DRUMROLL, PLEASE! Our Ranked List of the Area's Fastest-Growing

CHICAGOBUSINESS.COM | OCTOBER 12, 2020 | $3.50

DRUMROLL, PLEASE! Our ranked list of the area’s fastest-growing companies, plus pro les of the top ve. SECTION BEGINS ON PAGE 14

Divey Gulati, left, and Dhruv Saxena of ShipBob, which took the No. 1 spot on our list.

PHOTO BY KENDALL KARMANIAN

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Cardiovascular Institute RESTAURANTS: The industry is bracing for a winter of closures and layoffs. PAGE 3

DAVID GREISING: Pritzker’s “fair tax” amendment could win by losing. PAGE 2 CHICAGOBUSINESS.COM | OCTOBER 12, 2020 | $3.50

At 21 E. Huron St., 14 units are for sale, compared to eight sales in the past year. Advocate takes a turn for the worse eir apparent success in Loss of Beaumont blocking Advocate could en- deal reveals threats courage similar resistance to future acquisitions from doctors, to expansion plans communities and elected o- cials unwilling to see their local BY STEPHANIE GOLDBERG hospitals absorbed into a large, out-of-state chain. e setback e failed acquisition of a also raises new questions about Michigan hospital chain deals a how—and where—the $12 bil- blow to Advocate Aurora Health’s lion-revenue hospital system aggressive growth agenda. based in Downers Grove can nd Acquiring Southeld, Mich.- the growth it seeks. based Beaumont Health would e pool of potential acqui- have advanced the 26-hospital sition targets in the Upper Mid- chain’s goal of more than dou- west is shrinking. Chains in Ad- bling revenue within ve years. vocate’s Chicago and Milwaukee But the deal collapsed Oct. 2 strongholds likely are o -limits amid opposition from Beaumont due to antitrust concerns, and doctors and other sta ers, as well as Michigan lawmakers. See ADVOCATE on Page 31 Eateries and insurer

JOHN R. BOEHM R. JOHN face off in Chicago Big case pits Billy Goat ing Fatpour Tap Works in Wicker 2020 IS GIVING CHICAGO Park and at McCormick Place; and the Purple Pig on Michigan and others against Avenue. small Wisconsin carrier eir claims against Fond du CONDO SELLERS A HEADACHE Lac-based Society Insurance, a BY STEVE DANIELS niche rm that insures hospi- Aspirin won’t x what ails a market heading into a dip BY DENNIS RODKIN tality industry businesses, have Owners of more than two doz- been consolidated under the su- CHICAGO’S CONDO MARKET is turning into a logjam, as in several weeks it was fewer than 325. en area restaurants and bars will pervision of U.S. District Judge far more properties come on the market than there’s “e condo market is quieter than I’ve ever seen have their day in a Chicago feder- Edmond Chang in Chicago. e demand for—and it may lead to a drop in prices. it,” says Linda Levin, a veteran downtown agent for al court as they battle a Wiscon- suits against Society are the only In the week ended Sept. 26 and most of the eight Jameson Sotheby’s International Realty. sin insurer over business-inter- ones of the multitude led against weeks prior, 1,000 or more condos came on the e reasons, Levin and other agents say, are ruption claims stemming from insurers across the country that market in Chicago, according to data posted Oct. 2020-related. “People are concerned about going government-ordered lockdowns have been consolidated thus far. 5 by the Chicago Association of Realtors. e ex- in elevators, they’re concerned about being in tied to the COVID-19 crisis. e decision makes Chica- ception was the week before Labor Day, when 911 conned common spaces,” Levin says, “they’re Among the plainti s are well- go a critical stage for determin- condos came on the market. concerned about what Michigan Avenue looks like known names like Billy Goat ing whether business insurers In that same eight-week stretch, buyers put few- Tavern; Big Onion Tavern Group, er than 400 condos under contract per week, and See CONDOS on Page 32 which owns seven spots includ- See INSURANCE on Page 30

JOE CAHILL NOTABLE ENTREPRENEURS The biggest movers among These 39 businesspeople represent Chicago-area stocks are in a range of young companies and sectors affected most heavily are helping to put Chicago on the by the pandemic, for better map as a growing center for or worse. PAGE 4 entrepreneurship. PAGE 19 2 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS When will enough be enough, even for Madigan? ike the houseguest who pilloried in a fashion like never strongly denied he did anything stayed too long, Speaker Mike before, there is chatter about wrong in handling ComEd and its LMadigan has summarily scenarios that could nally lead to lengthy Spring eld agenda, even rejected or otherwise ignored a ris- a change. But actually achieving though he’s referenced dozens GREG HINZ ing tide of pleadings that it’s time that change will require other of times in ComEd’s deferred ON POLITICS for him to move on after what is gures in Illinois government to prosecution agreement. “Helping approaching four decades (minus grow a backbone. Or federal pros- people nd jobs is not a crime,” two years) as leader of the Illinois ecutors to send up an indictment. he recently wrote a special House considers Madigan a loyal ally. a handful of seats in November, House. Or both. panel looking into whether he “He’s the devil we know,” says enough to allow a few insurgents e speaker for life, who rst Madigan has survived every- should be removed. “I cannot one former Democratic legislator. to vote against re-electing him got his job during Ronald Rea- thing, from chaos at City Hall and provide information I do not have, ere’s no clear successor, says speaker while leaving a majori- gan’s rst term as president in changing state demographics to and I cannot answer questions another. Special-interest groups ty behind the man who just got 1983, is showing no signs of grant- crooked governors of both parties. about issues of which I have no such as the abortion-rights crowd them elected. ing his critics’ wish anytime soon. e Energizer Bunny of state gov- knowledge.” made their deal with Madigan at all would change instantly “I fully expect he’ll be a candidate ernment just keeps on going, age at Sergeant Schultz “I know long ago. if Madigan actually is indicted. 78 or not. nothing” act has worn thin, es- ere’s one other reason I’ve Some lawmakers who nominally THAT SERGEANT SCHULTZ “I KNOW Still, the continu- pecially with Democratic women heard about recently. at’s the are still with Madigan may be ing Commonwealth who represent suburban areas upcoming legislative remap, in waiting for the feds to act rst, NOTHING” ACT HAS WORN THIN. Edison bribery scandal where Madigan’s reputation is in which every single lawmaker will guring they’ll take advantage has taken a bite from the dumper. Several of them have need Madigan on their side—as- of an opportunity if and when it for re-election” when House the Southwest Sider’s power and called for Madigan to step down. suming he’s still speaker, that arrives. ere’s also the possibility members meet after the Nov. 3 reputation like nothing he’s seen. But that’s not enough, with other is—if they’re to avoid political that Gov. J.B. Pritzker will make a election to select a new leader, While former Gov. Bruce Rauner progressives such as Chicago oblivion. Look at it as a game of move if his prized graduated in- says spokesman Steve Brown. “I spent millions on TV ads seeking state Rep. Will Guzzardi hiding musical chairs, with Madigan come tax amendment goes down think he’ll keep serving as long to demonize Madigan, “it came on the issue and the powerful assigning the chairs. on Nov. 3. at would be a game as (the job) is a challenge and his across as politics,” says one long- minority caucuses still on Madi- Meanwhile, Madigan is busily changer. health holds up.” time major political player who gan’s side. working to protect himself against So far, though, all Pritzker will Yet, in this toughest year of asked not to be named. “Now, Why? Madigan’s fundraising any surprises. With Joe Biden say is that “House members will his career, even Madigan has to it’s federal prosecutors. It’s more prowess still provides most of expected to sweep through make their own decisions.” So be wondering when enough is real.” the nancial fuel they need to suburban Chicago, Madigan’s he’s waiting. All of us are waiting. enough. Targeted and personally Madigan, of course, has win elections. Organized labor Democrats actually may pick up Someone cue Godot, please. How Pritzker may win by losing the ‘fair tax’ fight

he ght over the graduated as it may sound, the extra revenue amendment. In this ght, apparent- income tax—or the “Fair Tax,” would barely make a dent in the ly, no holds are barred. Tas Gov. J.B. Pritzker branded state’s $8 billion in unpaid bills or Despite all the complicating it—has rightly been called a battle this year’s nearly $7 billion budget factors, the graduated tax amend- DAVID GREISING of the billionaires. de cit, much less the $137 billion in ment may yet pass. If that happens, ON GOVERNMENT But it’s not just billionaires like pension underfunding. chances for broader scal reforms Pritzker and his chief opponent on Voters also have fair concerns likely will fall—until the next crisis the tax, Citadel founder Ken Grin, about the state’s scal discipline hits. rst place: pair pension reform ground—to the bene t of all the who have big stakes in the tax vote. day to day. Unlike other big-state If the amendment fails, Pritzker’s with his graduated income tax, a people in Illinois. All of us do. governors, Pritzker so far has not short-term loss might possibly be combination that could win broader e contest ahead of a Nov. 3 vote imposed furloughs, layos or other turned to the state’s advantage. He support. Crain’s contributor on Pritzker’s proposed amendment cuts in response to the pandemic need not give up on the graduated If Pritzker does add pension re- David Greising is to the Illinois Constitution remains e governor’s pitch for a fair tax tax entirely. Instead, a loss Nov. 3 form to the mix, the state’s two bat- president of the in- close. A source familiar with daily relies on an assumption that Illinois might give Pritzker a reason to do tling billionaires and their millions vestigative watchdog Better Govern- polling data from the pro-amend- voters trust their government. ey what he should have done in the of followers might nd common ment Association. ment side told me the projected need to believe tax hikes originally outcome is within the margin of aecting only the top 3 percent error of the polls, too close to call. won’t quickly make their way to Other facts support this. Lt. Gov. middle-income brackets. Juliana Stratton recently warned But this is the government that about a possible 20 percent tax hike promised generous retirement on everyone if the amendment fails. income and a 3 percent annual e threat would not be needed if cost-of-living raise, then systemati- the vote were secure. cally underfunded pensions. It sold At Wintrust, your banker knows you. Grin late last month poured bonds to help pay down pension another $26.8 million into the cam- obligations. Instead, the funds paign to stop the amendment. He chiey went into operations. We understand that your wouldn’t have doubled his initial Systematic corruption makes outlay if the outcome weren’t still matters worse. Voters pay directly, in play. in the form of Commonwealth employees depend on you. It’s astounding the contest is Edison subsidies and rate hikes close. e “fair tax” is a soak-the- lubricated by eorts to bribe rich appeal to raise taxes on the top House Speaker Michael Madigan, 3 percent of earners. e remaining for example. When all four legis- 97 percent are told their taxes will lative leaders use a “millionaire’s drop or stay the same. e 6 million loophole” in the state’s campaign taxpayers expecting lower or level nance law to funnel millions into tax bills should overwhelm the campaign war chests, perpetuating 190,000 in the top 3 percent who their hold on power, that erodes would face a tax hike. trust, too. Of course, politics is more than Opponents of the amendment Which is why thousands of math. It requires understanding take advantage of voter distrust, the hopes and fears of people, their stirring the pot with contentious is- businesses turned to us to help sense of whom to trust and what sues. ey recently claimed passage secure more than 114,000 local jobs. to believe. ose concerns help of the amendment would clear the Start the conversation at explain why Pritzker’s proposal is way for a law enabling Illinois to tax wintrust.com/meetus. not faring better. retirement income. Opponents grant Pritzker’s It’s odd to see conservatives, estimate that the graduated tax will many of whom see a case for taxing bring in an estimated $3.4 billion retirement income, raise the pos- Banking products provided by Wintrust Financial Corp. banks. a year in increased revenue. Large sibility as an argument against the

LIFT CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 3 As winter approaches, restaurants Not all will survive, and the impact on the brace for a deep freeze economy will be profound BY ALLY MAROTTI

PATIO SEASON IS ENDING, and Chicago restaurant operators say the winter could deliver a debilitating blow to River North steakhouse the city’s vast service industry. Gene & Georgetti needs Since the pandemic sank its teeth into the sector, to add to overall sales as restaurant landlords have had to decide between de- much as possible, says ferred rent or prolonged vacancies. Alcohol and food third-generation owner suppliers have reported losses. Almost 500 of Cook Michelle Durpetti. County’s 13,230 restaurants closed between June 1 and Sept. 20, according to RestaurantData.com. In a normal year, restaurants come and go. Operat- ing margins are small, and experts say the losses so far could have been worse. But as the mercury falls, the potential for further loss- “I DON’T THINK es looms large in a city well WE’RE GOING known for its dining scene. e Illinois Restaurant Associ- TO MAKE IT ation reports the city’s restaurant and hospitality jobs num- THROUGH ber 171,000. ose jobs are at THE WINTER stake, as is the 3 percent of the area’s economic output that WITHOUT came from the industry last year, according to data from FEDERAL RELIEF.” World Business Chicago. Erick Williams, Virtue e equation for survival Restaurant & Bar comes down to the individual restaurant. Some have more space. Others cut deals with landlords. Many added delivery and other revenue streams. “Some sit-down restaurants are going to see a mar- ketplace where there’s less competition and they feel better about operating. Some are just going to close and take the losses,” says Phillip Golding, a vice president at real estate brokerage CBRE. “ e winter is going to expedite that decision.”

TODD WINTERS TODD See RESTAURANTS on Page 32

 IT’S NO JOKE “Spoofing,” a form of market Feds fight back manipulation, became illegal in the Pinstripers eye derivatives markets in 2010, and since then regulators and prosecutors have against spoofers steadily ramped up enforcement, with pot purveyors increasing success lately. lions of dollars. O cials say suc- priced at half that in any other Increased heat seems cessful enforcement is curbing 2010: Dodd-Frank Wall Street Local investment banks industry.” the practice, a trend that could Reform & Consumer Protection Miles has spent nearly 25 to be curbing illegal improve transparency and pric- Act criminalizes spoofing sni opportunity in years in middle-market invest- futures trading trick ing in the markets. marijuana market ment banking, helping privately Defense attorneys, mean- owned companies raise money BY LYNNE MAREK while, are bracing for more heat. BY JOHN PLETZ or do mergers, acquisitions and “We’ll see a lot more of these 2013: CFTC brings first sales. He co-founded Living- After some embarrassing set- cases,” says Greenberg Trau- enforcement action under Steve Miles aims to bring La- stone, which has about 70 in- backs, a federal crackdown on rig attorney Daniel Filor, noting the anti-spoofing provision Salle Street to the marijuana vestment bankers with o ces “spoo ng” in derivatives markets many could be based on activi- business. in the U.S., Europe and Asia, in is nally gathering momentum. ty more than ve years old. “It’s 2015: Chicago federal e co-founder of Living- 2007. Last month, prosecutors well known in the white-collar jury convicts first individual stone Partners, a Chicago-based Sharp will operate separately won convictions of two former defense bar that the government of spoofing investment bank, has started a from Livingstone. Miles hired Deutsche Bank precious-met- is pursuing or investigating cases new rm called Sharp Capital Steve Ernest from Viridian Capi- als traders on spoo ng-related beyond precious metals.” 2018: Former UBS Trader Advisors that’s focused exclu- tal, a New York investment bank charges, and regulators extract- Spoofers aren’t a handful of acquitted of spoofing in sively on weed. Because mari- specializing in cannabis, and ed a record $920 million spoof- small-time scammers on the edg- Connecticut juana remains illegal under fed- Rebecca Hawkinson, a veteran ing settlement from JPMorgan es of the industry, although some eral law, big-name investment Chicago real estate dealmaker. Chase, the nation’s biggest bank. of those have been snagged, too. 2019: Naperville software banks so far have been unwill- eir move is one more sign Outlawed in 2010, spoo ng is Alleged culprits range from glob- developer spoofing prosecution ing to get involved. that weed is becoming too big the practice of entering a buy or al banks to big trading rms like ends in mistrial “ ere really aren’t any tradi- for professional services pro- sell order and quickly canceling Tower Research Capital and major tional established rms that are viders to ignore. In the U.S., it after the order moves the mar- corporations including oil giant 2020: JPMorgan pays operating in the space,” Miles marijuana sales are expected ket in a direction that bene ts Sunoco. Companies often blame $920 million fine for spoofing says. “ ere’s no institutional to reach $16 billion this year, the trader. By one estimate, the the schemes on rogue employees in biggest CFTC fine ever; capital in the industry. ere’s up from $12 billion in 2019, illegal practice has cost market in their trading operations. prosecutors convict two traders a need for someone with rela- according to Arcview Market participants at exchanges run by In JPMorgan’s case, the U.S. on spoofing-related charges tionships to help people raise Research and BDSA. In Illinois, Chicago-based CME Group and Source: Crain’s reporting money. ey’re paying 15, 16 other venues hundreds of mil- See SPOOFING on Page 31 percent for debt that would be See WEED BANKS on Page 26 4 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS Coronavirus churns Chicago stocks Chicago-area stocks are Real estate stocks fared badly, trailing broader equity markets, especially those tied to rent- as COVID-19 hammers key local als and lower-income market industries. segments. Concern that job e Bloomberg Illinois Index, losses among tenants could lead a compilation of 134 local to skipped rent payments sent

stocks, fell 13 percent during shares of Chicago-based apart- GETTY IMAGES the rst nine months of the year. ment landlord Equity Residen- at’s well behind the S&P 500, tial skidding 37 percent. Mobile which rebounded from March home park operator Equity lows to post a 4 percent gain Lifestyle, also based in Chicago, Artists vital to COVID recovery through the third quarter. fell 13 percent. Ventas, a Chica- e biggest movers among go-based real estate investment We need to invest in the makers and creators, according to Ti any Mikell, Chicago-area stocks are in sec- trust specializing in medical and tors aected most heavily by the senior-living properties, sank program director at the South East Chicago Commission pandemic, for better or worse. 27 percent in the meltdown of Fortune Brands Home & health care-related stocks. BY EMILY DRAKE AND TODD CONNOR artists have an incredible amount Security turned in the best per- Falling interest rates and fears of social capital and can activate formance of any local stock with of rising loan defaults in a down Chicago Comes Back is a weekly series on ChicagoBusiness.com provid- networks; and artists are trained market capitalization exceeding economy hurt nancial stocks. ing leadership insights to help your business move forward, written by lead- to re-imagine and repurpose, un- $10 billion, rising 32 percent. e Riverwoods-based credit card ership consultants Emily Drake and Todd Connor. locking the value of existing phys- Deereld-based manufacturer of and consumer loan company Drake and Connor facilitate Crain’s Leadership Academy. Drake is a li- ical assets. building products such as plumb- Discover Financial Services sank censed therapist, owner of the Collective Academy and a leadership coach. We’re seeing a re-energizing ing xtures, cabinetry, doors and 32 percent, and Chicago-based Connor is the founder of Bunker Labs and the Collective Academy and is of local enterprises. Although 40 decking materials is beneting as wealth management titan North- also a leadership consultant. percent of small businesses will people stuck at home during the ern Trust declined 27 percent. Check out previous installments at ChicagoBusiness.com/comesback. go out of business this year, local pandemic spruce up their houses. Industrials held up remark- commercial corridors are thriving. Travel-related stocks led local ably well amid global economic EMILY DRAKE: When we think louder conversations about race Included in this rebirth of local losers. United Airlines’ shares turbulence marked by a sharp about Chicago coming back, I and diversity that are long overdue. business districts are local creative posted the steepest decline, downturn in the spring, followed don’t think of a moment—I think What’s been your experience with entrepreneurs—providing cultur- falling 61 percent as virus fears by a summer rebound that now of a whole new ecosystem. In that what Chicago artists can add to ally essential services to this “cap- ravaged passenger counts and appears to be fading. Deere ecosystem, industry is connected that intersection? Not to mention tive” audience of patrons. revenues at the Chicago-based surged 28 percent as the Mo- to politics, politics is connected to what they add to our economy? carrier and across the airline line-based farm and construc- the environment, the environment ED: For me, this makes investment industry. Chicago-based aircraft tion equipment manufacturer is connected to art and so on, so I TM: Artists are movement leaders. in local organizations like SECC manufacturer Boeing plummet- proved immune to the woes wanted to hear from a community Every movement in history has almost more important than large ed 49 percent as plane orders plaguing its end markets. Deere many readers may not be listening had an unocial soundtrack and arts institutions for that very rea- dried up, compounding the im- managed to slash costs fast to as readily as they do business design or aesthetic, from women’s son, to bolster economies and pact of the continued grounding enough to expand prot margins experts: Tiany Mikell, program surage to civil rights to gay rights. revitalize areas of our city that are of its mainstay 737 Max jet. despite slowing sales. Deer- director at the South East Chicago Black and Brown creatives, specif- coming back alongside what’s Paradoxically, the worst eld-based heavy-equipment Commission. ically, are often the developers of going on in the Loop. I have to public health crisis in mod- maker Caterpillar and Glenview’s these cultural assets, assets that ask, too, what you’re most excited ern memory has been bad for Illinois Tool Works also showed TODD CONNOR: I was so excited move us collectively forward as a about when it comes to the “come- health care stocks. With hospi- resiliency, rising 1 percent and 8 to bring in a voice that can speak society. back.” Do you have any predictions tals straining to care for waves percent, respectively. to the intersection of arts and busi- Far too often, when it comes on how art will continue to inu- of COVID-19 patients, many Local packaged-foods compa- ness and economic growth. e to Arts & Culture + Activism, the ence how we travel this next part of other medical procedures were nies were a mixed bag, despite arts seem like such a broad way organizations and communities the post-pandemic journey? suspended for months. On top pantry-stocking by consumers to categorize a world of work that that benet nancially from these of that, some people have hesi- forced to spend more time at is carrying us through the pan- assets are not the founders. I view TM: Art will only carry us if we are tated to seek medical treatment home. Shares of Chicago-based demic—through visual art, per- my current role as providing these investing in the makers and cre- for fear of catching the virus at Conagra Brands rose 4 percent formance art, music. Tiany, what cultural movement leaders with ators of art. Scalable technology doctor’s oces or hospitals. on strong growth from a port- are you seeing from your vantage the capital needed to scale their will be an important aspect of this Shares of Deereld-based folio full of familiar names such point? impact while also borrowing in- investment. For years, my work has drugstore chain Walgreens Boots as Birds Eye, Duncan Hines and vestment models from venture/ been centered on how undercapi- Alliance tumbled 39 percent on Healthy Choice. Snacks giant TIFFANY MIKELL: We are de- private equity that make fair cap- talized creative entrepreneurs can slowing prescriptions in the U.S. Mondelez, the Chicago-based nitely going through a collective italization of value possible for this unlock early startup capital while and sales declines in the United maker of Oreos and Cadbury re-imagining of how society is specic vertical of creative entre- solving important problems— Kingdom. North Chicago-based chocolates, also added 4 per- structured and what (or who) we preneurs. through the use of new media (the drugmaker AbbVie’s shares cent, but Chicago’s Kraft Heinz value or deem as essential and internet, livestreaming, etc.) and edged down 1 percent, while slumped 7 percent on worries worthy of investment. Artists have TC: I know the SECC is focused on by leveraging frameworks like the drug and device company Baxter about protability and growth in always contributed a tremendous economic development in a spe- Lean Startup Methodology and International, based in Deereld, its lineup of grocery staples. amount of value to the larger eco- cic area of Chicago, around Hyde Design inking. saw its stock slip 4 percent. Where do local stocks go from nomic ecosystem, from cultural Park and Woodlawn. What is the For over a decade, technology Abbott Laboratories bucked here? Forecasting is a fool’s tourism to real estate enhance- benet of focusing in that way? has profoundly altered the context the downturn in health care errand, especially during an ments to job creation. and economics of artists’ work— stocks, thanks to surging de- unprecedented pandemic. Still, e pandemic has not only TM: Hyperlocal investment is crit- we’re just now, due to the pan- mand for diagnostic equipment. certain factors suggest Chica- forced us to rethink how we con- ical. According to a 2015 study by demic, collectively being forced Shares of North Chicago-based go-area shares will continue to duct business but also how we JPMorgan Chase, although small to invest in the technology infra- Abbott jumped 25 percent in underperform. For one thing, invest in our homes and neighbor- businesses represent 25 percent structure and training that will the rst nine months of the year. we lack the big tech names that hoods. “Art & Culture” has indeed of all businesses in Chicago, they allow local small-business own- But the news wasn’t all good: An lift broader market indexes. For become an important overarching create nearly 60 percent of all ers (including artists) to deliver outbreak of COVID-19 among another, we still have megacap lens for measuring the health and the jobs in “inner-city neighbor- meaningful experiences at scale. guests at a White House ceremo- companies in sectors hit hard by vibrancy of our communities. hoods.” is means big business My message for business lead- ny for Supreme Court nominee COVID. Industries like aviation, does not take care of local neigh- ers is to take advantage of this mo- Amy Coney Barrett cast doubt commercial real estate and - ED: One of the things we focus on borhoods—small businesses do. ment of collective market reimag- on the accuracy of an Abbott nancial services face signicant is the intersection of leadership My current work focuses on ining by both investing in scalable rapid diagnostic machine used headwinds until an eective and psychology: how our inner- artists as local wealth builders systems and creating models of to screen people before they vaccine restores a semblance of most values are on display during through three key truths: An artist hyperlocal impact. entered the Rose Garden. economic normalcy. this incredible transition in busi- is a human capital asset that ex- Not sure how to do this? Look to ness, in our city and alongside ists in every single neighborhood; your local artists for inspiration. 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20cb0458.pdf RunDate: 09/21/20 Full Page Color: 4/C 6 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS THE TAKEAWAY

HONORING Keith Parrott

Parrott, 51, became CEO of Lisle-based Amita Health in January. Soon after, one of his 19 Chicago-area hospitals, Amita Health St. Alexius Medical Center in Homan Estates, was treating the second con rmed COVID-19 case in the U.S. Before joining Amita, a joint venture of Ascen- sion’s Alexian Brothers Health System, Adventist Midwest Health and Presence Health, the Texas native was CEO of Tenet Healthcare’s Alabama/ Tennessee Group. By Stephanie Goldberg >

COVID-19 started spreading soon after your rst day on the job. What has that been like? JOHN J. CONROY, JR. HARRY M. JANSEN KRAEMER, JR. I started Jan. 13. Ten days later I’m at a fundraising Principal and Executive Partner, event for our foundation at a hotel on Michigan REACH FOR EXCELLENCE Former Global Chair, Madison Dearborn Partners Avenue. Literally, I go up to the podium to speak to Baker McKenzie Professor, Northwestern University, donors for the rst time, and I get a text: “We’ve got AWARDS GALA Kellogg School of Management the second con rmed COVID case in the U.S. at one of our facilities.” My rst 90-to 100-day plan just went out the window. >

VIRTUAL! Monday, October 26, 2020 What were your What is one of the biggest priorities? hardest decisions 7:00 to 7:45 pm It was a lot for an you’ve had to make as organization this big it relates to the COVID-19 at midtown.org/dinner and this complex pandemic? to go through the There was a point that you had kind of change it to step back and say, “OK, what’s To register, visit midtown.org/dinner. went through in a going to happen when we don’t short period of time: > have enough intensive care unit space, Information: Contact Michele Olsen at bringing on the ventilators or paralytics for people that need [email protected] or 312/738-8300, ext. 24. Presence facilities to be intubated?” Because we’re a faith- in 2018 and trying based organization, we were taking that to integrate those very seriously. And so that was probably Founded in 1965, Midtown Educational Foundation guides teams, and a lot of the decision I feared the most: “How do we low-income urban youth in Chicago along pathways of success. senior management determine who gets what?” Thankfully, we turnover in 2019. I never got there. felt like—and the board felt like—the new leader needed to come in and really communicate about the mission and develop trust and a sense of hope. You can’t do that until you’ve connected with people. SLEEP TO PERFORM > What led you to the Prepare yourself for the unpredictable. health care industry? My dad was a minister at a large church in a small town, and so I grew up in a shbowl. There was a time in my life that I thought I might go into church work like my father and his father. Then I got interested in hospital management. Health care that’s delivered in a holistic approach is not just focused on the physical aspects, but the mental and spiritual aspects. Being able to tie that all together into work attracted me. It’s a place to really marry my interest in business and leadership with some of the work I’d seen the men in my family do. >

What are you reading right now? Patrick Lencioni. I started reading one of his books this weekend called “The Advantage.” I either read business publications or management books, so I guess I’m kind of boring. Connecting workers to new skills

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Strengthening pathways Here in Chicago, we’re partnering with local organizations to create pathways to better jobs, including: Cara Program North Lawndale Employment Network

To learn more, please visit bankofamerica.com/community

20cb0491.pdf RunDate 10/12/20 FULL PAGE Color: 4/C 8 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

In a rapidly changing industry, and with ever-larger rivals invading its turf, the nancial services rm looks to its last leader for the future BY LYNNE MAREK Mesirow reaching back to get ahead esirow Financial Chair- man Richard Price re- Mclaimed the CEO title last month, after handing it o two years ago to the company’s president. Now it’s up to him to jump-start growth at the midsize Chicago nancial services rm as competition encroaches. In his last go-round as CEO, from 2011 to 2018, Price mainly shed parts of Mesirow that his late predecessor Jim Tyree had cobbled together. He sold a big insurance business, a smaller hedge fund unit and other pieces, leaving Mesirow with three mainstays: managing investments for institutions and individuals, selling and trading debt products, and advising companies on employee retirement plans. Price, 73, now says he expects to remain in the top post for up to ve years and expand the rm by doing more of the same. e nancial services industry is changing rapidly, with fee com- pression and ever-larger rivals, so the 83-year-old private rm will have to evolve to expand. “We’re done (divesting),” Price says in an interview. “We’re in an add-and-grow mode.”

TITLE CHANGE As the largest shareholder at

the employee-owned private BOEHM R. JOHN firm, Price has plenty of skin in “We’re done (divesting). We’re in an add-and-grow mode,” says Mesirow CEO Richard Price, who took the helm again last month. He previously was CEO from 2011 to 2018. the game. In a surprise move last month, he and President ing big opportunities in his Jeff Harte says. in industrywide fee-cutting in w Dominick Mondi announced business, and Price says he’s “The challenge is you have to recent years to stay competitive. REVENUE ROLLER COASTER the CEO title change, just two counting on Mondi to deliver have a strong regional presence e Chicago Teachers’ Pension Mesirow Financial’s revenue has been years after Mondi had accepted billion-dollar deals that bol- in any area where you compete Fund has placed $195 million choppy in recent years as income it in what was then seen as the ster growth. Specifically, Mondi to really make it work,” says with Mesirow since 1999, with from the capital markets business firm’s succession plan. has been eyeing public-private Harte, who is based in Chicago. respectable 9.5 percent returns fluctuated with the financial markets, Under that prior arrange- partnerships; infrastructure Mesirow’s revenue tends to so far, according to the pension. ment, Price was to keep an eye financing; and corporate real uctuate with the capital mar- When it comes to competi- including the hit from COVID-19. on internal functions like legal estate deals in which Mesirow kets unit, where income can be tion for high-net-worth clients, REVENUES and human resources as exec- buys properties, leases them choppy, depending on what’s the battle is getting tougher with For fiscal year ended March 31, in millions utive chairman and let Mondi, back to the tenant and securi- happening in the nancial mar- rampant consolidation among $350 a New Yorker who came to the tizes the asset. kets, Price says. e rm’s “reve- nancial advisers. Local rms 300 $274 million firm from Bear Stearns in 2008, “We closed a significant nue is going to go up and down William Blair and R.W. Baird 250 sale-leaseback capi- based on the activity in the capi- have larger operations with more tal transaction in fis- tal markets business,” Price says. nancial advisers, according to 200 WHEN IT COMES TO COMPETITION cal year 2019, and we While Mondi’s capital mar- Tiburon Strategic Advisors. 150 FOR HIGH NET WORTH CLIENTS, THE did not close a simi- kets unit has sometimes been A lower profile in recent years 100 lar large transaction Mesirow’s biggest unit by reve- probably didn’t help Mesirow, 50 in fiscal year 2020,” nue, that wasn’t the case for the Harte says. Former CEO Tyree BATTLE IS GETTING TOUGHER WITH 0 Price says in an email year that ended in March. In- was a big personality in Chica- 2018 2019 2020 RAMPANT CONSOLIDATION AMONG follow-up explaining vestment management moved go and the glue that held Me- Note: Figures based on generally accepted accounting the revenue dip. “It ahead, with retirement advisory sirow’s disparate businesses to- principles. FINANCIAL ADVISERS. is not uncommon for as the smallest. gether. Tyree’s abrupt death in Source: Mesirow real estate transac- 2011 left the firm in the hands spearhead growth. tions to have a long lead time to MIDDLE MARKET INVADERS of the lower-key Price, who was But Price says there aren’t Instead, Mesirow’s annual come to fruition.” The capital markets arena is previously president. The board any big combinations in Me- revenue dipped 8 percent to One of Mondi’s most recent where Mesirow is most likely tasked Price with paring Tyree’s sirow’s future. The firm added $274 million for the scal year capital markets deals was in to go head-to-head with larger handiwork. a CIBC team in the retirement ended in March, thanks partly to arranging public-private fi- financial institutions, and the “If Jim liked something, he’d advisory business recently, and the COVID-19 pandemic, com- nancing for a new $194 million New York banks in recent years buy it, and it didn’t always real- he prefers those small, bolt-on pared to $298 million in 2018, outpatient surgery center at the are sometimes swooping down ly coincide with other things we acquisitions, he says. Selling and headcount slipped to 482 University of Illinois at Chicago. into the middle market to gain were trying to do,” Price says. the company also isn’t a part of employees, from 500. Revenue Being a middle-market play- market share. Even as Price completed his plans. did climb 12 percent last year to er is a “defensible niche” for Mesirow’s business managing Mesirow’s right-sizing in 2017, If a new leader emerges soon- $334 million over the prior year. regional firms like Mesirow, as more than $32 billion in assets regional rivals have been com- er than his five-year horizon, Mondi, 66, who heads the long as they stay focused on for institutional clients and in- bining to gain scale and better Price says he’ll step aside, but firm’s capital markets unit, the middle market as opposed vestments for wealthy individ- compete. Piper Jaffray’s merger in the meantime he’ll try to beat says he gave the title back so to reaching to build a national uals is more stable, Price says, with Sandler O’Neill this year is back mounting competition he could concentrate on land- presence, Piper Sandler analyst though he acknowledges joining the most recent example. with a steady-state approach. CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 9 Blue Cross parent providing COVID-related premium credits The move comes several months after rivals like Anthem and UnitedHealth Group pledged to give customers a share of savings resulting from a drop in nonemergency care during the pandemic. HCSC’s rst-half net income was up 14.5% from a year earlier. BY STEPHANIE GOLDBERG sis oset an increase in bene ts physical and nancial health of and administrative expenses our members during this unprec- Blue Cross of Illinois’ parent is driven by growth in Medicaid edented public health emergen- providing premium credits worth and group membership, the in- c y .” roughly $240 million to fully insurer told Modern Healthcare HCSC also recently issued sured employer customers. last month. medical-loss ratio rebates total- Chicago-based Health Care ing $455 million to individuals Service Corp. is among health FINANCIAL RELIEF and small groups, as required MacMurray College Campus Auctions Nov 12 insurers that have bene ted from In addition to $240 million in under the Aordable Care Act, Historic 52+/- ac Campus Sells in 18 Individual Tracts a COVID-fueled decline in non- premium credits, HCSC has ad- according to the statement. e JACKSONVILLE, IL - MacMurray College was a historic, independent, four-year, emergency medical care during justed 2021 individual and group mechanism limits pro ts by re- career-directed college founded in 1846. The campus is located in west central Illinois, the pandemic. e nancial re- rates to deliver more than $305 quiring insurers to spend a cer- about 30 miles west of the state capital of Springfield. The auction is structured to lief for customers comes several million in savings, the compa- tain percentage of premium dol- give individual buyers an opportunity to acquire various buildings, although one parcel includes multiple buildings that would be suitable for a smaller school or other months after rivals, such as An- ny says in a statement. Includ- lars on medical care and quality educational use. them and UnitedHealth Group, ing waiving cost sharing for improvement. is year’s rebates pledged to give customers—and telehealth services, as well as are based on nancial data from Public Inspections: 11-3pm Fri Oct 23 & 30 - Guests must check into the Gamble Campus Center doctors in some cases—a share COVID-19 testing and treatment, before COVID-19. of the savings through premium it has provided more than $930 “ere continues to be uncer- Auctions: 10am Thur Nov 12 at Gamble Campus Center - 613 E Beecher Ave credits and other discounts. million in nancial relief during tainty concerning health care or bid onlin at auctionnetwork.com HCSC, which also owns Blue the pandemic, the statement spending and the impact of de- Prefer Not to Wait for the Auction? Submit a Pre-Auction Offer! Cross & Blue Shield plans in Tex- says. ferred care for the remainder of as, Montana, Oklahoma and New “Our customers trust us to be the year,” HCSC says in the state- Call 800.801.8003 for Auction Catalog! Mexico, raked in $2.6 billion in good stewards of their premium ment. “e company will contin- williamsauction.com/MacMurray net income in the rst half of the dollars and ensure they have ac- ue to closely monitor the evolv- IL DANIEL S. NELSON, MANAGING BROKER RE LIC 471.016793. MONTE W. LOWDERMAN AUC LIC 440000708. year, up 14.5 percent from the cess to aordable, high-quality ing health pandemic and health BUYER’S PREMIUM MAY APPLY. same period in 2019. Meanwhile, care,” CEO Maurice Smith says care claim trends to determine revenue rose 8.5 percent to $21.3 in the statement. “As part of our how best to support customers, billion. e decline in medical commitment, we are always communities, and health care claims during the COVID-19 cri- seeking ways to support both the delivery partners.”

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YOUR VIEW Continued

Other aordable actions—like expanding eligibility for the earned income tax credit to people without children and caregivers and helping students attend community colleges debt-free—could help many build wealth, get better jobs and weather dicult times. EDITORIAL Five years from now, if we bounce back as a region, we should bounce back together. Racial and economic inequity is long-standing, but it is not inevitable. When roughly two-thirds of the region is being left behind or cannot fully participate in our economy, the region will continue to suer economically. We can envision a better city: where the 30-year life expectancy 50 reasons for optimism gap between Streeterville and Englewood is eliminated; where loans and investment in Black and Latinx communities are commensurate he No. 1 company on Crain’s lat- erations of strivers and made the Midwest a with majority-white areas; where young people of all races and eth- est list of Chicago’s fastest-growing key player in the knowledge economy. nicities can come out of school and obtain high-quality public- and companies is the sort that rep- ere are headwinds blowing in Ship- private-sector jobs. resents everything that has made Bob’s direction, however, though this com- If we succeed, the Chicago region could serve as a model for the country TChicago great—and which could continue pany has proved to be better insulated than in building back stronger—and possibly transform the systems that have to make this a vital place to live and work in most against the ravages of the COVID re- held back communities of color for centuries. the future, if this region plays its cards right. cession. e e-commerce boom bene ts at company is ShipBob, a logis- companies in the shipping business, no tics-technology and shipping services pro- doubt. ShipBob is also a relative exception vider that helps small and midsize business- in another way, in that it has drawn sig- es get their wares to customers quickly and ni cant venture-capital funding from the eciently. Launched in 2014 by engineers coasts and beyond—something other local President KC Crain Dhruv Saxena and Divey Gulati, ShipBob startups can boast, as well, but not as many Group publisher Mary Kramer logged ve-year growth of 83,384 percent as Chicago-area tech boosters would like. Publisher/executive editor Jim Kirk to reach just over $57 million in revenue in All that said, the torrid growth that pro- Associate publisher Kate Van Etten 2019. e company now employs 431 peo- pelled ShipBob and 49 other companies * * * ple, including 277 here in the Chicago area. onto this year’s Fast 50 list will be a chal- Editor Ann Dwyer It’s an astonishing success story that’s lenge to maintain under current conditions. Creative director Thomas J. Linden fueled in part by the surge in e-commerce Note that the latest Fast 50 list measures Assistant managing editor Jan Parr activity as well as the sting some online mer- revenue growth through 2019. For many, Assistant managing editor/digital Ann R. Weiler chants felt earlier this year when Amazon, 2020 will be another story entirely—and the Deputy digital editor Todd J. Behme the titan of the e-tailing world, prioritized economic outlook for 2021 is murky at best. Digital design editor Jason McGregor Senior art director Karen Freese Zane essential items for shipment in the earliest GETTY IMAGES Add to that the nancial pressures facing phases of the pandemic, thus freezing out the city of Chicago and the state of Illinois, Copy chief Danielle Narcissé the smaller players that make up the foun- oce branch and pitching his idea to folks city to become the spine of the interconti- and it’s possible we may have to brace our- Deputy digital editor/ Sarah Zimmerman dation of ShipBob’s business. Investors are waiting in line. He found takers, and a busi- nental rail system and, later still, the home selves for much dierent ve-year growth audience and social media taking notice: ShipBob raised $68 million in ness was born. of the world’s busiest airport. numbers when Crain’s publishes the Fast Columnist/contributing editor Joe Cahill funding from a division of SoftBank in Sep- Intentionally or not, ShipBob’s origin So, Chicago has long been good at the 50 2021. Forum editor Cassandra West Political columnist Greg Hinz story has roots in the very thing that made business of moving stu around. ShipBob’s So much depends on coming up with a tember—and that’s on top of $62.5 million Senior reporters Steve Daniels raised earlier from a half-dozen funders, in- Chicago a major story also under- comprehensive, national plan to beat back Alby Gallun cluding Hyde Park Venture Partners. metropolis to be- scores the impor- the threat of COVID-19 and get people back Lynne Marek Saxena and Gulati’s tale involves the sort gin with: its central CHICAGOANS, GIVEN THE CHANCE, tance of immigra- to work safely. A similarly herculean chal- John Pletz of “aha!” insight that’s the stu of classic geographic loca- ARE INVENTIVE, COLLABORATIVE tion to Chicago’s lenge faces Gov. J.B. Pritzker and Chicago Reporters Danny Ecker business magazine copy—in this case, a re- tion. is accidental economic well-be- Mayor Lori Lightfoot as they wrestle with Stephanie Goldberg alization that they could meet online mer- blessing once made AND HARDWORKING ENOUGH TO ing. Both Saxena our calamitous public nances. Still, the list Wendell Hutson chants’ unmet needs by storing inventory Chicago a conve- and Gulati are of published in this week’s issue provides 50 Ally Marotti for them and packaging and shipping it at nient stop for fur OVERCOME ANY OBSTACLE. Indian heritage. An- reasons to be optimistic that Chicagoans, A.D. Quig lower rates than those merchants could get traders when rivers other key aspect of given the chance, are inventive, collabora- Dennis Rodkin at the post oce. In short, they aimed to were the primary mode of transportation— their success: Both are products of Big Ten tive and hardworking enough to overcome Steven R. Strahler create a ready-made way for entrepreneurs long before anyone thought to use words schools—Gulati is a graduate of the Univer- any obstacle—if only our elected leaders Copy editor Scott Williams to compete with Amazon’s one- or two- like “logistics” or “supply-chain manage- sity of Illinois, Saxena of Purdue—the kind would muster the political resolve to create Contributing photographer John R. Boehm day shipping. Saxena acted on that hunch ment” to describe what they were doing. of state-funded institutions of higher educa- better conditions for business to do what it Researcher Kasey Hariman by hanging out outside a Lincoln Park post at centrality later made Chicago the right tion that have provided opportunity to gen- does best. * * * Director of digital strategy Frank Sennett Director of custom media Sarah Chow Associate director, Jaimee Holway YOUR VIEW events and marketing * * * Production manager David Adair How to build an equitable COVID recovery for Chicago Account executives Aileen Elliott Claudia Hippel efore the pandemic up- and businesses, combined with perous Chicago for everyone. the private sector have an essential role to Christine Rozmanich ended our lives, Chica- conditions that exacerbated We rmly believe this is possible if we are play. e corporate community has the op- Bridget Sevcik Bgo appeared to be on the health risks, left communities of willing to take on entrenched systems and portunity to extend beyond philanthropy, by Laura Warren upswing from the Great Reces- color uniquely vulnerable to the direct resources where they can make a real making catalytic investments in disinvest- Courtney Rush sion, with unemployment and virus and its economic conse- dierence: ed communities and ensuring community Amy Skarnulis household income nearly back quences. First, increase investment in Black and Lat- members shape and bene t from changes People on the Move manager Debora Stein to pre-recession levels. But even e fact is that Chicago can- inx communities. to their communities, procuring goods and Sales assistant Lauren Jackson then, the recovery did not bene t not recover from this pandemic Bank loans and private capital invest- services from Black and Latinx entrepre- Project manager Joanna Metzger everyone equally. Housing pric- unless we all recover. As the city ment in communities of color are a fraction neurs and businesses, investing in and hir- Event planner Katie Robinson es lagged, and Black and Latinx confronts the twin epidemics of of white neighborhoods’. A recent analysis ing people of color living on Chicago’s South Event manager Tenille Johnson Chicago—two-thirds of this great Helene D. Gayle is COVID-19 and systemic racism, found that lenders invested more money in and West sides, and increasing the diversity Digital designer Christine Balch city’s population—never fully re- president and Chicago has an opportunity to majority-white neighborhoods such as Lin- of the professional services rms they retain. Crain Communications Inc. covered, battered by persistently CEO of the Chi- build a more equitable recovery. coln Park than they did in all of Chicago’s ird, ensure public policies promote eq- Keith E. Crain Mary Kay Crain high unemployment levels and in- cago Community A new initiative taking shape majority-Black neighborhoods combined. uity. ere is much policymakers can do to Chairman Vice chairman KC Crain Chris Crain come a fraction of white residents’. Trust. is working to do just that. Last e same was true for Lakeview and West right historical inequities. By enforcing and President Senior executive vice president As the city looks to survive and week, the Chicago Community Town. We must increase investment in small strengthening the Community Reinvest- Lexie Crain Armstrong Robert Recchia recover from the pandemic, we cannot af- Trust, the mayor’s oce, Chicago busi- businesses and spur catalytic development ment Act, we can ensure banks provide ac- Secretary Chief nancial ocer ford to make the same mistakes. It is no ac- nesses and philanthropies, and commu- in underinvested areas, especially on the cess to capital and aordable lending prod- Veebha Mehta Chief marketing ocer cident that Black and Latinx communities nity leaders launched Together We Rise, South and West sides of Chicago, where 10 ucts that allow households to build wealth. * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. have borne the worst of the human and eco- an initiative for an equitable and just re- neighborhoods have already been designat- By investing in better transit and jobs in im- Founder Chairman nomic devastation of coronavirus—includ- covery. is collaboration was created to ed priority in the city’s Invest South/West poverished communities, Black and Latinx (1885-1973) (1911-1996) ing 2,200 of Chicago’s nearly 3,000 deaths. increase funding, align business practices initiative. Chicagoans won’t have to spend so many For subscription information and delivery concerns Chronic underinvestment in communities and change policies to build a more pros- Second, understand that businesses and unproductive hours each day commuting. please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer. CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 11

YOUR VIEW Continued

Other aordable actions—like expanding eligibility for the earned income Ally Marotti joins Crain’s Chicago Business tax credit to people without children and caregivers and helping students Ally Marotti, who until recently cov- track some of the largest companies in attend community colleges debt-free—could help many build wealth, get ered cannabis and technology for the the Chicago area—including McDon- better jobs and weather dicult times. Chicago Tribune, has joined Crain’s ald’s, Kraft and Mondelez—as well as EDITORIAL Five years from now, if we bounce back as a region, we should Chicago Business to cover consumer some of the smallest, such as boutiques bounce back together. Racial and economic inequity is long-standing, products, food, restaurants, retail, me- and chef-owned restaurants. but it is not inevitable. When roughly two-thirds of the region is being dia and advertising. A 2013 graduate of Ohio State Universi- left behind or cannot fully participate in our economy, the region will Marotti’s arrival is a homecoming of ty, Marotti has won awards from the Chi- continue to suer economically. sorts: She served as a general assign- cago Headline Club, AP Media Editors We can envision a better city: where the 30-year life expectancy ment reporting fellow at Crain’s in 2015, Ally Marotti and the Illinois Press Association. Before 50 reasons for optimism gap between Streeterville and Englewood is eliminated; where loans joining the Tribune sta at the conclusion of her her previous stint at Crain’s, she was a breaking and investment in Black and Latinx communities are commensurate fellowship. news reporter for the Cincinnati Enquirer. erations of strivers and made the Midwest a with majority-white areas; where young people of all races and eth- At the Tribune, Marotti was responsible for “Ally has proved herself as a tough reporter key player in the knowledge economy. nicities can come out of school and obtain high-quality public- and initiating the newspaper’s coverage of the bur- willing to do whatever it takes to get the story. ere are headwinds blowing in Ship- private-sector jobs. geoning cannabis industry and competed with She’s also a team player with a big heart and Bob’s direction, however, though this com- If we succeed, the Chicago region could serve as a model for the country Crain’s John Pletz in covering Chicago’s tech- great sense of humor,” says Crain’s Editor Ann pany has proved to be better insulated than in building back stronger—and possibly transform the systems that have nology scene. In her new role at Crain’s, she will Dwyer. “We’re thrilled to have her back.” most against the ravages of the COVID re- held back communities of color for centuries. cession. e e-commerce boom benets companies in the shipping business, no doubt. ShipBob is also a relative exception in another way, in that it has drawn signicant venture-capital funding from the coasts and beyond—something other local President KC Crain startups can boast, as well, but not as many Group publisher Mary Kramer as Chicago-area tech boosters would like. Publisher/executive editor Jim Kirk All that said, the torrid growth that pro- Associate publisher Kate Van Etten Integrated Real Estate pelled ShipBob and 49 other companies * * * onto this year’s Fast 50 list will be a chal- Editor Ann Dwyer lenge to maintain under current conditions. Creative director Thomas J. Linden Note that the latest Fast 50 list measures Assistant managing editor Jan Parr revenue growth through 2019. For many, Assistant managing editor/digital Ann R. Weiler Development Solutions 2020 will be another story entirely—and the Deputy digital editor Todd J. Behme economic outlook for 2021 is murky at best. Digital design editor Jason McGregor Add to that the nancial pressures facing Senior art director Karen Freese Zane the city of Chicago and the state of Illinois, Copy chief Danielle Narcissé and it’s possible we may have to brace our- Deputy digital editor/ Sarah Zimmerman selves for much dierent ve-year growth audience and social media numbers when Crain’s publishes the Fast Columnist/contributing editor Joe Cahill 50 2021. Forum editor Cassandra West Political columnist Greg Hinz So much depends on coming up with a Senior reporters Steve Daniels comprehensive, national plan to beat back Alby Gallun the threat of COVID-19 and get people back Lynne Marek to work safely. A similarly herculean chal- John Pletz lenge faces Gov. J.B. Pritzker and Chicago Reporters Danny Ecker Mayor Lori Lightfoot as they wrestle with Stephanie Goldberg Zurich North America HQ A.M. 1980 Kohl’s Warehouse our calamitous public nances. Still, the list Wendell Hutson published in this week’s issue provides 50 Ally Marotti reasons to be optimistic that Chicagoans, A.D. Quig given the chance, are inventive, collabora- Dennis Rodkin tive and hardworking enough to overcome Steven R. Strahler The Power of any obstacle—if only our elected leaders Copy editor Scott Williams would muster the political resolve to create Contributing photographer John R. Boehm better conditions for business to do what it Researcher Kasey Hariman does best. * * * CRG + Director of digital strategy Frank Sennett Director of custom media Sarah Chow YOUR VIEW Associate director, Jaimee Holway events and marketing Clayco * * * Mercy Virtual Care Center Gateway Plaza Production manager David Adair How to build an equitable COVID recovery for Chicago Account executives Aileen Elliott Claudia Hippel the private sector have an essential role to Christine Rozmanich play. e corporate community has the op- Bridget Sevcik portunity to extend beyond philanthropy, by Laura Warren making catalytic investments in disinvest- Courtney Rush ed communities and ensuring community Amy Skarnulis members shape and benet from changes People on the Move manager Debora Stein to their communities, procuring goods and Sales assistant Lauren Jackson services from Black and Latinx entrepre- Project manager Joanna Metzger neurs and businesses, investing in and hir- Event planner Katie Robinson ing people of color living on Chicago’s South Event manager Tenille Johnson and West sides, and increasing the diversity Digital designer Christine Balch Upshore Chapter Pfizer R&D Facility The Cubes at DuPont of the professional services rms they retain. Crain Communications Inc. ird, ensure public policies promote eq- Keith E. Crain Mary Kay Crain uity. ere is much policymakers can do to Chairman Vice chairman TESTED. PROVEN. TRUSTED. KC Crain Chris Crain right historical inequities. By enforcing and President Senior executive vice president strengthening the Community Reinvest- Lexie Crain Armstrong Robert Recchia ment Act, we can ensure banks provide ac- Secretary Chief nancial ocer CRG is headquartered in St. Louis, Missouri with offices cess to capital and aordable lending prod- Veebha Mehta Chief marketing ocer located in Chicago, Columbus, Newport Beach, ucts that allow households to build wealth. * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. By investing in better transit and jobs in im- Founder Chairman Philadelphia and Atlanta. Its professional staff is among the (1885-1973) (1911-1996) poverished communities, Black and Latinx most experienced in developing, structuring, financing and Chicagoans won’t have to spend so many For subscription information and delivery concerns unproductive hours each day commuting. please email [email protected] marketing a diverse portfolio of projects across the country. or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). Sound o : Send a column for the Opinion page to editor@ realcrg.com chicagobusiness.com. Please include a phone number for veri cation purposes, and limit submissions to 425 words or fewer. 12 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685) 3XEOLFDWLRQ7LWOH&UDLQ·V&KLFDJR%XVLQHVV 2. Publication No.: 533-590. What Walgreens learned in rebuilding )LOLQJ'DWH6HSWHPEHU ,VVXH)UHTXHQF\3XEOLVKHG:HHNO\([FHSWIRUWKH /DVW:HHNLQ'HFHPEHU It spent $35M to repair locations damaged by looting 1RRI,VVXHV3XEOLVKHG$QQXDOO\ $QQXDO6XEVFULSWLRQ3ULFH &RPSOHWH 0DLOLQJ $GGUHVV RI .QRZQ 2IILFH RI and launched a program to better reach patients 3XEOLFDWLRQ&UDLQ&RPPXQLFDWLRQV,QF10LFKLJDQ $YH&KLFDJR&RRN&RXQW\,/ &RPSOHWH0DLOLQJ$GGUHVVRI+HDGTXDUWHUVRU*HQHUDO devastation in early summer, %XVLQHVV2IILFHRI3XEOLVKHU&UDLQ&RPPXQLFDWLRQV,QF BY ALLY MAROTTI 10LFKLJDQ$YH&KLFDJR&RRN&RXQW\,/ many owners and residents won- &RQWDFW3HUVRQ-LP&DQWOH\3KRQH Walgreens has spent $35 mil- dered whether damaged stores )XOO 1DPHV DQG &RPSOHWH 0DLOLQJ $GGUHVVHV RI 3XEOLVKHU (GLWRU DQG 0DQDJLQJ (GLWRU 3XEOLVKHU -LP lion xing 70 Chicago stores would reopen. Pharmacies were .LUN &UDLQ &RPPXQLFDWLRQV ,QF 1 0LFKLJDQ $YH &KLFDJR ,/ (GLWRU $QQ 'Z\HU &UDLQ damaged during the looting in of particular concern: Lose one &RPPXQLFDWLRQV ,QF 1 0LFKLJDQ $YH &KLFDJR early June, and along the way the in a neighborhood and the res- ,/ 10. 2ZQHU &UDLQ &RPPXQLFDWLRQV ,QF company learned how to better idents might not be able to get *UDWLRW $YH 'HWURLW 0, . ( &UDLQ *UDWLRW $YH 'HWURLW 0, reach its patients. their medicine. 11. .QRZQ ERQGKROGHUVPRUWJDJHHV DQG RWKHU All but six of the chain’s 118 lo- Walgreens had reopened most VHFXULW\ KROGHUV RZQLQJ RU KROGLQJ SHUFHQW RU PRUH RI WRWDO DPRXQW RI ERQGV PRUWJDJHV RU RWKHU cations in the city have reopened, of its Chicago stores by mid-June, VHFXULWLHV1RQH 7D[ 6WDWXV (For completion by nonprofit organiza- says Rina Shah, group vice presi- but repairs at those 70 locations tions authorized to mail at special rates) 7KH SXUSRVH dent of specialty and retail phar- were ongoing. In some places IXQFWLRQ DQG QRQSURILW VWDWXV RI WKLV RUJDQL]DWLRQ DQG WKH H[HPSW VWDWXV IRU )HGHUDO LQFRPH WD[ SXUSRVHV macy operations. that took longer to reopen, Wal- (Check one). +DV1RW&KDQJHG'XULQJ3UHFHGLQJ0RQWKV “We needed to rebuild these greens put up mobile pharma- +DV&KDQJHG'XULQJ3UHFHGLQJPRQWKV locations,” Shah says. “Many of cies, Shah says. (If changed, publisher must submit explanation of change with this statement) them were not only downtown, e six that have not yet re- BLOOMBERG 3XEOLFDWLRQ1DPH&UDLQ·V&KLFDJR%XVLQHVV ,VVXH'DWHIRU&LUFXODWLRQ'DWD%HORZ but they were on the South and opened suered more extensive Walgreens has 118 locations in Chicago. 15. No. West sides of Chicago, and we structural damage and required Copies of Average No. Single knew that if we didn’t rebuild additional construction, she says. riers they faced getting health screenings and other oerings. Copies Issue Each Issue Published these locations, our customers e company continues work to care. In Chatham, for example, If all goes well, the compa- Extent and During Nearest to and patients would have no- reopen them. they learned 65 percent of the ny plans to expand the program Nature of Preceding Filing Circulation 12 Months Date where to go.” population has transportation is- into dierent Chicago neigh- D7RWDO1XPEHURI&RSLHV (Net press run) ...... Protests and unrest swept ‘THERE’S STILL INEQUITY’ sues and therefore can’t get their borhoods, then to other places b. Paid Circulation (By the city early this summer after As part of the $35 million medicine, Shah says. ey found around the country. Mail and Outside the Mail) George Floyd, a Black man, died investment, Walgreens also some people in the neighbor- Walgreens pharmacy has done 0DLOHG2XWVLGH&RXQW\ 3DLG6XEVFULSWLRQV after a white police ocer pinned launched a program in the Cha- hood didn’t get vaccines because community outreach before, 6WDWHGRQ36)RUP 3541 (Include paid him to the ground in Minneapo- tham neighborhood meant to they didn’t believe immuniza- Shah says. But knowing the spe- distribution above lis. Retailers in neighborhoods take health service oerings di- tions worked, she said. ci c issues, like transportation or nominal rate, DGYHUWLVHU·VSURRI around Chicago were decimated rectly to patients. Walgreens partnered with lo- aordable care, allows pharma- copies, and exchange copies) ...... in the looting, which took several “When we went ahead and cal churches and other organiza- cists to tell patients speci cally 0DLOHG,Q&RXQW\3DLG days to subside. rebuilt these locations, we saw tions to oer immunizations. It is what is available. 6XEVFULSWLRQV6WDWHG RQ36)RUP e city drew a line between that . . . there’s still inequity in working with FedEx and other lo- “Instead of just asking an (Include paid distribution above the looting and the peaceful pro- how our patients are staying cal carriers to oer free prescrip- open-ended question, we . . . nominal rate, tests calling for racial equality. healthy,” Shah says. tion delivery through the end of offer up, ‘Hey, we have delivery, DGYHUWLVHU·VSURRI copies, and exchange Boards still remain on some re- During the rebuilding process, the year. It is also oering other we have these other solutions,’ ” copies) ...... 3DLG'LVWULEXWLRQ tailers’ windows. Walgreens pharmacists surveyed patient services through the pro- Shah says. “That’s been a huge 2XWVLGHWKH0DLOV As retailers took tally of the patients to gure out what bar- gram, including u shots, health benefit.” LQFOXGLQJ6DOHV7KURXJK 'HDOHUVDQG&DUULHUV 6WUHHW9HQGRUV &RXQWHU6DOHV DQG2WKHU3DLGRU 5HTXHVWHG'LVWULEXWLRQ 2XWVLGH8636® ...... 5 9 3DLG'LVWULEXWLRQE\2WKHU &ODVVHVRI0DLO7KURXJK WKH8636 HJ Bank battle coming to Oak Park )LUVW&ODVV0DLO®) ...... 38 40 F7RWDO3DLG'LVWULEXWLRQ 6XPRIE DQG ...... G)UHHRU1RPLQDO5DWH 'LVWULEXWLRQ By Mail and as Wintrust prepares to open shop Outside the Mail) )UHHRU1RPLQDO5DWH 2XWVLGH&RXQW\&RSLHV The company looks to repeat the success it had in Evanston when it entered the market and took included on PS )RUP ...... )UHHRU1RPLQDO5DWH ,Q&RXQW\&RSLHV market share from incumbent banks through aggressive deposit rates and marketing included on PS )RUP ...... cording to Federal Deposit Insur- )UHHRU1RPLQDO5DWH BY STEVE DANIELS &RSLHV0DLOHGDW2WKHU ance Corp. data. JPMorgan Chase, &ODVVHV7KURXJKWKH 8636 HJ)LUVW&ODVV e retail banking battle Wintrust the largest area bank by deposits, 0DLO ...... 0 0 )UHHRU1RPLQDO5DWH Financial brought two years ago to has been the top Evanston bank by 'LVWULEXWLRQ2XWVLGHWKH Evanston is coming soon to a simi- deposits throughout. 0DLO(Carriers or other means) ...... 201 660 larly auent suburb, Oak Park. “We’ve got a stated desire to be H7RWDO)UHHRU1RPLQDO5DWH 'LVWULEXWLRQ(Sum of 15d Rosemont-based Wintrust plans Chicago’s bank,” Wintrust Presi- (1), (2), (3) and (4)) ...... to enter the Oak Park market in the dent Tim Crane says in an inter- I 7RWDO'LVWULEXWLRQ (Sum of 15c and e) ...... rst half of next year with a location view. “Oak Park’s a place we’re not J&RSLHVQRW'LVWULEXWHG (See Instructions to in a downtown space that formerly and would like to be.” Publishers #4, (page #3)) .... housed a restaurant. e fth-larg- Oak Park and neighboring vil- K7RWDO(Sum of 15f and g) ... i. Percent Paid (15c divided est area bank by deposits, Wintrust lage River Forest combined had by 15f times 100) ...... entered Evanston in 2018 and up- $2.2 billion in bank deposits as of 16. No. ended that retail banking market June 30, according to the FDIC. Copies of Average No. Single as the city’s only remaining com- Evanston had a little over $3 bil- GROUP COSTAR Copies Issue Each Issue Published munity bank, First Bank & Trust of lion. Together, Oak Park/River For- Electronic During Nearest to Evanston, was being acquired by est and Evanston account for more Byline’s acquisition of First Evan- River Forest as of June 30 was 12.9 Copy Preceding Filing Circulation 12 Months Date the parent of Chicago’s Byline Bank. than 5 percent of bank deposits in ston, which had been announced percent; Community Bank’s at the D3DLG(OHFWURQLF&RSLHV E7RWDO3DLG3ULQW&RSLHV /LQHF 3DLG(OHFWURQLF Likewise, in Oak Park, Byline suburban Cook County. but wasn’t yet completed. at same point in 2018 was 15.8 percent. &RSLHV /LQHD acquired the last remaining local prompted some customers of First Wintrust has done its share of F7RWDO3ULQW'LVWULEXWLRQ /LQHI 3DLG(OHFWURQLF &RSLHV /LQHD bank—Community Bank of Oak BUILDING POSITION Evanston to consider changing community-bank acquisitions as G3HUFHQW3DLG %RWK3ULQW (OHFWURQLF&RSLHV E GLYLGHGE\F; Park River Forest. at deal closed Wintrust used aggressive inter- banks, a fortuitous happenstance well, but in more recent years it’s ,FHUWLI\WKDWRIDOOP\GLVWULEXWHGFRSLHV HOHFWURQLF in April 2019. est-rate promotions in Evanston for Wintrust as well as Chase and opened branches and fought for DQGSULQW DUHSDLGDERYHDQRPLQDOSULFH 3XEOLFDWLRQRI6WDWHPHQWRI2ZQHUVKLS Wintrust in two years vaulted to to help build its position there. other incumbents. customers from the ground up. It’s ,IWKHSXEOLFDWLRQLVDJHQHUDOSXEOLFDWLRQSXEOLFDWLRQ RIWKLVVWDWHPHQWLVUHTXLUHG:LOOEHSULQWHGLQWKH the third-largest Evanston bank ere’s no reason to think it will do “In Evanston we had the bene t also generally held onto its brick- 2FWREHULVVXHRIWKLVSXEOLFDWLRQ by deposits, with more than $300 something dierent in Oak Park. of an acquisition going on that was and-mortar network unlike many 6LJQDWXUHDQG7LWOHRI(GLWRU3XEOLVKHU%XVLQHVV 0DQDJHURU2ZQHU million as of June 30, or 9.3 per- “We will gure out a way to get adjacent to our entry,” Crane says. other retail banks, which are clos- ,FHUWLI\WKDWDOOLQIRUPDWLRQIXUQLVKHGRQWKLVIRUPLVWUXH DQGFRPSOHWH,XQGHUVWDQGWKDWDQ\RQHWKDWIXQLVKHV cent of the market. Since acquiring attention in Oak Park,” Crane says. At least some old customers of ing and consolidating branches as IDOVHRUPLVOHDGLQJLQIRUPDWLRQRQWKLVIRUPRUZKRRPLWV First Evanston, Byline’s Evanston But market penetration may not Community Bank of Oak Park Riv- more customers shift to digital for PDWHULDORULQIRUPDWLRQUHTXHVWHGRQWKHIRUPPD\EH VXEMHFWWRFULPLQDOVDQFWLRQV LQFOXGLQJILQHVDQGLPSULVRQ- market share has eroded to 18.3 be as rapid as it was in Evanston for er Forest already have voted on the their basic banking needs. Crane PHQW DQGRUFLYLOVDQFWLRQV LQFOXGLQJFLYLOSHQDOWLHV percent from the 24.8 percent First the simple reason that Wintrust’s sale to Byline with their feet. Byline’s says he expects Wintrust to build at -LP.LUN3XEOLVKHU Evanston had as of mid-2017, ac- Evanston entry coincided with deposit market share in Oak Park/ least one more branch in Oak Park. SPONSORED CONTENT CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 13

CRAIN’S EVENT RECAP TRANSPORTATION SERIES Chicago’s Public Transportation Challenge

What follows is a sponsored million de cit. Without more The executives agreed that recap of an event moderated by federal help, Dillard said service the pandemic has accelerated PANELIST PANELIST Crain’s Chicago Business Political could be reduced by as much as changes in travel patterns that Columnist, Greg Hinz 22%. were already underway. Even after business returns to normal, The lifeblood of Chicago is its “Everything will be impacted,” people may work from home extensive public transit system. CTA’s Carter said. “It’s a perfect more often. “We are using this But budget constraints and a storm of challenges.” time to reinvent mass transit,” decline in ridership due to the Dillard said. COVID-19 pandemic have had The agencies don’t expect a big impact on the network and help from the state legislature. Carter added that the new its near-term outlook. Without federal help, the reality includes partnerships agencies are evaluating different with other modes of Can local transit systems scenarios, including cuts to rail transportation such as Uber, Lyft convince riders it’s now safe to and bus service. Weekend and and bike sharing. But he noted DORVAL R. CARTER, JR. KIRK DILLARD return? How will the systems overnight service could be the that the public transportation CTA President RTA Chairman secure the funding needed rst to go. system will always be a part of to continue and upgrade its the solution. service? Hinz asked if it’s safe now to Capital projects are moving system is part of the economic ride mass transit. Metra already has a contract ahead. “We have to take care of recovery.” These questions were recently with Uber and the CTA is in the physical system,” Dillard addressed at a Crain’s “If you take the appropriate talks with the ride sharing said. The CTA’s red and purple webcast, “Chicago’s Public measures,” answered Carter, services. line modernization project is Transportation Challenge.” citing the rider’s responsibility on budget and on schedule. Participants included Chicago to wear a mask, socially distance Other CTA advances include Engineering contracts to extend Transit Authority (CTA) and wash hands. The CTA offers pop-up bus lanes to provide the red line south to the city Sponsored by: President Dorval Carter and free masks to riders. Enhanced express service in the city, limits are in the works. Carter Regional Transportation cleaning regimens are in place. electric buses and new rail cars. added, “Our transportation

THE EXECUTIVES AGREED THAT THE PANDEMIC HAS ACCELERATED CHANGES IN Serving Chicagoland Since 1944 TRAVEL PATTERNS THAT WERE ALREADY UNDERWAY.

Authority (RTA) Chairman And new technologies are being Kirk Dillard. Crain’s political explored such as the use of reporter Greg Hinz moderated ultraviolet light to kill the virus. the discussion. In addition to extra cleaning, The event was sponsored Metra cars now have hospital by H.W. Lochner, a national grade lters that recirculate the transportation and engineering air every ve minutes. rm based in Chicago. The webcast is part of Crain’s Ridership on the CTA is Mile Long Bridge Reconstruction Morgan Street Elevated Station Transportation Event Series, currently at about 30% of exploring topics related to normal levels but service has not transportation and infrastructure been cut, allowing passengers to in the region and state. socially distance. The CTA has added bus service to the south Hinz kicked off the discussion and west sides of the city where by asking about the budget ridership is higher than in other stresses created by the parts of the city. “As a transportation consulting ﬁrm, we are pandemic. proud of our Chicago heritage and our “We‘re doing what we can to involvement in supporting the mobility of The RTA’s Dillard emphasized maximize capacity,” Carter said. the City as it has grown and evolved.” the need for more monetary He expects capacity limits to - Jeanne Cormier, relief from the federal rise once a vaccine is available. President and Chief Executive Ofﬁcer government. The $1.4 “The virus controls the whole billion received through the conversation,” he said. Coronavirus Relief Fund or Learn more at hwlochner.com/chicago CARES Act runs out in March, Hinz asked about the future of OR Follow us on leaving the system with a $400 mass transit. North-South Wacker Viaduct Reconstruction and Congress Parkway Interchange Improvement Program Management

P013_CCB_20201012.indd 13 10/2/20 1:04 PM 14 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

ShipBob’s Dhruv Saxena, left, and Divey Gulati CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 15

Many of the businesses on this year’s edition of our fastest-growing companies list are frequent flyers, but there are some surprises, too. Combined, the 50 companies grew revenue from $3.9 billion in 2014 to $12.6 billion in 2019, which translates to 225.5 percent growth. The top SHIPBOB five firms on our list are profiled here, as What it does: E-commerce packaging and shipping | 2019 revenue: $57.1 million | well. Read on for the secrets to their 5-year growth: 83,384.4% | Employees: 431 total, 277 local | Profitable: No | Location: West Loop success, and find details on how we selected the Fast 50 on Page 17. STORIES BY JUDITH CROWN Entrepreneurs chain, and it’s hard for small and Bob has grown to serving 3,600 see people’s dreams,” he says. who sell goods midsize players to compete with businesses from 10 warehouses, “I didn’t know someone could from their own websites have the one- or two-day shipping. “ ey six of which are franchised. e make a company out of selling pain points of packing merchan- should have a ghting chance,” he company last month raised $68 margarita glasses.” dise and waiting in line at the post says. “If we provide the infrastruc- million in Series D funding from Volumes have shot up since the o ce, where they don’t command ture, their customers will see no a SoftBank fund. at’s on top pandemic hit as consumers have the lowest rates. Dhruv Saxena di erence versus Amazon.” of the $62.5 million raised ear- become more accustomed to gured he could save them time Saxena and partner Divey lier from a half-dozen funders, shopping online. Many ShipBob and money. So he stood outside Gulati landed ShipBob’s rst including Hyde Park Venture customers sell on Amazon, “but a post o ce branch in Lincoln customers—marketers of grano- Partners. they don’t want all their eggs in Park and pitched the operators la bars and hair care products. Ira Weiss, a partner at Hyde the Amazon basket,” Saxena says. of e-commerce sites, “If you give But as software developers, they Park, calls the service “sticky,” ird-party sellers were rankled us your inventory, we can store it didn’t have experience in logis- meaning customers will use it on early in the pandemic when for you. We’ll package it and ship tics. ey had to hire warehouse a regular basis and are unlikely Amazon prioritized essential it out.” workers and then gure out how to switch unless something goes items. “ at demonstrated the Saxena says that Amazon spent to scale the operation. wrong. “If you walk the aisles importance of running an inde- billions guring out the supply Since its launch in 2014, Ship- of one of the warehouses, you pendent supply chain,” he says.

When Greg “to go from a side hustle to a real ight to digital, Fenton Fenton was in company,” he says. says. “What I thought college at Michigan State Univer- e company rents digital text- would take three to ve sity and later at Miami University books to students at about 1,800 years is happening in in Ohio, he wanted to solve the schools, functioning as a course three to ve months.” textbook problem: ey were ex- materials distributor between While he bootstrapped pensive and grew quickly out of the publisher and colleges. e in the early years, the date. “ ey needed to become average e-book rental for unlimit- company has raised $44 digital,” he says. Fenton got a ed use is $39 as compared to the million through several toehold by putting professors’ average $174 cost of buying a new rounds of nancing. e next fo- course packs and lab manuals book and the $67 average price of cus is adding bells and whistles online. renting one, according to the As- to improve the experience. “You At a certain point, that was sociation of American Publishers. can have the book read to you enough critical mass to win over e pandemic and virtual or you can highlight a word and publishers, enabling RedShelf learning have accelerated the convert it to a ashcard,” he says.

After Steve Fi- Singapore and Malaysia. Key- reng sold his path provides recruiting, student online educa- services and tech support for 130 tion company to Pearson in 2012, online programs, “the back-of- he gured the next step was to go ce stu that the schools don’t international. at company, Em- want to do,” he says. It’s funded banet, launched and managed by Chicago private-equity rm online graduate programs for Sterling Partners. U.S. universities. Could he repli- With the COVID-19-triggered cate that model with a focus on recession, more people are think- Australia, the U.K. and Canada? ing about returning to school, Fireng quicky learned he needed Fireng says. Keypath manages to invest in sta on the ground in business and STEM degree pro- those countries. “I ew in and said, grams, but interest in health care ‘Let us help you,’ and ew out,” Fi- The Keypath team programs is soaring. “Profes- reng recalls. “And they’d say, ‘Wait, sionals are looking to upgrade you’re a U.S. company. How is this based team, things clicked. outside the U.S. It’s had its big- their skills, and hospitals are going to work?’ ” Once the univer- Today Keypath Education gest success in Australia, with pushing to keep educating their

KENDALL KARMANIAN KENDALL sities saw that there was a locally works with 29 universities, half eight schools. It’s now eyeing sta ,” Fireng says. 16 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS AVIONOS What it does: Consulting on digital commerce and marketing | 2019 revenue: $17.1 million | 5-year growth: 14,455.7% | Employees: 70 total, 66 local | Profitable: Yes | Location: Loop

When partners at you can’t just be a sculptor or a painter.” Chicago invest- e company teams with software rms ment rm Aktion needed a CEO to run Adobe and Salesforce to co-sell and de- their newly launched digital consulting liver projects. In one earlier engagement, rm, they tapped Scott Webb. “We had Avionos helped Kellogg with an exper- a shared history,” says Webb, who was a iment that enabled online shoppers to client partner at an earlier Aktion digital buy custom mixes of Bear Naked granola. venture, Acquity Group, which was sold to “Kellogg had never processed a credit card Accenture for $316 million. or shipped directly to customers,” he says. Now Webb is running the fast-growing During the pandemic, Avionos is help- consultancy focused on digital commerce ing customers transition to digital com- and marketing. With a generalist ap- merce. “How does your eld sales team proach, it’s landed blue-chip clients such work when their customers are not in the as Kellogg Co., Jones Lang LaSalle, First o ce?” Webb says. “We’re fortunate in Midwest and Northern Trust. “We cross- that the work we do will be the work that train everyone,” Webb says. “You can’t be other companies need to see themselves single-threaded. You need expertise, but through.” The Avionos team

CRAIN’S LIST FAST 50 Ranked by 5-year growth

Total Local Pro table Company DBA/town 5-year growth employees employees in 2019? 2019 revenue Company description WAVICLE DATA SOLUTIONS 10,171.5% 251 123 Yes $19.3 million Data and analytics 6 Chicago EDGE LOGISTICS 10,091.7% 48 38 No $48.2 million Freight broker 7 Chicago OPPLOANS 6,269.0% 450 441 Yes $268.1 million Online installment loans 8 Chicago REDMOND CONSTRUCTION 2,576.6% 26 26 Yes $23.6 million Commercial interiors 9 Chicago HIREOLOGY 1,723.3% 219 170 No $29.8 million Hiring software 10 Chicago LAUNCH TECHNICAL WORKFORCE SOLUTIONS 1,644.0% 1,719 105 Yes $154.3 million Contract labor 11 Oak Brook ARDMORE RODERICK 896.8% 205 182 Yes $36.0 million Infrastructure engineering design; construction and program 12 Chicago management VISTA TRANS 868.3% 74 36 Yes $65.9 million Transportation services 13 Lake in the Hills RIGHT AT SCHOOL 840.3% 1,900 365 No $41.1 million In-school child care and extracurricular programs 14 Evanston O’KEEFE REINHARD & PAUL 704.4% 114 113 Yes $22.1 million Advertising 15 Chicago NEIGHBORHOOD LOANS 604.4% 142 142 Yes $42.7 million Residential mortgage lender 16 Downers Grove PREMIER DESIGN + BUILD GROUP 589.9% 91 50 Yes $488.8 million Design and construction 17 Itasca PERKSPOT 557.2% 78 78 Yes $23.9 million O ered as a bene t through employers, it provides a private mar- 18 Chicago ketplace so employees can save money on top brands FULTON GRACE REALTY 515.1% 51 51 Yes $15.2 million Real estate management and brokerage services 19 Chicago PARTS TOWN 496.2% 1,971 643 Yes $719.6 million Equipment parts distributor and service 20 Addison AGB INNOVATIVE SECURITY SOLUTIONS 491.6% 750 745 Yes $28.4 million People, property and data security 21 Chicago MAVEN WAVE 477.0% 197 134 Yes $129.0 million Digital consulting 22 Chicago DEVBRIDGE 446.1% 441 54 Yes $40.3 million Software development 23 Chicago MILLENNIUM TRUST 442.7% 368 327 Yes $200.7 million Retirement and institutional custody services 24 Oak Brook MORGAN LI 376.0% 85 80 Yes $49.9 million Store xtures and hotel furniture 25 Chicago Heights BOUNTEOUS 344.5% 380 139 Yes $62.5 million Website development 26 Chicago PARADISE 4 PAWS 325.9% 122 59 Yes $15.1 million Pet hotels and resorts 27 Chicago ONE STOP EQUINE SHOP 324.4% 19 7 No $16.8 million Sportswear and equestrian goods 28 Glenview ENDURANCE 321.7% 376 301 Yes $134.5 million Extended vehicle protection 29 Northbrook WALKER SANDS 318.7% 138 124 Yes $20.0 million B2B marketing 30 Chicago CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 17 VILLAGEMD What it does: Primary health care | 2019 revenue: $344.3 million | 5-year growth: 12,758.0% | Employees: 934 total, 600 local | Profitable: Yes | Location: Loop

About 20 percent of pharmacist with whom you want to speak,” the population is af- he says. e goal is to provide optimal care icted with chronic diseases such as COPD and keep patients out of the hospital. and diabetes. ese patients are in and out VillageMD works with 2,800 primary of the hospital, a costly practice that sad- care physicians in nine markets—some dles the health care system with enormous work directly for the company, and others expense, says VillageMD CEO Tim Barry. are a liated. “Primary care physicians aren’t given the Medicare and insurance plans in recent resources they need.” years have provided incentives for physi- Barry and his partners gured a proac- cian practices to enhance capabilities to tive, high-touch approach—phone, video improve outcomes and avoid costly ER and even in-home doctor visits—could and hospital visits. It isn’t always easy to make things better. Vulnerable patients recruit doctors, who may have worked for supply data on their condition “so we can decades in a fee-for-service structure. “But react in real time,” Barry says. Doctors are if a doctor has an opportunity to participate

supported by a team: “If you have multiple in the savings they help create, suddenly it WINTERS TODD diseases and you’re taking 14 meds, it’s the becomes attractive,” Barry says. VillageMD CEO Tim Barry

CRAIN’S LIST FAST 50 Ranked by 5-year growth

Total Local Pro table Company DBA/town 5-year growth employees employees in 2019? 2019 revenue Company description MANHATTAN MECHANICAL SERVICES 308.3% 216 216 Yes $39.3 million Welding and pipe tting for re neries and chemical companies 31 Manhattan AARETE 297.6% 257 202 Yes $62.5 million Consulting 32 Chicago GP TRANSPORTATION 265.3% 375 55 Yes $84.8 million Trucking and logistics 33 Darien TRUQUA ENTERPRISES 262.8% 70 35 Yes $16.4 million Consulting and nancial software development 34 Chicago IMPACT NETWORKING 242.9% 650 499 Yes $140.8 million Manages IT and cloud services 35 Lake Forest ROCKWELL PROPERTY 233.6% 68 59 Yes $40.2 million Commercial real estate 36 Chicago OSM WORLDWIDE 229.9% 100 45 Yes $171.9 million E-commerce package shipping 37 Glendale Heights LIGHT EFFICIENT DESIGN 224.4% 60 30 Yes $60.1 million LED retro ts, xtures and solar lighting 38 Cary ARCO/MURRAY NATIONAL CONSTRUCTION 198.7% 231 231 Yes $495.6 million Commercial design and construction 39 Downers Grove BCD INTERNATIONAL 191.8% 74 70 Yes $94.0 million Video surveillance recording systems 40 Bu alo Grove BUSINESS IT SOURCE 191.0% 62 62 Yes $134.1 million Reseller of computer hardware to commercial enterprises 41 Bu alo Grove W.S. DARLEY 189.3% 310 90 Yes $489.3 million Fire ghting and defense equipment 42 Itasca COOPER’S HAWK WINERY & RESTAURANTS 189.0% 2,598 1,013 No $338.6 million Restaurant company and winery 43 Downers Grove ZEBRA TECHNOLOGIES 168.4% 8,301 1,287 Yes $4.49 billion Bar-code readers and printers 44 Lincolnshire KIVVIT 162.5% 90 26 Yes $33.1 million Public and media relations 45 Chicago ENVESTNET 158.1% 4,190 171 Yes $900.1 million Investment software 46 Chicago LAKESHORE RECYCLING SYSTEMS 144.9% 920 920 Yes $213.7 million Recycling and waste management 47 Morton Grove DISCOVERY HEALTH PARTNERS 144.2% 214 170 Yes $35.8 million IT consulting for health care 48 Itasca CLUNE CONSTRUCTION 137.5% 694 301 Yes $1.33 billion General contractor 49 Chicago BECKNELL INDUSTRIAL 133.4% 66 34 Yes $177.8 million Develops, manages and invests in industrial properties in the U.S. 50 La Grange

METHODOLOGY In business, growth is a key indicator of success. business since at least Dec. 31, 2014. ◗ Another criterion: no more than one drop in These 50 companies, which we identified after revenue from 2014 to 2019. putting out a call to Chicago-area firms in the ◗ We excluded real estate investment trusts, seven-county metro area, stand out. Working regulated banks, real estate developers, utili- Plante Moran examined financial documents with accounting firm Plante Moran, we had these ties, holding companies, subsidiaries/divisions, provided by the applicants for the years 2014 and ground rules for choosing the 50 companies: franchises and nonprofit organizations. Small 2019. companies (those reporting less than $15 million ◗ We considered only firms that have been in in 2019 revenue) were likewise not considered. Additional research by Kasey Hariman

Advertising Section PUBLIC AFFAIRS Conlon Public Strategies, PEOPLE ON THE MOVE Chicago To place your listing, visit www.chicagobusiness.com/peoplemoves Conlon Public Strategies, a Chicago- or, for more information, contact Debora Stein at 917.226.5470 / [email protected] based consulting and public affairs ACCOUNTING EXECUTIVE SEARCH LAW FIRM NON-PROFIT firm, welcomes Ami Novoryta as senior Mazars USA LLP, Chicago Slayton Search Partners, Benesch, Chicago Embarc, Chicago advisor. A Leadership Chicago Greater Chicago Fellow with Ryan Vaughan, CPA, Emily Newhouse Tellef Lundevall, two decades of experience in the has been named Slayton Search Dillingham has Founder and CEO of nonprofit and public sectors, Ami Partner at Mazars Partners is excited joined Benesch as a Accelerated Digital offers the firm’s clients expertise in USA LLP. Ryan joined to announce that partner in the firm’s Media, has joined planning for strategic growth and Mazars three years Dan Dunn has Litigation Practice Embarc’s Board of transformation, leading program ago and is part of joined the company Group. She represents Directors. Tellef will innovation and systems change, the Manufacturing & as Executive Vice clients in complex support Embarc’s and developing and sustaining Distribution market segment. He President. Dan commercial litigation, with work to transform Chicago’s impactful partnerships. Previously, leads the Chicago Tax Practice will be focused on driving an emphasis on consumer education system into the most Ami served as chief strategy as well as the Tax Credit & executive searches for industrial fraud, false advertising, and interconnected, experiential officer for Heartland Alliance. Incentives Practice. In establishing manufacturers, including trade secret misappropriation. and equitable in the country. the Tax Credit & Incentives private equity-backed mid- Emily has experience with all Tellef also serves as an advisor Practice, Ryan has expanded the market portfolio companies phases of litigation, including to Bridge Investments, as a tax services offered by Mazars, and Fortune 500 organizations. successfully representing Trustee of the Kaplan Family resulting in significant value-added He joins us from Banister clients at trial, authoring and Foundation and the co-chair of opportunities for its clients. International, where he served arguing dispositive motions and the Kaplan Family Foundation as a Managing Director. appeals, taking and defending environmental committee. REAL ESTATE depositions, and managing all stages of the discovery process. Bridge Development Partners, Chicago

ARCHITECTURE / DESIGN PHILANTHROPY Bridge Development FINANCIAL SERVICES Partners has named Lucien Lagrange Studio, Chicago Woods Fund, Chicago Nick Siegel as Partner Cresset, Chicago of its Chicago region. Caroline McCoy joins Lucien Lagrange In this role, Siegel Woods Fund Chicago Studio welcomes Mary Ceas has joined will spearhead all as VP of Programs. Carl Silliman in the Cresset as Managing facets of BRIDGE’s MANUFACTURING “I am thrilled to be role of Designer and Director, Human development and leasing in the joining the Woods Architect III. Carl has Resources Executive. Chicago area. In his previous five Echo Incorporated, Lake Zurich Fund and to support 7 years’ experience In her role, Ceas is years with BRIDGE, during which responsible for HR its work of advancing working on projects Silliman Erik Memmo joins he most recently held the title of functional excellence racial equity and economic around the world ECHO Inc. as Vice Senior Vice President, Nick has and supporting Cresset’s business justice through grantmaking including construction President of Sales. played an integral role in many strategy and values. Ceas is an during this critical moment of a clinic in India, In this role, Erik will of the company’s development experienced human capital in time.” Prior to joining the a master plan for be responsible for projects – totaling over 14 million strategist who is committed to Woods Fund, McCoy was a a neighborhood in driving revenue and square feet – including 1.5 million engaging employees, building Program Officer at the Robert Costa Rica. customer growth for square feet of leases signed in relationships with customers, and R. McCormick Foundation. The Studio also ECHO Inc. and Golden Eagle Chicagoland in 2020 alone. Michael partnering with communities. Prior The Woods Fund has awarded welcomes Davis Distributing Company, while Davis in the role of to Cresset, Ceas served as Executive more than $65 million to 500 providing strategic direction REAL ESTATE Vice President of Pan American grassroots policy and advocacy Marketing Director. Michael has for the company’s sales Bank & Trust. organizations throughout the over 15 years’ experience working organization. Erik brings more Bridge Development Partners, on international creative and Chicago region. INSURANCE than 30 years of experience in Chicago marketing projects around the the Outdoor Power Equipment world with 13 years spent in Asia. Aclaimant, Chicago industry, most recently serving Sean Zasche joins as the Vice President of Dealer Bridge Development Chicago-based Sales for North America with Partners as its new Aclaimant, an insight Briggs and Stratton. Chief Financial Officer, driven workflow where he will lead all solution for safety and capital markets activity risk management, for the company, announced that including raising and managing CONSTRUCTION SERVICES Andrew Pinkes has strategic equity programs and joined the company’s advisory debt relationships. As BRIDGE Cumming, Chicago board. Pinkes is a 30-year plans an expansion into new veteran of the insurance industry, global markets, including the Joining Cumming and his expertise in legal and opening of a London office later as an Associate litigation management, medical this year, Sean will play a pivotal Director, Etienne management, large loss claim role in infusing new capital that Nel will oversee handling, quality program design, MULTI-HOUSING can support the company’s growth cost management third-party administrator (TPA) and ongoing development and for Chicago as oversight, and vendor management Redwood Capital Group, acquisition activity. the international will benefit Aclaimant and its board. Chicago construction consultancy REAL ESTATE continues to grow its presence INVESTMENT MANAGEMENT Bob Flannery has throughout the region. With joined Redwood PROFESSIONAL SERVICES Conor Commercial Real Estate, nearly two decades of experience Merrill Lynch Wealth Capital Group in Rosemont supporting commercial, hospitality, Management, Chicago the newly created Aon, Chicago high-rise, and master plan position of executive Janet Protas comes construction projects, Nel is a Carol Brandt has been vice president and Aon welcomes to Conor with 30 Quantity Surveyor that focuses recognized by Forbes chief operating officer. Topher Bates as a years of experience on detailed cost management as a Top Women Flannery’s position was created Vice President in in the real estate and client-first cost consulting. Wealth Advisors 2020. in conjunction with Redwood Chicago’s Commercial industry. She has Advisors are selected Capital Group’s strategic plan Risk & Health Solutions worked in multiple on industry experience, to double in size in the next office. In his new role, markets across the assets, revenue and five years. Flannery will work to Topher is responsible United States with a focus on compliance. Brandt, a Wealth raise Redwood Capital Group’s for driving client value, solutions multi-family and mixed-use Management Advisor with Merrill profile within the institutional and business development across developments. As Senior Vice and Certified Financial Planner, and private-equity investment risk and health. Most recently, President – Multi-Family, Janet has 36 years’ experience providing communities, as well as oversee Topher served in a hybrid AE is responsible for overseeing personalized wealth management property, asset and construction and producer role, specializing in multi-family efforts and growing management for Redwood. To order frames or plaques strategies to high-net-worth families. both the education and non-profit Conor’s development portfolio. of profiles contact She has also been recognized sector. Topher has a Bachelor’s Lauren Melesio at as a Barron’s Top 100 Women degree from Purdue University [email protected] or Financial Advisors and Financial and is an active leader in 212-210-0707 Times Top 400 Financial Advisors. Chicagoland community affairs. CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 19

These 39 entrepreneurs represent a METHODOLOGY: The marketers featured did not pay range of young companies, some sup- to be included. Their profiles were drawn from nomi- plying consumer products, others of- nation materials submitted. This list is not comprehen- fering B2B services and others fulfilling sive. It includes only executives for whom nominations were submitted and accepted after an editorial review. community needs as nonprofits. They’ve To qualify for the list, the entrepreneur must have faced and overcome similar obstacles— demonstrated revenue growth or capital-raising over researching their market, developing three to five years. The businesses have revenue be- technology and then raising capital, tween $500,000 and $10 million or have raised capital whether from friends and family, angel in this range. investors or venture-capital firms. In this feature, you’ll meet entrepre- During the pandemic, these firms neurs with products ranging from pet have pivoted, putting their offerings food to veggie snacks to men’s jeans. online, helping clients navigate the There are health care businesses that crisis or donating goods and services. target specific conditions and offer They’re helping to put Chicago on the online treatment. And there’s a range map as a growing center for entrepre- of imaginative B2B services in IT and neurship. software, real estate, insurance and digital marketing. By Judith Crown SPONSORED BY

JORGE AGUILAR ELIZABETH COLÓN STAR CUNNINGHAM ANDREW DEGENHOLTZ MICHAEL EPISCOPE CEO Founder and president Founder and CEO Founder and president Co-CEO Trove Metaphrasis Language & Cultural 4D Healthware eMagazines Origin Investments Solutions Jorge Aguilar and co-founder Former IBM executive Star Cun- Startup eMagazines helps mag- Michael Episcope co-founded Sean Duran leased a bedroom As a child of non-English-speak- ningham has spent close to three azine publishers translate their Origin Investments, a private- with a broken Ikea bed in Lin- ing parents and a sister of two decades building tech solutions print content to mobile platforms. equity real estate fund manager coln Park to make money to pay deaf siblings, Elizabeth Colón for Fortune 500 clients. Today, Its automated software reows that uses a direct-to-investor their student had rsthand she leads 4D digital con- business mod- loans. Within experience Healthware, a tent without el. e com- three years with the digital health the need to pany acquires, they owned struggles platform that download an owns and and managed faced by those helps patients additional app. operates oce a portfolio of negotiating a track chronic Andrew Degen- and multifam- 26 buildings new country conditions holtz started ily properties on the North and culture. In such as hyper- the company in eight U.S. Side, includ- 2007, she start- tension and di- in 2016 without markets. Since ing apart- ed Metaphra- abetes remote- outside inves- its start in ment hotels, student housing sis, which oers on-site, tele- ly through wearable medical and tors, and it has grown to serve 2007, the rm has executed $1 and co-living spaces. Having phonic, video and sign language wellness devices. Cunningham 15 million subscribers a month billion in real estate transactions completed the Illinois Hispanic interpreting as well as document started the company with sav- for almost 50 magazine publish- and has more than $600 million Chamber of Commerce Tech In- translation. e company has ings and money from family and ers. When the pandemic forced in assets under management. cubator at 1871, Aguilar’s startup grown to generate annual reve- friends and has raised $4 million children to transition to at-home Annual revenue has grown to was accepted to the National nue of $770,000. Colón is presi- in angel investments. e learning, eMagazines worked $6.5 million with 33 employees. Association of Realtors’ acceler- dent of the National Association pandemic has sparked demand, with Time for Kids to translate Episcope and partner David ator program. Trove has grown of Women Business Owners’ and revenue is expected to grow the magazine’s content to an Scherer began exploring real at 150 percent per year since it Chicago chapter and is the rst vefold to more than $5 million online reader. Before eMagazines, estate but found that many op- started in 2016 and has revenue Latina to hold that position. She next year. e rm’s COVID-19 Degenholtz launched entre- portunities were oered only to of $1.1 million. Aguilar became also serves as board chair of the kit collects critical biometrics preneurial ventures in Chicago, large institutional investors. As a a mentor for Hispanic entre- Norwegian American Hospital including temperature and including ValueMags, a website result, they began investing their preneurs through the incubator Foundation, where she rais- oxygenation levels. With this kit, that sells magazines, and Oplytic, own money and that of family at 1871 and became a member es money to support hospital 4D has successfully managed 98 which helps marketers drive web and friends in real estate deals. of the programming board of programs. She is a co-author of percent of its COVID patients at and app trac and measure the e investor group has grown StartOut Chicago, an organiza- “Today’s Inspired Latina: Life home. Cunningham serves as eectiveness of their marketing from 70 in 2006 to more than tion for LGBTQ entrepreneurs. Stories of Success in the Face of vice president of venture-capital and communication strategies. He 1,000 today. Earlier, Aguilar worked at Rotary Adversity” and speaks often on and private-equity rm CANN also co-founded Community Path International. Latinx concerns. Capital Partners. Media, an eort to support local newspapers by collaborating on advertising strategy. 20 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

PAUL FEITH CAROL FOX REBECCA FYFFE DANNY GARDNER NANCY GIANNI President President CEO and director of research Founder and CEO Founder and chief belief officer Paul Gregory Media Carol Fox & Associates Landmark Pest Management Mesh++ GiGi’s Playhouse Paul Feith is president of Paul Carol Fox’s 25-year-old company During her laboratory research Founded in 2017, Mesh++ makes After Nancy Gianni’s daugh- Gregory Media, which focuses on specializes in marketing for arts on pesticide resistance, Rebecca solar-powered mesh nodes that ter GiGi was born with Down mission-based organizations, par- organizations, including live en- Fye determined that traditional provide Wi-Fi to outdoor spaces syndrome, Gianni launched a ticularly nonpro ts that support tertainment. When the pandemic pest control methods were an- such as festivals and parks. nonpro t to provide education underserved populations. e hit, Fox worked with clients to tiquated. She founded Schaum- Mesh++ started as Gardner’s and therapeutic programs to Naperville com- present virtual burg-based senior project individuals pany, launched programming Landmark in in electrical en- with the condi- in 2006, handles and also landed 2008 with the gineering at the tion. Since its brand identity, projects with goal of deliver- University of start in 2003, web design, nonpro ts in ing a safer and Illinois, explor- GiGi’s Play- social media, social justice more eective ing whether house Down virtual event and education. service that a solar device Syndrome planning and She oered free eliminates could provide Achievement other services. consultations overreliance on internet access Centers has Clients include to struggling pesticides and to areas with expanded to Giving DuPage, Habitat for Hu- companies, resulting in new busi- rodenticides and instead focuses unstable power grids. e proj- 50 locations and has additional manity Illinois and Turning Pointe ness. Fox started her business in on products that target the way ect was entered in the univer- locations under development. Autism Foundation. e company PR services for three clients and insects feed and on sealing ro- sity’s accelerator program and e Homan Estates organiza- aims to help clients build their now serves about 45 a year with dents out of structures. In 2012, won, providing Mesh++ its rst tion is funded by donations and bases of donors, volunteers and branding, marketing, digital and Fye acquired ABC Humane investment. e company won grants. During the pandemic, partners. It generates revenue of advertising, social media, graphic Wildlife Control & Prevention a contract to provide internet GiGi’s Playhouse has shifted to $549,000 with a sta of ve. e design and other services. Since and merged the rms. Landmark access to 2 million people in the virtual programs, with 28 live company in July became a certi- 2015, the company has grown by built its brand by aligning with Democratic Republic of Con- weekly national programs and ed B corporation, a designation 20 percent annually and has rev- Chicago restaurants, especially go over the next two years. In 250 on-demand videos. Because oered by nonpro t organization enue of $1.2 million. Arts clients Michelin-starred restaurants response to COVID-19, Mesh++ fundraising events had to be B Lab to for-pro t companies that have included the Chicago e- and James Beard Award-win- began working with mayors in canceled, Gianni organized a meet standards for social and atre, the Chicago International ning chefs. e company serves Chicago, Champaign, Miami, virtual run, walk and ride that environmental performance and Film Festival and Hubbard Street restaurants, airports, govern- New Orleans and Columbia, raised $1.3 million. She speaks public transparency. is year, Dance. She’s been involved in the ment buildings, grocery stores S.C., to establish e-learning often to groups about Down Paul Gregory Media has provid- launch of Expo Chicago, Art on and food plants, as well as networks for children in under- syndrome. Before starting ed 45 percent of its services in the Mart and Blue Man Group. residential customers. Landmark served areas. Mesh++ has raised GiGi’s Playhouse, Gianni was an kind. Feith earlier held positions has grown to revenue of $8 mil- $3.1 million in venture capital independent contractor for the at Playboy Enterprises and tech lion with a sta of 100. and National Science Founda- Chicago Tribune in advertising. consultancy Compu-Tech. tion grants.

DEBRA GIUNTA ADAM GROSSMAN JC GRUBBS SPENCER HADELMAN GRETCHEN HALPIN Founder and director Founder and CEO Founder and CEO CEO Co-founder Design Dance Block Six Analytics Tandem Advantage Marketing Beyond AUM In 2008, Debra Giunta founded Adam Grossman launched Block Software consultancy Tandem Spencer Hadelman in 2015 Financial services rms are the the dance education nonprof- Six Analytics in 2016, which combines strategy and user-ex- launched Advantage Marketing, sweet spot for Beyond AUM, it that facilitates social and uses technology and analytics perience and user-interface a marketing and media agency founded in 2017 by Gretchen emotional learning for students to value sponsorships. Clients design. Founder JC Grubbs that provides digital and print Halpin. e agency provides through 12th grade. In the past include large companies that use started the company in 2011 to work including web design, digital marketing services to three years, sponsorships serve midsize logos and wealth manag- Design Dance as marketing and enter- video. Over the ers, nancial has grown by tools, market- prise clients. It past 18 months planners and 50 percent ing agencies secured Series the agency registered to $525,000 and profession- A funding has added 20 investment ad- in revenue, al sports teams, from Motorola clients across visers typically and it serves including Pep- Solutions in 25 states and serving high- 6,000 students siCo, Citigroup, 2016. Company opened an net-worth indi- annually. e the Cleveland revenue has oce in Cali- viduals, small city of Chicago Browns and tripled to $6 fornia. Sta has businesses provides 25 percent of revenue the Detroit Lions. For example, million last year from $2 million grown by 30 percent to 14 and and nonpro ts. e agency says to increase arts education in Block Six provided analytics to in 2015. Tandem has developed revenue has climbed to about $5 its digital marketing has helped Chicago Public Schools. Design Pepsi to validate its decision to software for the Defense Depart- million. Advantage clients range generate increases in web trac Dance also collaborates with the build a digital tunnel cover sign ment’s U.S. Military Entrance from Sand Valley Golf Resort in and social media engagement. Chicago Park District and the Art at the Dallas Cowboys’ AT&T Processing Command, which Wisconsin and Bandon Dunes Halpin also has helped cli- Institute of Chicago. During the Stadium and then adjust creative evaluates new members of the Golf Resort in Oregon to univer- ents expand into underserved pandemic, Design Dance has content between games. e armed services. It developed a sities including the University nancial communities, includ- pivoted to oering virtual dance young company has raised more platform for agtech rm Climate, of North Carolina at Chapel Hill ing women in a life transition. programs. Giunta has started than $4 million from dierent which provides data to farmers and the University of California, Since its start, the company has other educational initiatives, investment sources. Grossman on climate and soil conditions. Berkeley. Hadelman has spoken grown to $650,000 in revenue with pop-up programs in San developed Block Six after work- And it created a mobile app for at conferences in business and with a sta of 14. As part of a Francisco, New York, Los Ange- ing as an intern and marketing the University of Chicago Booth education including the Golf Money Smart Week campaign, les and Austin, Texas. In 2019, analyst for the Washington Cap- School of Business that helps Business Conference and the Halpin has spoken to Chicago she teamed with the U.S. embas- itals and studying for his MBA at students develop soft skills. Clute annual conference. He students on the fundamentals sy in Sarajevo, Bosnia-Herzegov- New York University. He serves Grubbs has also served as a serves on the Young Profession- of saving and investing. Money ina, to bring entrepreneurship on the faculty of Northwestern faculty coach and instructor at als Board of nonpro t Canine Smart Week is a venture of the education to young people University’s master’s degree pro- Booth. He is on the board of the erapy Corps. American Library Association throughout the Balkan region. gram in sports administration. Entrepreneurship Institute. and the Federal Reserve Bank of Chicago. CONGRATULATIONS TO THE 2020 NOTABLE ENTREPRENEURS HONOREES

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PAUL HLETKO DERREK HULL President CEO Few Spirits ‘Reversing more than 100 years of dry history’ The Trotter Project Before World War II in what is Paul Hletko spent his early career as an intel- of something else. e brewery is gone, it’s not Derrek Hull is a co-founder of now the Czech Republic, Paul lectual property attorney, but starting his own coming back, but I can do something positive the nonprot that honors the Hletko’s grandfather’s family spirits company had always been in the back and new. In order to rebuild a long-lasting lega- late iconic chef Charlie Trotter. owned a large brewery that was of his mind. His grandfather spoke often about cy, I wanted to build a national and international e project opens career doors conscated by the Nazis. e his family’s brewery, in what is now the Czech brand, which would be much harder in beer. for students in the culinary grandfather Republic, that was con scated by the Nazis. and hospital- survived the Hletko in 2010 launched Few Spirits, a bou- You started your career as an IP attorney. ity industries Holocaust but tique distillery in Evanston that specializes in When and why did you decide to change through educa- wasn’t able bourbon, rye and single malt whiskey and gin. careers? tion, schol- to recover the e distillery closed when the pandemic hit but I really hate pushing paper. I like to make new arships, paid business. at has partially reopened. e tasting room oers things, and while there were great things about internships inspired Hletko cocktails to go. being in IP, the creativity of spirits was too much and mentoring. to start a mi- of a draw. e project cro/craft distill- CRAIN’S: What did your grandfather tell you launched an ery in part to about his business? What is involved in starting a distillery? urban farm-to- honor his family history. Hletko HLETKO: My grandfather and I had a tenuous You also have to navigate a very highly regulated classroom program at the Mon- in 2011 opened Few Spirits in relationship, at best, and I never knew him very industry—licenses, licenses, licenses. In order tessori School of Englewood, Evanston, which he thought was well. But he would always talk about the family to open a distillery in Evanston, I had to reverse supported by the University of an appropriate location after it brewery where he had worked as a teenager, more than 100 years of dry history and kill Prohi- Illinois Extension Horticulture had been dry for decades follow- and how it was stolen by the Nazis. He died in bition where it started. Luckily, working with the Program and the Museum of ing the repeal of Prohibition. e 2008 when I was 38. Over his last 10 years or so, city of Evanston has been wonderful. Science & Industry. During distillery produces bourbon, rye we had started building something of a stronger the pandemic, the project has and single malt whiskey and gin. relationship, and he even got to meet one of his Why are so many distilleries popping up? teamed with chefs, restaurants Revenue has grown to $2 million great-granddaughters. ere seems to be this mistaken impression that and companies to deliver more with a sta of six. Before starting it is easy. And I think a lot of people see all the than 100,000 healthy to-go the distillery, Hletko worked as Was the idea of a distillery always in the back news of new ones starting and don’t notice the meals to individuals and families an attorney specializing in intel- of your mind? Why a distillery versus a brew- ones closing. ere’s a lot of turnover. on Chicago’s South and West lectual property. He’s a founding ery? sides. Before joining the Trotter member, board member and for- e brewery was always in my mind, and I even How did the pandemic a ect business? Project, Hull was director of mer president of the American made a halfhearted attempt to start a brew- We are hanging in and outperforming our peer marketing and special events Craft Spirits Association. ery in the mid-1990s, but that never took o group. We didn’t convert to making hand sani- at the Cantu Restaurant Group or launched. Why a distillery? I want to make tizer, but we donated ethanol and sold some as and earlier was marketing and something new and avoid being in the shadow well. communications director for the National Restaurant Association.

SUSIE HULTQUIST MARGO JACQUOT RYAN AND AARON LETZEISER STACY LINDAU THOMAS D. MCELROY II Founder and CEO Founder, chief care officer and Co-founder and CEO (Ryan, top) Founder and chief innovation Founder and principal Spokin director Co-founder and COO (Aaron) officer Level-1 Global Solutions After her daughter was diag- The Juniper Center Obie NowPow Many of the most prominent nosed with life-threatening food Margo Jacquot founded the Park In 2017, brothers Ryan and Dr. Stacy Lindau was frustrated government buildings in the city allergies, Susie Hultquist would Ridge counseling and therapy Aaron Letzeiser teamed to by the lack of infrastructure to have been supported by Level-1, spend hours researching what practice in 1996 and slowly add- launch an insurance and connect people with community a minority-owned technology foods she could eat. Finding that ed associates until 2015, when risk-management platform for resources. Supported with an infrastructure consulting, engi- information on she participat- real estate award from neering and allergies was ed in a busi- investors. e the Center procurement fragmented, ness acceler- brothers say for Medicare rm headed Hultquist in ator program. the insurance & Medicaid by omas D. 2016 created Revenue space for real Innovation, McElroy II. Spokin, an climbed to $1.4 estate investors Lindau in 2014 e company app that helps million last is slow, opaque established is handling people nd year, up nearly and not built to a platform work for the restaurants, 75 percent give investors that connects three construc- recipes and from four years an advantage. people with tion-manag- food products. It includes rat- earlier. In March, Jacquot moved Obie match- community resources matched er-at-risk contracts covering ings for products and services: the practice to 100 percent ones real estate to their health and social needs. projects in the O’Hare Interna- Consumers have shared 60,000 line in a few days. She launched assets with op- Lindau is a professor and tional Airport expansion. It’s reviews of food, restaurants, a YouTube channel and Face- timal insurance director of a research lab in the the technology designer for the bakeries and hotels across 79 book Live show to help people carriers based University of Chicago Biologi- Chicago Police & Fire Training countries. Spokin teams with sheltering at home. In April, she on risk proles. cal Sciences Division. NowPow Academy and recently com- food brands and retailers, oered free mental health crisis Clients average supports 24,000 care profession- pleted the interior technology enabling them to connect with services for rst responders and 16 percent als serving more than 7.4 million design for the adaptive reuse of consumers. Hultquist funded those facing COVID-related savings on patients in more than a dozen the old Cook County Hospital the startup through family and illness and loss. Her free profes- quotes and receive them in less states. For example, during the into Hyatt hotels and medical friends, as well as a future-equity sional-education events transi- than 72 hours, the brothers say. pandemic, Erie Family Health oces. McElroy launched the investment. During the pan- tioned from live to virtual and Since its launch, Obie has grown Centers has used the NowPow business in 2001, and it has demic, Hultquist started Spokin consistently sell out at 100 spots. to revenue of $2.3 million with platform to connect 5,100 pa- grown to $3.9 million in revenue Cares, an initiative to provide Jacquot gives talks on pronoun a sta of 15. e pair completed tients with services such as food with a workforce of 24. Earlier, safe foods to vulnerable families usage, bathroom laws and other the Y Combinator accelerator pantries, diaper banks and rental Level-1 handled electrical power that has funded 3,500 meals. tips to help business owners be and raised $2.8 million in ven- assistance programs. Lindau infrastructure for United Airlines Earlier, Hultquist was a portfolio more LGBTQ-inclusive. ture capital. Earlier, the brothers also founded MAPSCorps, a at Willis Tower, as well as work manager at Columbia Wanger were managers at MAC Proper- nonprot that employs youth to for Chicago Public Schools, the Asset Management. ties, which builds, renovates and produce data on targeted com- Chicago Housing Authority and manages rental apartments in munities. the state of Illinois. McElroy Chicago, St. Louis and Kansas previously served on the Mayor’s City. Council of Technology Advisors. CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 23

COCO MEERS HARISH NEELAMANA KANEY O’NEILL CHELSEA AND BRETT SHER RONALD SILVIA Co-founder and CEO Co-founder and president Founder, managing partner and Co-founders and vice presidents President and CEO Equilibria Convr president Against the Grain Pet Food Chicago Duffy ONeill Contractors Equilibria was started last year Insurance underwriters can Twins Chelsea and Brett Sher Growing up in Cape Cod, Ronald out of two women’s struggles to spend close to 60 percent of their During her Navy service, Kaney launched the pet food company Silvia worked at his family’s ma- balance career, family and a vari- time gathering the data needed O’Neill was badly injured during in 2015 using ingredients from rina. When he moved to Chicago ety of stresses. Coco Meers and to produce a quote—up to two a hurricane, causing her to Illinois farms and suppliers. e for graduate school, he began partner Marcy Capron Vermil- weeks. Harish Neelamana saw become a quadriplegic. She was canned products are grain- and working at Jeerson Beach Yacht lion, both serial an opportunity unable to nd gluten-free and Sales, where entrepreneurs, to improve the work because are 85 to 100 he is now vice launched a site commercial of her disabil- percent meat. president of for CBD, the property and ity. Family e Markham- sales and Chi- nonintoxicat- casualty un- members based company cago manager. ing cannabi- derwriting pro- encouraged markets a line Silvia conclud- noid known for cess. In 2016, her to start a of single-ingre- ed there was a its relaxing and he started contracting dient products, need for a boat anti-inamma- Schaum burg- rm to take including rental opera- tory eects. In based Convr, advantage of Nothing Else! tion and pur- March, Equilibria closed a $1.97 an insurance technology com- federal set-aside programs Beef and chased two Duy electric boats. million Series Seed equity round pany that is applying decision for service-disabled veterans. Nothing Else! In 2012, he launched Chicago led by Salveo Capital, an alterna- science to improve the e ciency O’Neill launched the Glenview Salmon. e Electric Boat, which now oers tive investment rm specializing and accuracy of the traditionally company in 2007, and it has launch was ac- customer-driven electric boat in legalized cannabis, and Hyde manual underwriting process. grown to revenue of $8 million companied by rentals at three Chicago River Park Angels. Equilibria is an Since the start of 2019, Neelama- with a sta of 22. In 2018, she an “I’m Single” locations. Chicago Cycleboats, owner in a Colorado farm that na helped the Convr team build completed a $2.6 million roong marketing cam- launched in 2018, oers at two grows industrial hemp owers. 10 new customer relationships, project on a milelong building paign aimed locations captain-driven boats ree on-sta pharmacists guide including AF Group, Selective at Edward Hines Jr. VA Hospital at millennials. in which riders sit on bike seats women through CBD routines Insurance and Columbia Insur- near Broadview. It was especially e company has grown to sales at a table and cycle. Revenue has suited to their body and health ance. e company raised $15.2 meaningful to her because the of nearly $5 million with three grown to more than $1.5 million goals. Meers earlier founded million in Series B nancing last roof ended at a long-term care employees and 10 sales repre- with a eet of 30 boats. Down- PrettyQuick, an app that con- year. Neelamana has more than facility for patients with spinal sentatives. e twins learned town Docks hosts transient nects consumers with salons 15 years of strategy and opera- cord injuries, the same facility the pet food business at their dockage on the river and has and spas. It was acquired by tions experience in the insur- where O’Neill had spent months family’s Evanger’s Dog & Cat grown to ve locations. Groupon in 2015. Meers serves ance industry, including stints at rehabilitating. She serves on Food in Wheeling. Brett Sher was on the Jorey Ballet board. Zurich Insurance Group, Allstate the state’s Business Enterprise vice president of research and and Boston Consulting Group. Program Council. development, and Chelsea Sher was vice president of global development before shifting to vice president of sales and marketing.

Congratulations to our CEO THOMAS D. McELROY II for being recognized as one of Chicago’s notable Evanger’s congratulates twins entrepreneurs of 2020 Chelsea & Brett Sher, We are proud to be a black-owned enterprise Crain's 2020 Notable made in usa leading the IT industry with innovative smart city infrastructure solutions that improve communities Entrepreneurs and owners of our most We bring strategic plans for the built environment to life through smart design and systems integration formidable competition, Against the Grain Premium food for Pets WE HELP BUILD THE CITIES OF TOMORROW, TODAY

Level-1 Global Solutions, LLC | level-1.com | 312.202.3300 EvangersPetFood.com AgainstTheGrainPetFood.com 24 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

STEPHEN SMITH JULIA STAMBERGER MICHAEL STRATTA SHERYL TERRIL CONSTANCE TESKA Founder and CEO Founder and chief strategy officer Founder and CEO Founder and CEO Co-founder, principal and CIO NOCD Spinning Wheel Brands Arcalea The AddVantage Group Pluscios Management Stephen Smith’s startup is build- Launched in 2016, Spinning Michael “Mike” Stratta in 2015 Sheryl Terril leads the niche e Evanston women-owned ining a clinical services platform to Wheel Brands markets a port- founded Arcalea, a consultancy management consulting rm vestment adviser co-founded by serve people with mental illness- folio of plant-based brands that provides analytics, data launched 14 years ago with a Constance Teska was launched es, starting with obsessive-com- that support sustainability and science and marketing imple- specialty in corporate nance. It in 2006. Pluscios serves a mix of pulsive disorder. Smith launched regenerative agriculture. It was mentation. e rm works with has grown to serve supply chain, clients including public pension the company founded by entrepreneur- sales, customer funds, endow- in mid-2017 Julia Stamberg- ial and estab- service and HR ments and and developed er, who also lished brands organizations. family o ces. a teletherapy serves as chief in real estate, Recent projects Historically, platform. He strategy o cer consumer have involved small women-, says he expe- and chief sales products, de- acquisition minority- or rienced OCD and marketing fense, technol- integration, veteran-owned when he was o cer. e ogy and retail. enterprise SAP investment younger, which company mar- Clients have implementa- rms were caused him to kets the Hope included Nike, tion, controls rarely used by become housebound and dis- & Sesame nondairy beverage, Beam Suntory, McDonald’s and rationalization and payroll large pension funds and endow- tressed, nding himself misdiag- Mozaics organic veggie chips Toyota as well as Northwestern accounting optimization. e ments, Teska says. But she saw nosed with clinically ineective and Veggicopia dips and snack University’s Kellogg School of rm’s consultants are dedicated an opportunity in that pension guidance. He determined to olives. e products are dis- Management, Feeding America to client engagements and are funds have been looking to help others get the right care. tributed at major supermarkets and the Alzheimer’s Associa- not accountable for generating diversify their sources of invest- NOCD teams with mental health and retailers including Safeway- tion. Revenue has grown to $4.1 sales. Terril spent eight years at ment advice. e rm, which has professionals looking to nd Albertsons/Jewel, Meijer, Kroger, million as of last year with a sta the Johnsson Group, a boutique seen growth of 63 percent over and treat more people with the Sprouts and Amazon. Revenue of 18. Earlier, Stratta founded nancial consulting rm, where the past three years, has a sta disorder. Its program includes has grown to $3.1 million with LimeGreen, an advertising agen- she led corporate strategy and of six. Before starting Pluscios, video-based therapy (expo- a sta of 11. Stamberger’s team cy that was sold in 2015. He also nance engagements. After the Teska was a senior managing sure and response prevention lined up a roster of angel inves- started a career-and-recruiting rm’s founder sold the business director at J.P. Morgan and held treatment) and support between tors including restaurateur Larry website that was sold in 2009. to a publicly traded company, leadership positions at prede- sessions. NOCD has lined up 12 Levy and a syndicate founded Stratta speaks often at schools Terril launched AddVantage, cessor nancial institutions. payer partnerships, health plans by alumni of the Illinois Math including Kellogg, the University which has grown to a workforce Pluscios developed a database of and managed behavioral health & Science Academy. Earlier, of Chicago and DePaul Univer- of 32. Earlier, Terril held posi- 250 women-, minority- and vet- organizations. e startup has Stamberger founded snack box sity. He serves as a mentor at the tions at NutraSweet, Northrop eran-owned advisers across the raised $17.8 million in venture company GoPicnic and created Garage, an incubator at North- Grumman, Motorola and Unile- country so it can assist pension capital. It has a sta of 41. the snack box program for Unit- western. ver. She is on the Chicago steer- funds and endowments looking ed Airlines. ing committee for the Network to diversify. of Executive Women.

The AddVantage Group CEO & Founder

!# "

CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 25

LEO TROPEANO VADIM VLADIMIRSKIY ROBERT WILSON ROBERT YOSKOWITZ JESSICA ZWEIG Founder and CEO CEO Co-founder and CEO Co-founder and CEO Founder and CEO Mugsy Jeans Nerdio Winestyr Nullafi SimplyBe. Agency As Leo Tropeano aimed to IT company Nerdio, headed On a wine tasting trip to Michi- Traditional cybersecurity in- Jessica Zweig is the founder of improve his style and search by Vadim Vladimirskiy, builds gan in 2011, Bob Wilson won- volves scrambling to build high- personal branding company for better jeans, the brands he cloud and virtual desktop envi- dered why it was so dicult to er and stronger walls to keep SimplyBe. Agency. She works tried were uncomfortable. Not ronments in Microsoft Azure. It nd artisanal wines on store out increasingly sophisticated with executives and entrepre- wanting to sacrice comfort for also teams with managed service shelves. He started Winestyr hackers. Robert Yoskowitz and neurs as well as brands. Zweig style, he set providers to to create a his partners has teamed out to x the grow their better way for aim to refocus with corporate problem with cloud practic- consumers cybersecurity, clients includ- Mugsy Jeans. es in Azure. to discover removing the ing Google, Launched in Skokie-based and purchase fallout of a Pinterest, 2016, the brand Nerdio this wine from the breach, rather Salesforce, is approaching year raised thousands of than failing Motorola, $10 million in an $8 million U.S. artisanal to prevent Heineken, revenue with Series A - wineries, most one. ey Blackstone and a sta of nine. nancing led by of which lack developed a Bank of Amer- e Mugsy website sells jeans Chicago-based MK Capital and national distribution. More proprietary masking technol- ica. She creates personal and chinos, most retailing at $98. supported with funding from than 110 wineries participate ogy that renders sensitive data branding workshops, virtual e site also carries other mens- Vladimirskiy and Nerdio’s chief on the platform. Winestyr is useless to hackers but retains its events, lunch and learns, and wear such as T-shirts and shorts. revenue ocer. Last year, the funded through a mix of family integrity for authorized users. o-sites for their teams, as well Mugsy recently opened a store company added a new technolo- and friends, angel investors Nulla initially was directed at as executive consulting engage- in Lincoln Park, its rst physical gy, Nerdio Manager for Windows and institutional capital. It has consumers, but investors recom- ments. Since its start in 2014, location. Before starting Mugsy, Virtual Desktop, and expanded raised more than $6 million mended refocusing the company the company has grown to sales Tropeano was a senior associ- to the Europe, Middle East and with investments from Chica- as a software-as-a service B2B of $1.5 million with a sta of ate in international tax services Africa market. Earlier, Vladimir- go-based Continental Advisors technology. It has eight full-time 10. is year, Zweig expanded consulting at PwC. Mugsy has skiy co-founded IT rm Adar to and strategic investor Constella- and six part-time employees. SimplyBe.’s client portfolio by 61 formed brand partnerships with provide data storage, network tion Ventures. Revenue last year Nulla has raised $4.5 million, clients and serves individuals the Chicago Cubs and model- security and other services to was $2.8 million, and the rm funded by angel investors and and companies across the U.S., ing agency 10 MGMT. He has small and midsize companies. employs 11. With the closing Berlin-based Axel Springer Plug Canada, the Middle East, Europe participated on industry panels, In 2016, Adar diversied into of restaurants, wine shops and & Play Accelerator. Yoskow- and Asia. She signed a book deal including Fashion Digital NYC. enhanced streaming, establish- wine tasting rooms, Winestyr has itz has sponsored networking with Macmillan imprint Sounds ing Nerdio as a subsidiary. It was provided a needed sales outlet events for entrepreneurs in the True Publishing and launched a spun out as a separate company for small wineries. Chicago tech community, in- podcast. Guests have included this year. cluding some on cybersecurity. author Candace Bushnell and He has advised other startups on designer Rebecca Minko. funding and product strategy.

DEADLINE EXTENDED!

IN TECH ACCEPTING NOMINATIONS! NOMINATIONS CLOSE OCT. 23

Help us recognize up-and-coming leaders in technology in the Chicago area who are making a signiﬁcant impact at their company and are advancing their industries as well as Chicago as a tech hub. Candidates must have assumed a leadership position outside of their own organization.

Learn more & nominate at ChicagoBusiness.com/StarsInTech

Nomination deadline is Friday, October 23. Section publishes December 14. To view Crain’s nomination programs, visit chicagobusiness.com/nominate. 26 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

æ`ÛiÀÌÃ}-iVÌ CLASSIFIEDS To place your listing, contact Claudia Hippel at 312-659-0076 or email [email protected] .www.chicagobusiness.com/classi eds

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As recently used to raise $25 million wildly capital intensive, is fasci- the industry begins to consolidate, for a new cultivation facility in To- nating.” both acquirers and sellers need ledo, Ohio. His rst deal, back in 1997 while advice on structuring mergers and “Sale-leasebacks are expensive. working in Minneapolis, was the acquisitions, and help negotiating You run out of land. You run out merger and sale involving farm buyout prices. of friends and family. ere’s de - equipment maker Ingersoll Till- OUR READERS ARE 125% “As the companies grow, their nitely a need there,” says Barbara age. He sees it as an advantage. MORE LIKELY TO needs get more sophisticated,” Webb, a director in the new Chi- “at’s what we’re bringing: Mid- INFLUENCE OFFICE says Bill Bogot, who leads the cago oce of MGO, a Los Ange- west sensibility and professional- SPACE DECISIONS cannabis practice at law rm Fox les-based account- Rothschild. “Sophisticated investing rm with a large “FOUR OF THE 10 LARGEST CANNABIS ment bankers can be really useful cannabis practice. and make a lot of money in this A handful of COMPANIES IN THE WORLD ARE IN space.” rms, mostly start- For smaller and midsize invest- ups, have stepped CHICAGO. THE INVESTMENT COMMUNITY ment banks, cannabis represents a in. MGO’s can- IS STARTING TO RECOGNIZE THAT.” lucrative new market that’s not yet nabis practice dominated by Wall Street giants. launched an in- Charlie Bachtell, CEO, Cresco Labs Miles and others are looking to get vestment-banking a foothold before Congress allows subsidiary, Ello Capital, last year. ism. We’re about nuts and bolts, traditional investment banking Most established rms remain on cash ows, management teams rms to swarm in. the sidelines. “e huge stopping and business models.” point for us is it’s federally ille- e 49-year-old St. Louis native FERTILE GROUND gal,” says Rick Herbst, partner in brings something else, says Frank Chicago is particularly fertile charge of investment banking for Celli, who says Miles helped him ground, with two of the industry’s Chicago-based Sikich. “ere’s sell a New Jersey waste disposal biggest public companies, Green no way we can touch anything in rm for more than $200 million in Find your next umb Industries and Cresco cannabis right now, and we’re not 2006. e buyer wanted to change corporate tenant or leaser. Labs, as well as large private play- willing to try to navigate that line.” terms at the last minute. Miles and ers such as PharmaCann and Ve- Miles sees opportunities to help his clients walked out. “ey did rano Holdings. Small retailers are the big players such as Cresco, the an about-face, and we got our pur- being hunted by out-of-state buy- midtier players and little guys who chase price,” Celli recalls. “I’m not ers looking to enter the fast-grow- “have licenses, facilities and no ac- a huge fan of investment bankers: ing Illinois market. cess to capital and running into the Usually they’re all about the deal Connect with Claudia Hippel at “Four of the 10 largest cannabis arms of (multistate operators).” and the fee. It took a lot for him to [email protected] for more information. companies in the world are in Chi- He hardly seems like a t for a say, ‘If this is what you want to do, cago,” says Charlie Bachtell, CEO freewheeling industry of ideal- I’ve got your back, and we’ll walk of Cresco Labs. “e investment ists, activists and risk takers. Miles out together.’ ”

WEALTH MANAGEMENT UPDATE ON DONOR-ADVISED FUNDS

calendar year, the result is only one tax deductions into DAFs that they can then interest earned on their funds each year. could signi cantly decrease, or even and out of their DAFs, yearly or every receipt and one charitable deduction use for charitable giving, and these kinds Moreover, the majority of DAF programs eliminate, your federal tax liability. few years. In this way, they always have amount. of funds have led to a large increase in the also give out signi cant amounts of charitable funds available and ready to total number of DAFs. money collectively, with an average of Are there rules or regulations use for special purposes. We’ve seen our Carlson Vogen: By making one approximately 21 percent of assets in the that limit how donors can use donors use their DAFs time and again for transfer to a DAF, the donor keeps What tax or regulatory changes aggregate being distributed in 2019. their DAFs? immediate relief needs such as following track of one charitable deduction, yet relating to DAFs should donors natural disasters like hurricanes and can contribute immediately and in the be aware of? Carlson Vogen: Some people are Carlson Vogen: DAF grants must res and now for the pandemic. Our future to recommended nonpro ts. raising questions about the legitimacy be distributed to quali ed 501(c)(3) DAF donors have given over $2 million With the stock market at record highs, Jagust: e issue that’s most recently of charitable deductions for DAFs public charities. Private nonoperating in the last few months speci cally for many individuals want to take advantage been debated and has reached one state when grants are paid in a di erent year. foundations—including independent, COVID-19 needs, with additional gi s and contribute shares of stock. It’s much legislature is related to the substantial ere have been suggestions to create a family or corporate—are also 501(c) to a myriad of social service agencies that easier and simpler to make one transfer growth of assets in DAFs. Calls have required minimum distribution similar (3) entities, but don’t qualify as public help many at-risk populations. into the DAF and then distribute dollar come forward to mandate a minimum to private foundations. As a community charities and can’t receive a grant amounts to recommended charities. percent spending for each DAF each foundation, we encourage our donor from a DAF. Some DAF sponsors have Carlson Vogen: In the wake of year. Just recently, in response to the advisors to make grants annually from restrictions on the types of nonpro ts COVID-19 we saw a tremendous surge Jagust: By “bunching” several years’ pandemic, advocates have called for a their DAFs. Typically, the payout rates that can be supported, and all DAF in giving and people wanting to do what worth of giving into a DAF, donors 10 percent distribution rate from every from our grants exceed 18 percent. sponsors have the ultimate authority they could to help our communities can take a deduction in one year while one of the 728,563 DAFs in the United is year, we’ve seen unprecedented on approving a grant recommendation through the crisis. In the early months of supporting their favorite charities over a States. is is happening even though in distributions and will likely see an from a donor advisor. the pandemic, from March to June 2020, longer time. When the DAF’s assets dip, the aggregate DAFs collectively distribute average payout far exceeding 20 percent. Trust donors made $151.3 million in they can repeat, as necessary. DAFs are signi cant amounts to charity each year Zielinski: e basic rule of thumb is that grants from DAFs—a 53 percent increase also being used in more exible ways. at rates much higher than that distributed Zielinski: I’d encourage all a DAF may only be used for charitable compared to the same time last year. e For instance, individuals and families use by private foundations. For example, at donors to pay attention to how the purposes, and the donor cannot receive exibility and ease of giving that DAFs DAFs to mark life events and to pass on the Jewish Federation, we’ve averaged a CARES Act—passed in response to any bene t for their gi . As expected, the provide was vital in mobilizing these charitable giving to the next generation. payout of 23 percent of our DAF assets COVID-19—a ects charitable giving most common restrictions for DAF giving funds to sustain nonpro t and community Employers have started o ering in the last 10 years. We also mandate in 2020. Contrary to the theme of this involve fundraising events and charitable organizations and support the most employees the ability to make payroll that donors must give out at least the conversation, the CARES Act actually pledges. IRS rules state that a donor vulnerable residents. Because DAF dollars incentivizes donors to give cash directly cannot receive any personal bene t from are already set aside for charity, it’s much to a public charity, rather than through their DAF gi , which means that they easier for fund holders to respond to a DAF. Taxpayers can deduct up to can’t use it to purchase tickets to a charity urgent needs and increase their generosity, “EMPLOYERS HAVE STARTED OFFERING $300 in cash gi s made in 2020, even if event, to bid on an auction item or ful ll a regardless of how economic shi s may they take the standard deduction. ey legally binding pledge. impact their personal investments or EMPLOYEES THE ABILITY TO MAKE PAYROLL can also deduct cash gi s of up to 100 immediate income. As we continue to percent of their adjusted gross income, Jagust: Donations may also go to come to terms with the ongoing impact of DEDUCTIONS INTO DAFS THAT THEY CAN e ectively eliminating their federal some other organizations, such as the pandemic, what we’ve learned this year tax liability in 2020. is means that if houses of worship and government can help us to understand potential giving THEN USE FOR CHARITABLE GIVING . . .” you’re facing a heavy tax burden this entities, but in those cases, there may trends moving forward, or how to respond ROSE JAGUST, JUF/JEWISH FEDERATION OF CHICAGO year, a large cash gi directly to a charity be additional due diligence required to to tumultuous events in the future. ensure that the donation is used only for charitable purpose. Donors also need Is there an incentive to make to understand that requests for grants a gift from a DAF rather than a from their fund are recommendations cash gift? only and that the hosting organization can add additional requirements to Carlson Vogen: DAF distributions these rules. For example, the Jewish are more agile and thus can be called Federation would not make a grant to upon when a donor will not be able an organization whose mission and to meet the threshold for itemized activities run counter to the interests of deductions, or when a donor doesn’t have the Jewish community. resources to give to charity in a speci c year. For example, a er the Tax Cuts Can DAFs be used in response and Jobs Act of 2017, many tax advisors to immediate relief needs, such advocated for DAF “bunching”— as COVID-19? providing a larger contribution for a DAF in one year, using that for gi s to Zielinski: Absolutely! Just like a cash charity in following several years, and gi made in response to a natural disaster contributing more in subsequent years. or other tragic event, a grant from your Because of the pandemic, 2020 is an DAF can easily be deployed to wherever unusual year as cash contributions to it’s needed most. And because these direct service charities can be deducted gi s are liquid, they allow nonpro ts up to 100 percent of one’s AGI, instead of Your philanthropy gets smarter when to remain nimble during a crisis, when limited to 60 percent. programs and services must evolve to we work together. meet a new set of needs. For instance, Jagust: In general, making a gi from in response to the pandemic, Mercy an already established DAF is easier When you seek to improve our community and support causes that Home established the “Community Care” and makes more sense. Since the donor program to expand services and provide has already received a tax deduction motivate you, the Trust can help. essential needs to the greater Mercy when they gi ed to the DAF, there’s no Home community. A number of donors tax consequence when money is gi ed have earmarked their DAF gi s for this from the fund to the charity, which program, which has allowed us to quickly means the donor doesn’t have to worry pivot and provide help to those who need about keeping receipts from various Please c Tim Bresnahan at it most. And one donor stepped up to charities. Also, most DAF sponsors have ontact challenge others to distribute their DAF on-line password-protected sites that [email protected] or visit www.cct.org/generosity. gi s in the time of COVID-19 as well, make it e cient and fast to make a gi . inspiring our current “DAF Challenge” However, if donors want to make gi s running until the end of the month. to a political campaign or a lobbying Please see our ad for more details. organization, they’ll have to make those LOCAL PHILANTHROPIC EXPERTISE / LEGACY AND BEQUEST PLANNING via a cash gi , not a DAF. Jagust: DAFs are the perfect tool for DONOR ADVISED FUNDS / IMPACT INVESTING responding to immediate relief needs. Zielinski: Mercy Home currently has Many of our donors cycle money in a “Double Your DAF Challenge” for

P029_031_CCB_20201012.indd 28 10/5/20 1:21 PM SPONSORED CONTENT

“DAFS ARE A GREAT AVENUE FOR FAMILIES ABOUT THE PANELISTS TO COME TOGETHER AROUND THEIR ROSE L. JAGUST is vice president of donor advised programs SHARED VALUES AND CHARITABLE GOALS at the Jewish United Fund/Jewish Federation of Chicago. She also heads JUF’s Center for Jewish Philanthropy, which serves AND CREATE A PLAN FOR GIVING...” thousands of Jewish individuals and families and holds more KRISTIN CARLSON VOGEN, CCT than 1,025 funds and foundations valued at around $1 billion. She is a member of the Chicago Council on Planned Giving and has presented at the Council’s annual meeting, as well all DAF gi s initiated by Oct. 31. is philanthropy. No matter which option as other meetings and conferences in the nonpro t area. Before joining JUF in 2001, she practiced means that any DAF gi made until the you choose, pay attention to account employment law and worked in the nonpro t sector. end of the month—up to $50,000—will minimums and administrative fees, and help twice as many kids and families take advantage of investment options to in need. is is our rst time holding grow your investment and increase your a campaign like this, and was sparked impact on charities when you make a by a conversation with an anonymous grant. KRISTIN CARLSON VOGEN is senior director of donor who wanted to incentivize others philanthropic services at The Chicago Community to support Mercy Home in the era of Carlson Vogen: Local community Trust, a foundation that for more than 100 years has COVID-19. She read an article about foundations, including e Chicago connected donors with community needs. She and the #HalfMyDAF Challenge, in which a Community Trust, have expertise about her team engage families and individuals to focus California couple challenged others to nonprots serving the surrounding their giving for impact, leverage the knowledge of distribute half of their DAF accounts to community, as well as knowledge about the Trust’s community impact staff for the bene t of charity, unlocking badly needed funds issues that are pertinent for impactful donors and advisors, and enhance opportunities for impact investing. Before joining CCT in 2018, she to nonprots across the country. is granting. Every DAF holder at e was president and CEO of the Oak Park-River Forest Community Foundation, and earlier in her career is one more example of philanthropists Chicago Community Trust is assigned worked at Bank of America/U.S. Trust as a philanthropic specialist. nding innovative ways to increase a philanthropic advisor. at advisor giving, and ultimately help those who guides the DAF holders on their need it most. philanthropic journey, asking questions relevant both to grantmaking and long- What factors should donors term administration of the fund. PHIL ZIELINSKI is director of philanthropy for Mercy consider when choosing Home for Boys & Girls, a residential care facility that among DAF providers? How can DAFs be used to has served Chicago-area kids in crisis for more engage subsequent generations than 130 years. He and a team of philanthropic Jagust: Donors should decide if they in charitable giving? advisors work with donors to maximize their impact on the causes they care about while prefer a local provider like a community minimizing tax exposure. He has nearly 15 years of philanthropy experience, including foundation, a single-issue charity or one Carlson Vogen: DAFs oer a previous roles as a lobbyist, grant administrator and planned giving of cer. He is a of the national commercial providers. great deal of exibility for individuals certi ed fund-raising executive (CFRE), a member of the Chicago Council on Planned Giving, and the Charities like the Jewish Federation of to achieve their philanthropic legacy Association of Fundraising Professionals. Chicago, which acts like a community goals. Donors can create a DAF either foundation for the Chicago Jewish during their lifetimes or through their community, along with single-issue estate and design a succession plan charities that host DAFs tend to oer that engages family members and more individualized service, with subsequent generations. DAFs are sta who take the time to learn about a great avenue for families to come Create a brighter future donors and their interests. ese together around their shared values charities can also provide more in-depth and charitable goals and create a plan philanthropic advice regarding issues for giving long into the future. for a child today! such as strategic grantmaking, legacy planning and teaching second and third Jagust: With younger children, generations about philanthropy. e parents can connect them to talk commercial institutions provide ecient about charity at a family meeting and service, but generally do not assign encourage them to think about how dedicated sta to each donor. However, they want to help others; and a small A generous friend of this option may be more convenient if grant to an organization on behalf of the institution also manages the donor’s the child can do much to help that child Mercy Home has offered personal investments. Of course, fees develop a habit of giving. As children and ease of use also are important, so mature, parents can allow children donors should review the administrative access to the DAF to make their own to match all DAF gifts - fees charged and whether the provider grants with approval from the parents has an easy-to-use online system for or open a separate smaller DAF for up to $50,000 - until recommending grants. the children that the parent oversees. Finally, parents can name their children October 31, 2020. Zielinski: Most donors open a DAF to succeed them in using the DAF and account with the same administrator structure their testamentary documents where they’ve already invested their to leave a portion of their estate to the personal wealth, such as Fidelity, DAF, which is also tax benecial for the Vanguard or Schwab. is makes perfect parents’ estate. Double your impact on sense if your primary motivation is simplicity; a er all, a central goal of Zielinski: Talk about the Family the lives of deserving having a DAF is to make giving simple. Philanthropy Fund when you get together But if you’re looking for guidance in for anksgiving each year—it will be kids with your donor your philanthropy, and how to make your new family tradition! When you the greatest impact, a community invite younger generations into the advised fund today! foundation, such as our friends at e conversation, you’re telling them what’s Chicago Community Trust or the Jewish important to you, and what you’re doing Federation of Chicago, may be a better right now to make the world a better t. ese smaller shops can provide place. You’re also inviting them to think a valuable service in philanthropic of something greater than themselves, advising which can be transformational and to support causes that they believe in. for you and your family, especially if In my experience, these are always better you’re interested in legacy planning, conversations around the anksgiving or teaching younger generations about table than football or politics.. Donate at MercyHome.org/CrainsDAF

P029_031_CCB_20201012.indd 29 10/5/20 1:21 PM 30 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS Local restaurants battle Wisconsin insurer over business-interruption claims

INSURANCE from Page 1 sued if it’s found to be responsi- ing the cases made the same ar- do so on the front end with an pandemic exposures from insur- ble to pay claims. gument: “As counsel repeatedly express exclusion,” reads Big On- ance policies and reinsurance should be on the hook for losses e restaurants haven’t spec- emphasized in their papers and ion’s March 27 complaint. “In- treaties.” su ered by policyholders as a re- ied the amount of the damag- during oral argument, time is of stead, Society Insurance waited Illinois’ business-interruption sult of the pandemic and govern- es they’re seeking. But Illinois the essence in this litigation,” the until after it collected plainti s’ task force is charged with o er- ment actions in response. Such restaurants lost 77 percent of ruling says. “Many plainti s are premiums, and after a pandemic ing recommendations to Gov. claims, which insurers say are their business on average in May, on the brink of bankruptcy as a and the resulting closure orders J.B. Pritzker and lawmakers for fundamentally not what their pol- before even open-air dining was result of business lost due to the caused catastrophic business state legislation or other policies icies are meant to cover, collec- allowed, according to a survey by COVID-19 pandemic and the losses to plainti s, to try to lim- by the end of the year. Industry tively constitute one of the most the National Restaurant Associa- government closure orders.” it its exposure on the back end representatives, insurance regu- dramatic and potentially costly tion. Many commercial property through its erroneous assertion lators and lawmakers are partic- litigation battles in recent history Society’s number of policy- insurance policies expressly ex- that the presence of the corona- ipating. for an industry accustomed to the holders isn’t known, but the law- clude coverage of losses stem- virus is not ‘physical loss’ and How insurers handle pandem- courtroom. yers for the Billy Goat, which is ming from a virus or a pandemic. therefore is not a covered cause ic coverage in the future, how- Having collected just $177 mil- seeking class-action status, said In the U.S., 83 percent of business of loss under its policies.” ever, doesn’t a ect how policies lion in premiums in 2018, Society in lings they believe “there are policies have that exclusion, ac- written in the past are interpret- is small by industry standards. It’s hundreds and likely thousands” cording to the National Associa- GOVERNMENT SOLUTION ed. An insurance policy is a con- not clear the insurer would have just in Illinois. Based on that, So- tion of Insurance Commission- Insurance industry leaders are tract, and judges are tasked with ciety could be on the ers. appearing before state and feder- determining what the contract hook for at least tens of Society’s policies, however, al task forces, including one the means. Wording is critical. SOCIETY ARGUES THAT ITS POLICIES millions and possibly were among the 17 percent with- Illinois Department of Insurance “Society Insurance’s wholesale, more if it loses in court. out a virus exclusion, according has established here, to argue for cursory coverage denials are ar- REQUIRE A “PHYSICAL LOSS” FOR A Society lawyer de- to court lings. at gives the a government solution to cover- bitrary and unreasonable, and POLICYHOLDERS TO QUALIFY FOR clines to comment. plainti s a better chance to pre- ing the risks to business from a inconsistent with the facts and In a court ling, Big vail, attorneys say. pandemic. plain language of the policies it COVERAGE. THE INSURER SAYS THE Onion made clear what In court lings, Society argues “Pandemic risk cannot be issued,” Purple Pig argued in its the stakes are for its that its policies require a “physi- spread, shared or diversied May 28 complaint. “ese deni- CLOSURE ORDERS DON’T MEET business. In pleading cal loss” in order for policyhold- across policyholders,” said a May als appear to be driven by Soci- THAT TEST. for an early decision on ers to qualify for coverage. e 29 white paper commissioned by ety Insurance’s desire to preempt its claims, it wrote Oct. insurer says the closure orders the American Property Casualty its own nancial exposure to the 6, “Plainti s are facing by state and local governments Insurance Association, based in economic fallout resulting from the resources to pay if it’s com- existential crises—as winter ap- don’t meet that test. Chicago. “Given the characteris- the COVID-19 crisis, rather than pelled to cover business losses proaches and outdoor dining is “If Society Insurance had want- tics of pandemic losses and their to initiate, as Society is obligated over several months. Because reduced/eliminated, plainti s ed to exclude pandemic-related nancial impact on world econo- to do, a full and fair investigation plainti s in some of the cases are may be out of business by the losses under the plainti s’ pol- mies, insurers and reinsurers will of the claims and a careful review seeking class-action status, So- time a consolidated complaint is icies—as many other insurers likely have no alternative but to of the policies they sold to Plain- ciety could have to cover losses led.” have done in other policies—it continue to be unable to provide ti in exchange for valuable pre- of other customers that haven’t e judges’ panel consolidat- easily could have attempted to coverage for virtually all future miums.”

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$20 per person Includes access to webcast and archived recording CRAIN’S CHICAGO BUSINESS • OCTOBER 12, 2020 31 What the loss of a major acquisition means for Advocate’s expansion plan ADVOCATE from Page 1 here. “IU Health has a long-standing the pandemic continues to strain commitment and mission to serve hospital nances and is expected many others are getting snapped up the health care needs of Indiana as to spur more dealmaking. e av- by large academic medical centers. an independent nonprot health erage size of sellers by annual reve- A deal with eight-hospital Beau- system and we have no plans to nue remains high at just under $400 mont would have given Advocate change that,” says a spokesman for million in the third quarter, when an additional $5 billion in revenue, IU Health. 19 transactions were announced, bringing the system closer to its Skogsbergh unveiled his vision of according to Kaufman Hall’s latest goal of boosting revenue to $27 bil- Advocate as a “multimarket consol- M&A activity report. lion by 2025. Advocate also would idator” at an industry conference Skogsbergh has said Advocate have picked up nearly 5,000 Mich- in January, more than two months may expand in other parts of the igan doctors, enabling it to quickly before the COVID-19 pandemic at- country as it seeks to leap from 10th expand its value-based contracting tacked hospital revenues. Patient place to second among the nation’s strategy to another state. Such ar- volumes plummeted across the largest nonprot health systems by rangements are attractive to health country as lucrative nonemergen- revenue. insurers and employers looking to cy surgeries were postponed, and “Given today’s virtual landscape, cut costs by curbing super uous operating costs soared as hospitals geographic location and size of a care. bid for desperately needed personal prospective partner are far less im- Without Beaumont, Advocate protective equipment and shelled portant than” shared values like a may look to execute a series of out for additional sta and overtime commitment to safety, health out- smaller deals, but a few physicians pay to handle the in ux of COVID comes and making health care more here and there—or even a few patients. aordable through value-based

stand-alone hospitals—aren’t likely Advocate reported a $302.7 mil- care, Advocate Aurora spokeswom- UNGER ERIK to provide the jolt of growth CEO Jim lion operating loss in the rst half of an Brigid Sweeney says in an email. Advocate Aurora Health CEO Jim Skogsbergh Skogsbergh wants. the year, compared with operating ere’s little evidence that con- “It’s got to be a big system or two,” income of $245.1 million during the solidation improves quality of care. size and some diversication, you cializes in health care economics. says Tim Classen, an associate pro- same period a year earlier. Mean- In fact, a recent study by Harvard can weather some of those storms Size also presents an opportu- fessor of economics at Loyola Uni- while, revenue decreased 3 percent University scientists found that hos- more eectively,” Perry says. nity to cut insurers out of the mix, versity Chicago’s Quinlan School of to $6 billion. pital mergers were associated with Advocate likely will work to con- establishing more lucrative direct Business. a modest decline in patient experi- tinue expanding its physician net- contracts with employers. But Ad- A system like Indiana University ‘THE VALUE OF SCALE’ ence scores and no change in read- work and gain more bargaining vocate’s focus on riskier value-based Health would be a logical next target, Despite the nancial challenges, mission or mortality rates. power with insurers. In the Midwest, arrangements, in which physicians substantially increasing Advocate’s Skogsbergh has said Advocate’s size But big multistate mergers oer 55 percent of doctors already work are compensated for keeping pa- revenue, Classen says. e 16-hos- helps it withstand the pandemic bet- hospital chains much-needed di- for hospitals, according to a report tients healthy, likely turned o some pital system has four physician net- ter than some other hospital chains. versication, such as a mix of urban from consulting rm Avalere Health Beaumont doctors. works, a health insurance compa- “We are big proponents on the val- and rural hospitals or a broader net- and the Physicians Advocacy Insti- “Not all physicians are going to ny and $6.7 billion in revenue. Its ue of scale,” Skogsbergh told Modern work that funnels patients to large tute. like that kind of model,” Classen partnership with Indiana University Healthcare in August. “It’s not big for specialty facilities, says Jennifer Per- “e slow and steady route” of says. “Finding more physicians or a School of Medicine also would be bigness’ sake, it’s really to get stron- ry, managing principal at advisory gobbling up physician practices— big group who would be tolerant of attractive to Advocate, which com- ger. And that strength then can be rm FMG Leading. gaining more pricing power in the those kinds of risk-based contracts petes with academic medical cen- translated in what we say is better “Particularly, having gone process—will help increase reve- in the employed model, that would ters like Northwestern Medicine health outcomes and less costs.” through COVID, many systems are nues, says Anthony LoSasso, a pro- be an essential feature of their next and University of Chicago Medicine Even as patient volumes rebound, seeing that when you’ve got a larger fessor at DePaul University who spe- target for expansion.” Spoofing crackdown appears to be curbing practice that costs traders millions SPOOFING from Page 3 monitor the market for spoong charges in 2016. In settlements with whether it evades detection. “I nd it hard to believe that most and all disruptive trading practices the CFTC, they didn’t admit or deny Victims have often been large, people in the derivatives space Department of Justice said “numer- and vigorously prosecute violations the regulator’s ndings. sophisticated trading rms that haven’t already gotten that mes- ous” traders at the bank sought to of our rules,” CME says. Enforcement heads have recent- use algorithmic programs to trade. sage,” says Zuckerman Spaeder at- defraud other participants in pre- e CFTC and the Justice Depart- ly said they believe their actions are Spoofers try to trick the automated torney Aitan Goelman, noting the cious metals and U.S. Treasuries ment have collected $1.1 billion in curtailing spoong. If that’s true, systems by baiting them with or- eye-popping JPMorgan ne. markets over eight years. In a state- penalties since 2017 from big banks market participants could benet ders that quickly vanish. Chicago is a center of spoong ment regarding the September set- including JPMorgan, Citigroup, from better pricing, increased e- “is is not a case of the govern- cases because trades from all over tlement with regulators, JPMorgan Bank of America/Merrill Lynch, ciency and more transparency. ment coming in to protect the little the world pass through CME’s giant said the traders’ conduct was “un- Bank of Nova Scotia and Deutsche CME’s global head of enforce- guy,” Filor says. electronic trading system. Prosecu- acceptable and they are no longer Bank. While Citigroup settled its ment, Steve Schwartz, told a Fu- Prosecutors put representatives tors in the local U.S. attorney’s oce with the rm.” CFTC case for $25 million in 2017, tures Industry Association confer- from high-speed-trading rms Cit- won the rst spoong conviction in At Sunoco, it was spoong by a without admitting or denying the ence this month that spoong has adel Securities and Quantlab on 2015, sentencing Panther Energy single trader in the energy futures charges, the other banks admitted declined dramatically and said the the stand in the Deutsche Bank Trading owner Michael Coscia to market ve years ago that led to a to their employees’ misconduct in company is now bringing fewer trader trial to testify about the im- jail for three years. $450,000 civil penalty last month: deferred prosecution or nonprose- cases, according to one lawyer who pact. Representatives for Citadel But then the DOJ’s fraud section “We regret the isolated actions of cution agreements. Deutsche Bank watched the closed session. Securities and Quantlab decline to in Washington took the lead and this former employee,” the Dal- reached a $30 million settlement comment. lost key cases. For instance, D.C. las company said in a statement. with the CFTC in 2018, though not CITING PROGRESS K&L Gates Chicago attorney Cli prosecutors failed last year to con- “We’ve seen no instances of similar with Justice. It declines comment. Former CFTC Enforcement Di- Histed, a former CFTC enforce- vict Naperville trading software de- activity since.” Prosecutors have pursued crim- vision Director James McDonald ment attorney now on the defense veloper Jitesh akkar, whose case Some spoong victims are heavy- inal charges against roughly 20 in- also touted enforcement progress side, estimates an average ne of ended in a mistrial. ey also lost weights, too, including the likes dividuals at those banks and other before leaving the agency this $42,871 since 2016 in 126 CME cas- a case against former UBS trader of Chicago-based Citadel Securi- institutions. About half have been month, saying oenses have fall- es, with disgorgement of prots in Andre Flotron. A spokesman for ties and Houston-based Quantlab, convicted, others acquitted, and en since he took on the role three only about 15 percent of them, with the Justice Department declines to prosecutors say. some are still awaiting trial. Several years ago. e CFTC has settled or an average $22,610 returned. comment. e 2010 Dodd-Frank Wall Street of the former JPMorgan employees brought cases against some 65 de- “I believe that spoong is de- Market participants say the re- Reform & Consumer Protection caught in the crackdown deny the fendants since 2013. creasing, but that die-hard spoofers cent enforcement surge is mak- Act criminalized spoong after it charges. Enforcement professionals and and authentic market manipulators ing traders more cautious, as they proliferated in futures and options Trading rms have been nailed, industry lawyers say it’s impos- will always be out there,” Histed worry about getting caught in the markets with the rise of electronic too, with New York-based Tower Re- sible to quantify the impact of says. “I predict that there will be spoong dragnet. “Legitimate trad- trading in the 1990s. search paying a $67.4 million spoof- spoong or its prevalence. But fewer cases, but that those cases ers that I know are always terried CME, the world’s largest opera- ing penalty last year. Chicago’s pro- one Justice Department ocial will involve more sophisticated that conduct that they perceive as tor of futures exchanges, polices its prietary trading shops, which trade who declines to be identied conduct.” legitimate is going to be seen as own markets in conjunction with for their owners and not clients, says spoong has caused at least Regulators took years to put rules spoong,” says James Koutoulas, futures industry regulators at the have absorbed fewer and small- hundreds of millions of dollars in in place after the 2010 law was en- CEO of Typhon Capital Manage- Commodity Futures Trading Com- er penalties. Arb Trading Group losses “to identiable victims in acted, and then prosecutors stum- ment, a hedge fund that trades de- mission. e company brought dis- and three of its traders incurred a the futures markets,” while also bled in some cases with an acquit- rivatives. ciplinary action in nearly 140 spoof- $745,000 CFTC penalty last month, harming related markets such as tal and a mistrial. But now they’re Koutoulas says traders have tried ing cases over the past ve years, and 3Red Trading and its owner exchange-traded funds. Protabil- reversing the law’s “dead letter” to curb spoong but predicts it will a fth of all cases. “We proactively paid $2.5 million to settle CFTC ity depends on the scheme and track record. continue in some “gray areas.” 32 OCTOBER 12, 2020 • CRAIN’S CHICAGO BUSINESS

w RESTAURANTS SEE LITTLE WIGGLE ROOM Restaurant industry braces for COVID winter Chicago recently raised indoor dining capacity to 40 percent, or 50 people per room, RESTAURANTS from Page 3 dining at the city’s allotted 40 per- ery orders were up 20 percent at whichever is fewer. Some restaurants say that’s not enough. cent capacity will not generate U.S. restaurants in August com- Golding, who works with restau- enough revenue to pay the bills. pared to 2019, according to re- MICHELLE DURPETTI, OWNER OF GENE & GEORGETTI, BREAKS IT DOWN: rant landlords, has advised them Gene & Georgetti needs to bring search rm NPD Group. ough To stay stable and pay vendors, payroll, bills, etc., Gene & Georgetti needs to make that losing a tenant now might in $10,000 to $12,000 a day to be on-premise dining orders were $10,000-$12,000 a night. The average check per person is $68. It used to seat 500-700 mean longer vacancies. He has stable, paying vendors, payroll and down 60 percent in August, they people on a weekend night. That’s down to 135 with the capacity limits, so roughly $9,200. also seen other types of business- other bills, she says. Durpetti’s fa- had improved from a 91 percent = 25 diners es, such as outpatient medical cen- ther owns the building and hasn’t decline in April. ters and grocery stores, ll spaces been collecting rent. at improvement, though PRE COVID 19 vacated by restaurants. slight, could help keep restaurants Nationwide, 55 percent of FEAST AND FAMINE alive, says David Portalatin, food restaurants say they won’t survive e average check size is $68 industry adviser at New York- NOW, WITH CAPACITY LIMITS 500-700 the next six months if current busi- per person. Before the pandem- based NPD. ness conditions continue, accord- ic, the restaurant would serve “Is this winter going to be worse 135 ing to the National Restaurant As- 500 to 700 people per weekend than any typical winter? Absolute- sociation. night. Now it can serve about 135 ly,” he says. “But we’re in a much Sit-down restaurants must come people throughout a day, which better position now than we were up with a new business model if would equate to almost $9,200. in April.” 498 171,000 they want to stay aoat, says Ku- Not all diners are comfort- More than 130 restaurants of Cook County’s 13,230 restaurants closed people work in the city’s restaurant mar Venkataraman, a partner at able eating inside, either. A June opened in Cook County between between June 1 and Sept. 20, according to and hospitality industry as of the end consulting rm McKinsey. Likely, survey from McKinsey found 80 June 1 and Sept. 20, according to RestaurantData.com. During that time, 133 of September, according to the Illinois digital marketing will replace a percent of consumers were anx- RestaurantData.com. opened. R estaurant Association. customer experience once cen- ious about dining in. Plus, social Rosebud Steakhouse in the Gold Sources: Crain’s reporting, RestaurantData.com and the Illinois Restaurant Association tered around a dining room. distancing guidelines prevent Coast neighborhood reopened smaller places from under new ownership last month. “MY FATHER USED TO SAY, ‘IN ORDER reaching their allot- It had shut down in March. o talks for a federal coronavirus she says. “ey are critical, not ted capacity. e average check, at $75 to $90 stimulus package Oct. 6, which just to the employees and the in- TO KNOW WHERE YOU’RE GOING, YOU e whole equa- per person, helps minimize loss- included aid for restaurants. dividual restaurants themselves, tion has Durpetti es, says co-owner Angelo Eliades. “I don’t think we’re going to but think about the supply chain HAVE GOT TO KNOW WHERE YOU’RE questioning wheth- Rosebud also renegotiated its make it through the winter with- that goes into supporting the COMING FROM.’ I’M JUST TRYING TO er her almost lease, cut back labor costs and out federal relief,” says Erick Wil- restaurant industry in our city.” 80-year-old restau- made other concessions. liams, owner of Virtue Restaurant Operators continue to work FIGURE OUT WHERE I’M AT.” rant will survive. “We’re making it work,” Eliades & Bar in the Hyde Park neighbor- with the city on safely raising in- “My father used says. “I’m not going to tell you hood. door capacity limits, says Donnie Michelle Durpetti, Gene & Georgetti to say, ‘In order to that we’re going to become rich Williams says he hasn’t planned Madia, co-owner of One O Hos- know where you’re if it stays like this. It’s going to be for a closure—that makes the sit- pitality and a founding member Gene & Georgetti steakhouse going, you have got to know where hard.” uation feel too dire. Instead, he’s of the Independent Restaurant in the River North neighborhood you’re coming from,’ ” she says. Restaurants have received some taking it one day at a time. Coalition. Restaurant business put in a coee window and add- “I’m just trying to gure out where help. ere were Paycheck Pro- e city, for its part, will do what models were not built for reduced ed menu items, like a $15 pizza, I’m at.” tection Program loans and other it can to give restaurants “a ght- capacity. to rope in customers searching Independent restaurants are grants, including one DoorDash ing chance,” Mayor Lori Lightfoot “e model is for 100 percent for a lower price point than a $78 more at risk of shuttering, experts recently announced to help said at a news conference Oct. 8. capacity, so I believe that even at T-bone. say. Larger chains often have more shoulder winterization costs. She says she is con dent the din- 50 percent, all of us are still strug- e restaurant needs to add to capital liquidity. Burger and piz- Many operators hung their hopes ing scene will rebound, but the gling,” Madia says. “is also af- overall sales as much as possible, za joints and other quick-service on federal aid, which does not ap- industry, which plays a vital role fects the supply chain, it aects the says Michelle Durpetti, third-gen- restaurants are also faring better. pear to be coming soon. in the city’s economy, needs help. landlords, it aects the vendors. eration owner. Operating indoor Carryout, drive-thru and deliv- President Donald Trump called “ey employ a lot of people,” “It continues to ripple.” Chicago condo market builds oversupply in wake of COVID, unrest, recession CONDOS from Page 1 the upper range of healthy. And in to Crain’s research in the records subsequent weeks, a few thousand of Midwest Real Estate Data. At 21 with the police presence” that fol- more condos hit the market. A g- E. Huron St., 14 units are for sale, lowed spasms of civil unrest. “Buy- ure for the end of September had compared to eight sales in the past ers make any market, and right not been released at press time. year. At the Fordham, 25 E. Superi- now they’re not interested.” “I don’t think this will go away or St., 18 are for sale in a building e opposite has been true for before a trusted and reproducible where nine units sold in the past 12 houses in the city, which have vaccine is developed and you’re months. been in record short supply as sure there won’t be another round “River North, Gold Coast, Stree- COVID increases people’s interest of civil unrest,” says Mario Greco, terville—those are the most di- in having private outdoor space a Berkshire Hathaway HomeSer- cult markets right now,” says Har- LIFT OR QUOTE and more indoor space for work- vices Chicago agent. ry Maisel, an @properties agent Name & title ing and schooling from home. At representing a unit at 21 E. Huron. the end of August, according to DOWNTOWN GLUT Buyers “don’t want to look at any- CAR, the inventory of houses for e oversupply is largely con- thing in a high-rise.” sale in the city was enough to fuel centrated in downtown neighbor- Farther from the core, the num- 2.8 months of sales at the current hoods, which are both dense with bers aren’t quite as bleak, but they pace. at’s the lowest it’s been high-rises and close to the scenes indicate an oversupply. At Michi- since January 2008, the earliest of looting on Michigan Avenue gan Avenue Lofts, 910 S. Michigan,

data CAR posts. and in the Loop. In Streeterville, on 12 units are for sale; in the past year BOEHM R. JOHN At the same time, the number Oct. 7 there were enough condos 13 have sold. At 2020 N. Lincoln At Water Tower Place, 26 condos are on the market, compared to 20 sales in the past year. of attached homes (condos and on the market to satisfy 16 months Park West, 18 units are for sale; 19 townhouses) on the market was of sales at the current pace. By have sold in the past 12 months. tial buyers asked to see the condo. But for now, with many people enough to fuel 6.1 months of sales, contrast, in Edgewater there was With the inventory of condos so Maisel believes the buyers who unwilling to stake that claim in the highest supply of inventory less than two months’ inventory of badly out of balance, price cuts are pick up downtown condos this a year of crises, “more price cuts since mid-2012. condos on the market. inevitable. Maisel says that at his year are showing their faith that are coming on condos,” Maisel Typically in residential real es- At some downtown buildings, 17th-oor listing on Huron, he had “when everything comes back, says. Greco says he’s been telling tate, an inventory of four to six the oversupply is formidable. At “zero showings in eight weeks” be- whenever that is, this is going to be his condo-selling clients “to price months is considered healthy. At Water Tower Place, 26 condos are fore cutting the price on Sept. 27 where the fun is again, the shop- yourself ahead of the market. the end of August, the city’s inven- on the market, compared to 20 by a little over $69,000, to $829,900. ping and the restaurants and the Come down now and get it sold tory of condos had inched beyond sales in the past year, according Within a week, he says, two poten- culture.” now.”

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