IVCA Feature: Tracking the Best Quotes of 2013

IVCA Feature: Tracking the Best Quotes of 2013

January 8, 2014

The movers, the shakers and the opinion makers – they were all featured in IVCA’s newsletters in 2013. From the Educational Luncheons – where attendees learned about topics like the impact of the Affordable Care Act and the management of an efficient purchase process – to individual leader interviews, the IVCA newsletter offers these highlighted quotes from 2013...

 

“Reps and Warranties do not come in one shape or size and are not limited to any size transaction or industry type. The product has evolved over time to meet the needs of all parties involved and will continue to do so. One should keep an open mind when looking at reps and warranties and consider building it into the diligence process for every transaction where questionability of reps and warranties exists – you may just be surprised at the added efficiency it brings as well.”

~ Casey Zgutowicz, Lockton Companies, Moderator of the IVCA Toolkit Luncheon, “Representation and Warranty Insurance for M&A Indemnities”

 

“There have been a number of dynamics taking place in the last couple of years, that have driven these trends [of competitive bidding]. On January 1st, 2013, long term gain taxation rates went up. So from 2010 to 2012 there were people rushing to get these transactions done. That created a huge gap in a deal flow perspective, with everybody trying to get things done in November and December, while it’s pretty vacant in January and February. What I find interesting is that the companies who are out in the marketplace in January and February have generated significant interest, just because of the supply and demand balance out there, and with a lot of pitch activity taking place because of the state of the debt market.”

Jamie Wildman, Managing Director at William Blair & Co., at the IVCA Educational Luncheon “Managing an Efficient Purchase Process” 

 

“I think Affordable Care Act insurance rates will have to be competitive with employer provided plans, or this will be a waste of time. It depends again on how much risk the healthcare insurance entity is willing to take, and how they – and us – will determine those rates accordingly. A big component of those who will take advantage of the public marketplace, will be that they have no insurance now, so if we come in with a competitive structure for those folks, we’ll probably pick up 75% of our covered lives that way. It can grow every year.”

Kevin Scanlan, President and Chief Executive Officer of the Metropolitan Chicago Healthcare Council (MCHC) a the IVCA Educational Luncheon “Overview and Implementation of Illinois’s Health Insurance Exchange“

 

“The Venture Capital and Private Equity industry needs to continue to dig itself out from the pile of misinformation and cynicism heaped upon it of late, especially during the 2012 presidential election. As the IVCA and NVCA have done in the past, they need to continue to make the public case for the benefits of the industry so that it will be protected and bolstered, rather than targeted and penalized. 

Venture Capital and Private Equity funding flow through all of our federal, state and local economies – creating jobs, innovating technologies and driving growth. It’s important that this message continues to be broadcast. Now that the industry has more clearly entered the mainstream in terms of both media coverage and governmental scrutiny, it’s important that the industry speaks out on its own behalf – to date, the IVCA and NVCA have been very effective in doing so on behalf of their members.”

~ Gregory R. Metz, Partner, Ropes & Gray

 

“When I joined New Enterprise Associates [NEA] in 1992, my first investment happened to be in Chicago. My next investment in Chicago was five years later, and then again six years after that. But I’ve made eight in the last five years. It was that acceleration in terms of activity in Chicago, that drew myself and my firm here. In fact, when I interviewed with a local paper of note, they asked me how much in total NEA had invested here, and I gave him a rounded figure of 100 million dollars. When I went back to the office to double check, I found out it was 300 million dollars. Their next question was outside of Silicon Valley and Chicago, which metropolitan area had we committed dollars to? And the answer was none. So that suggested that we should spend more time here.”

~ Peter Barris, Managing General Partner of NEA, at the IVCA/NVCA Annual Luncheon

 

“What has changed I think is that we used to have to deal with only the economic reporters, who actually understood Private Equity and Venture Capital. Political reporters don’t really care about the nuances in the industries, they just want to write the story from their slant. That is a wholly different education process. And political reporters change over much faster than the economic reporters. It’s a constant education now, not only to policy makers, but the press”

Mark Heesen, President of the National Venture Capital Association, at the IVCA/NVCA Annual Luncheon. Mr. Heesen retired in 2013.

 

“The members of the IVCA can be valuable eyes and ears in looking ahead, seeing trends that are developing in the businesses they are working with, or in their industry globally, that can help me stay ahead of the curve. We’re trying to play offense more than defense. Sometimes you have to do both, but my hope is that given the membership perspective on what is happening in the economy and the businesses that they’re involved in, that they can help me stay one step ahead.

At the same time, I’m trying to do the same thing inside the General Assembly and the state government at large. I’m picking up conversations, feedback and perspective from there, and I need to filter that through the IVCA expertise, to determine what the course of action will be going forward. I’m extremely thankful for the opportunity, and appreciate the confidence of the IVCA leadership and the members to represent them. I look forward to a productive relationship, and getting some good things done in the legislature.”

~ Dave Stricklin, Legislative Liason for the IVCA

 

“Today, the theme of ‘connection’ is a very important mission of the Chicago Innovation Awards. By connecting investors with start-ups, government with the private sector, for-profits with non-profits, and students with companies looking to hire them, we’ve seen the fruits of innovation take hold in our region – economic growth and job creation. 

One major new initiative we launched, ‘The Innovators Connection,’ is focused specifically on connecting our region’s large companies and small start-ups. There is tremendous opportunity that exists and will be realized once these types of connections are made. All of these activities build upon each other and fueled the buzz for the Awards.”

~ Luke Tanen, Executive Director of the Chicago Innovation Awards

 

“At iBIO and the Institute we think of what we need as a triangle. At the tip of the triangle there is what we affectionately call ‘nerds.’ Supporting the research geniuses, we need folks who know how to translate what they discover into products and services. And supporting those two groups, we need a science literate population, that will encourage policy makers and regulators to create the right environment. I’d say in Illinois – and America generally – we’re doing much better in generating the two groups at the top of the triangle, though there is always vast room for improvement.”

~ David E. Miller, President & CEO of the Illinois Biotechnology Industry Organization, or “iBIO”

 

“When I started in this roller coaster business in the late 1990s, there was no IVCA, and it was a challenge for me to meet many of the leading VC and PE professionals. Also, the Venture and Private Equity communities didn’t have the IVCA, and networking with other firms wasn’t as easy. The hallmarks and charter of the IVCA – networking within the community, curriculum development and lobbying efforts to propagate the message of Venture Capital and Private Equity – I think all of those have been significantly achieved.”

~ Jim Dugan, CEO & Founder of OCA Ventures, 2013 Recipient of The Fellows Medal at the IVCA Awards Dinner

 

“I get asked a lot about trends in Private Equity, debt financing, leverage and deal activity. The firm – as lenders to the PE world – are at the epicenter of the middle market transaction universe...It seems that when the market is hot, pricing and leverage win seven times out of ten. But when the market is more challenging, both in a good and/or bad way, certainty of close wins ten out of ten times. Over the last business cycle, deal professionals and company sellers – and their advisors – have become much more focused on certainty of close.”

~ Ted Koenig, CEO and President of Monroe Capital, 2013 Recipient of the Stanley C. Golder Award at the IVCA Awards Dinner

 

“I have been lucky to live in this great State of Illinois, where there is an imbued sense of ‘giving back.’  It's not just about money or time, but a true commitment to reach out and help other members of our business and entrepreneurship community to succeed, and then celebrating each other's wins in an authentic way. I call this ‘Chicagoness.’ This is a unique and differentiating feature of our culture whereby the business community knows it has to continually be part of the overall eco-system to constantly improve our community on multiple levels – through improvement of schools, hospitals, and business. Support for entrepreneurship has always been my passion at the Chicagoland Entrepreneurial Center (CEC) and ‘1871’ where we have affected successes for many entrepreneurs.” 

 ~ Jim O’Connor, Managing Director of MVC Capital, 2013 Recipient of the Richard J. Daley Award at the IVCA Awards Dinner

 

The next IVCA Educational Luncheon is January 21st. Click here for more details.