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Baird Capital

December 2022

Baird Capital - Fund Analyst

Baird Capital makes venture capital, growth equity and private equity (PE) investments in strategically targeted sectors around the world. Having invested in more than 335 companies over its history, Baird Capital partners with entrepreneurs and, leveraging its executive networks, strives to build exceptional companies. Baird Capital provides operational support to its portfolio companies through teams on the ground in the United States, Europe and Asia, a proactive portfolio operations team and a deep network of relationships, which together strive to deliver enhanced shareholder value. Baird Capital is the direct private investment arm of Robert W. Baird & Co. For more information, please visit www.BairdCapital.com.

Baird Capital is seeking a dynamic professional to work directly with the investment teams, portfolio operations and COO on fund valuations, quarterly reporting to investors, portfolio review materials and portfolio FP&A. Successful candidates will be highly motivated individuals that possess strong communications, accounting and analytic skills.

Get information here!  Please contact Scott Skie, sskie@rwbaird.com.

ESSENTIAL DUTIES AND RESPONSIBILITIES:

  • Work directly with investment teams, Fund Finance team and the COO - draft quarterly valuation analysis for all venture and PE portfolio companies and participate in quarterly valuation committee meetings. In addition, takes point on the collection of data and responses to the Fund auditors as part of the annual audit process.
  • Leverage portfolio monitoring software to collect and report monthly financial information for all venture and PE portfolio companies.
  • Draft quarterly write-ups for each portfolio company to be included in quarterly reporting packages provided to our limited partners. Write-ups include high-level financial performance updates and updated performance commentary.
  • Stay current with portfolio company performance by reading board decks, Sales Force postings and participation in investment team meetings and portfolio reviews.
  • Assist with preparation of portfolio review materials, investor relations decks and annual meeting materials.
  • Produce fundamental financial analytics of portfolio companies (trends, KPI's, etc.) and report out to the investment teams on a quarterly or ad hoc basis.
  • Point person working with the Fund Finance team on materials / data need for investment capital calls and realizations.
  • Potential to assist with investment due diligence and Investment Committee materials
  • Other duties as assigned

This description is not intended as a complete list of specific duties and responsibilities.

QUALIFICATIONS:

  • Bachelor's degree in Accounting or Finance with a minimum of 5 years of relevant experience; public accounting and/or FP&A experience in financial markets preferred.
  • Attention to detail, accuracy and reliability with a drive for continuous improvement.
  • Strong written and verbal communication skills with the ability to work effectively as a team player.
  • Problem-solving and analytical skills with the ability to take ownership as needed with a desire for continual learning.
  • Organizational and time management skills with the ability to work independently, complete multiple concurrent responsibilities, proactively communicate and take initiative.
  • Aptitude in utilizing technology / products to drive improvements and efficiencies; proficient in Microsoft Office products with an emphasis on Excel and Power BI.
  • Experience/knowledge on valuation modeling is a plus
50 South Capital

October 2022

50 South Capital - Analyst, Private Equity

50 South Capital (www.50southcapital.com) is the private equity investment group within Northern Trust. 50 South Capital's private equity group makes primary, secondary, and direct co-investments in buyout and venture capital funds and companies in the U.S., Europe and Asia. The team has extensive experience investing in the industry and has been led by its founding partners since 2000. It oversees over $12.5 billion in assets and is experiencing rapid growth.

The individual in the two year Analyst position will participate in all of the group's activities, including investments, fundraising and portfolio management. This will include screening investment opportunities; meeting fund management teams; completing due diligence, including valuations and modeling; participating in various portfolio monitoring tasks and data analysis projects; creating and updating marketing materials; and participating in fundraising related initiatives.

Submissions should be emailed to Bradley Michael Dorchinecz BMD3@50southcapital.ntrs.com

 
The key responsibilities of the role include:
  • Preparing financial analysis in support of the firm's due diligence on private equity fund/secondary/direct investment opportunities.
  • Evaluating a firm's strategy and historical track record versus industry benchmarks; tracking industry-wide and fund specific investment and liquidity data; modeling fund cash flows and transaction structures; working with valuation models and projection models; reference calls; and compiling information for investment committee presentations.
  • Supporting general duties within the primary, secondary, and direct investment functions, including monitoring the universe of buyout and venture capital fund managers, and meeting with these managers as part of the diligence process.
  • Assisting with business development and investor relations projects, such as maintaining marketing and quarterly performance presentations, creating industry white papers, and working with the back office team.
  • Position may require some travel.
 
 The successful candidate will benefit from having:
  • High attention to detail.
  • Strong work ethic.
  • Excellent interpersonal skills, ability to work within a collegial, team environment.
  • Strong communication skills, both written and oral.
  • Highly-developed analytical ability, curiosity.
  • Ability to prioritize workload and to work on a number of projects concurrently.
  • Strong business and interpersonal judgment skills with ability to assess both the qualitative and quantitative aspects of an investment.
  • Understanding of how financial markets work, particularly private equity.
  • Knowledge of basic financial analysis and the valuation of private companies.
  • Highly proficient in Word, Excel and PowerPoint.
  • Must be comfortable representing the firm to outside constituencies in a professional way.
  • Bachelor's degree, with a major in business, finance, accounting, or economics preferred; also engineering.
  • 0-1 years of experience with leveraged finance, consulting, public accounting, corporate finance or private equity.
Kinzie Capital Partners

May 2022

Kinzie Capital Partners - Vice President, Finance & Accounting

As a valuable Kinzie employee, the Vice President, Finance & Accounting will assist the team by taking an active role in supporting the Finance & Operations team, which is dedicated to financial and compliance management as well as general operations. This role reports to the Founder & Managing Partner and works closely with the Director, Investor Relations & Operations as well as the Assistant Vice President, Finance & Investor Relations.

Get full job description HERE!  Please send inquiries to employment@kinziecp.com

KRD
KRD has openings at all levels in our tax, audit and client services departments.
 
Do you know someone looking for a great opportunity with an accounting, finance or data analytics background?  We have a spot for them!
 

Please share their resume with  our HR Director Christi Gillen or Al Kutchins.

ARCH Venture Partners

September 2021

ARCH Venture Partners - Full Time Analyst, Director of Partnership Platform

We are looking for a full-time analyst to join ARCH Venture Partners (Chicago HQ). This analyst will play a central role in a high-visibility internal project, connecting corporate venture partners and tech scouts with cutting-edge research.

Our ideal candidate is self-directed, detail-oriented, and comfortable exercising initiative and operating with minimal guidance. Candidates must be excited about cutting-edge scientific technologies and comfortable going deep in a wide range of scientific domains.

This role is ideal for a high-performing person who is early in their career and wants to learn about the commercialization of science, corporate technology scouting, and venture capital.

Get information here!

NewSpring Capital

NewSpring Capital - Analyst

NewSpring Capital is looking for an analyst to support its Mezzanine strategy. In this position, you will play a critical role on our team of investment professionals who help to source new deals and manage our existing portfolio companies. You will provide support throughout the investment process and be involved in all aspects of the investment lifecycle including sourcing, underwriting and execution, monitoring and exiting.
 
Get all the details here!

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Private Investing in Private Companies

Venture Capital

 

Venture capital is money provided by outside investors for financing new, growing, or struggling businesses. Such investments are generally high risk, but offer the potential for above-average returns.

The influence of such investment extends beyond financial contribution. Many venture capitalists are highly active within their individual firms, aiding in the development of new products and services. By bringing experience, expertise, and business savvy to these enterprises, VCs can significantly influence corporate investment decisions and thus the area's economy.

Private Equity

 

Private equity serves a variety of purposes, and companies are frequently rejuvenated when acquired or funded by such a firm.

Buyouts fund an investor's purchase of full control of a business. This may involve (a) purchasing the majority of stock in a private division of a parent company when the parent divests it or (b) buying majority stock in a private company along with its management team in a management buyout. When buyout funding is supplemented by additional money borrowed from lenders, it is referred to as a leveraged buyout.

Acquisition financing involves the use of private equity capital for consolidating an industry segment through the purchase of other companies.

Turnaround financing refers to capital invested in a company that is bankrupt or otherwise non-performing. With turnaround financing, a party with capital and management expertise acquires the business to improve its operations.

Statistics and examples highlighting the value of other private equity are outlined below:

  • Since January 2002, Illinois companies have raised $4.2 billion in non-venture private equity. Illinois-based funds manage $57 billion of other private equity assets.
  • Willis Stein & Partners, a Chicago private equity firm, acquired Jay's Potato Chips out of bankruptcy in March 2004. By March 2005, revenue trends were positive, the company had introduced several new products, and 400 jobs were saved.

Private Equity Is a Major Industry in Its Own Right

 

Apart from the impact of their portfolio companies, private equity firms represent a major business sector of Illinois.

Illinois is the headquarters for more than 100 private equity firms that manage funds totaling $77 billion, of which $65 billion is directly invested in companies and $12 billion is managed by funds-of-funds, which invest directly in private equity firms. Of the directly invested funds, $8 billion is venture capital and $57 billion is other private equity.

Over the past twenty years, private equity investment generated average annual returns of 13.7%. According to that rate, Illinois-based funds produce an estimated $6 billion in average annual returns to investors. These investors are primarily pensions, universities, and foundations, which reveals the vital role private equity plays in providing income for retirement, higher education, research, and charitable giving.

Private equity firms are large supporters of Illinois' professional services sector, including legal, accounting, and consulting services. Based on an IVCA member survey, Illinois private equity firms pay service providers an annual average of about $1.7 million each, or $168 million in yearly total revenue.

The preceding numbers exclude private equity firms headquartered or with funds managed outside of Illinois. IVCA estimates that another 200 private equity firms operate in Illinois, including branches of out-of-state firms and firms that serve as advisors or brokers for funds that they do not manage.

FAQs About Venture Capital & Private Equity

Private equity is an investment asset class describing private investments in privately held (as opposed to publicly traded) companies. As an asset class, private equity investments are very illiquid; investment commitments have typical durations of 7 - 10 years.

Private equity firms receive their investment capital from Limited Partners (LPs). These LPs are frequently pension funds, foundations, and endowments which have large amounts of capital to invest. Private equity is generally part of an LP's overall investment strategy that may include real estate, bonds, and publicly traded company stock.

The goal of every private equity firm is to generate a higher-than-market rate of return for its investors. The S&P 500 is a typical benchmark against which returns are measured. The private equity industry generates returns by investing in the stock of private companies and subsequently generating a capital gain on that stock when the company is sold or becomes publicly traded.

A private equity firm typically has one or more funds that it manages. Each fund will have a stated investment strategy that describes aspects of investments it prefers. These preferences may include:

  • Industries
  • Geography
  • Stage of deals, e.g., pre-revenue or post-revenue, growing or mature
  • Size of total investment

Each fund has a General Partner (GP). The general partner is responsible for:

  • Selecting the best investments or portfolio companies for a fund
  • Working with the management of these portfolio companies to increase the value of the initial investment
  • Developing a strategy for the fund to exit the investment within a given time frame

Private Equity falls into two broad groups: venture capital and other private equity.

Venture capital describes investments in companies that are in the early life-cycle stages. Typically, venture capital finances new, rapidly growing businesses. Venture capital investments are generally high-risk investments but offer the potential for returns well above the S&P 500. Venture capital is an important source of equity for start-up companies.

Most other private equity is invested in more mature or later-stage companies. Frequently, other private equity is a source of liquidity for owners of privately held companies. Often, other private equity is referred to as leveraged buyouts (LBOs) or management buyouts (MBOs).

Buyout financing, or acquisition financing, funds the purchase by an investor of full control of a business, or it finances the purchase by other new owners. Buyout firms-another form of private equity-may buy the majority of the stock of a private division of a parent company when the parent divests it. Or they may buy the majority of the stock of a company, along with its management team, when the company's owner is ready to sell. A leveraged buyout is when buyout funding is supplemented by additional money borrowed from lenders.

The IVCA references Thomson Venture Economics' terminology, which defines the following stages:

  • Venture Capital
    • Seed stage: Product development, market research
    • Start-up financing: Key mgmt. in place, initial marketing, pre-sales
    • Other early stage: Product in development or available, first institutional financing
    • Expansion/growth stage: Product shipping, funds needed for working capital or plant expansion
    • Later Stage: Stable growth rate, likely to be profitable, cash flow positive
    • Bridge financing: Company to go public in 6 - 12 months
  • Other Private Equity
    • Open market: Company is publicly traded
    • Acquisitions: LBOs, acquisitions, recapitalizations
    • Mgmt/leveraged buyout: Management acquiring a product line or business at any stage of development
    • Turnaround: Operationally or financially troubled

Private equity is a favored asset class for professional managers because it has historically produced superior returns. Annual returns over the past twenty years have averaged 13.7%, beating stocks, bonds, real estate, and most other forms of investment. Its risk is a reference to the importance of spreading investments over long time periods, in multiple industry sectors, and in a large number of investments. Professional money managers know how to do so, which is why private equity has a prominent place in large investment portfolios, even in conservative ones like those of pension funds and universities.

By law, private equity investments are open mainly to accredited investors, which are basically institutional investors and experienced individuals with resources appropriate for the long-term, illiquid nature of private equity. Exceptions include small numbers of friends and family, who often participate in seed financing. However, as indicated above, it is ordinary citizens like pensioners who ultimately benefit from the returns generated by venture capital, and the general public benefits immensely from the economic impact of the investments made.

In Illinois, The Illinois Teachers Retirement System, the Illinois State Employees' Retirement System, Northwestern University, University of Chicago, and the MacArthur Foundation are just a few. The goal of every private equity investor is to receive a higher-than-market rate of return for their investors.

These firms generate money in annual fee income which goes directly into the state's economy in the form of payroll for the firms' employees, rent, and a large variety of service fees paid to the lawyers, accountants, and other professionals who support these firms. In addition, the managers of these firms will pay the state taxes on capital gains generated.

Venture capital investments create jobs-great jobs.

On average, 75% of venture capital investment is spent on payroll, and venture capitalists generally estimate compensation per-employee at their portfolio companies to be $100,000 per year. Consequently, each $1 million of venture capital directly creates or sustains seven and one-half skilled, high-paying jobs.

  • For every job directly created, another 2.2 jobs are indirectly created through the multiplier effect.
  • Over time, companies that are originally financed with venture capital grow to become major employers.

Beyond jobs, venture capital drives sales, taxes, exports, and R&D.

  • Per $1,000, companies backed by venture capital have approximately twice the sales, pay almost three times the federal taxes, generate almost twice the exports, and invest almost three times as much in R&D as the average company that is not backed by venture capital.

Other private equity firms have been responsible for reinvigorating failing or mature businesses/industries. These firms generate annual fee income which goes directly into the state's economy in the form of payroll for the firms' employees, rent, and a large variety of service fees paid to the lawyers, accountants and other professionals who support these firms. In addition, the managers of these firms will pay state taxes on the capital gains generated.

For all of the economic reasons we discussed above. In addition, private equity returns historically exceed those of the S&P. Prudent investments in the asset class have returned, on average, 15.7% annually versus 15.2% for the S&P. Annuitants in the public pension funds would benefit from an appropriate allocation to this asset class. Moreover, returns being equal, investments in Illinois funds drive employment and a strong tax base. 

Venture Capital Definitions

Early Stage Financing
Seed Stage Financing

At this stage, a relatively small amount of capital is made available in order to support an investor or entrepreneur in proving a concept and qualifying for start-up capital. This may involve product development and market research as well as building a management team and developing a business plan if the initial steps are successful. Seed stage financing is pre-marketing stage.

Start-up Financing

This stage involves financing companies that are completing development, and may include initial marketing efforts. Companies may be in the process of organizing or may have been in business for one year or less, but have not sold their products commercially. Usually, such firms will have conducted market studies, assembled key management, developed a business plan, and prepared to begin conducting business.

Other Early Stage Financing

Other early stage financing includes an increase in valuation, total size, and per-share price for companies whose products are either in development or commercially unavailable. This stage involves the first round of financing following a company's start-up phase and involves an institutional venture capital fund. Seed and start-up financing tend to involve angel investors more than institutional investors. The networking capabilities of the venture capitalist are used more here than in advanced stages.

Expansion/Growth Stage
Expansion/Growth Stage Financing

This stage involves working capital for the initial expansion of a company that is producing, shipping, and has growing accounts receivable and inventories. It may or may not be showing a profit. Some of the uses of capital may include further plant expansion, marketing, working capital, or development of an improved product. More institutional investors are likely to be included along with investors from previous rounds. The venture capitalist's role in this stage evolves from a supportive role to a more strategic role.

Later Stage

Capital in this stage is provided for companies that have reached a fairly stable growth rate, that is, they are no longer growing as fast as the rates attained in the expansion stages. Again, these companies may or may not be profitable, but are more likely to be than in previous stages, and their financial characteristics include positive cash flow.

Bridge Financing

This stage applies to a company that plans to go public within six months to a year. Often, bridge financing is structured so that it can be repaid from the proceeds of a public underwriting. It can also involve restructuring of major stockholder positions through secondary transactions. Restructuring is undertaken if there are early investors who want to reduce or liquidate their positions, or if management has changed and the stockholdings of the former management, their relatives, and associates are bought out to relieve a potential oversupply when public.

Acquisition/Buyout
Acquisition Financing

This stage provides funds to finance acquiring another company. Included in this category would be mezzanine financing using subordinated debt and bridge loans used to finance LBOs, acquisitions, and recapitalizations.

Management/Leveraged Buyout

These funds enable an operating management group to acquire a product line of a public or private company at any stage of development. Often, these companies are closely held and family owned. Management/leveraged buyouts usually involve revitalizing an operation, with entrepreneurial management acquiring a significant equity interest.

Turnaround

This stage involves financing provided to a company with the intention of improving performance at a time of operational or financial difficulty. This stage includes financing that involves restructuring equity.

Source: Thomson Venture Economics

Case Studies

The IVCA Private Equity Profiles is a continuing series of portraits of Illinois venture capital and private equity investments, spotlights companies that are emerging or proven successes. Each account furnishes information about the company and the private equity firm or firms that invested in it, illuminating the important role they play in nurturing the companies. To submit a case study for a Midwest company backed by an IVCA member firm download this form.