P U B L I C A F FA I R S
MEDIA KIT 2016
P R I V A T E C A P I T A L , P U B L I C G O O D .®
The National Center for the Middle Market at The Ohio State University defines the middle market
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TABLE O F C O NTE NTS
ABOUT ACG AND THE MIDDLE MARKET
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ACG GLOBAL EXECUTIVE STAFF
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ACG VOLUNTEER LEADERSHIP
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FAQS ABOUT THE MIDDLE MARKET & PRIVATE EQUITY
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ACG’S 2016 PUBLIC POLICY PRIORITIES
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ACG PRIVATE EQUITY REGULATORY TASK FORCE
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CONTACT INFORMATION
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ABOUT ACG AND THE MIDDLE MARKET
A B OU T T H E A SSOCIATION FOR COR P ORATE G ROW TH
Founded in 1954, the Association for Corporate Growth has 59 chapters and 14,500 members around the world. ACG serves 90,000
investors, owners, executives, lenders and advisers to growing middle-market companies. ACG’s mission is to drive middle-market growth.
ACG is an established global business network that includes the entire “M&A deal ecosystem”:
• Private Equity Groups
• Information Services
• Intermediaries and Investment Banks • Legal Services
• C-Suite Executives
•A
ccounting and Auditing Services
• Lenders
• Real Estate Services
• Business Valuation and
• Insurance Providers
Due Diligence Services
• Wealth Services
• Software Solutions
• Executive Recruitment
• Virtual Data Rooms
•L
imited Partnerships and Family Offices
A C G –T H E H O ME OF MID D LE-MARKE T
PR I VAT E EQUITY
ACG members account for:
• 1,100 deals closed in 2014
• 60% of U.S. private equity deal flow
• $158 billion of total capital invested
• 44% of total capital invested in the middle market
• 382 exits in 2014
A B OU T T H E M ID D LE MARKET
The middle market is the principal engine of the U.S. economy. According to the National Center for the Middle Market at the Fisher College
of Business at The Ohio State University, this segment accounts for one-third of private sector GDP and produces more new jobs than large
or small businesses. With 47.9 million employees, the vitality of the middle market is critical to the health of American families, communities
and the overall economy.
Impressively, middle-market firms added twice as many jobs in 2014 as in 2013. To continue driving growth, midsize companies need
access to both financial and knowledge capital to successfully reach new markets, expand capacity and better serve their customers.
Middle-market firms also need federal policies that reward prudent risk-taking, support and encourage capital formation, enhance access to
capital and expand access to the global marketplace.
ACG’s Public Policy Agenda for the 114th Congress helps fulfill the organization’s mandate to support policymakers in crafting legislation
and regulatory policies that positively impact the middle market and ACG members. Structured into three broad categories, this agenda
promotes public policies that foster and incentivize private capital formation and investment in middle-market companies.
The National Center for the Middle Market’s definition of the middle market includes companies with $10 million to $1 billion in
annual revenue.
For additional information or to schedule an interview, please contact:
Amber Landis, vice president of public policy at [email protected] or 312-957-4272.
Kristin Gomez, vice president of communications and marketing at [email protected] or 312-957-4268.
The National Center for the Middle Market at The Ohio State University defines the middle market as including companies that have $25 million to $1 billion in revenue.
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ACG GLOBAL EXECUTIVE STAFF
GARY A. LABRANCHE, FASAE , CAE
President & CEO, ACG Global
Gary LaBranche, FASAE, CAE, is president and CEO of ACG Global. Since LaBranche became CEO in 2008, ACG
has added chapters and grown membership around the world, created the award-winning digital magazine Middle
Market Growth, launched a European conference and established new ways to educate policymakers on private
capital investment in the middle market, including creating the Congressional Caucus for Middle Market Growth and
GrowthEconomy.org.
An association professional for more than 32 years, LaBranche was named a fellow of the American Society of
Association Executives in 1995. He was the ASAE Key Award winner for 2007, the highest award in the profession.
ASSOCIATION TRENDS named him the 2012 Association Executive of the Year. He is also a member of the U.S.
Chamber of Commerce’s Association Committee of 100.
A MBER LAND IS
Vice President, Public Policy, ACG Global
Landis joined ACG in March 2013 and serves as vice president of public policy. Landis oversees ACG’s day-to-day
public policy program, advocating before Congress and the U.S. Securities & Exchange Commission. She also
manages ACG’s Private Equity Regulatory Task Force, a group of middle-market private equity chief compliance
and financial officers who come together to address concerns about regulatory and compliance issues. Landis also
coordinates ACG’s advocacy and lobbying activities.
Previously, Landis worked in the Washington, D.C., office of Fortune 200 manufacturer Whirlpool Corp., advocating
before Congress on issues such as tax and international trade. She managed the company’s political action committee
and grassroots efforts.
Landis has also served as manager of public affairs for TenCate USA, a multinational defense and textiles technology
group based in the Netherlands. She opened the company’s first government relations office in Washington, D.C.,
overseeing all public affairs activities, including lobbying, public relations and the establishment of a political action
committee. Landis also previously worked at a retail trade association where she represented some of the largest
retailers in the world, including Wal-Mart Stores Inc. and Home Depot Inc., on international trade and labor-related
issues. Landis holds a bachelor’s in business management from Grand Valley State University.
K RISTIN GOMEZ
Vice President, Communications and Marketing, ACG Global
Kristin Gomez joined the ACG staff in October 2012 as editor in chief. She led the successful launch of the Middle
Market Growth suite of publications and helped to craft ACG’s strategy to build readership and provide a platform to
generate revenue through advertising and thought leadership opportunities. The magazine recently won a 2015 Folio
award for design and a 2014 award for best editorial in a standalone digital magazine. In her role as vice president of
communications and marketing, she is responsible for overseeing the MMG suite of publications, strategic internal
and external communications in addition to providing support to the public policy efforts. She also leads the marketing
initiatives for ACG programs, events, products and services.
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ACG VOLUNTEER LEADERSHIP
R ICHARD P. JAFFE
Chairman of the Board, Partner, Duane Morris LLP
Richard P. Jaffe is co-head of Duane Morris’ Private Equity Practice Group and focuses on control and non-control
investments, fund formation and operation, divestitures, corporate finance and venture capital financing, particularly in the
alternative energy, technology and manufacturing industries. He represents private equity funds and other investors and
strategics in corporate transactions and advises business owners on raising capital to grow and exit their companies, as
well as structuring public and private securities offerings, mergers, acquisitions and sales. In addition, Jaffe also counsels
boards and committees of boards on corporate governance issues; he is a frequent lecturer on these issues.
JASON BROWN
Vice Chairman of the Board, Partner, Victory Park Capital
Jason Brown joined Victory Park Capital in 2014 as partner and manages the firm’s Los Angeles office. He is primarily
responsible for sourcing, analyzing, executing and managing private debt and equity investments in lower middle-market
companies. Brown also actively works on value creation initiatives and strategic alternatives for VPC’s investments. Brown
is a member of the firm’s Management and Investment Committees.
Brown has more than 18 years of experience in financial services. Most recently, he was managing director for GE Capital,
Corporate Restructuring Finance for more than 10 years, during which he and his team provided growth, working capital
and turnaround finance to midsize and large companies. His team also specialized in senior secured loans to distressed
companies supporting Chapter 11 filings, plan-of-reorganizations and out-of-court restructurings. He has served as
president of the Los Angeles chapter of ACG, where he is a current chapter and global board member. Brown received a
bachelor’s in business administration from the University of Southern California.
GRETCHEN B . PERKINS
Co-Chair, Public Policy, Partner, Huron Capital Partners
Gretchen Perkins is responsible for managing Huron’s business development and investment sourcing activities, including
outreach to deal professionals such as business brokers, investment banks, attorneys, accountants and consultants.
Perkins has over 25 years of experience in the finance and business development sectors serving a variety of capital
market participants. Prior to joining Huron, Perkins led the acquisition sourcing efforts at Long Point Capital, a middlemarket private equity fund. She previously served as vice president of business development for IRN Inc., a market
research firm, and has held senior business development positions at Fleet Capital Corporation and GE Capital
Corporation, where she originated and structured senior debt packages for buyouts of middle-market companies.
Board Affiliations: Perkins is a director at large for ACG’s global board of directors, a director for ACG’s Detroit chapter,
co-chair of ACG’s Public Policy Committee, a board member for the Michigan chapter of the International Women’s
Insolvency & Restructuring Confederation and a mentor for the Women of Tomorrow organization, which mentors atrisk high school girls.
JOHN B. DOLLISON
Co-Chair, Public Policy, Managing Director, Crutchfield Capital Corporation
As a founding principal of Crutchfield Capital Corporation, Dollison has more than 16 years of investment banking
and corporate finance experience. He has successfully managed numerous merger and acquisition assignments,
debt and equity private placements, troubled company restructurings and complex business valuations. Previously,
Dollison enjoyed an extended career with Exxon, where he held a variety of management positions in finance,
marketing and operations.
Dollison is a graduate of the United States Military Academy and received an MBA from Marymount University. He is
a past president and board member of the Houston chapter of ACG and has served as chairman of the Texas ACG
Capital Connection, one of the largest private equity conferences in the United States. In addition, he is licensed with
the Financial Industry Regulatory Authority as a general securities representative and general securities principal.
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FAQS ABOUT THE MIDDLE MARKET & PRIVATE EQUITY
The ACG public affairs media kit was created to engage senior leaders, middle-market firms, media, the general public and policymakers
who care about the future of private capital investment in the middle market.
The goal is to support the efforts to educate policymakers and -shapers about the role that private capital investment plays in the overall
health of the U.S. economy by supporting the middle market.
ACG encourages the growth and development of middle-market companies by supporting policies that foster and incentivize private
capital investment.
W HY T H E M IDDLE MARKET MATTER S
Midsize businesses are a key driving force behind the U.S. economy, making critical national, state and local economic contributions.
According to the National Center for the Middle Market:
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The middle market includes companies with $10 million to $1 billion in annual revenue.
The middle market accounts for one-third of private sector GDP—if this segment were a country, its GDP would rank it as the fifthlargest economy in the world.
There are nearly 200,000 mid-market companies in the United States, and they employ an estimated 47.9 million workers.
Middle-market businesses outperformed during the financial crisis (2007-2010) by adding 2.2 million jobs in major industry sectors
and congressional districts across the country.
Middle-market firms added twice as many jobs in 2014 as in 2013.
Reps. Steve Stivers, R-Ohio, Jared Polis, D-Colo., Tom Rice, R-SC, and Kyrsten Sinema, D-Ariz., currently chair the Congressional
Caucus for Middle Market Growth in the U.S. House of Representatives.
For more information on the caucus members and activities, please contact Amber Landis, vice president of public policy, at [email protected].
GRO W THE CON OM Y. ORG
ACG released groundbreaking research in 2013, which can be found at
www.GrowthEconomy.org. Using multiple independent databases, GrowthEconomy.org
shows the positive impact that private capital investment has on corporate growth and
job creation in the United States. The research found that between 1995 and 2013:
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rivate equity-backed companies grew jobs by 83.7%, while all other companies
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in the U.S. economy grew jobs by 26.5%;
Private equity-backed companies grew sales by 134%, while all other companies
in the U.S. economy grew sales by 31%; and
Middle-market private equity-backed companies created more than three times
the amount of new jobs (970,869) than any other employment stage.
M I DDLE-M A R K ET PRIVATE EQ UITY S TATI STI CS
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ACG’s membership includes more than 1,200 U.S.-based private equity firms;
According to PitchBook data, private equal deals under $500 million account for 85.1 percent of all deals in 2015; and
According to Preqin’s 2015 Global Private Equity report, almost half of all private equity investment comes from pension
funds, foundations and university endowments. These investors have realized a 10-year annualized return in excess of 10 percent
and superior to all other asset classes.
W HO BENEFITS FROM PRIVATE CAP I TAL I N V E STM E NTS?
Private capital is raised and deployed from a number of sources. Two-thirds of private equity funds come from pension funds, endowments,
etc. These funds support the retirement plans for teachers, firemen, police and other public employees. The goal of all private capital
investment is to invest in strong companies and make them stronger. When the term of investment is complete, usually five to seven years
after the initial investment, the financial proceeds in excess of what is deployed is returned to the pension, endowment, etc.
*Sources: National Center for the Middle Market (Compustat, Dun & Bradstreet, U.S. Census Data)
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ACG’S 2016 PU BL I C P O L ICY P R IO R IT IE S
The ACG priority legislative agenda for the 114th Congress is as follows:
1. P
R ESERVE INTEREST D ED UCTIBIL I TY ON CORP ORATE D E B T
ACG believes debt financing is critical to support business expansion and investment, in addition to providing an important source of
funding to middle-market companies. ACG opposes efforts to eliminate the long-standing deductibility of interest as an “ordinary and
necessary” cost of doing business.
2. R
EDUC E O NE ROUS COMPLIANCE & RE G UL ATORY
B UR DENS FOR MID D LE-MARKET P RI VATE E QUI TY
An area of concern for many ACG members is the requirement that private equity fund advisers register as investment advisers with the
SEC under the Investment Advisers Act of 1940 (IAA). Registration to comply with the Act has been challenging, confusing and costly
for midsize private equity firms without conferring any corresponding public benefit. ACG would welcome and support legislation that
would allow private equity fund resources to be directed back to middle-market companies and let private equity funds to devote their
resources to support and foster the growth of their portfolio companies. In the 114th Congress, ACG will actively support legislation
that seeks to remove burdensome compliance requirements for middle-market private equity funds.
3. P
R ESERVE THE CURRENT ‘JOINT E M P L OYE R’ L E G AL
S TANDA R D FOR MID D LE-MARKET B USI N E SSE S
Recent action by the National Labor Relations Board could put contractual business relationships at risk by shifting liability over
employment disputes to more companies. Upending the current, well established, joint employer standard—which limits the definition
of a joint employer to those companies exercising direct operational control over their workers—would cause uncertainty and disruption
for many small and midsize business owners, force some small businesses to close and deter aspiring entrepreneurs from opening
businesses and creating new jobs. Identical bills have been introduced in the House of Representative and Senate, the “Protecting
Local Business Opportunity Act,” which restore a simple definition of “joint employer” under the National Labor Relations Act.
4. M
A INTA IN CAPITAL GAINS TREATM E NT FOR CARRI E D I N TE RE ST
ACG’s membership includes more than 1,000 middle-market private equity firms. Ninety percent of all private equity transactions in
2014 involved companies with less than $400 million in revenue; this suggests that ACG members provide integral growth capital for
the middle market. Fundamentally, private equity investments are long-term in nature, maturing after several years. Middle-market
private equity funds are commonly structured as partnerships in which fund managers commit entrepreneurial capital and assume
investment risk alongside their investors. Thus, the returns to the fund managers are taxed as capital gains. A modification to this
100-year-old tax treatment would jeopardize this long-standing partnership model. ACG will work with Congress to ensure middlemarket private equity investing is not disproportionately impacted in tax reform discussions.
In addition, ACG will monitor other public policy agenda items outlined in the 2015/2016 Middle-Market Public Policy Agenda and
will utilize resources to support:
5. L
O W ERING THE CORPORATE TAX RATE ( TO 2 5 % )
The statutory corporate tax rate in the United States is 35 percent, with an average combined (federal and state) rate of 39.1
percent. Meanwhile, global competitors have a combined average rate of 25 percent, making America’s current corporate rate the
second highest in the world—a competitive disadvantage. A 25 percent corporate tax rate for middle-market businesses would make
the United States a more attractive investment environment for American and foreign companies, helping to create jobs and drive
economic growth.
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ACG PR I VAT E E Q U IT Y R E GUL AT O RY TAS K F ORCE
In 2014, ACG formed its Private Equity Regulatory Task Force (PERT), which gathers together CFOs, CCOs and in-house legal counsel of
middle-market private equity firms nationwide. Together, they interpret and navigate the often complex compliance and regulatory issues
affecting the industry. With the help of the ACG PERT Steering Committee, six key compliance and regulatory issues areas have been identified
as the most pressing issues for middle-market private equity firms:
1. Disclosure of fees and expenses
2. Co-investment
3. Broker dealer registration
4. Valuations
5. Marketing and advertisements
6. Cybersecurity
Members of ACG PERT have broken these areas into subgroups and are currently working on drafts of best practices called “PERT Principles.”
ACG expects principles to be provided for middle-market private equity firms in Q4 of 2016.
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For more information, please visit www.ACG.org
or contact Amber Landis, vice president of public
policy, at [email protected] or 312-957-4272, or
Kristin Gomez, vice president of communications
and marketing at [email protected] or 312-957-4268.
For in-district congressional data, please visit
www.growtheconomy.org.
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