Polsky Center and Chicago Booth Private Equity Group Host 24th Annual PE Conference
The conference brings together investors, students, and entrepreneurs to network and share insights into the dynamics of investing in a constantly changing economy.
The conference began with opening remarks from Pietro Veronesi, deputy dean for faculty and the Sherman and Vivian Chao Distinguished Service Professor of Finance at Chicago Booth.
Pietro Veronesi
Veronesi highlighted the remarkable growth of Booth’s private equity offerings in recent years, emphasizing the school’s commitment to expanding its presence in the PE space. He called out several Booth programs that provide students with hands-on learning experiences in private equity and venture capital.
“Our Private Equity and Venture Capital Lab, the Sterling Partners Investment Thesis Challenge, and the Private Markets Program are just a few of the initiatives that have significantly expanded opportunities for students to engage with private equity,” he said. “These programs are designed to provide future leaders with the tools and insights necessary to excel in this industry.”
Veronesi also reflected on Booth’s long-standing mission, and the impact it has on future leaders.
“For over 125 years, Booth has stayed true to its core mission: to create pathbreaking research and to educate future leaders,” he said. “In today’s rapidly changing economy, it is more important than ever to explore fresh ideas, challenge conventional thinking, and bring critical analysis to business in innovative ways. We hope today’s discussions will inspire the next generation of leaders in private equity.”
Opening Keynote: Insights from Adarsh Sarma
The conference’s opening keynote featured Adarsh Sarma, MBA ’01, partner and founder of A3/C Partners, who shared his career journey, key lessons in private equity, and perspectives on the evolving industry landscape.
Adarsh Sarma
Sarma began by reflecting on his early career experience, starting at Merrill Lynch at just 21 years old.
“I had the opportunity to learn directly from a managing director, and that experience stayed with me,” he said. “I learned three key lessons: there is no shortcut for hard work and grit, setting long-term goals early can make a big difference, and relationships are critical. I made connections back then that I still maintain today.”
When asked about the next wave in private equity, Sarma pointed to specialization as the defining trend.
“The next wave has already started. You can’t be good at everything, you need to decide what you are phenomenal at,” he said. “With high interest rates and increasing competition, the industry must figure out new ways to create value. Specialization and working closely with operators will continue to shape the future of private equity.”
At the end of his remarks, he provided advice for students in the room.
“You need to be excited about what you are doing and have determination to get where you want to be,” Sarma continued.
Evaluating Opportunities & Executing Investments
The Evaluating Opportunities and Executing Investments panel featured industry leaders sharing insights into sourcing strategies, deal structures, and risk assessment. The panel was moderated by Janet Soave Coscino, partner at Ropes & Gray, and included Michael Ember, MBA ’22, principal at McNally Capital; Stephen Master, MBA ’12, managing director at GTCR; Matthew Schulz, partner in healthcare at The Vistria Group; and J.C. Wetzel, MBA ’17, managing director at Thompson Street Capital Partners.
The group kicked off the discussion by addressing sourcing, a critical part of the PE process, agreeing that while there are core fundamentals in sourcing, every deal is different.
Master emphasized the importance that relationships play in sourcing investments.
“Half of our investments already have a new CEO identified before we close the deal,” he explained. “We build strong relationships with recruiters, industry leaders, and executives to ensure we always have a pipeline of talented individuals eager to partner with us on new investment opportunities.”
With the increasing competition in private equity, firms must differentiate themselves to attract promising investment opportunities.
“It starts with founder relationships. We differentiate by leveraging our experience and resources to address needs,” said Wetzel. “Pattern recognition and structured support allow us to provide unique value.”
Wetzel also noted that seller expectations have evolved over the last decade as the market has become more efficient.
“Generally, founders and families are more informed about the value of their businesses than before. When we see a difference in valuation expectations, for us it’s typically about education and patience,” he said. “We can spend significant time educating founders about private equity, how deals work and are structured, and what the market dictates.”
“We often spend months, even years, developing relationships before we become partners,” he continued. “If there is a valuation gap, we wait and allow the business to grow into those expectations.”
Book Talk Keynote: Private Capital with Stefan Hepp
The conference also featured a Book Talk Keynote with Stefan Hepp, MBA ’90, adjunct assistant professor of entrepreneurship, discussing his book, Private Capital: The Complete Guide to Private Markets Investing.
Hepp started by giving an overview of what his book tries to do.
“The book takes a historical perspective on how we fund entrepreneurship infrastructure and other private market areas,” Hepp explained. “Good data in private markets hasn’t been around for that long, and understanding performance factors and drivers is critical for making sound investment decisions.”
Stefan Hepp
“Not everything in private markets works, and not every claim is justified,” Hepp continued. “If you want to make money, you need to invest in the facts and face the problems head-on.”
Speaking to the students in the audience, Hepp dismissed concerns about the VC space being overcrowded, instead calling it an enduring feature of the industry.
“I’ve been hearing that private equity is overcrowded for the past 30 years,” he said. “In today’s VC landscape, many established firms are raising larger funds, leading to bigger deals. But that doesn’t mean smaller deals vanish—there are still plenty of opportunities for niche players in the early-stage space.”
For those looking to enter private markets, Hepp emphasized understanding the full ecosystem beyond general partners, as the industry offers many career paths.
“Yes, competition for roles at large, well-known firms is intense, and the career path at these firms has lengthened. However, there are also many smaller and mid-sized firms offering strong advancement opportunities. Look beyond firms hiring 50 MBAs at once, or take an alternative path. If you’re passionate about healthcare, for example, gain industry experience as a CFO or CEO and transition into private equity later.”
Private Equity Operations & Asset Ownership
The PE Operations and Asset Ownership panel explored operational levers that investors can pull to create value in their investment companies.
The panel was moderated by Gregory Metz, partner and co-head of private equity at McDermott Will & Emery, and featured Rory Kenny, MBA ’18, partner at Shore Capital Partners; Stephen Nied, MBA ’94, managing operating partner at Francisco Partners; Konrad Salaber, MBA ’10, managing director at Wind Point Partners; and Sean Turner, MBA ’03, managing director of portfolio operations at GI Partners.
The group began by discussing the ideal background for an operating partner in private equity. Nied emphasized the importance of hands-on operational experience.
“Actual experience as an operator is the biggest asset someone on the operating team can bring,” he said. “Most of the people we hire are mid-career professionals with deep expertise in an industry sector or function. We need to deliver value, so experience in that functional space or industry as an operator is critical.”
They then went on to discuss the different ways their firms provide value to their portfolio. Kenny outlined a structured approach to creating value, particularly when working with founder- or family-owned businesses.
“A lot of what we do is dictated by where we play in the market,” he explained. “We partner with founders who may not have the time or bandwidth to put KPIs, budgets, or financial structures in place. The first 100 days are crucial—we focus on laying that foundation for future growth.”
The group went on to point to the macroeconomic trends that have pushed private equity towards operational efficiency, specifically how high costs lead to a necessity for value creation through operational improvements.
Kenny echoed this sentiment, adding that increased access to data has led to higher valuations and increased competition, making operational expertise a differentiator. “Ten years ago, operational teams were rare in PE firms,” he noted. “Now, almost every firm has them, because it’s where returns are generated.”
Current Topics in Private Equity
The Current Topics in Private Equity panel explored significant shifts in the industry, the role of AI, and other big trends in the space. Moderated by Tim Kelly, MBA ’00, investor-in-residence at the Polsky Center, the discussion featured John Gilligan, partner & cofounder of Riverspan Partners; Ravi Shah, partner at McNally Capital; Chad Strader, MBA ’15, cofounder and managing partner at Red Arts Capital; and Suzanne Yoon, founder and managing partner at Kinzie Capital Partners.
The group kicked off the discussion by calling out changes they’ve seen in the field over the last few decades. Gilligan highlighted the shift in how returns are generated.
“When I started in 2001 and 2002, we spent time much more time negotiating terms and conditions – you could generate some value in credit agreements, purchase contracts,” said Gilligan. “Now, that’s more of a commodity. Transactions move faster than ever, and you have to focus on creating value in the portfolio.”
Yoon emphasized the increasing focus on people and development in private equity.
“In the late 90s, everything was transactional. You bought companies, but there wasn’t a focus on the human element,” she said. “Today, if you’re not thinking about people, leadership, and development, I don’t know how you can be successful.”
Highlighting a recurrent theme of the day, Shah also pointed to increased specialization. “It used to be common to see generalist firms, but today, the need to drive value has led to specialization in specific industries,” he said. “We’re also seeing thematic investing—even within industries, firms are narrowing their focus. Specialization is only growing.”
Artificial intelligence remains a hot topic in private equity, with panelists debating its impact on deal flow, decision-making, and operational efficiencies.
Strader was optimistic about new investment opportunities driven by AI. “Everyone is talking about AI, and we’re bullish on its potential,” he said. “It will enhance how private equity firms evaluate investments and create value.”
Yoon provided a more measured perspective, highlighting the challenge of data quality in AI applications. “We’re still in the early stages of generative AI…. Many times, the data quality isn’t there yet in lower middle market companies, and there are still a lot of missing pieces in the businesses we invest in,” she explained. “The real question is: when do we reach the point where AI goes from generative and learning to making decisions for us? It’s coming, and if you’re not thinking about AI, you’re going to get left behind.”
Panelists also shared insights for students seeking careers in private equity.
Shah advised students to seek out firms that invest in their development. “Find an organization that’s willing to develop your skills and invest in your career, and stick with them,” he said.
Gilligan emphasized persistence. “It’s a tight market, so you have to get creative and be persistent,” he said. “Find a young, growing firm and develop with them—the learning opportunities can be tremendous.”
Closing Keynote: Tony Davis on Private Equity Leadership and Strategy
The conference concluded with a keynote address from Tony Davis, MBA ’98, cofounder & president of Linden Capital Partners. Davis shared insights into his journey in private equity, lessons learned from evaluating deals and management teams, and advice for those just starting out in the industry.
Davis began by reflecting on his decision to launch Linden Capital Partners in 2004.
“I was told that I was pursuing a suicide strategy by launching a fund with three other people,” he recalled. “But I believed in our team and our strategy, even when others doubted us. We were specialized in healthcare, which was very rare for the time. We ignored the skeptics and moved forward.”
Since its founding, the company has seen tremendous success. According to Davis, one of the key reasons is its commitment to adding value to portfolio companies, which remains a cornerstone of the firm’s strategy.
“One of the best ways to create value is upgrading the management team,” Davis said. “Beyond that, we focus on driving growth, organically and through M&A. We also work hard to improve internal aspects of a business, such as implementing ERP systems, sales systems, and marketing improvements—if a business scales without augmenting internal processes, it often struggles.”
Davis also addressed what he looks for in new hires, emphasizing cultural fit over technical skills.
“You need to be detail-oriented and action-driven in this industry,” he advised. “We don’t require healthcare expertise, but we prioritize cultural alignment. Some banks focus only on analytical interviews, but we believe behavioral assessments matter more.”
Davis concluded with a reflection on his success and key career advice.
“One of the most important lessons I’ve learned is about taking calculated risks,” he said. “People underestimate the return on risk—it’s much higher than they think. Analyze the risks, but then take them. Have a bias for action. No matter what it is, make something happen.”
He also shared the best career advice he ever received, which came from a retired two-star admiral: “Observe the people just above you. Write down what they do well and what they don’t. When you reach that level, you’ll have a cheat sheet for success.”