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"The Symposium offers a unique combination: to hear proprietary business insights, to pick up timely market intelligence and to meet the key players in middle market lending."
Joe Kenary, EVP, Corporate Lending, CapitalSource
SPEAKER ROSTER: 54 SPEAKERS
U.S. - based except as indicated
DETAILED PROGRAM IS BELOW SPEAKER LIST
Dean Anderson, Managing Director, Special Situations Group, American Capital Strategies
Jason Anderson, CFA, Director, Debt Capital Markets, Bank of Ireland
Peter M. Arnstein, Managing Director, Investment Banking, Mesirow Financial, Inc.
Carter Balfour, CFA, Partner, Norwest Mezzanine Partners
David Blair, Partner, PNC Mezzanine Capital
Jason Block, Head of U.S. Office, Intermediate Capital Group
John Brignola, Executive Vice President, LBC Credit Partners, Inc.
Gregg Buksbaum, Of Counsel, PATTON BOGGS LLP
John Buley, Jr., Managing Director, JPM Mezzanine Capital, LLC
David Buttolph, Managing Director, Brookside Capital Partners
Jim Chadwick, Partner, PATTON BOGGS LLP
Gerry Chaney, Jr., Principal, Intermediate Capital Group, Inc.
Tom F. Clausen, Managing Partner, CAPVENT (Switzerland)
Richard Cohill, Head of Sales, Amwal (Doha, Qatar)
Michael Cook, Senior Managing Director, Macquarie Global Opportunities Partners LLC
Timothy P. Costello, Managing Director, Newstone Capital Partners, LLC
Rick Dowd, Managing Director, Head of Strategic Advisory Group, Corporate and Investment Banking, Wachovia Securities
Paul Echausse, Managing Partner, BNY Mezzanine Partners
Rob Engel, Managing Director, Head of Mergers & Acquisitions, Wachovia Securities
Stephen W. Etter, Partner, Greyrock Capital
Robert J. Fitzsimmons, Managing Partner, High Road Capital Partners
Dave Gezon, Senior Managing Director, Midwest Mezzanine Funds
Carolyn Glick, Managing Director, Originations, Wells Fargo Foothill
Dan Glickman, Managing Director, GE Antares
Lawrence Golub, President, Golub Capital
Eric Green, Managing Partner, CastleHill Investment Management
Mark Gudis, Managing Director, SAC Capital Advisors, L.L.C.
Michael J. Hahn, President and Head of Mezzanine Finance, Churchill Capital
Patrick Hanraty, Managing Director, Cobblestone Advisors
Anne Hayes, Partner, The Riverside Company
Mike Hermsen, CFA, Managing Director, Babson Capital Management
Elliott Jones, Managing Partner, Gleacher Mezzanine LLC
Ron Kahn, Managing Director, Lincoln International
Ray Kane, Director, Houlihan Lokey
Joe Kenary, Executive Vice President for Corporate Lending, CapitalSource
Helen Lais, Partner, AlpInvest
Ed Lewis, Senior Managing Director, Head of Alternative Assets, CIGNA Investment Management
Doug Londal, Managing Director, New Mountain Capital LLC
Rob Long, Managing Director, Allied Capital
Jon Lucia, Senior Portfolio Manager, Genworth Financial
Tim MacKenzie, Managing Director, Merit Capital Partners
Sam May, Partner, Structured Finance Group, PricewaterhouseCoopers
Kevin McCarthy, Managing Director, Head of Middle Market Capital Group, Wachovia Securities
Paul Murphy, Partner, Sentinel Capital Partners
Robert Polenberg, Director, Standard & Poor's Leveraged Commentary & Data
Mike Revord, Managing Partner, Aldine Capital Fund, L.P.
Alan Roth, Partner, Wildman Harrold Allen & Dixon
Ian Schnider, Managing Director, Fortress Investment Group LLC
Kevin Schwartz, Partner, Paine & Partners, LLC
Joe Shepard, Associate Administrator for Investment, U.S. Small Business Administration
Hubertus Theile-Ochel, Partner, Golding Capital Partners (Germany)
Matthias Unser, Managing Director, VCM Capital Management GmbH (Germany )
Jim Upchurch, President & CEO, Caltius Capital
Preston Walsh, Partner, PNC Mezzanine Capital
DETAILED PROGRAM:
DAY 1
Tuesday, May 6
_________________________
7:45
a.m. - 8:15 a.m.
REGISTRATION & CONTINENTAL
BREAKFAST
CONTINOUS NETWORKING BUFFET
Sponsored by
CHURCHILL
CHURCHILL CAPITAL MEZZANINE FINANCE is a member of the Churchill Financial Group, a full service source of capital for private equity sponsored middle market companies with over $2.0 billion of committed capital. Churchill Capital has a successful 20 year track record as a leading originator, manager and underwriter of mezzanine loans. www.churchillnet.com
8:15
a.m. - 8:30 a.m.
CHAIRMAN'S WELCOME & OPENING REMARKS
Challenges & Opportunities in a Turbulent Market
Richard C. Dowd
Managing Director,
Head of Strategic Advisory Group,
Corporate & Investment Banking
Wachovia Securities
8:30
a.m. to 9:15 a.m.
ATLANTIC CONFERENCES MARKET
SURVEYS 2008
Atlantic Conferences’ 14th
annual informal, high-level
survey of the traditional
mezzanine markets is
complemented by a Standard &
Poor's Leveraged Commentary & Data Survey created
especially for the
Symposium. What are the
current deal terms?
Current trends?
SURVEY I: THE
TRADITIONAL MEZZANINE MARKET
Preston Walsh
Partner,
PNC
Mezzanine Capital
SURVEY II: THE SENIOR
TERM DEBT & SECOND LIEN
MARKETS
Robert Polenberg
Director, Standard & Poor's
Leveraged Commentary & Data
9:15 a.m. to 10:15 a.m.
THE STATE OF THE MARKET
In the summer of 2007, aggressive subprime residential lending and related funding practices culminated in a major disruption in the broader credit markets. This disruption resulted in a significant contraction of liquidity, impacting the equity markets, the M&A / LBO market, real estate values and, ultimately, performance of the U.S. economy.The Federal Reserve responded with substantial rate cuts and open market transactions in an effort to restore liquidity, ease credit and bolster the economy. Additionally, the President and his administration have proposed fiscal policy agendas to ease mortgage defaults.
• How has the disruption impacted issuers, the deal market, large leveraged transactions vs. middle market LBOs, the economy as a whole?
• Where did all the liquidity go? How will it be restored? How will business models evolve? How have valuations been impacted? New deal structures?
• Where are the near-term challenges, opportunities? What sectors and asset classes?
• How is this cycle different from 2002? Default rates and credit quality? What can we expect over the next 12 months?
MODERATOR:
Richard C. Dowd
Managing Director,
Head of Strategic Advisory Group
Wachovia Securities
SPEAKERS:
Robert D. Long
Managing Director
Allied Capital
James B. Upchurch
President & CEO
Caltius Capital
Douglas F. Londal
Managing Director
New Mountain Capital LLC
Ian Schnider
Managing Director
Fortress Investment Group LLC
10:15 a.m. to 10:45 a.m.
NETWORKING & REFRESHMENT
BREAK
10:45 A.M. -11:30 A.M.
SENIOR LENDERS REFLECT
What a difference a year makes. Leverage multiples are contracting. Some lenders have effectively left the market. Large write downs have forced some institutions to seek capital infusions. The broader economy seems at higher risk for a slowdown than just six months ago. Despite the challenges, deals are getting financed and new structures are being employed. Some even believe the senior debt market may be oversold.
• Are lenders prepared for a recessionary environment?
• Does the loan market present a buying opportunity given the pricing and structural protections of today's deals?
• What is being underwritten in the current climate and with what level of certainty?
• What will need to happen for the market to open larger deals?
• How important will it be over the next year for senior lenders to offer uni-tranche facilities?
MODERATOR:
Raymond J. Kane
Director, Houlihan Lokey
SPEAKERS:
Daniel B. Glickman
Managing Director
GE Antares
Kevin R. McCarthy
Managing Director, Head of Middle Market Capital Group
Wachovia Securities
Jason Anderson, CFA
Director, Debt Capital Markets
Bank of Ireland
Carolyn Glick
Managing Director, Originations
Wells Fargo Foothill
11:30
a.m. to 12:15 p.m.
THE EQUITY PERSPECTIVE
Hung senior deals, a decline in leverage - when it's available; increasing levels of equity required to close deals; economic uncertainty. Private equity groups still have record levels of capital to deploy. Large transactions seem to be more difficult to finance than smaller ones. What does the correction mean for deal sponsors?
• How are deals getting done?
• Are sponsors increasing their equity commitments to win and close deals?
• Have relationships with financing partners become more important?
• Have sellers' expectations changed and has that affected deal flow?
• What do existing capital structures mean for portfolio companies in the slowing economy?
MODERATOR:
Patrick Hanraty
Managing Director
Cobblestone Advisors
SPEAKERS:
Robert J. Fitzsimmons
Managing Partner
High Road Capital
Anne Hayes
Partner
The Riverside Company
Paul Murphy
Partner
Sentinel Capital Partners
12:15
p.m. to 2:00 p.m.
LUNCHEON IN THE GRAND BALLROOM
Sponsored by
Wachovia Securities
Wachovia Securities is an integrated corporate and investment banking firm, offering a full range of capital raising, market making and financial advisory services for corporate and institutional clients. Wachovia Securities is part of Wachovia Corporation (NYSE:WB), one of the largest providers of financial services to retail, brokerage and corporate customers.
Luncheon Address:
Middle Market M&A: Trends, Valuations, & Challenges
Robert A. Engel
Managing Director, Head of Mergers & Acquisitions
Wachovia Securities
2:00
p.m. to 2:45 p.m.
INVESTING IN A DISTRESSED ENVIRONMENT
Distressed equity and debt fund formation has been on the rise ever since the most recent recovery began. Some deals are good companies with bad balance sheets; others have been poorly run; while others have been casualties of larger corporate fiascos. Together they all translate into deal flow for the distressed financing community.
• What do distressed fund managers know that we don't know?
•Can boith parties win when a distressed fund helps with a traditional fund's troubled deal?
• Who provides senior and mezzanine debt for distressed deals and how do they make money?
• What are the characteristics of a good deal for a distressed fund?
MODERATOR:
James C. Chadwick
Partner
PATTON BOGGS LLP
SPEAKERS:
Dean Anderson
Managing Director, Special Situations
American Capital Strategies, Ltd.
John J. Brignola
Executive Vice President
LBC Credit Partners, Inc.
Carter Balfour, CFA
Partner
Norwest Mezzanine Partners
2:45
p.m. to 3:30 p.m.
CONCURRENT SESSIONS
SESSION I: INTERNATIONAL INVESTING
As the world flattens, most companies are selling, sourcing and even producing overseas. What may have begun as investing in support of a portfolio company's foreign acquisition has become a direct investment strategy for some private equity firms. For others, international investing may be a one-off that results from co-investments with private equity funds building overseas portfolios. Meanwhile, European investors have taken a greater interest in U.S. companies and several have established direct investment practices here.
• Do the foreign markets offer less competitive investment opportunities?
• Does overseas investing require different skills and staffing?
• What risks are associated with foreign diligence and documentation?
• How are U.S. funds structured for international investing and when does a dedicated overseas fund make sense?
• Why are some investors investing only in U.S. funds, while others are setting up U.S. offices?
SPECIAL REPORT: The CEO of Amwal, the largest investment bank in Qatar, discusses shariah-compliant mezzanine funds and how to structure innovative products in the Middle East to tap that market's liquidity.
MODERATOR:
Jason Block
Head of US Office
Intermediate Capital Group, Inc.
SPEAKERS:
Richard Cohill
Head of Sales
Amwal
Kevin Schwartz
Partner
Paine & Partners, LLC
Michael Cook
Senior Managing Director, Macquarie Global Opportunity Partners LLC
SESSION II: THE FUTURE OF SBICS: $3 BILLION OF DEBENTURE LEVERAGE
Sponsored by WILDMAN HARROLD
Wildman Harrold's pre-eminent SBIC Practice Group provides comprehensive services, efficiently and cost-effectively, to SBICs throughout the pre-licensing and licensing processes, as well as ongoing post-licensing support and counsel.
With unleveraged mezzanine returns down and equity upside hard to find, many sub-$300 million mezzanine funds are utilizing SBIC Debenture Leverage to increase their total fund size and enhance returns to their limited partners. With approximately $3 billion of Debenture Leverage pending in President Bush's proposed budget for FY 2009, the SBIC debenture program is stable and actively seeking qualified funds.
• What is the current status of the SBIC debenture program?
• What types of funds and fund managers are qualified to be SBIC Licensees?
• What is the cost of capital for SBA debentures?
• What are the hot topics / issues for current SBIC Licensees?
• Update on pending SBIC legislation.
MODERATOR:
Alan Roth
Partner
Wildman Harrold
SPEAKERS:
A. Joseph Shepard
Associate Administrator for Investment
U.S. Small Business Administration
Michael J. Revord
Managing Partner
Aldine Capital Fund, L.P.
David Buttolph
Managing Director
Brookside Capital Partners
3:30
p.m. to 4:00 p.m.
NETWORKING & REFRESHMENT
BREAK
4:00
p.m. to 4:30 p.m.
FAS 157 and FAIR VALUE MEASUREMENT
Sponsored by PricewaterhouseCoopers
PwC's Structured Finance Group has assisted clients in virtually every aspect of the structured finance business with a team of professionals who can supporat a securitization transaction from start to finish.
As an adjunct to pressure for consistency and transparency in public securities accounting for fair market value, members of the private equity community formed the Private Equity Industry Guidelines Group (PEIGG) in 2002. While conclusions were reached and recommendations made, adoption was voluntary and still wrought with inconsistencies. In issuing Financial Accounting Statement 157, the Financial Accounting Standards Board established accounting guidelines for consistent definition and methodologies in determining fair value to be applied to private equity portfolios for GAAP purposes. Has the FASB gone too far or not far enough?
• What are the principles behind FAS 157?
• Under what circumstances is FAS 157 required and when is it not?
• How does FAS 157 improve existing reporting methodologies?
• How does FAS 157 impact financial reporting of private equity funds?
• What does implementing FAS 157 mean to the audit process?
• What does FAS 157 mean for a fund's manager and its accounting staff?
DISCUSSION LEADER:
Sam May
Partner, Structured Finance Group
PricewaterhouseCoopers
PANELIST:
Stephen Etter
Partner
Greyrock Capital
4:30
p.m. to 4:45 p.m.
MEZZANINE INDUSTRY COMPENSATION SURVEY
David A. Gezon
Senior Managing Director
Midwest Mezzanine Funds
4:45 p.m. to 5:30 p.m.
FUND GOVERNANCE: BEST PRACTICES
Some private equity firms have figured out how to grow over the long term, some have chosen to remain small and others have splintered out of existence. Decision making, sharing the economics, promotions, and growth are central to a firm's culture and its success. The key is governance. What's good, what's not? What works, what doesn't?
• Who's in charge? When do junior partners start to help manage the firm?
• What have some firms done to retain people and how have they handled the tensions between generations?
• Who decides the big stuff: hiring, firing, compensation?
• Succession planning: how is the team built so that the firm survives?
• Do the LPs really care about corporate governance as long as the results are good?
MODERATOR:
David A. Gezon
Senior Managing Director
Midwest Mezzanine Funds
SPEAKERS:
Edward Lewis
Senior Managing Director
CIGNA Investment Management
David J. Blair
Partner
PNC Mezzanine Capital
Timothy P. Costello
Managing Director
Newstone Capital Partners, LLC
5:30 P.M. to 7:00 P.M.
ANNUAL INDUSTRY COCKTAIL RECEPTION
Sponsored by PATTON BOGGS LLP
PATTON
BOGGS
is an
international law firm with
over 600 lawyers and
professionals. With offices
in Washington, D.C.,
Northern Virginia, New
Jersey, New York, Dallas,
Denver, Anchorage, and
Doha, Qatar, the firm
advises clients on a wide
array of business matters,
including senior debt,
junior debt, private equity
and fund formation
transactions.
www.pattonboggs.com
End of Day 1
DAY 2
Wednesday, May 7
____________________
7:45
a.m. to 9:00 a.m.
2008 WORKING BREAKFAST
Sponsored by PATTON BOGGS LLP
LESSONS FROM EXPERIENCE: A ROUNDTABLE DISCUSSION
As the Symposium on Mezzanine Finance celebrates its 15th anniversary, Atlantic Conferences is proud to assemble a panel of individuals who were at the forefront of creating the mezzanine market and leading the industry to where it is today. Listen and participate in a lively discussion as these veterans share their thoughts and experiences on surviving and succeeding through numerous financial and economic cycles over the past 15 years.
• What has worked and what has not?
- Why mezzanine investing remains an apprentice business.
- Thoughts on navigating the current market.
DISCUSSION LEADER:
Ronald A. Kahn
Managing Director, Lincoln International
PANELISTS:
David J. Blair
Partner
PNC Mezzanine Capital
Timothy J. MacKenzie
Managing Director
Merit Capital Partners
Elliott H. Jones
Managing Director
Gleacher Mezzanine LLC
9:00
A.m. to 9:30 A.m.
SYMPOSIUM EXCLUSIVE
FOURTH ANNUAL PRESENTATION OF THE VCM/CEPRES
MEZZANINE DATABASE
VCM,
one of the oldest
fund-of-funds in Europe,
shares the database of its research affiliate CEPRES. 3,859
mezzanine transactions in
the U.S., Europe and Asia
from 1986-2008. Detailed data on IIRs, return multiples and loss rates of US mezzanine transactions, plus the impact of investment strategy and size, with comparisons to the European market.
Special for 2008: Statistical analysis on the performance of mezzanine vs. private equity over different economic cycles.
Matthias Unser, CFA
Managing Director
VCM
Capital Management GmbH
9:30
a.m. to 10:15 a.m.
GETTING YOUR FUND RAISED
How is it done? Public, private. Leveraged, unleveraged. Single product, multi-product. From a fund manager's perspective, what are the advantages and disadvantages of the various types of investment vehicles? What skill set and track record is required to raise a first-time fund? What are the pros and cons of affiliating with an institution? How do existing managers keep their investment model current while keeping investors committed?
• What can new fund managers expect to give up when raising a first-time fund?
• Lawyers, fundraising agents, advisory board members: what services do you need and what do they cost?
• The importance of track record: Whose is it? How is it evaluated?
• The L.P. Agreement: What are the threshold issues for G.P.s and L.P.s and do they differ for first-time funds versus veteran fund managers?
• Beyond investment skills, what is important to potential investors?
MODERATOR:
Peter M. Arnstein
Managing Director
Mesirow Financial, Inc.
SPEAKERS:
Joseph Kenary
Executive Vice President, Corporate Lending
CapitalSource
Michael P. Hermsen, CFA
Managing Director
Babson Capital Management, LLC
Gregg Buksbaum
Of Counsel
PATTON BOGGS LLP
Paul Echausse
Managing Partner
BNY Mezzanine Partners
10:15
a.m. to 10:45 a.m.
MID-MORNING NETWORKING &
REFRESHMENT BREAK
10:45
a.m. to 11:30 a.m.
IT'S NOT PRIVATE EQUITY, IT'S ASSET MANAGEMENT
Over the past 15 years the market for junior capital has shifted from an increasing number of smaller private equity and mezzanine funds to a growing number of megafunds and institutional providers, including firms providing products for multiple layers of the capital structure. Both public and private multi-billion dollar pools of capital have grabbed headlines in the M&A market, taking the place of public market alternatives and offering fully underwritten one-stop financings. The upside may be transaction efficiency, but the downside is a competitive environment that compresses pricing and therefore requires changes in portfolio strategy in order to deliver expected returns to investors.
• In order to succeed, how have single-product investment boutiques changed their investment strategies?
• Why do multi-product financial firms make sense; how are they staffed; and what do their investors expect?
• As equity co-investment has replaced equity kickers, have risk-adjusted returns changed?
• Is leverage mandatory for a mezzanine fund in a competitive pricing environment?
• How is product flexibility perceived by fund investors: a creative response to the market or style shift?
MODERATOR:
Eric Green
Managing Partner
CastleHill Investment Management
SPEAKERS:
Michael J. Hahn
President and Head of Mezzanine Finance
Churchill Capital
Lawrence E. Golub
President
Golub Capital
John Buley, Jr.
Managing Director
JPM Mezzanine Capital, LLC
Mark Gudis
Managing Director
SAC Capital Advisors, L.L.C.
11:30 a.m. to 12:15 p.m.
THE FUNDERS' PERSPECTIVE
Twenty-four months ago, second lien loans seemed to have displaced traditional mezzanine, and distressed funds were being raised in anticipation of a decline in the economy. In the turbulence of the current market, shifting levels of available senior credit seem to have changed the need for various types of junior capital. The economy is soft, but not devastatingly down. What do groups who provide the capital to asset managers think about the return opportunity for their investments in second lien funds, traditional mezzanine funds, distressed debt and equity funds, as well as other special purpose blind pools? Why and when do allocations to the different traunches of junior capital make sense?
• What's going on today in terms of multiple options for junior capital?
• How have risk adjusted returns changed?
• How do conservative leverage levels impact the need for different types of capital?
• What are long-term return expectations?
MODERATOR:
Gerald Chaney, Jr.
Principal
Intermediate Capital Group, Inc.
SPEAKERS:
Tom F. Clausen
Managing Partner
CAPVENT
Jon Lucia
Senior Vice President, Sr. PM - Alternative Assets & Innovations
Genworth Financial
Hubertus Theile-Ochel
Partner
Golding Capital Partners GmbH
Helen Lais
Partner
AlpInvest Partners
12:15 p.m.
CHAIRMAN'S CLOSING REMARKS
Richard C. Dowd
Managing Director,
Head of Strategic Advisory Group,
Corporate & Investment Banking
Wachovia Securities
