ALUMNI NEWSLETTER the Private Equity and Venture Capital Club
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Volume 1, Issue 1 Spring 2009 The Kellogg School of Management ALUMNI NEWSLETTER The Private Equity and Venture Capital 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 Buyout 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 Investments 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.