|The Kellogg Private Equity and Venture Capital Club is pleased to share the winter edition of the Kellogg PEVC Alumni Newsletter to highlight some of the exciting happenings about PEVC at Kellogg with our alumni in the industry. PEVC at Kellogg has only been getting stronger, much in part due to Kellogg’s dedicated alumni. We look forward to hearing your insights as we continually strive to connect with our alumni in a relevant and beneficial manner.|
Search Funds Open New Doors for Two Recent Alumni
Search funds have been in existence since 1983 and represent a tremendous opportunity for post-MBAs to acquire and operate their own small business. Per the 2011 Stanford GSB Center for Entrepreneurial Studies, to date, over 150 search funds have been raised, with an aggregate pre-tax IRR and ROIC of 34.4% and 11.1x, respectively, through 2011. The median search fund acquisition has the following characteristics: $7.5 million in revenues, EBITDA margin of 21.6%, purchase price to EBITDA multiple of 5.1x, trailing annual EBITDA growth rate of 12%, and 50 employees. We spoke with two recent Kellogg graduates who started search funds upon graduation to get their thoughts about search funds firsthand:
» Click here for the full article, including additional Q&A with Mark and Jon
Baird Capital Partners & Aaron Lillybridge (’05) Close Deal for PARTNERS+simons
Kellogg alumni put capital to work every day. However, PEHub lacks a dedicated newsfeed for deals led by Kellogg grads. In this regular installment, we highlight a recent transaction led by a Kellogg alum, Baird Capital Partners’ (Aaron Lillybridge, ’05) investment in PARTNERS +simons. The Company is a leading brand communications company specializing in the healthcare and financial services industries. The team is excited about the Company’s prospects since the changing landscape in both healthcare and financial services remain prominent on the national agenda.
Private Capital Makes a Difference
Over the last several months, the PE industry has faced widespread political opposition. Growtheconomy.org, a project launched by ACG, IEGC, and PitchBook, reveals how private capital-backed companies fuel corporate growth and new job creation. Take a look at these statistics to see how drastic a difference private capital can make.
From 1995 – 2009, private capital-backed companies grew jobs by 81.5%, while all other companies in the US economy grew jobs by 11.7%.
From 1995 - 2009, private capital-backed companies grew sales by 132.8%, while the United States grew sales by 28.0%.
» Click here to read the rest of this article
Growth & Innovation – Positioning Kellogg to be the New
Since returning to Kellogg in 2012, Linda Darragh has sought to develop curriculum opportunities to position Kellogg as a leader in developing students capable of driving growth in middle market businesses. Linda is focused on the sweet spot overlooked by many other business schools by developing student expertise for the space that falls between start-ups, and leadership at mature businesses. Growth in the middle market is one of the largest opportunities that no business school is focused on.
Kellogg Team Wins Regional Venture Capital Investment Competition and Goes on to International Competition
On February 8th, a team of five Kellogg students competed in the regional VCIC in Boulder, CO (vcic.org). The team of: Robbie Salter, David Fischer, Adam Hopson, Rushi Sheth, and Viren Tellis earned first place besting teams from five MBA programs. The team previously won the internal Kellogg VCIC on January 30th. The PE/VC club congratulates the team on their well-earned victories and wishes them luck at the international finals in April.
Pictured from left to right: Robbie Salter ’13, David Fischer ’13, Adam Hopson ’13,
Alumni are Driving the Student PE/VC Experience
This past December Doug Potters ‘11, CIVC Partners, and Brett Mitchell ‘12, McNally Capital co-hosted a panel on campus. Students walked away with important lessons about what it takes to land a post-MBA position in addition to key insights regarding the state of the markets and how best to position themselves in the current environment. We offer a big thank you to our young alumni for presenting at this annual event.
‘One Kellogg’ Encourages Networking between PE/VC-focused full time, part time, and executive MBA students
While Kellogg’s full time program has gained strong momentum in the PEVC space, a group of students has worked to harness the potential of Kellogg’s PEVC network to an even greater extent, by collaborating with the part time and executive MBA programs and their PEVC students.
Buyout and Venture Lab Continue to Gain Traction
In an effort to provide students with tangible work experience in the Private Equity and Venture Capital field, Kellogg’s Buyout and Venture Labs continue to grow their reach. This school year the program boasted the addition of a number of new firms. Click here for the full update on our labs. Please contact Professor Stowell to participate – both in-state and out-of-state funds are welcome.
PEVC Alumni Tracker: 2002-2012 by Metro Area
Resume book for full time and internships
Find PEVC alumni in your cityPlease click here to see a complete listing of Kellogg students from the classes of 2002-2012 working in PEVC jobs by city. Please send any additions or updates to Deborah Brauer.
PEVC Club Leadership
Questions, comments, or suggestions for future newsletter content? Please contact Kellogg PEVC Club Alumni Chair, Matt Monson ’13