pursue venture and the ability to create value through capital, while the other chose entrepre- operational improvements. neurship. Additionally, industry profes- The final boot camp session, held on Oc- sionals provided valuable insider perspec- tober 15th 2008, focused on venture capi- tives on the venture capital industry and tal. In addition to faculty and student recruiting. From start to finish, the VC speakers, it featured instruction from in- session delivered a strong foundation dustry professional Eric Olsen of DFJ upon which those in attendance can build Portage and alumni Jonathan Miller future careers. (KSM ‗08) of Elementbars.com, Joe A selection of presentations from the boot Dwyer (KSM ‗08) of Artist Data and Bret camp series can be found on our website. Kellogg PE Conference: VC Sessions (Continued from Page 1)

University, McCormick School of Engi- tion. After an interesting and informative Godreau, who was a researcher at Xerox neering, Clinical Associate Professor and set of perspectives from the panel, the PARC when ubiquitous computing was Director of the Farley Center for Entrepre- audience readily launched an array of pioneered there, provided a historical per- neurship and Innovation. The panel con- thoughtful questions. spective on how computing has evolved sisted of Rafael Coven (KSM ‘92), Manag- Next, Shane Greenstein, Kellogg School from many people interfacing with room- ing Director of Cleantech Group LLC, Dan of Management, Elinor and Wendell sized computers in the 1970s, to personal Watkins, Managing Director of Draper computers in the 1980s, to a point where Fisher Jurvetson Mercury and William Y. computers and smart devices form a Chang‟s discussion of elective surgery Zakroff (KSM '78), CEO and Founder of physical web that link user through a vir- Marinus Power LLC. to extend “computers around us” to tual web. Chang took this perspective This seasoned and experientially diverse “computers inside us” catapulted this global with a look into worldwide com- panel explored many facets of the clean- fast-paced discussion to light speed. puting and connectivity innovations, and tech space, which includes energy collec- Dwyer provided insight from fifteen years tion and storage, as well as smarter energy Hobbs Professor of Management and of Internet entrepreneurial experience. consumption. Topics ranged from the me- Strategy, moderated the Ubiquitous Com- The audience was captivated early by the chanics and operation of tidal and wave puting Panel. This lively panel consisted discussion, but the panel‘s visions of the power generation, to roadblocks in geo- of Enrique Godreau III, Managing Direc- future, including Chang‘s discussion of thermal power capture and the economics tor and Co-Founder of Voyager Capital, elective surgery to extend ―computers of rooftop solar projects. Government Timothy Chang, Principal at Norwest around us‖ to ―computers inside us‖ cata- regulations and incentives were contem- Venture Partners and Joe Dwyer (JDMBA speed. plated in light of the change in administra- '08), Senior Associate at OCA Ventures, The final VC panel for the afternoon was who filled in for Jim Dugan (KSM '97), well worth the wait. Matt McCall (KSM

Page 2 CEO, Co-Founder and Managing Partner '91), Managing Director of Draper Fisher of OCA Ventures. (Continued on Page 3) Volume 1, Issue 1

(Continued from Page 2) events. To insure that everyone was At the end of the third panel session, stu- Jurvetson Portage moderated the State of ready to participate, Bolander quizzed the dents, speakers, alumni, and guests ad- the Venture Capital Industry Panel. This audience on the current state of VC exits, journed to enjoy cocktails and hors d'oeu- powerhouse panel consisted of Rick passing out prizes to the first to answer vres at a Networking Reception in the Bolander, Managing Director and Co- correctly (Bon French, KSM ‘76, was Allen Center. Founder of Gabriel Venture Partners, Pro- prohibited from answering to give others mod Haque (KSM '83), Managing Partner a chance to win). Given the deep insights at Norwest Venture Partners and Steve and perspectives that the panelists offered Foster (KSM '89), Co-Founder and Partner in response to McCall‘s probing ques- at TPG Growth. tions, the audience‘s day was capped with This panel addressed some of the most a thorough exploration of the VC indus- pressing industry issues, including fund- try‘s evolution and likely future, followed raising, structural changes in the industry, by an opportunity to ask questions from and a shift from IPO to M&A liquidity this esteemed panel. Kellogg PE Conference: PE Sessions Article by Brian Price, KSM 2009; Adam Milakofsky, KSM 2010; Michael Watts, KSM 2010; Taylor Moore, KSM 2010; Andrew Gustafson, KSM 2010 March 9, 2009

The Private Equity keynote was delivered tors are predicting the end of the private With additional sources of capital and no by Hartley Rogers, the Chairman of Hamil- equity industry, just as they did after the quarterly earnings pressure, Kapoor high- ton Lane, a private equity asset manage- bursting of the high-yield bond market in lighted the benefits of partnering with a ment firm that provides allocation advisory the late 1980‘s. Rogers then shed light on private equity firm in a turnaround set- services to institutional investors across the the fact that the highest private equity globe. Hartley brought to his address dec- returns over the past twenty-five years Kapoor stressed the importance of ades of private equity experience from his resulted from deals undertaken during selecting the right partner, as success work as co-head of CSFB Equity Partners, economic downturns. Comparing the Senior Partner of DLJ Merchant Banking consensus view on the private equity in- hinges greatly on a shared vision, Partners III and President of the general dustry with that of Hamilton Lane, he strategy and horizon. partners of the Princes Gate Investors fam- provided compelling evidence for select- ily of private equity funds. ing managers with proven track records as ting. The additional flexibility and align- In his presentation, titled Private Equity well as the opportunities currently avail- ment of incentives yielded an environ- Market Update, Rogers gave what many able in the distressed and secondary mar- ment in which he was able to enact drasti- attendees considered the most upbeat kets. In concluding his address, Rogers cally needed changes in management, speech of the day. He began his keynote left many Kellogg students and alumni processes and technology that catapulted by providing an update on the current eco- comfortable that the current market pro- the firm from the edge of bankruptcy to a nomic landscape, highlighting the down- vided compelling investment opportuni- leading position as one of the fastest turn in both the public and private markets. ties as well as the idea that the private growing companies in the business proc- He then discussed how many prognostica- equity industry would emerge from the ess outsourcing industry. While partner- downturn well equipped to continue to ing with private equity provides certain provide excess returns. fundamental advantages to operating in a Vikas Kapoor, President and CEO of public environment, Kapoor stressed the iQor, gave the portfolio company keynote importance of selecting the right partner, address entitled ―Junk or Jewel? – Man- as success hinges greatly on a shared vi- agement‘s Perspective on Private Equity‖. sion, strategy and investment horizon. Kapoor detailed his experiences partner- The first late-stage panel session, Oppor- ing with a private equity firm to lead the tunities in Today‘s Markets, was moder- dramatic turnaround of iQor, which today ated by Jon Ballis of Kirkland & Ellis. is a premier provider of call-center ser- Joining him were participants JB Pritzker vices, employing more than 8,000 people (NU JD ‘93), Managing Partner of the Page 3 in North America, Europe, and Asia. (Continued on Page 4) ALUMNI NEWSLETTER

Kellogg PE Conference: PE Sessions (Continued from Page 3)

Pritzker Group, John Carroll (KSM ‘98), term and growth companies could Managing Director at Summit Partners, find capital from the right PE part- Andrew Marek (KSM ‘91), Managing Di- ners. rector at Dymas Capital Management and The Limited Partner Perspectives Mark Taber (KSM ‘98), Partner at Great Panel was moderated by Andy Hill Partners. McDonough, a Partner in Winston & The panelists gave a realistic assessment of Strawn‘s Chicago office and leader the extremely poor market conditions for of the firm‘s private equity practice. leveraged . Pritzker predicted that The panel consisted of Bon French the economy was in for an extended down- (KSM ‘76), CEO of Adams Street turn and did not think that current seller Partners, Du Chai (KSM ‘01), Man- expectations had come down enough to aging Director for the Northwestern En- The last PE panel of the day was also one interest his firm with its deep value strat- dowment, Todd Miller, Managing Direc- of the most engaging. Jim Tunney, vet- tor at Cogent Partners and Larry Rusoff eran transaction service partner for Price- Both Carroll and Taber talked of the (KSM ‘94), Managing Director at Per- waterhouseCoopers led a discussion on challenges inherent in the current formance Equity Management. the strategies that private equity firms The panel discussed how the current envi- employ to drive operational improve- environment, but had cautious ronment in private equity is affecting lim- ments at their portfolio companies. The optimism that the economy would turn ited partners‘ attitudes towards the asset panel featured Craig Bondy, Principal at around in the medium term. class. Specifically, the panel talked about GTCR, Gordon Pan (KSM ‘98), Partner how limited partners are reassessing their at Baird Capital Partners, Kevin Rowe egy. Marek, the panel‘s lender, talked of allocation to private equity which is limit- (KSM ‘91), Principal at Lake Capital, and the unsustainable lending standards that ing openness to new investments and Kevin Somerville, Senior Advisor to Nor- fueled the peak of the buyout boom. He driving the lack of fundraising opportuni- west Equity Partners. Discussion cen- views the credit markets as having contin- ties. Furthermore, the potential for future tered on operational philosophies, strate- ued struggles, but said that deals are being capital calls on existing investments is gies for driving rapid change, key bench- done with creative financing structures. also causing limited partners to hoard marks to focus on while implementing Both Carroll and Taber talked of the chal- capital. The panel also discussed the mar- change and ways to cope with the diffi- lenges inherent in the current environment, ket for secondary transactions of limited culty of finding the right partnership be- but had cautious optimism that the econ- partner interests in terms of volume of tween management and investors. omy would turn around in the medium activity, terms and pricing. Panelists had variety of perspectives on potential ways to drive operational change San Francisco KSM Bay Area PE/VC Club at portfolio companies. Pan articulated Article by Jesse Brandl, Pacific Community Ventures, KSM 2006 his firm‘s strategy of assisting portfolios March 20, 2009 with their global expansion strategies. Rowe explained how he drew upon his The San Francisco KSM Bay Area PE/VC corporate development professionals, local years as a CEO to coach the portfolio Club is an alumni led initiative focused on non-profit organizations and Kellogg Bay companies he worked with. Alterna- expanding the number of Kellogg gradu- Area treks. We encourage current stu- tively, Bondy discussed the importance of ates pursuing Private Equity and Venture dents, alumni and administration/ identifying the right management team up Capital careers. Over the last few years, professors interested in participating or front, especially with larger private equity our group has held monthly meetings in supporting our effort to reach out to Jesse deals. As an organizational psychologist, San Francisco and Palo Alto. In addition Brandl (KSM ‘07) at Somerville explained the importance of to our core group, we have had a variety of [email protected] or Jorge Calderon aligning organizational structures, com- guests at our events, including other busi- (KSM ‗03) at [email protected]. pensation incentives and personality types ness school PE/VC alumni clubs, Kellogg with the investment objectives of the pri- vate equity firm. Page 4 Volume 1, Issue 1

Alumni Insights: Harsha Marti (KSM ‘02) of Warburg Pincus Interview by Bader Alam, KSM 2009 December 12, 2008

How did you get started in the PE indus- would also say that, while these are diffi- almost all of the major PE firms have try? Immediately prior to starting my first cult times, they also offer tremendous operations in China and/or India. Many year at NU Law, I spent several months opportunity to patient, long term inves- firms have also started looking at emerg- working at ICICI in India. I worked in a tors. ing Europe and Russia. However, it is group that, among other things, ran a small What types of financing structures are important to note the distinctions of in- proprietary venture capital fund for ICICI. you seeing on new deals currently? The vesting in emerging markets. Emerging The work I did there was my first introduc- lack of leverage clearly means that the market investments typically involve tion to long term investing in private com- large public to private leveraged transac- making a minority investment in a foun- panies. As a lawyer, I gravitated towards tions that were prevalent in 2006 and der controlled company which means the later stage transactions because, although early 2007 are virtually impossible to do. PE fund has to be able to treat manage- early stage transactions can also be quite This means that even firms that typically ment as a partner rather than as an em- interesting, later stage transactions tend to focus on large LBO transactions have ployee. Investing in emerging markets be complex from a legal and structuring started to look at PIPEs and other sorts of also requires deal professionals to have a standpoint. I was fortunate that I started structured minority investment in publicly deep understanding of local conditions, my career at Kirkland & Ellis LLP in New traded or large private companies. which is something that does not happen York. K&E‘s New York office is unusual Do you think that private equity firms overnight. Again, time will tell whether in that lawyers there tend to work on all will now search more overseas, since PE firms can adjust to the very different aspects of private equity transactions from there is an excess of funds in the United conditions in emerging markets. fund formation to M&A to leveraged fi- States? A lot of people believe that lim- What do you think will happen in the nance to negotiating employment arrange- ited partner investors have allocated too private equity industry over the next 5-10 ments. Being a generalist allowed me to much capital to US-focused funds. How- years? Do you think there will be a have a holistic view of the PE industry ever, I would note that a tremendous shakeout? There are several factors that which, at least from my perspective, made amount of capital is needed in order for are going to result in a shakeout in private PE more interesting. US corporations to effectively be recapi- equity: What aspects of PE attracted you to work- talized. I would think that some of these 1. The current market downturn means ing in the industry? I enjoy the long term recapitalizations represent valuations that that many large, institutional limited perspective that PE investors tend to have. are attractive enough that one can gener- partners are over allocated to private I also like the fact that successful partici- ate PE-type returns even on an unlevered equity. This will likely result in set- pants in the PE industry, be they transac- basis. However, recapitalizing a dis- ting aside less capital for private eq- tion professionals or service providers, tressed company and working through all uity in the future. Increased invest- must be able to successfully marry a high of the related issues is quite a different ment by Sovereign Wealth Funds will level of proficiency in technical skills with ball game from 2006-style LBOs and time make up for some of this shortfall but a keen understanding of people. not all of it. The net result is that there We live in tough times with the economy are going to be fewer dollars available Recapitalizing a distressed company on the brink of recession and the collapse for investment in private equity. in the markets. How has this affected WP and working through all of the related 2. Many private equity firms are still run and how have you coped? The current issues is quite a different ball game and majority owned by their founders. market conditions are difficult for every- from 2006-style LBOs and time will Many of these founders are going to one. No industry or geography has been transition out of active involvement in tell whether PE firms have the skill set spared. We are somewhat unique in that day-to-day activities. These sorts of we make all of our investments out of one necessary to do distressed investing. transitions are always difficult. fund regardless of geography, industry or 3. A lot of capital was put to work during stage of investment. This means that our will tell whether PE firms have the skill the 2006-early 2007 buyout boom. It portfolio is diversified and is not concen- set necessary to do distressed investing. may seem obvious but the more trated in a small number of transactions Insofar as investing outside of the US is money you put to work during that which is a good thing in these times. I concerned, PE firms have been investing time period in leveraged transactions, the greater risk you face now. in Western Europe for some time now and Page 5 (Continued on Page 6) ALUMNI NEWSLETTER

Alumni Insights: Harsha Marti (KSM ‘02) of Warburg Pincus (Continued from Page 5)

These factors mean that some percentage forced to invest in a particular geography, firms didn‘t have a General Counsel, let of private equity firms will not be able to for example, because we raised money to alone an Assistant General Counsel. raise new funds. I don‘t think that private invest solely in that geography. We do On a more personal note, as a Kellogg equity firms will be as badly impacted as not take transaction, , alumnus, what's your most vivid memory hedge funds because, unlike hedge funds, monitoring or consulting fees so our inter- of being at Kellogg? I would say hanging private equity funds‘ limited partners are ests are fully aligned with those of our out at the Deuce but that would stretch the obligated to fund capital commitments for management teams and our investors. We meaning of the word ―memory‖ so I a fixed period of time and cannot redeem are growth-oriented investors. Regardless would have to say: the first time I heard their interests. This may allow some pri- of stage or sector, we invest in companies Andre ―Dr. Dre‖ Oliveira say ―focus‖ in a vate equity firms to ride out the current that tell a compelling growth story. We Brazilian accent. environment and not face a mass of re- are a truly global firm. We opened our Do you have any advice in terms of what demptions at the very bottom of the mar- offices in London in 1983 and our first current students can do at Kellogg to ket, which is one of the factors that is caus- office in Asia in 1994 and have invested better prepare them for a successful ca- ing a number of hedge funds, especially in portfolio companies based in more than reer in PE? If I was a current student, I small and medium sized hedge funds, to 30 countries and have substantial invest- would focus on building specific industry shut down. ments in India, China and Eastern Europe. expertise. PE firms are going to increas- What differentiates WP? We have a one What originally drew you to the com- ingly hold investments for longer periods firm philosophy meaning that, not only do pany? As PE firms have become more of times and understanding how to oper- we invest out of one fund but all of our institutional in nature, they have increased ate businesses will become more impor- investment professionals globally have the number of people employed in non- tant than financial engineering or exper- aligned interests. We are stage, sector and deal roles such as fundraising, marketing, tise at simply executing deal after deal. geography agnostic, so we can make in- finance, tax and legal. The idea of some- Ability to manage a portfolio effectively vestment decisions based on the best avail- one in my position at a PE firm is a some- over the long-term is immensely impor- able opportunities as opposed to being what new thing. Ten years ago, many PE tant to a firm such as Warburg Pincus. Buyout and Venture Lab Programs Article by Harrison Perry, KSM 2009 March 15, 2009

The Buyout and Venture Labs are expe- to projects or deals that the firms are re- working to support a new generation of riential courses that provide students the viewing. The students have the opportu- finance leaders. He contends the course opportunity to learn about the respec- nity to learn about the industry and is designed to give students a rigorous and tive industries by working one or two broaden their skill-sets. real-world experience that helps prepare days a week for the quarter as an intern The nature of the student‘s role during the them for a career in private equity. ―We with a firm in the field. 10 weeks has varied significantly based continue to find ways to bring theory and The Buyout Lab is led by Professor David on the interests of the firm and the back- practice together and challenge students Stowell and the Venture Lab is led by Pro- ground of the student. Many of the stu- to dig deeper to develop the analytical and fessors Mitchell Peterson and Yael Ho- dents have completed distinct projects ‗soft‘ skills that will make them extraordi- chberg. This is the second year for the during the 10 weeks. One type of project nary leaders,‖ said Jain. Labs, which have placed a different group has been to research a sector that the firm The Labs bring in professional speakers of students into firms each quarter. The is considering investing in. The student to expand the learning opportunities of program has grown from placing approxi- then creates a package describing how (Continued on Page 7) mately eight students the first quarter to 15 appealing the industry is, what businesses -20 students today, and is a win-win for might be good targets and the best ap- the firms as well as the students. For 10 proach to investing in the sector. Other weeks, the firms get MBA students, who students have assisted with deal selection, often have unique skills that are valuable due diligence and investment efforts. Dean Dipak Jain said that with curriculum Page 6 innovations like the Labs, Kellogg is Volume 1, Issue 1

and taking privately negotiated securities that, you‘ll miss great opportunities.‖ “We continue to find ways to bring from a public or private company. Kellogg professors play an active role in theory and practice together and ―These are things that investors have to the private equity industry. For example, challenge students to dig deeper to watch out for and private equity firms Clinical Professor Harry Kraemer teaches have to not be tempted to do.‖ the evening class Managerial Leadership develop the analytical and „soft‟ skills On October 22nd 2008, the Venture Lab and is an executive partner with Madison that will make them extraordinary brought New Enterprise Associates‘ Part- Dearborn. Prior to Madison Dearborn, he leaders, “ said Jain. ner Suzanne King (Kellogg ‘95) to cam- was the CEO of Baxter International. pus to discuss current trends in the indus- The labs have been a valuable experience (Continued from page 6) try. King specializes in information tech- for the students involved each quarter. participants. On April 3rd 2008, the Buy- nology opportunities and manages NEA‘s The following buyout and venture capital out Lab brought Madison Dearborn Chair- marketing and investor relations area. firms participated in the Labs during the man John Canning Jr. to campus to discuss She said that innovative firms are no 2008-2009 year. his long career in private equity, market longer centered in Silicon Valley or Bos- conditions, and provide a historical per- ton. As such, she said venture capitalists spective on private equity. ―You have to are investing in companies around the be concerned about private equity firms world, including in China and India. doing things they‘ve never done before,‖ NEA has two offices in China and one in Canning said, citing examples such as tak- India. ―We‘re finding innovation every- ing a minority interest in public companies where,‖ King said. ―If you don‘t adapt to

2X Consumer Products Granite Creek Partners Merrick Ventures Adobe Ventures Hadley Capital New Trier Partners bioventures investors Hispania Capital Partners OCA Ventures Ceres Ventures Hopewell Ventures Prism Capital Code Hennessy & Simmons i2a Fund Seneca Health Vent. Cornerstone Angels Illinois Ventures Ceres venture Fund DFJ Portage Independence Equity Merrick Early Stage Partners LaSalle Capital Silicone Pastures First Analysis Longitude Capital Silver Oak Frontenac Company MK Capital Sterling Partners Geneva Glen Capital Madison Dearborn Waud Capital McNally Capital Interview Tips from Shane Sugino, Kellogg PE/VC Careers Advisor Interview by Boyd Vor Broker, KSM 2010 March 12, 2009

Shane Sugino is the Career Advisor at What are some ways you are helping stu- after registration opens. the Kellogg Career Management Center dents become more familiar with poten- What can students do to improve their working with students interested in Pri- tial careers in the private equity industry? chances of getting a private equity job? vate Equity and Venture Capital related Each year, Kellogg attracts a large number Networking is the key to success during careers. Prior to Kellogg, Shane led a of students interested in the private equity the job search process. Students have a healthcare buyout team for GE Capital and venture capital space. Many of those chance to learn more about the industry, a in Chicago where he closed over $5 bil- students have had prior PE/VC experi- particular firm and potential job opportu- lion of deals over a two year period. ence, but many have not. In order to edu- nities. At the same time, potential employ- Prior to GE, Shane spent seven years in cate students on potential careers and ca- ers learn more about the student and derivatives trading with Goldman Sachs reer paths, we hold a number of educa- where they can add value to their organi- and Bear Stearns and started two com- tional events throughout the year such as zations. For career switchers, leveraging panies. Shane received his MBA from boot camps, industry panel discussions, your industry experience while proving Cornell University and a BS in Finance guest speakers, and company visits. The you have analytical skills will be the key from New York University. capstone event of the year is our annual to finding a job in this challenging market. Page 7 PE/VC conference held here in Evanston (Continued on Page 8) and tends to sellout within a few hours Kellogg School of Management

Ways for Alumni to Get Involved… Article by Lylan Masterman, KSM 2010 and Emal Dusst, KSM 2010 March 15, 2009

Many alumni have inquired about how dents with relevant experience. hands on experience through a variety of they can do more to assist Kellogg in its Attend Alumni / Student Socials. Every internship programs. on-going effort to improve its brand spring, the PEVC Club hosts an industry  Buyout and VentureLabs – These are value in PE/VC. As such, we have sum- networking night in Chicago. This event for-credit experiential learning courses marized below the most effective ways to provides alumni an opportunity to wel- offering students a 10-week internship get involved, regardless of whether you come the graduating class into the indus- with a PE or VC firm. Students typi- are in the Chicago area or elsewhere. try and meet alumni at other firms. cally work 1-2 days per week to ex- Be a Guest Speaker. Throughout the aca- Join Local Alumni Groups. Regional perience the day-to-day activities of a demic year, distinguished leaders from the organizations have been formed to local fund, allowing them to assist private equity and venture capital commu- strengthen the relationships among Kel- with industry analysis, deal selection, nity visit Kellogg to lecture on industry logg alumni who are active in the private due diligence and investment efforts. topics. The speakers provide students with equity industry. Groups are responsible  Part-time/Summer Intern – Through- insight into their fund‘s investment style, for organizing local professionals for out the school year and during the industry focus and recent transactions. In regular breakfasts and other events. summer, firms in the Chicago area and addition to informing students about recent Please reach out to your local chapter: across the country hire Kellogg stu- market trends, guest speakers often provide  KSM Bay Area PE/VC Club - Jesse dents to assist with work and gain career-related advice. Brandl ([email protected]) valuable industry knowledge. These Host a Trek. Each year students participate  KAPE (Midwest) - Dan Hosler internships can be structured infor- in educational treks organized by the club ([email protected]) mally where students take on pro bono to meet with private equity and venture Participate in the Annual PEVC Confer- projects throughout the year or you capital firms and learn about different ence. The PEVC Club organizes an an- can structure a paid, summer program. types of principal investing. The goal of nual conference that brings together in- the treks is for students to get an under- dustry professionals, academic leaders, Your thoughts? standing of the trends, challenges and op- alumni and current students to discuss portunities in private equity and venture trends and issues in the private equity and Are there ways in which you would like capital directly from the firms. venture capital industry. to contribute to Kellogg‘s PEVC stu- Lead a PEVC Boot Camp Course. The Conduct Informational Interviews. Cur- dents, but feel that we are not reaching PEVC Boot Camp series is held during the rent students might contact alumni to re- out to you in the right way? If so, please contact us at PEVC-Club@kellogg. fall quarter and is designed to provide stu- quest informational interviews – some are northwestern.edu. We value your com- dents with an in-depth introduction in the by phone while others are face-to-face. ments. field of private equity and venture capital. These interviews help facilitate student Training courses focus on the fundamental understanding of the private equity or Thank You, issues associated with the investment proc- venture capital career path. ess and are led by a group of volunteers Offer Internship Programs. Kellogg The Private Equity and Venture Capital consisting of alumni, professors and stu- offers students the opportunity to gain Club

Mike Hartmann – Co-Chair John Hennegan – Co-Chair Interview Tips from Shane Sugino Brett Holcomb – Director, Buyouts (Continued from Page 7) Justin Ward – Director, Buyouts Raghav Mathur – Director, VC What are some of the best ways alumni sponsor of an academic project for our Forrest Mertens – Director, VC can get involved? Involved and supportive Venture and Buyout labs and most impor- Bader Alam – Director, Alumni alumni are very important to Kellogg‘s tantly, by hiring Kellogg students for PE/ Steve Griffiths – Director, Careers success. Alumni can get involved in differ- VC opportunities! Without our loyal Joe Matthews – Director, Heizer Center ent ways such as a corporate sponsor of a alumni, Kellogg would not be as success- school event, a participant on a panel dis- ful as we are today. www.kellogg.northwestern.edu/ student/club/pevc cussion, a guest speaker in a classroom, a