Tenth Annual Private Equity Conference
July 20–22, 2010
The Federal Reserve Bank of Chicago hosted its Tenth Annual Private Equity Conference. The theme of this year's conference was The New World Order of Private Equity.
Global private equity (PE) assets under management now stand at over $2 trillion, with committed but undeployed capital exceeding $1 trillion. However, standard industry activity indicators, such as fundraising, deal flow and liquidity events through public markets or merger and acquisition (M&A) activity, have remained restrained. The economic downturn has impaired the availability of credit and the financial condition of industry participants. Reduced limited-partner investment capacity, diminished prospects at portfolio companies and fewer potential lenders have inhibited general partners. Secondary market funds were the only subsector that prospered in 2009, with record capital committed. However, consummated transactions remained limited, as large bid-ask spreads dampened optimism for deals. Private equity firms are now spending more time than in past years with their portfolio companies, bankers, limited partners and advisors, focusing on how to "survive rather than thrive."
Refinancing risk from leveraged buyouts has placed stress on portfolio companies, lenders and PE investors and sponsors. The buyout boom produced excesses such as subdued interest rates, weak covenants and abnormally high borrowing multiples. Rapidly escalating through 2014, a looming 'Wall of Debt' presents a challenge for portfolio companies as difficulties refinancing or paying off these loans could put pressure on all market participants.
Private equity is already feeling the effects of increased government involvement. Investment opportunities in many sectors are shaped by regulation or taxation. Possible changes in how compensation is taxed and regulatory efforts to foster transparency in the PE industry have also captured the attention of PE insiders. However, the specter of financial reform has generated the most concern and is projected as the most potentially disruptive of government actions.
Private equity observers expect to see the roster of participating firms shrink, as continuing fundraising challenges force marginal PE firms in need of capital to either close or merge with other firms. This trend could be even more pronounced in the venture sector, with one-third of these firms expected to leave the market. Overall, the current climate will continue to provide numerous challenges but, if the economy continues to stabilize and credit becomes more available, 2010 could prove more fruitful, even in the new world order of private equity.
Receptions and luncheons were provided as part of the conference program. This website will continue to be updated as additional presentations become available.
This conference was not open to the media or the general public. Participants are requested to use discretion in sharing the content of the conference with professional colleagues.
Private Equity – International
The Art of Investing in the Financial Sector
Plus ça Change, plus c’est la Meme Chose – Private Equity’s Evolving Role in the Economy and in Investor Portfolios
When Legislation and Private Equity Collide: The Aftermath
The Daily Grind: The Altered State of Private Equity
Minute to Learn It: Trends and Lessons Learned in Private Equity
The Limited Partner Perspective: Passive No More
The Global Venture Capital Model
When Legislation and Private Equity Collide: Predictions and Preparations for the Future of Private Equity
Private Equity Risk Management in the 21st Century
Ethical Behavior and Private Equity
Tour of the Federal Reserve Bank of Chicago to follow.
Last Updated: 07/16/2010
Please call the hotel directly, ask for reservations and identify yourself as attending a Federal Reserve Bank of Chicago conference to obtain our current rate. If you need to cancel, please notify the hotel 48 hours in advance of your arrival to avoid a no-show charge equivalent to a one-night stay. Please note that we cannot guarantee the availability of any hotel. Please call early to ensure your choice of hotel and rate. If you have any questions, please contact Kathryn Kerner (information in sidebar to the right).
A business class property located just 2 blocks from the Federal Reserve Bank in the heart of the city’s financial district. This property just underwent a complete renovation of all sleeping rooms. Full service restaurant onsite, Elephant and Castle, also provides room service.
Rates: Start at $119 + tax
Hotel Reservations (Member Services): (212) 575-0006
Situated at Chicago's most visited intersection along the Chicago River (just off Michigan Avenue), this landmark tower has been fully restored to its historical grandeur. The building offers spectacular views of the skyline, including the floodlit landmarks - Wrigley Building and Tribune Tower - immediately across the river. Just north of the Club Quarters is the Magnificent Mile, famous for shopping. A convenient walk to the Chicago Cultural Center, Grant Park and Marina City. Featuring Bacino's Restaurant, offering American and Italian fare in a relaxed, split-level restaurant. This property is within walking distance of the Bank for energetic walkers.
Rates: Start at $124 + tax
Hotel Reservations (Member Services): (212) 575-0006
A luxury, all suite property, the Omni Chicago Hotel is located on the city’s magnificent mile of sight seeing, shopping and dining. This hotel is a 10-15 minute cab ride to the Federal Reserve Bank of Chicago (not within walking distance).
Rates: Start at $189 + tax
Hotel Reservations: (312) 944-6664
A private club housed in a historical and architectural landmark building. Guests can enjoy many of the amenities the club offers, such as their extensive art collection, stately library and athletic department, including a swimming pool. This property is located less than 2 blocks from the Federal Reserve Bank.
Rate: $140.00 + 20% club surcharge
Hotel Reservations: (312) 427-7800
A cosmopolitan property in the middle of Chicago’s Loop, the W Hotel features Rainforest showers, oversized work desks, down pillows and more. This property is just around the corner from the Federal Reserve Bank.
Rate: Call for current rates.
Hotel Reservations: (312) 332-1200