Kim Vender Moffat

5 Predictions for Chicago Tech in 2026 This year, the Chicago tech industry is poised for significant acceleration, moving beyond a period of quiet consolidation. IPO Floodgates Open; Chicago Capitalizes The public markets' IPO backlog will break in 2026, resulting in at least three major public offerings from Chicago-based tech companies. This will inject fresh capital into the early-stage ecosystem and renew national interest. (Side note: Expect numerous acquisitions exceeding $500M.) Quantum's Success Spurs a New Strategic Bet While Illinois' commitment to Quantum is strong and justified by its unique advantages, 2026 will see the state coalesce around a new, historically aligned technology sector, establishing a second major frontier for collective action and investment. Data Center Growth Collides with the Energy Crisis Chicagoland will maintain its status as a premier data center hub, fueled by the demands of AI and Quantum. Nationally, however, a critical energy generation shortage will force difficult infrastructure choices, a challenge Chicago must actively address. The Digital Future Dominates the Mayor's Race Given low incumbent approval, the upcoming mayoral contest will become a high-stakes debate. With technology leaders entering the political arena, the future of Chicago as a thriving technology and startup hub will become the central, unavoidable economic issue. Academic Research Powers a Startup Boom Propelled by federal funding levels akin to the 1990s, Illinois universities will deepen collaborative partnerships to commercialize research. This unprecedented activity will seed a new generation of high-potential startups emerging directly from hallowed academic halls. So, what do you think is going to happen?

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At Venture Investors Health Fund we have experienced the impact that funds of funds (FoF) can have on capital availability. Our first experience was with the Venture Michigan Funds, two state sponsored funds of $95M and $120M. That’s big enough to make a large enough commitment to justify opening an office in the state (at least $15M). The idea was to attract experienced firms from out of state and their syndication networks. The commitment couldn’t be more than 25% of a fund and the funds had to invest at least that amount in Michigan. It worked. They stopped collecting data in 2018, but by that time, the funds had invested $264M in 56 Michigan companies. Through syndication, total invested was $1.71B (6.45x). VMF 1 returned 1x by 2018, and VMF 2 was 3x. Annual economic impact had grown to $303M. That data was before HistoSonics, Inc. got FDA approval triggering its meteoric rise. The company may have never gotten off the ground without VMF. Series A had 5 funds, 4 from Michigan, 3 of which opened a MI office because of VMF. Badger Fund is also State funded, but the first fund was only $25M, so they pursued a different strategy of helping launch first time funds, resulting in new funds across the state. We need that too, and it has impacted the number of funds and companies able to get VC backing. NVNG Investment Advisors, LLC is a private effort targeting corporate investors. We need more participants in the asset class, but small institutions and companies can’t always make the scale of investment to get diversification or hire the in house expertise for fund selection. A FoF like NVNG provides that. All different, all playing important roles. To be an Exempt Reporting Advisor, 80% of investments need to be directly into companies, precluding FoFs. The DEAL Act would lower the threshold to 50%, so a FoF that did 50% direct co-invest could qualify, lowering the barrier to formation. Ask Congress to make that happen.

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I spoke with Christien Louviere of BDE Capital about his journey from a $330mm exit to becoming an independent sponsor. Christien shared excellent insights for folks looking to partner with business owners, rather than buy sellers out completely. Below are a few of the topics we covered: - Why he moved from “zero-to-one” startups to a buy-then-build strategy - How Christien's background shaped a focus on growth vs. cost-cutting - Why 20–40% rolled equity is central to his deal structures—and how it builds trust with sellers - Using scenario analysis with AI tools to evaluate management teams and uncover hidden key-person risks - How to identify when a $3–5M EBITDA company truly has a middle management layer—or is still founder-reliant For anyone investing in or buying small businesses, Christien’s approach provides a fresh lens on growth, alignment, and deal structuring. 🎥 Watch the full interview here → https://lnkd.in/ekfkaiej 🎧 Listen on Spotify: https://lnkd.in/e86Agx6V

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The founder of a Midwest-based PE sponsor who often guest lectured at one of my PE courses would note that when their funds acquired a portfolio company, the incumbent management team typically stayed in place, but the CFO was often the first seat that needed to be changed. The reason was that too many portco CFOs were excellent accountants but not dynamic enough to be true strategic partners in driving growth. That’s consistent with research: CFO turnover at PE-backed companies sits around 75-80%. A new survey from Accordion highlights that three-quarters of PE sponsors believe their portfolio company CFOs are underperforming, with many struggling to move beyond the basics of financial stewardship toward value creation. Sponsors cite issues like ineffective close processes, weak acquisition integration and failure to extract insights from data, while CFOs themselves acknowledge challenges with forecasting, liquidity management and connecting operations to finance. https://lnkd.in/gCAbiFfm

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What’s Investable in Healthcare Right Now Yesterday I spent the afternoon at the Nashville Health Care Council Sessions event, surrounded by healthcare investors from across the spectrum: venture capital, lower middle market private equity, sovereign wealth funds (QIA), and Wall Street, discussing what’s truly investable in healthcare right now. A few clear themes emerged: 1. Profitability and strategy matter more than ever. Investors want companies that know their lane and stick to it. That means shedding unprofitable service lines, focusing on sustainable margins, and aligning business strategy with the policy environment. (Policy and strategy are inextricably linked!) 2. The Medicare pivot is here. With the last baby boomers aging into Medicare in 2029, the focus is shifting. The growth story is no longer about MA enrollment, it’s about controlling costs throughout the Medicare lifespan. Chronic kidney disease, orthopedics, home health, and specialty pharmacy are hot spots of excess spend. 3. Technology is the bridge to sustainability. AI tools that cut administrative burden, alleviate provider burnout, and help employers manage costs are investable today. LLMs are now table stakes, and it’s nonnegotiable to adopt these technologies, while recognizing the products will look very different in 3–5 years. 4. Consolidation and restructuring will happen.  Home health is ripe for roll-ups, payors are the most likely buyers for healthcare IT, and large “pay-viders” (I hate that term) may need to divest of provider assets as Medicare Advantage economics change. Partnerships with strategics are more attractive than traditional PE playbooks. The bottom line: margins are compressing and labor will have to be cut, but technology will carry the industry across the chasm. Ultimately, investors are backing companies with the experience, network, and conviction to lead through this environment, "not just tourists who heard that healthcare was a fun place to visit” (quote of the day by Marcus Whitney).

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I'm pleased to announce Ironwood Capital’s subordinated debt and minority equity investments in Artisan Bakery, supporting HC Private Investments’ acquisitions of Specialty Bakers and Snackwerks. The combination of these two standout businesses creates a scaled platform with capabilities across in-store bakery and snack co-manufacturing, serving grocery retailers, branded food companies, and high-growth emerging brands. 🧁 Specialty Bakers (Marysville, PA) – A trusted name in desserts, producing items like Dessert Shells, French Twirls, and Ladyfingers for grocery chains nationwide. 🥨 Snackwerks (Battle Creek, MI) – A flexible and innovation-driven contract manufacturer for both established and emerging snack brands. We are excited about the Artisan Bakery platform. Snackwerks brings an innovation focused team which will enable the combined business to bring products to market leveraging Specialty Baker’s extensive grocery customer base. HCPI and its Operating Partners have extensive experience running food businesses and executing on M&A strategies, which will act as a support system for the management team during this next phase of growth. Full announcement attached. #PrivateEquity #IronwoodCapital #DealAnnouncement #GrowthCapital #FoodManufacturing #BakeryIndustry #SnackIndustry #SpecialtyBakers #Snackwerks #ArtisanBakery #PrivateCredit #MergersandAcquistions https://conta.cc/4e4WSxk

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Interesting article to come out of ACG Detroit's recent panel "The Psychology of Selling a Business" urging M&A partners to bring a new priority into focus: asking sellers how they're feeling. What does it mean to be truly prepared for an exit? It's not just financial readiness—it's emotional preparedness for the transition ahead. The human relationships — between founders, employees, and even advisors —go through an "emotional rollercoaster" that's often overlooked in our focus on deal mechanics. It's important not only to address this very real aspect of M&A but to understand that there's more going on with sellers than just numbers. #REAG #mergers #acquisitions #lowermiddlemarket https://lnkd.in/gwgDAqNM

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What does the "new era" of private equity look like? This week at PEI NEXUS, Bain & Company's Chairman of Global Private Equity Practice Hugh MacArthur recapped the firm's latest Global Private Equity Report. Hugh noted that firms will need to focus on what they do well in a “new era” for private equity. These sentiments echoed much of what Private Wealth Forum speakers, including Arax Investment Partners Founder and CEO Haig Ariyan, Laird Norton Wetherby CIO Ron Albahary, CFA, Ardian Managing Director, US Private Wealth Solutions Ava Mallin, and Citi Wealth Head of Private Equity and Real Estate Jeffrey Locke, shared on stage at PEI. This week's AGM Alts Weekly dives into what a "new era" in private equity might look like, connecting dots and data points from Bain & Company and McKinsey & Company's 2026 reports on the state of the private equity industry. Some key themes defined the takeaways from both reports: ➡️ Returns will not be a dime a dozen: Bain's punchline? "12 is the new 5." ➡️ Megadeals, big questions: 2025 witnessed an increase in global buyout deal value. However, just 13 deals of $10B or more contributed 69% of the growth in 2025, accounting for $274B of the global gain. ➡️ A K-shaped industry: Private equity appears to turning into a K-shaped industry, with “a subset of elite funds [being] on the upswing while everyone else muddles through.” ➡️ No fun in fundraising: McKinsey noted that core, closed-end fundraising has “become more competitive, selective, and time consuming.” ➡️ Continuation nation: There’s been a marked rise in continuation vehicle activity, but only represents less than 10% of exit value. ➡️ Mid-sized deals not so mid: Megadeal activity grabbed the headlines. But deal sizes $1-5B deals grew 29%. Growth in the $1-5B deal size segment could be encouraging for specialist buyout funds. There are some key questions for allocators to grapple with as they think about what private equity might look like in the future. 1️⃣ Do allocators believe public markets will continue to outperform private markets? 2️⃣ Will fundraising bounce back? 3️⃣ Can firms kick value creation into motion? 4️⃣ Are both GPs and LPs ready to handle how investors might look to exit evergreen vehicles? 5️⃣ For LPs, are they finding managers that have an edge? Read on for more👇 This week's Alt Goes Mainstream's AGM Alts Weekly, brought to you by DealsPlus, covers: 🗂️ AGM Index, an index that tracks the leading publicly traded alternative asset managers. 💻 Who is hiring: Senior-level positions from companies Blackstone, KKR, Apollo Global Management, Inc., Ares Management, EQT Group, Blue Owl Capital, Franklin Templeton, Fortress Investment Group, iCapital, Goldman Sachs, Ultimus Fund Solutions, Krilogy, MSCI Inc. Subscribe👇 to see the latest trends & navigate this rapidly changing landscape as alts go mainstream. https://lnkd.in/eRKN25jy

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Selling a business should be cause for celebration, but research finds most founders deeply regret an exit. ACG Detroit board members Doug LaLone and Mark Winter wanted to address the challenging and often unexpected psychological toll that selling a business can have on founders—and get M&A partners involved in raising awareness. They spoke with Middle Market Growth about their recent event, The Psychology of Selling a Business, and what they hope to see changed in the exit process. Read more: https://lnkd.in/grAWSqgT

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Last week, Ziegler had the pleasure of co-sponsoring the Holleran Senior Living Women’s Leadership Retreat. In preparation for the conference, Ziegler conducted research on CEOs in the 2025 LeadingAge Ziegler 200 (LZ 200) Multi-Sites and Single Sites. We began by looking at a simple frequency of CEOs broken out by gender and found that there are 12 female CEOs and 38 male CEOs among the LZ 200 providers, while there are 2 female CEOs and 23 male CEOs in the top 25 companies in the Fortune 500. In other words, Senior Living is outperforming the Fortune 500 in gender inclusivity. https://bit.ly/3MDTjEJ

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