To say that the women in credit are becoming a force would be an understatement. Our 2nd Annual Kayo Women’s Credit Forum grew over 50% from last year with a sold out audience of women in distressed debt, mezzanine lending, private credit and private equity.

Against the backdrop of the Boston Harbor Hotel, women gathered for one day of networking and topics that covered challenges, trends, and learnings in credit. Below is a summary of what we experienced, but if you really want to be part of the action, you’ll have to join us for two days in 2020.

PRIVATE CREDIT – NO LONGER THE UNDERDOG ASSET CLASS

Private credit is no longer the underdog asset class according to our Keynote Speaker Sylvia Owens, Global Private Credit Strategist at Aksia. She should know after spearheading efforts to increase awareness of Private Credit as an asset class for more than a decade. As she playfully paralleled her findings by including real life dogs from her colleagues at Aksia, it was all serious business when it came to the investment opportunities in this newer, but not small, asset class. Most investors are under-allocated to private credit versus their target, but the majority of investors plan to maintain or increase their allocations.

STRATEGICALLY MANAGING CREDIT ALONGSIDE PRIVATE EQUITY

Patricia Lynch (Ropes & Gray) led the discussion around the growing number of firms that have equally active credit and private equity platforms. This panel, which included Laura Holson (New Mountain Capital), Marisa Beeney (GSO Capital Partners), Kristine Jurczyk (Vista Credit Opportunities), and Karen Simeone (HarboutVest Partners) made it clear that there is no magic ingredient to avoiding conflicts when managing private equity alongside credit, however, minimizing headaches is possible. Each firm highlighted that there are a number of different ways to manage a multi-strategy platform, but consensus was that through well-defined structure and rules of engagement in place, firms can greatly benefit from the overall corporate intellectual capital.

BREAKOUT SESSIONS PROVIDED DEEPER INSIGHTS

With four break-out sessions, attendees were able to choose their track and take a deeper dive into the world of private credit with our talented speakers.

1. VENI, VIDI, VICI

As the opportunity came about in credit, many women leaders seized the opportunity. They came, they saw, and they conquered by launching their own firms. Carrianne Basler (AlixPartners) drew out the origin stories of five female founders in credit who have shaped the industry with their specialized investment strategies, including Jeri Harman (Avante Capital Partners), Andrea Grosz (Lightspring Capital Partners), Melanie Brensinger (Anagenesis Capital), Carolyn Galiette (Ironwood Capital), and Rui Falcon (Princeton Asset Management). Hearing from these incredible group of founders was a highlight. Their openness and insights were inspiring and likely several women in the audience will be following in their footsteps. Check out The Podium to read our piece on Tips for Emerging Fund Managers.

2. IT’S COMPETITIVE OUT THERE

Artis Lin (Golub Capital) joined together with five other competing firms, who put up the white flag to have an open discussion about competitive trends, financing options, and how they are positioning themselves to win. The panel included, Engin Okaya (Prudential Private Capital), Cheryl Carner (Crystal Financial), Martha Gurwit (Antares Capital), Mandy Epler Brown (Crescent Capital) and Carey Davidson (Monroe Capital).

3. OPPORTUNITIES AS THE CYCLE TURNS

Jennifer Press (Duff & Phelps) facilitated a panel discussion posing the popular question: is this cycle nearing old age and susceptible to a downturn? The resulting discussion amongst Amanda Lynam (Goldman Sachs), Monica Aggarwal (Fitch Ratings), Nicole Drapkin (Owl Rock Capital Partners), Becca Schlagenhauf Stull (Northwestern Mutual Capital) and Melinda Jackson (Cadence Bank) led to a vigorous debate and discourse. Findings from one firm’s research spanning the past 20 years indicated that 1) Free cash flow and PEG ratios are the biggest return drivers, or said another way, the most highly correlated with returns over time, 2) Small and mid-sized deals consistently outperformed the mega deals, and 3) Cyclical and commodity businesses underperformed mostly all other types of companies.

4. WHAT DO THE LPS WANT?

Kassie Taylor (THL Credit) posed this question to our LP panel, which unfolded a wide spectrum of investor needs. According to our panel, which included Dulari Pancholi (NEPC), Elizabeth Weindruch (Barings), Mary Bates (Meketa), Chrystalle Anstett (Eaton Partners), and Amy Hsiang (RVK), experienced LPs are looking for more specialized strategies (such as drug royalties and aviation) whereas newer players are looking at larger, more established funds. Distressed funds were also mentioned as a potential attractive investment as the cycle turns.

NETWORKING MEETS PROGRAMMING

Our roundtable networking lunch provided attendees the opportunity to join a table taking a deep dive into one of 17 topics related to credit. Topics included Where to Invest in Credit Late in the Cycle, Best Practices for Diversity & Inclusion, Negotiating to Win, and many more.

TO INFINITY, AND BEYOND?

Jessica O’Mary (Ropes & Gray) is not a fortune teller. However, she does advise hedge fund and private equity advisers on all aspects of their business. Leveraging her broad scope, she quizzed five of the leading investors in credit on what they think the future holds. While some spoke from an institutional investor’s perspective like Sheila Finnerty (Liberty Mutual Investments) we also heard from credit investors of various shapes and strategies including Jay Ramakrishna (AB Private Credit Investors), Purnima Puri (HPS Investment Partners), and Olga Kosters (StepStone Group). Consensus was that private credit has a place in all market environments, LP interest is high in the asset class, yet more cautious when selecting first time funds.

This year’s event was oversold and the feedback was incredible. Every. Single. Attendee said they would return in 2020, and 100% would recommend this program to a friend. Next year we’re not only doing it again, but we’re going bigger and broader. It’s not too early to apply to speak or get involved. Visit our event page to learn more and be first to get event news.

Check out our photo gallery and get on the list for 2020 to be first to know about programming, our call for speakers, and registration.

GET ON THE LIST FOR 2020

What else would you like to know or share about the 2019 Kayo Women’s Credit Forum? Leave your comments below.

Our 7th Annual Kayo Women’s Private Equity Summit just wrapped with a record-setting number of attendees including leading women in private equity, venture capital, and M&A. Held over two days at the Boston Harbor Hotel, the event had a little something for everyone – new leadership workshops, opportunities to connect with others through cocktail receptions, coffee breaks, and shopping, plus programming that featured leaders in private equity.

If you missed this year’s event, here’s a birds-eye view of what was covered. But for the most in-depth information, you’ll just have to attend in 2020.

FIRED UP, NOT BURNT OUT

The topic of one of our inaugural leadership workshops, Fired Up, Not Burnt Out set the tone of the event. Our attendees came to the event ready to learn, connect, and find the next deal, and, most importantly, they came fired up!

Shelby Wanstrath (left), Teacher Retirement System of Texas interviews Anilu Vazquez – Ubarri, TGP Global.

OPENING FIRESIDE CHAT

There was no better way than starting the program with Anilu Vazquez-Ubarri, TPG Global, Chief Human Resources Officer (CHRO). Together with Shelby Wanstrath, Co-Head of Private Equity Funds at the Teacher Retirement System of Texas, and a trailblazer in her own right, they discussed TPG’s initiatives to make the company a better place to work.

With a witty spirit and no-nonsense demeanor, Anilu shared about the necessity of diversity and inclusion in the workplace. As CHRO, Anilu feels empowered by having access and influence over decisions that matter.

NAVIGATING A RECESSION GOES BEYOND MARKET KNOWLEDGE

There is one question on the mind of a lot of investors right now – how do you deploy $1 trillion with a recession on the horizon? We are talking about record levels of dry powder and with many worried about being near the top of a market cycle, how do you deploy capital while also preparing for a falling market? Debra Lussier (Ropes & Gray), and moderator, navigated the topic and provided the audience some answers. Perspectives from LPs and GPs included those from Daniel Miller (NYC Board of Education), Suzanne Streeter (Partners Capital), Tricia Glynn (Advent International), and Amy Christensen (The Vistria Group). All agreed a recession is likely upon us and that strategies like tapping into talent who have been through cycles before and ensuring a diverse and inclusive team are two ways to mitigate risk that go beyond market knowledge.

Networking came easy with the backdrop of the Boston harbor and women who make it a point to champion each other.

STRATEGIES FOR ACHIEVING SUCCESS

What do you say to a group of leading women in private equity who are starting the day hungry and ready? If you are Lauren Dillard you say “yes to opportunity”. After almost two decades at The Carlyle Group Lauren took her own advice and said yes to a new opportunity to lead Nasdaq’s Global Information Services. In Lauren’s opening keynote address she shared these strategies as ways to achieve success:

1. Be a constant learner. Approach everything from the standpoint, “how can I learn from this?”
2. Say no if you can’t move, say no if you have health or family issues. But don’t say no if you think you can’t do it, because you can.
3. Find your squad, build a network. Everyone needs a group of people to seek out independent advice and help decision-making.
4. Seek out board memberships. There’s never been a better time than now. Explore the many organizations that provide training for female board placement.

Peggy Koenig (Abry Partners) shares about her professional experience and insight with Jane Goldstein (Ropes & Gray)

RIGHT HERE, RIGHT NOW

Jane Goldstein (Ropes & Gray), introduced us to Boston icon, Peggy Koenig (Abry Partners). We learned from Peggy the importance of being present in your life “right here, right now” and that “time takes time” – in other words, be patient yet persistent. Peggy shared her learnings throughout her career, and today she’s applying her expertise to the issues of inclusion, diversity and human rights.

RECOGNIZING THE FUTURE OF CONSUMER BRANDS

Consumer brands are increasingly creating community around brands as they aim to attract the rise of millennials and Gen Z who want to align purchasing power with their values: authenticity, inclusion, and sustainability. We learned more about how disintermediation drives innovation in consumer products from a talented group of female leaders led by moderator Kerensa Butler (RSM) and hearing from speakers Cristin Singer (RSM), Amanda Morrison (Ropes & Gray), Suzanne Norris (Victress Capital), Tehmina Haider (Harry’s Ventures), and Kathryn Cavanaugh (Capstar Ventures). “High growth companies that don’t see their business at the intersection of consumer and technology are going to have a hard time sustaining that growth in long term.”

BREAKOUT SESSIONS PROVIDE A CUSTOMIZED AFTERNOON

Our attendees have limited time, so we want to make the most of it by providing breakout sessions for them to select from and dive into topics they are most interested in. Here’s what they had to choose from:

1. BATTEN DOWN THE HATCHES: KEY FINANCING STRATEGIES FOR SPONSORS AND LENDERS AHEAD OF AN ECONOMIC DOWNTURN

Most everyone agrees that an economic downturn is soon approaching. This seasoned panel of both sponsors and lenders including Sam Koplik (Dechert), Irene Wang (Falcon Investment Advisors), Sandra Mason (Audax Group), Laura Grattan (Thomas H. Lee), Lorie Beers (Cowen), and Liz Chang (Berkshire Partners) discussed strategies to prepare for a cycle change through a range of options and approaches, including sponsor guarantees, default/forbearance considerations, and equity cures.

2. EXIT PLANNING – PACE YOURSELF AND DON’T LOSE STEAM AT THE FINISH LINE

Standing room only for attendees who came to hear firsthand about best practices for exit planning from a talented group of speakers including Gerrie Sinatra (Dechert), Sylvie Gadant (Citrin Cooperman), Caroline Kung (H.I.G. Capital), Caroline Young (Hammond, Kennedy, Whitney), Kristin Steen (CCMP Capital) and Alison Fiore (Tailwind Capital). Strategies for a successful exit start on day one and include conducting regular scans, collecting data from portfolio companies, focusing on potential value detractors, and executing on key strategic growth initiatives.

From Left: Mary Kate Bertke (Great Hill Partners), Kristina Koutrakos (Virginia Retirement System), Christine Kelleher (National Gallery of Art), Elizabeth Traxler (Neuberger Berman)

3. FUNDRAISING: DIFFERENTIATION THROUGH EFFECTIVE STORYTELLING

In planning for an upcoming fundraise, it is more important than ever for GPs to stand out in a crowded market. All too often, GPs get wrapped up in minutia and neglect to communicate critical ideas and concepts, their visions of success or even why their LP audience should care. However, this panel of LPs including Stephanie Berdik (Kirkland), Kristina Koutrakos (Virginia Retirement System), Christine Kelleher (National Gallery of Art), Elizabeth Traxler (Neuberg Berman), Lynn Alexander (Kelso & Company), and Mary Kate Bertke (Great Hill Partners) were here to help tailor a GPs message and provide some insight as to what resonates with LPs when evaluating a pitch.

4. HOT INVESTMENT TOPICS FOR LPS

Many topics were covered by this distinguished panel of LPs and LP Consultants including Nicole Washington (Kirkland), Sharmila Kassam (Funston Advisory Services), Xinxin Liu (Wells Fargo), Sarah Samuels (NEPC), Ilene Levinson (Hamilton Lane) and Dominique Cherry (City of Philadelphia). However, one topic stood out above all: impact investing. Impact investing is clearly a growing trend, but it’s been difficult to measure the performance in a consistent manner. One panelist emphasized the importance of due diligence in selecting funds as some funds may have an “impact investing” label yet the criteria has not been fully vetted.

5. BIOTECH & PHARMA: PARTNERING WITH PRIVATE EQUITY AND VENTURE CAPITAL

In recent years, pharma company R&D budgets have been under pressure. Pharma companies are struggling to find ways to continue to advance the development of attractive drug candidates from their own pipelines while simultaneously looking outside for attractive programs they can acquire. Our panelists including Sarah Solomon (Goodwin), Holly Whittemore (Nimbus Therapeutics), Allison Jeynes-Ellis (Avillion), Deepa Rich (Goodwin), and Susie Harborth (Bio-Innovation Capital and Bio Labs) explored some of the ways that pharma companies and VC/PE firms are partnering to develop drugs and generate investment returns.

Stephanie Anderson (AlixPartners) moderates the Valuation Challenges: Mo Money, Mo Problems panel

6. VALUATION CHALLENGES: MO MONEY, MO PROBLEMS

This mighty panel moderated by Stephanie Anderson (AlixPartners) and including speakers Beatrice Mitchell (Sperry Mitchell), Kristie Bradford (IBM), and Christine Patrinos (Mozaic Capital) treated attendees to insightful and historical stats from the early days of private equity as an asset class. Overall, the feeling was mutual in expecting high valuations to continue. In this sophisticated market, pricing assets on projected value is simply not an easy task.

7. THE WAR FOR TALENT

Talent is a firm’s most precious asset and these panelists Myra D’Souza (PwC), Mia Hegazy (Catalyst), Courtney Hagen (Littlejohn & Co), Claudine Lussier (The Sterling Group), and Louise Woltz Smith (Private Advisors) shared just how precious the asset truly is. One speaker emphasized that it’s critical to first ensure that your own talent strategy is best in class, and then you can extend this discipline to portfolio companies. This experienced group discussed the use of human capital assessment tools like the Hogan Assessment and The Culture Index, and how to use them to bring more structure and engagement to the hiring process.

8. NEXT GENERATION OF FEMALE LEADERS – WHAT DOES IT TAKE TO ATTRACT AND KEEP TOP TALENT?

This panel made up of experienced leaders including Elena Richards (PwC), Dana Gordon (Dana Rebecca Designs), Stephanie Pare Sullivan (Charlesbank Capital Partners), Lynn Whitmore (Wells Fargo) and Gabriela Weiss (Advent International) know that attracting and keeping exceptional talent starts first at the top. One speaker passionately said that keeping talent starts from “leading by being authentic”. In creating a supportive and healthy environment, motivating by incentives (or a carrot), and by measuring in inches not yards. The group also emphasized the value of networking, but not just limiting your group to women, but include men and others with different backgrounds. This is a sure-fire way to diversify, enhance, and grow.

Participants discuss one of 25 topics from Finding the Right Financing Structure to Hiring Trends during our roundtable networking lunches.

A HEALTHY MERGER REQUIRES A DISCIPLINED PLAN

Words of wisdom stemming from years of merger experience flowed easily with this group of professionals including Marni Rozen (RSM), Carolyn Vardi (Ropes & Gray), Julia Karol (The Watermill Group), Jen Busse (RSM), Stephanie Geveda (Warburg Pincus) and Nickie Norris (New Heritage Capital). First, all recognized the importance of acknowledging employees’ fears and concern about “how does this affect me?” Addressing these issues and providing a clear plan and transparent communication, help to calm these fears. It’s important to identify “internal champions” to show by example how the teams can work together and learn from one another. There will always be hiccups, however, and as one speaker mentioned “Integrations are like start-ups; something will always fail, so be ready to accept and be patient keeping the end goal in mind.”

TAPPING INTO THE GIG ECONOMY

It’s not just Uber drivers and Instacart delivery folks. The Gig Economy is here to stay, and Diane Mulcahy, one of the first experts on the topic and author of The Gig Economy shared her thoughts about this rapidly growing segment of the labor force. Diane shared insights on how to tap into talent resources for PE firms and their portfolio companies, the investment opportunities due to this innovation and disruption in the workforce, and even tips about how individuals can develop their own “exit strategy.” The conversation ended on a theme that brought the room full circle and why we attend Kayo events – the value of networking and connecting with others. Diane shared ways for all to make connections, whether an introvert or extravert. Because at the end of day, connecting with leaders and peers is the sure way to trailblaze together.

Each year we make it a point to provide ample time for our attendees to connect with each other, incite deals, and champion their peers. Each session gave women the opportunity to advance their careers by taking the stage and inciting thoughtful conversations. If you attended this year and walked away with new business opportunities or new insights about your own career, we’d love to hear it. Email us.

If you couldn’t make it this year, we look forward to seeing you in 2020.

Check out our photo gallery and get on the list for 2020 to be first to know about programming, our call for speakers, and registration.

GET ON THE LIST FOR 2020

What else would you like to know or share about the 2019 Kayo Women’s Credit Forum? Leave your comments below.

Over the past decade, private credit has exploded, and with it, new firms run by emerging managers have taken the stage. At our most recent Kayo Women’s Credit Forum held in Boston, we heard from five women on what it’s like to start a new fund in private credit today.

Pictured Left to Right: Carrianne Basler, Moderator (AlixPartners), Andrea Grosz (Lightspring Capital Partners), Carolyn Galiette (Ironwood Capital), Rui Falcon (Princeton Asset Management), Jeri Harman (Avante Capital Partners), and Melanie Brensinger (Anagenesis Capital Partners)

Here are our top takeaways:

1. Don’t have a Plan B.

Why? When you don’t have a Plan B, then Plan A has to work. Showing investors that you are “all in” counts for a lot.

2. Still, lead with a track record. 

All the interest from institutional investors supporting new and diverse managers is not altruism. It’s about returns. “I’m not here because it’s fun,” said one institutional investor. “I’m here because diverse managers deliver stronger returns.” Emerging managers first and foremost need to prove theirselves at delivering returns to investors and find unique opportunities in their niche.

3. Start-up capital is key. 

It’s expensive to start a fund. “The biggest difference between Fund I and Fund III is that you don’t go three years without being paid,” explained one fund manager. It can take 3 years to collect the first management fee, so new managers need to prepare to cover operating costs and work without a salary for a period of time.

4. Fundraising is hard, so get creative.

Placement agents hesitate to represent first-time funds, often because of the smaller amount of capital they are looking to raise and the smaller number of institutional investors who will take a chance on a first-time fund. SBIC structures can be an option to get a first-time fund going. SBICs are privately formed and managed investment funds which, if licensed by the Small Business Administration (SBA), may borrow from the SBA two times their privately-raised capital on very favorable rates and terms.

5. Hiring is more challenging. 

Hiring is never easy, but it can be harder for new firms. Compared with established firms, careers at emerging firms are viewed as riskier and the economics more uncertain. Not every candidate is willing to take the risk. Looking for the best people with the right risk tolerance, while also building a diverse team with a variety of backgrounds and perspectives, takes a lot of work.

6. It’s worth it.

“The only regret I have is that I didn’t do this sooner”, said Jeri Harman, founder of Avante Capital Partners. Our other speakers echoed the same sentiment. For the rest of us in the room, wondering if we could ever dare to venture into an entrepreneurial pursuit, the answer was not to overthink it. In her own words, Rui Falcon from Princeton Asset Management said: “Just do it. If you think too much, you’ll never get off the couch.”

We feel lucky to have learned from these wise women at our 2019 Credit Forum. “Working with this incredible group of founders was fantastic”, reflected Carrianne Basler, Managing Director at AlixPartners, who moderated the panel. “Their openness and insights were so inspiring, and I believe a few of the ladies in the audience might have made a decision to follow in their footsteps.”

What tips would you add to this list? Let us know below in the comments!

Thank you for making the 6th Annual Private Markets Summit a huge success. This year was our largest event yet,  including the Inaugural Credit Forum and Inaugural Venture Forum as well as three new networking workshops.

Here are some of our favorite moments over the two days.

 

1. MEETING AND NETWORKING WITH ATTENDEES

We had over 500 attendees this year from 26 states, 60% attended for the first time. Our closest attendees came from Chicago and our furthest travelers came from the Netherlands.

 

2. LETTING LOOSE DURING THE IMPROV WORKSHOP

Over 40 attendees joined the engaging and hilarious improv workshops to warm up their communication skills. It was our first year offering this “add on” and the turnout was better than we could’ve hoped. When asked why they were attending, participants said “confidence, networking skills, fun, learning” and a whole lot more. The workshop was intended to provide networking tips through improv, and we thought it did just that.

 

3. HONORING OUR SUPER ALUMNAE

We ran some numbers this year and realized that there were four women who have been to our summits for six years in a row, since inception. They are now known as our “Super Alumnae”.   We are completely blown away and honored that they would choose to spend two days of every year, for the past six years, with Kayo. We are grateful for their friendship and inspiration and to watch them push themselves, win their battles and then pull other women along is what motivates our team every day.

4. SALLY POFCHER AND HOW TO “PLAY TO YOUR STRENGTHS”

L. Catterton’s Sally Pofcher was one of our keynote speakers and shared her story about rising to the top including her successes and failures along the way. She continued to reinforce playing to your strengths and building a team around you that can compensate for your weaknesses.

“My ‘otherness’ was something I began to feel proud of. A quote that became important to me came from CoCo Chanel, ‘In order to be irreplaceable one must be different’ and I started to celebrate that.” – Sally Pofcher

We loved so many of her quotes:

• “That otherness that was hard at the beginning was my towering strength as a CEO.”
• “I fell in love with the P&L and the balance sheet, as the song sheet of the business.”
• “Athletes of all levels make a difference.”
• “We sit in the gray area for too long… you have to move faster.”
• “Time matters.  If you don’t set milestones, you can lose months and years in private equity.”

She told us that balance sheets should always be the go-to for business decisions, but also addressed the human side of her career. She said “One of my themes became who you choose to work with, not just the people who you hire around you, but the people you spend your time with who shape your life. Some of my most meaningful mentorship moments were not about professional things at all, but how people handled it when I had personal issues.” 

She made being a CEO and being in Private Equity seem like the most fun, creative and challenging endeavor. Sally set the tone for the summit and we continued to hear our attendees speak of her stories long after she kicked off the morning. Thank you again Sally for motivating us and inspiring us.

5. PARTICIPATING IN 2 KEYNOTES, 12 PANELS, AND 22 ROUNDTABLES

This year’s programming was carefully curated to help our attendees network, advance their career, incite deals and champion their peers. Each session brought out great questions and ignited thoughtful conversations. If you walked away with new business opportunities or new insights about your own career, we’d love to hear it. Email us.

One standout was Pat Zollar, Managing Director at NB Alternatives Advisers, speaking on the topic of “I want to start my firm in five years; what should I be doing now?”

“You better have a fire in your heart. It’s not the path of least resistance.”
– Pat Zollar on Emerging Managers

 

6. NOT ONLY SHOPPING, BUT CAT-WALKING

Our amazing retail partners included MM.LaFleur, Dana Rebecca Designs and Dagne Dover. We not only saw you shop, but many of you wore your purchases during the summit. We loved seeing the new look and supporting our retailers.

 

7. HEARING YOUR OPINIONS

We exist because you exist. We hear from many of you during the show about what you love and would love to see more of, but we would appreciate your continued feedback on everything from programming to location to speakers so that we can continue to improve. Email us with your insights and suggestions.

 

8. CAPTURING WOMEN WHO CARE ABOUT THEIR CAREER AND THEIR PEERS

We took some great photos of our attendees on stage and off stage and hope that they will be useful to you as you continue to drive your career forward. Please feel free to tag yourselves and tag us on Instagram, Facebook or LinkedIn.

 

VIEW THE ALBUM