2018

Stories related to "Finance".

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The Survivor

José Antonio Álvarez, ’96 (EXP-1), has seen some of banking’s darkest hours. He was elevated to CEO of Madrid-based Banco Santander a year ago—with Europe still struggling to climb out of an economic malaise and the Greek debt crisis threatening to destabilize the fragile eurozone. Álvarez had been through worse. He was named CFO of the bank 10 years earlier, as the housing bubble was about to peak, then burst, hobbling highly leveraged US and European banks. Yet Santander emerged as Europe’s seventh largest bank, with assets of more than $1.5 trillion. Of course Santander was by no means immune to the crisis that engulfed Europe and its banks, with Spain’s overleveraged construction industry contributing to the frenzy. “The worst was summer 2012,” Álvarez said. It’s when Spain was downgraded by the three major ratings agencies, “a few notches in one shot” from Fitch, Moody’s, and Standard and Poor’s. However, through it all, Santander never posted a quarterly loss, unlike many of its European peers, including BNP Paribas, Crédit Agricole Group, and Deutsche Bank. Royal Bank of Scotland suffered such steep

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Of Like Minds in the C-Suite

When an organization’s CEO and CFO both hail from Booth, there’s a common methodology to problem solving that cuts to the chase. In a fast-moving environment, according to Byron David Trott, AB ’81, MBA,’82, founder, chairman, and CEO of BDT & Company, applying “the same disciplined approach” as his Booth-trained CFO Mike Burns, ’03, speeds decision making and removes unnecessary drama from the equation. This doesn’t mean that they always agree—far from it. Maria Kim, ’12 (XP-81), CEO of Chicago-based the Cara Program, describes her CFO Carla Denison-Bickett, ’04, as “a healthy agitator.” But in many ways, the open debate leads to increased dynamism that infects the entire leadership team. At BDT & Company in Chicago and Oaktree Capital Management in Los Angeles, the CFOs were the first and most significant external hires by the founding CEOs—and the pairs are still together. At Oaktree, it’s been 20 years as a team for CEO Howard Marks, ’69, and David Kirchheimer, ’78. Kim and Denison-Bickett have led nonprofit the Cara Program for the past year, but previously worked at the organization

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Stepping Back In

It was time for Susan Hopkinson, ’97, to stop apologizing for taking a break from her career. After graduating from Chicago Booth, she excelled professionally with the internet boom of the late 1990s. Hopkinson joined J. P. Morgan’s investment-banking program as an associate. Then, she joined the Japanese investment bank Nomura International as a principal late-stage technology investor. When her fiancé was transferred to San Francisco, where her employer had plans to open an office, the couple moved to the Bay Area. Then came 9/11. At the time, Nomura had its New York office in the World Financial Center, and it decided to consolidate its employees in London. Hopkinson didn’t want to uproot her new life on the West Coast, so that left her amid a lot of out-of-work MBAs, stranded in a city where she had few professional connections. After a short stint consulting with a small secondary fund, in 2002, she earned a position as a fund-of-funds investment manager at Paul Capital Partners, known for its pioneering of the secondary market. A self-proclaimed finance geek, Hopkinson loved the work. “It was very technical but also focused on relationship building with venture-capital firms, so I was really qualified, and I felt very lucky,” she said.

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On Exhibit

Besides being three of Chicago’s most iconic museums, the Shedd Aquarium, the Adler Planetarium, and the Museum of Science and Industry have something else in common: their CFOs are Chicago Booth alumnae. Joyce Simon, ’75; Marcia Heuser, ’87; and Rose Fealy, ’89, each spent at least part of their careers working at for-profit corporations before assuming their respective roles at the Shedd, the Adler, and the MSI. Chicago Booth Magazine brought the three women together to talk about the complexities of balancing the books at a world-class museum, the rewards of contributing to the mission of each organization, and how more women can join them in the C-suite.

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On the Ball

David Han, ’02, CEO and cofounder of Yao Capital, long dreamed of starting his own private equity shop. It’s unlikely, however, that he initially envisioned that that venture would pair him with NBA Hall of Fame basketball player Yao Ming, one of the tallest men ever to play in the National Basketball Association. Yet in January 2016—along with close Booth friend and Yao Ming’s longtime business partner, Erik Zhang—Han cofounded Yao Capital with the renowned Chinese sports icon. Their firm focuses on investments in the sports industry in China and around the globe. Considering that Yao is seven feet six and Han more the height of a point guard, the two men would be quite a mismatch in a game of one-on-one hoops. When it comes to investing, they just might be the ideal teammates.<br/><br/>Promising early Yao Capital deals involving the world’s leading kickboxing league, a booming North American sports nutrition company, and a fast-growing auto-racing championship featuring 140-miles-per-hour electric cars have put a smile on Han’s face. “We’ve made very good investments in the early stages, in and out of China,” he said, sitting in a sunny conference room of Yao Capital’s 10th-floor offices in central Shanghai. “We’re in the right time and the right place. And so far, it’s on the right track.

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CAN Do Attitude

Let’s say that you are a smart, driven entrepreneur with a groundbreaking idea to revolutionize food packaging and eliminate all those Styrofoam containers littering the landfill. You’ve got a patent. You’ve got passion. What you don’t have is money. Plus you are in Europe, where early-stage investing tends toward the risk averse. What to do? If you are startup ValueForm and your CFO is Mandar Kulkarni, ’10 (EXP-15), you put your pitch together and take it to CAN, the Chicago Angels Network in London. Founded in 2012 by Shehreyar Hameed, ’05; Jonathan Weiss, ’00, MD ’01; and Rama Veeraragoo, ’12 (EXP-17), the global network of domain experts, mentors, and angel investors gives Booth graduates a chance at early-stage investment opportunities with entrepreneurial startups and extends the school’s commitment to innovation. In early 2012, Hameed had started investing in startups, and developed the idea of CAN to provide access to compelling investment opportunities to the Booth alumni network in London, elsewhere in Europe, and globally. “I wanted to invest and help entrepreneurs harness our strong, global, and diverse network of deep domain expertise to build successful businesses,” said Hameed, a senior financial professional based in London. “Hence the motto, ‘Engage! Mentor! Invest!’ It’s about setting young companies on the right path and opening doors for them. That’s where the real value comes from.”<br/>