60+ High-Level Speakers in a Day & a Half
2018 Atlantic Symposium Program
Link to Speaker Bios
• Jason Block, Partner, Freedom 3 Capital
• Samuel J. Boyd, Jr., Chief Investment Officer & Director of Program Development,
Office of Investment and Innovation, SBA
• Fritz Buerger, Managing Director, Healthcare, William Blair & Co.
• Fred Buffone, Principal, Freedom 3 Capital
• Tom Burgett, Managing Director, Business Services, Lincoln International
• Andrew Bushell, Principal, Cornerstone Capital Holdings
• Rich Byrne, President, Benefit Street Partners; Chairman and CEO, BDCA
• Glen Clarke, Managing Director, Global Investment Banking-Food & Beverage,
Robert W. Baird & Co.
• Gary Creem, Partner, PROSKAUER
• Carey Davidson, Managing Director, Head of Capital Markets, Monroe Capital LLC • John Deering, Managing Director, Deloitte Corporate Finance
• Langston Emerson, Partner, The Cypress Group
• Robin Engelson, Managing Partner, Sapphire Financial Group
• Mike Ewald, Managing Director, Bain Capital Credit
• Chris Flynn, Chief Executive Officer, THL Credit Advisors LLC
• Erica Frontiero, Managing Director, Head of Capital Markets, Carlyle Global Credit,
The Carlyle Group
• Brian Garfield, CFA, ASA, Director, Lincoln International
• Brian Gerson, Head of Private Credit, FS Investments
• Dave Gezon, Senior Managing Director, Midwest Mezzanine Funds
• Scott Gluck, Special Counsel, Duane Morris LLP
"This conference is worth rescheduling your vacation for!"
Randy Schwimmer, Senior Managing Director, Head of Origination & Capital Markets, Churchill Asset Management LLC
• Sven Grasshof, Partner, Falcon Investment Advisors
• Justin Green, Managing Director, Palladium Equity Partners, LLC
• Pankaj Gupta, Managing Director, WhiteHorse Capital
• Brett Hickey, Founder & CEO, Star Mountain Capital
• Bob Horak, Managing Director, Lincoln International
• Grant Johnson, Managing Director, Newstone Capital Partners, LLC
• Ron Kahn, Managing Director, Lincoln International
• Phil Kain, Managing Partner, Rush Street Capital
• Susan Kasser, Co-Head Private Credit, Neuberger Berman
This is my favorite conference. Relevance, connections, efficiency -
if I could attend only one conference per year, it would be this one!"
Robin Engelson, Managing Partner, Sapphire Financial Group, LLC
• Carl Kopfinger, Senior Vice President, TD Bank
• Olga Kosters, Director, StepStone
• Al Laufenberg, Managing Director, KBW / Stifel
• Patrick Linnemann, Managing Director, Head of Capital Markets,
Owl Rock Capital Partners
"As an active mezzanine investor in the lower middle market, this conference is a must attend for me."
Jeri Harman, Managing Partner and CEO, Avante Mezzanine Partners
• Joseph McCusker, Senior Vice President, Head of Asset Management,
Genworth Financial
• Rick Miller, Group Managing Director, TCW Direct Lending Group
• Bob Morgan, Managing Director, 50 South Capital
• Erin Murphy, Managing Director, Wynnchurch Capital, LLC
• Haran Narulla, Managing Partner, Tiger Peak Capital
• Brett Palmer, President, Small Business Investor Alliance
• Gretchen Perkins, Partner, Huron Capital Partners LLC;
Chair, ACG Public PolicyCommittee
• Dan Pietrzak, Member, KKR
• Moritz Poehl, Co-founder and Managing Partner, Everside Capital Partners
• Al Ricchio, Managing Partner, Kayne Anderson Middle Market Credit
• Don K. Rice, Partner, LBC Small Cap SBIC
• Alan Roth, Partner, Winston & Strawn LLP
• Peter Rothschild, Partner, RF Investment Partners
• Garrett Ryan, Partner, Twin Brook Capital Partners
• Sengel Selassie, Co-CEO and Co-Founder, Brightwood Capital Advisors, LLC
• Jeff Sangalis, Managing Director, ORIX Mezzanine & Private Equity
• Jakob Schramm, Managing Director, Head of US Office,
Golding Capital Partners (USA), Inc.
• Randy Schwimmer, Sr. Managing Director, Head of Origination and Capital Markets,
Churchill Asset Management LLC
• David Shuler, Partner, Northstar Capital
• Thomas Simons, Senior Money Market Economist, Jefferies LLC
• Chris Solomon, General Partner, WCAS
• Philip Tseng, Managing Partner, Tennenbaum Capital Partners
• Tess Virmani, Senior Vice President & Associate General Counsel,
The Loan Syndications and Trading Association
• Preston Walsh, Partner, PNC Mezzanine Capital
• Jamie Whatley, Partner, Dorsey & Whitney LLP
• Bill Winterer, Partner, Head of Capital Markets, Parthenon Capital Partners
• Andy Worth, Partner, Fidus Investment Advisors
• David Yu, Managing Director, Head of Private Research, Goldman Sachs BDC, Inc.
"I really enjoy attending the Symposium. It's very insightful. The topics are well-selected and cover areas of interest for all types of lenders and investors focusing on different parts of the capital structure."
Arthur Martini, Managing Director, Owl Rock Capital Partners
Day 1
Thursday, May 17, 2018
7:45 a.m. – 8:15 a.m.
REGISTRATION & CONTINENTAL BREAKFAST
8:15 a.m. – 8:30 a.m.
CO-CHAIRMEN'S WELCOME & OPENING REMARKS
John Deering
Managing Director, Deloitte Corporate Finance
Bob Horak
Managing Director, Lincoln International
_____________________________________________________________________________
8:30 a.m. – 9:15 a.m.
THE STATE OF THE M&A MARKET
While the M&A market faces concerns related to the economy, political and regulatory uncertainty, market volatility and valuations, corporations and private equity firms are sending strong signals that they intend to aim for accelerated M&A activity in 2018. Deloitte’s most recent survey of 1,000 corporate executives points to strong deal activity ahead: About 68% of executives at US-headquartered corporations and 76% of leaders at domestic-based private equity firms say deal flow will increase in the next 12 months. Further, most respondents believe deal size will either increase or stay the same. Join us as a panel of leading investment bankers discuss the following:
• Observations related to volume and valuations by sector including Business Services, (Industrial, Healthcare, Cosumer/Food).
• Mix of private equity and strategic buyer deal activity.
• Industries expected to experience the most activity.
• Strategic drivers related to this optimism and potential headwinds and obstacles.
MODERATOR:
John Deering
Managing Director, Deloitte Corporate Finance LLC
SPEAKERS:
Tom Burgett
Managing Director, Business Services, Lincoln International
H. Glen Clarke
Managing Director, Global Investment Banking-Food & Beverage, Robert W. Baird & Co.
Fritz Buerger
Managing Director, Healthcare, William Blair & Co.
9:15 a.m. - 10:00 a.m.
THE FUNDRAISING ENVIRONMENT IN PRIVATE DEBT
Fundraising for middle market direct lending platforms has skyrocketed to record levels. Liquidity and the ability of debt funds to raise capital has, in turn, resulted in a seemingly continuous stream of new middle market lenders and a voracious demand for middle market loans. Investors in the private debt asset class have indicated they are happy with their investments and are intending to invest more in the sector. However, many middle market lenders have expressed concern about the level of deal flow in the market and transaction terms. Do investors have concerns about these issues and what changes may lie ahead in a world of rising interest rates and shrinking central bank balance sheets?
Join us as a panel of experienced private debt fund managers and investors discuss the market for fundraising by private debt funds including the questions below:
• What is driving the record pace of fundraising in private debt?
• Can this continue, and if so, for how long?
• Where is all the money coming from; who is investing in private debt funds?
• How do investors differentiate between fund managers?
MODERATOR:
Bob Horak
Managing Director, Lincoln International
SPEAKERS:
Al Ricchio
Managing Partner, Kayne Anderson Middle Market Credit
Chris Flynn
Chief Executive Officer, THL Credit Advisors LLC
Olga Kosters
Director, StepStone
Bob Morgan
Managing Director, 50 South Capital
10:00 a.m. – 10:30 a.m.
NETWORKING & REFRESHMENT BREAK
Hosted by Newstone Capital Partners
10:30 a.m. - 11:15 a.m.
CURRENT TRENDS IN DEAL TERMS AND STRUCTURES
Current market dynamics in the middle market continue to be competitive. Inexpensive capital and significant private equity dry powder combined with the acceleration of market forces such as the expansion of direct lending and the migration of large cap terms and conditions to the middle market are continuing to drive more flexible loan terms and structures to the benefit of sponsors and borrowers. Our panel will discuss some of the recent trends in deal terms and structures, using Proskauer’s proprietary data base of terms to highlight these developments. Our panelists will offer their unique insights into the constantly evolving landscape of middle market lending.
• Where will the money be deployed to produce the dividends that investors have been promised?
• How will rising interest rates impact the industry? Will the traditional senior and mezzanine lenders be able to respond effectively, or is the market set for a resurgence in the type of BDC lending that dominated the early 2000s and early 2010s?
• What will BDCs do differently this time to avoid the problems that plagued portfolios in the past?
• Are there regulatory changes ahead that will benefit or hinder the industry?
MODERATOR:
Gary Creem
Partner, Proskauer
SPEAKERS:
Mike Ewald
Managing Director, Bain Capital Credit
Susan Kasser
Co-Head Private Credit, Neuberger Berman
Patrick Linnemann
Managing Director, Head of Capital Markets, Owl Rock Capital Partners
Dan Pietrzak
Member, KKR
11:15 a.m. – 12:00 p.m.
SBIC SEMINAR SESSION
Sponsored by Winston & Strawn
In recent years, the SBIC industry has enjoyed record licensing levels and capital inflows. Small and mid market private debt and equity funds as well as BDCs have come to the party by forming SBICs, which are now a meaningful source of debt and equity capital for small businesses. This is no surprise given the access to inexpensive capital through the Small Business Administration's (SBA) SBIC borrowing program, which helps leverage the equity capital that GPs raise, not to mention the potential exemption from SEC registration for SBICs. The SBIC program helps fulfill the SBA's mission to "facilitate the flow of long term capital to America's small business.”
An increasing number of limited partner investors are looking favorably at SBICs as well. LPs enjoy the enhanced returns provided by leverage at the fund level. Large institutional investors have joined what has historically been largely a family office investor base for SBICs. Moreover, due to SBICs' exemption from the Volker rule, banks are allowed to invest in SBICs and get Community Reinvestment Act (CRA) credit, providing a large class of potential investors for SBIC GPs. Of course, there are a variety of restrictions and regulations, which an SBIC is subject to, as well as stringent reporting requirements. For some GPs, this may mean that an SBIC structure isn't right for them.
MODERATOR:
Alan Roth
Partner, Winston & Strawn LLP
SPEAKERS:
Brett Palmer
President, Small Business Investor Alliance
Samuel J. Boyd, Jr.
Chief Investment Officer & Director of Program Development,
Office of Investment and Innovation, SBA
Carl Kopfinger
Senior Vice President, TD Bank
Moritz Poehl
Co-founder and Managing Partner, Everside Capital Partners
Don K. Rice
Partner, LBC Small Cap SBIC
Peter Rothschild
Partner, RF Investment Partners
12:00 p.m. - 1:30 p.m.
LUNCHEON AT THE NEW YORK ATHLETIC CLUB
Luncheon Address:
2018: The Baton is Passed, the Handoff Shaky
Market Implications of the Shift from Monetary to Fiscal Policy
Tom Simons
Senior Vice President, Jefferies LLC
Senior Money Market Economist
Hosted by
Dorsey & Whitney is an international law firm with lawyers who have led the mezzanine/junior capital area for over 30 years. We counsel professionals in finance matters (including mezzanine financings, second lien financings, unitranche debt, senior cash flow and asset based lending) as well as private equity, M&A, general corporate and securities issues. We represent financial institutions, investment funds, venture capital investors, startup companies, institutional investors and others in middle market corporate and commercial financial transactions. More information at www.dorsey.com.
1:30 p.m. - 2:15 p.m.
A VIEW FROM THE HILL
This panel will discuss the impact of tax reform on private equity companies, pointing out opportunities as well as challenges that tax reform presents. Hear our experts debate impacts and also discuss what might happen in 2019 if the mid-term elections bring forth substantive change.
• Regulatory update
• Relevant tax policies
MODERATOR:
Gretchen Perkins
Partner, Huron Capital Partners LLC
Chair, ACG Public Policy Committee
SPEAKERS:
Brett Palmer
President, Small Business Investors Alliance
Scott Gluck
Special Counsel, Duane Morris LLP
Langston Emerson
Partner, The Cypress Group
2:15 p.m. - 2:30 p.m.
24th ANNUAL ATLANTIC CONFERENCES MEZZANINE MARKET SURVEY
The informal, high-level survey of traditional mezzanine markets explores the current trends in leverage, pricing and terms.
PRESENTED BY:
Preston Walsh
Partner, PNC Mezzanine Capital
____________________________________________________________________________
2:30 p.m. - 3:15 p.m.
MEZZANINE IN THE AGE OF PRIVATE CREDIT
• State of the junior capital market
• Who are the competitors in the traditional mezzanine space?
• How mezzanine investors adapt to compete with private debt funds, BDCs, and the
re-emergence of banks.
• How have terms changed in the last few years, if any?
• Equity co-investment/warrants/preferred equity - what are mezzanine investors getting?
• Maturation of traditional mezzanine as an asset class.
• Do relationships matter or does the lowest price usually win?
• Back to the future: What percentage of mezzanine investors have gone down the balance sheet in the search for yield?
• With interest rates finally increasing, will this help or hurt mezzanine lenders?
• What effect have the changes in tax law had upon mezzanine debt investments?
MODERATOR:
Jamie Whatley
Partner, Dorsey & Whitney LLP
SPEAKERS:
Grant Johnson,
Managing Director, Newstone Capital Partners, LLC
Jason Block,
Partner, Freedom 3 Capital
Jeff Sangalis,
Managing Director, ORIX Mezzanine & Private Equity
David Shuler
Partner, Northstar Capital LLC
3:15 p.m. - 3:45 p.m.
NETWORKING & REFRESHMENT BREAK
3:45 p.m. - 4:30 p.m.
THE PE PERSPECTIVE: HOW WE CHOOSE OUR DEBT PARTNERS
After a record year of fundraising, private equity firms are sitting on over $1 Trillion of dry powder. The abundance of capital combined with growing competition from corporate M&A has created a private equity environment that is highly dependent on creative and aggressive lending partners.
• What do private equity players think about the current debt markets and what is their outlook for the remainder of 2018?
• Are structures or relationships winning the lending mandates?
• Is the emphasis on cost of capital or flexibility?
• Are there specific industries where you see lenders pulling back?
• If M&A slows, will dividend recaps accelerate?
MODERATOR:
Robin Engleson
Managing Partner, Sapphire Financial Group
SPEAKERS:
Erin Murphy
Managing Director, Wynnchurch Capital, LLC
Sven Grasshof
Partner, Falcon Investment Advisors
Justin Green
Managing Director, Palladium Equity Partners, LLC
Chris Solomon
General Partner, WCAS
4:30 p.m. – 4:45 p.m.
LINCOLN VALUATION DATABASE AND MIDDLE MARKET INDEX
Lincoln's Middle Market Index and proprietary database offer a unique glimpse into the health of the middle market, capturing financial, valuation and transaction data for a diverse group of companies across a multitude of industry segments.
Brian Garfield, CFA, ASA
Director, Lincoln International
4:45 p.m. – 5:30 p.m.
WHAT INNING ARE WE IN?
The good times are rolling! Public equity valuations continue to rise despite recent volatility. Interest rates are up, but inflation remains tame. The US economy is tracking to a 3-plus % GDP for the first quarter, with estimates as high as 5%. Job growth remains strong, and unemployment is at its lowest point in almost two decades.
Capital markets are buoyant. Borrowing spreads have compressed, leverage is higher, and financing terms remain extremely borrower-friendly. But how long can this last? The US has been in “recovery” mode since June 2009 – almost nine years ago. The average post-WWII recovery lasted less than 60 months. This one has reached 104 and shows no signs of quitting.
Has the paradigm changed for economic growth? Are we more like Australia, which is celebrating 27 years since its last recession? Was Janet Yellen right when she said economic expansions don’t simply die of old age? Or Howard Marks, who said last summer it feels like the eighth inning, “but I have no idea how long the game will go on”?
Join us as the top minds in the middle market share their thoughts about how much longer “the game” will continue until a downturn arrives. And whatever the consensus, hear what these investors are doing to prepare for it in the meantime.
MODERATOR:
Randy Schwimmer
Senior Managing Director, Head of Origination & Capital Markets,
Churchill Asset Management LLC
SPEAKERS:
Carey Davidson
Managing Director, Head of Capital Markets, Monroe Capital LLC
Erica Frontiero
Managing Director, Head of Capital Markets, Carlyle Global Credit, The Carlye Group
Garrett Ryan
Partner, Twin Brook Capital Partners
Brian Gerson
Head of Private Credit, FS Investments
________________________________________________________________
5:30 p.m. – 7:00 p.m.
ANNUAL INDUSTRY COCKTAIL RECEPTION
Hosted by
The Private Credit Group at Proskauer is a unique middle market finance practice. The breadth and diversity of our practice is unmatched in the industry. The group was the first to dedicate its practice solely to representing providers of private credit. We represent over 50 clients, including private debt funds, business development companies, asset managers, finance companies and family offices. These lenders provide financings for transactions ranging from $10 million to more than $1 billion across a myriad of product types and industries.
END DAY 1
DAY 2
Friday, May 18, 2018
8:00 a.m.. – 9:00 a..m
THE WORKING BREAKFAST BUFFET
8:45 a.m. - 9:15 a.m.
UPDATE AND ANALYSIS FROM THE LOAN SYNDICATIONS AND TRADING ASSOCIATION
Don't miss the update on key regulations and regulatory developments impacting commercial banks and the middle market. LSTA is the industry's premier advocate in Washington for corporate lending
• Libor
• Leveraged Lending Guidline: Updateand what lies ahead
• Risk Retention: Impact on CLOs after recent exemption of CLOs from this regulation
PRESENTED BY:
Tess Virmani
Senior Vice President and Associate General Counsel,
The Loan Syndications and Trading Association
9:15 a.m. - 10:00 a.m.
BDC CAPITAL MARKETS UPDATE
Over the past year, BDCs have dealt with highly competitive market conditions and, in some cases, heightened credit issues. While the stock market enjoyed a broad rally, many BDCs found it challenging to maintain their NAVs above 1.0x. We also saw the beginnings of consolidation as market forces led to an increased level of M&A in the sector.
However, the winds of change are blowing once again! With the passing of 2:1 leverage for BDCs and an increasing interest rate environment, there are new industry dynamics to navigate. Join a panel of some of the country's most prominent BDC managers as we explore questions including:
• How will 2:1 leverage impact strategies, products offered, and competition?
• Will the recent increased level of M&A in the BDC sector continue?
• What strategies are managers employing to maintain and grow NAV?• Is a rising rate environment good or bad for BDCs and their investors? What about borrowers?
• What about private BDCs? Are the answers to these questions different for private vs public BDCs?
MODERATOR:
Al Laufenberg
Managing Director, KBW / Stifel
SPEAKERS:
David Yu
Managing Director, Head of Private Research, Goldman Sachs BDC, Inc.
Rich Byrne
President, Benefit Street Partners; Chairman and CEO, BDCA
Andy Worth
Partner, Fidus Investment Advisors
Pankaj Gupta
Managing Director, WhiteHorse Capital
10:00 a.m. - 10:15 a.m.
NETWORKING & REFRESHMENT BREAK
10:15 a.m. - 11:00 a.m.
INDEPENDENT SPONSORS IMPACT THE DEAL MARKET
The past 10 years has seen the rise in relevance and potency of Independent Sponsors in the Middle Market. Sponsors with no dedicated funds have become much more prevalent and formidable. Will this trend last or is it just another sign of an aggressive market that favors sellers, pushes multiples skyward and will not last through a market downturn? We examine some of the reasons behind the increased significance of Independent Sponsors.
One of the key drivers of growth in Independent Sponsor transactions has been shifts in the behavior of Limited Partners. LP’s have been pushing back on the traditional private equity model for quite some time, questioning the levels of fees charged, holding GP’s more accountable for performance and seeking more and more direct investments. Therefore, LP’s are much more receptive to investing equity dollars alongside a sponsor with no fund, with the assumption that the Independent Sponsor is bringing something else credible and important to the transaction. That “something else” could be industry expertise, proprietary deal flow, vested relationship with the sellers, etc.
This trend in LP behavior toward direct investing in transactions seems to be here to stay. Therefore, this is one reason to believe that Independent Sponsor transactions are probably here to stay.
MODERATOR:
Phil Kain
Managing Partner, Rush Street Capital
SPEAKERS:
Andrew Bushell
Principal, Cornerstone Capital Holdings
Dave Gezon
Senior Managing Director, Midwest Mezzanine Funds
Haran Narulla
Managing Partner, Tiger Creek Capital
plus 1 additional speaker
11:00 a.m. – 11:45 a.m.
THE ROUNDTABLE DISCUSSION
Ron Kahn, Managing Director, Lincoln International, returns to lead a round table discussion on financing in the middle market. Join us as we close out Symposium 2018 with this popular interactive session in which industry leaders are challenged by our moderator as well as each other regarding current lending and investment practices, risks and opportunities, the outlook for the remainder of 2018 and beyond and lessons from the past.
DISCUSSION LEADER:
Ron Kahn
Managing Director, Lincoln International
SPEAKERS:
Philip Tseng
Managing Partner, Tennanbaum Capital Partners
Rick Miller
Group Managing Director, TCW Direct Lending Group
Sengel Selassie
Co-CEO and Co-Founder, Brightwood Capital Advisors, LLC
11:45 a.m. - 12:30 p.m.
FUND INVESTORS:
WHAT DO THEY WANT & WHERE ARE THEY GOING TO FIND IT?
Fundraising for private credit has been on the rise. Previously overshadowed by private equity and hedge funds, credit funds now have a solid footing and dedicated allocations in investors' portfolios. Capital comes from all sources - insurance companies, family offices, state and corporate pension funds and international investors, all in the search for yield in a low interest rate environment. To complicate matters further, there are a myriad of credit strategies and managers to choose from. How is an investor to decide not only on a strategy but on a manager?
Join us in this final session where fund investors give their views of the market and answer the following questions:
• What is the outlook for 2018 and the next few years, and in what subsectors of fixed income are capital allocators investing?
• What do they look for in a manager and what factors are important when deciding to commit?
• What are their current views of the sponsor-backed market, and is there too much private equity and debt capital available?
• Are underlying assets priced appropriately for the current risk and stage of the economic cycle?
• Are senior debt funds really senior debt funds, or are investors being misled?
MODERATOR:
Fred Buffone
Principal, Freedom 3 Capital
SPEAKERS:
Joseph McCusker
Senior Vice President, Head of Asset Management, Genworth Financial
Jakob Schramm
Managing Director, Head of US Office, Golding Capital Partners (USA), Inc.
Brett Hickey
Founder & CEO, Star Mountain Capital
plus 1 additional
12:15 p.m.
CHAIRMEN'S CLOSING REMARKS
John Deering
Managing Director, Deloitte Corporate Finance
Bob Horak
Managing Director, Lincoln International