Summary – 2021 Virtual Fall Annual Meeting and Education Conference (October 13 & 14, 2021)
By: Danielle Maksimow (Norton Rose Fulbright Canada)
This year’s Fall Annual Meeting and Educational Conference marked the ACIC’s third virtual conference, and by all accounts, it was another huge success for the College. Dora Jimenez (New York Life) and Arinze Onugha (Fred, Frank, Harris, Shriver & Jacobson) co-chaired the conference, aptly themed the “The Roaring 2020s: Unmasking a New Era”. The theme was fitting as our collective response to the global pandemic and social challenges during the last few years has resulted in immense economic and social growth. The diverse program included a market update and a discussion of private equity considerations along with a deep dive into top of mind issues such Environmental, Social & Governance (“ESG”) investing and Diversity, Equity and Inclusion (“DEI”), digital currencies, and new ethical issues resulting from COVID-19. Several of the panels included a discussion of government regulations, and on the social challenges side, there was a recurring emphasis on the need to be intentional with our efforts and accountable for the commitments we make.
The two-day conference consisted of six CLE sessions through the CVENT online platform, with over 160 attendees. Though virtual, the conference still included live audience polling and an opportunity for Q&A, with networking opportunities available both by private appointment through CVENT or on a larger scale through scheduled Zoom meetings. On Wednesday night, several attendees participated in a virtual cheese tasting event in lieu of the usual cocktail hour. As usual, the ACIC incentivized audience participation with prizes which included a gift basket, Herschel travel accessories, and an Amazon gift card.
The co-chairs, moderators, panelists, ACIC administrators, Education Committee and Board of Trustees deserve a huge thank you for providing value to the College’s members by holding another engaging, topical and educational conference. If you attended the conference and want to re-visit any of the sessions, they are available on demand on CVENT through January 15, 2022!
Day One- Wednesday, October 13
Day One started with the formal kickoff to the conference, including opening remarks and announcements from Executive Director C.J. Marchain and the co-chairs. Dora and Arinze explained why they picked their theme, discussing how people have been affected by the challenges of COVID-19 in different ways, and that the big question now is to assess how to best move forward, with an emphasis on continuing to use new challenges as opportunities for economic and social growth.
Session 1: The New (Ab)Normal-Market Update.
The substantive portion of the conference commenced with the always highly-anticipated and informative market update. This session included an overview of activity levels and trends in the capital markets and examined the effect of the recent government fiscal stimulus, including the resulting downward pressure on spread. The panel moved to discussing different options available to institutional investors to add sources of return to their portfolios. Central to this discussion was the role of ESG in contributing to an inclusive and sustainable economy. The speakers provided specific examples of what their respective institutions are doing for ESG investing and discussed whether or not it is wise for institutions to formally pledge to achieve milestones by certain dates without having a clear path forward to achieve this. The panel also touched on the regulatory response to ESG investing and the complexity of the intersection between legal and investments. Jason Feintuch (Houlihan Lokey) moderated the panel with Randy Brown (Sun Life Financial), Anthony Mallot (New York Life) and Nehal Shah (Houlihan Lokey) contributing their diverse views and insights.
Session 2: PE Funds: Recent Terms & More.
The second session of the conference began with an overview of fundraising trends in the private equity market, remarking that the GP market is currently favored over the LP market. The speakers noted the presence of repeat funds being larger than originally expected, an increasing amount of first time funds and female and minority-led funds, and rising interest by insurance companies in rated products. The panel moved on to discuss management fees and expenses (including with respect to zombie funds) and noted interesting things GPs are doing such as GP-led restructurings, with a move toward “future proofing” restructurings in newer vintages of funds with a long lineage. The issue of conflicts of interests in investment allocations was also explored, with the panelists noting that flexibility and transparency in allocations is important. The panelists also spoke to how investors in a private fund are treated when a fund suffers a material credit default or files for bankruptcy. F. Jamal Fulton (Cleary Gottlieb Steen & Hamilton) moderated the panel, which consisted of Barbara Niederkofler (Akin Gump Strauss Hauer & Feld), Chiraag Kumar (MetLife) and Eric Mansell (Adam Street Partners).
Session 3: Ethical Traps for Investment Practitioner.
The final session of the first day examined various ethical dilemmas that have resulted from the move to a remote work environment as a result of COVID-19. The presentation examined three hypothetical situations that could arise from lack of privacy and cyber security in home office environments and from lawyers setting remote home offices in jurisdictions they are not qualified to practice law in. The panel provided practical advice for how to deal with these challenges, referencing recent legal opinions to back up their recommendations. Christine Rittberg (Northwestern Mutual) led the panel, which included John Harris (Frankfurt Kurnit Klein & Selz) and Trisha Rich (Holland & Knight).
Wednesday Virtual Cheese Tasting and Networking Event
Following the final session, several attendees attended a virtual cheese tasting event hosted by the Point Reyes Farmstead Cheese Co. Participants were pre-shipped a sampling package containing six cheeses. accompaniments, and a beautiful cheese knife to keep as a souvenir. The host described how each of cheeses were made and provided pairing suggestions to ensure a maximum culinary punch! Following the tasting, attendees separated into smaller break-out “rooms” and enjoyed networking for an additional half hour before reuniting as a group to say their final farewells for the evening. It is amazing how we can still enjoy good food and an opportunity to “see” and converse with each-other on a virtual platform with a little innovation! While we all miss the ACIC cocktail hour, this comes a pretty close second!
Thursday, Day Two
Annual Meeting.
Thursday began with the 2021 Annual Meeting. Outgoing President Tina Smith (Thrivent) opened the meeting and gave an overview of the various accomplishments of the College over the last year. Following reports of the Treasurer, Membership Committee and Nominating Committee, the new officer and trustee slates were ratified, and three new trustees were welcomed: Dora Jimenez (New York Life), Robin Lenarz (Securian) and Michael Robson (Greenberg Traurig). The meeting concluded with Chris Dallas (Pacific Life) assuming the chair as new President of the ACIC, thanking Tina Smith for her focus on expanding diversity and inclusiveness while enhancing membership engagement and always being willing to try new things. Tune in to the January 2022 Private Notes edition to learn more about the new trustees and hear about Chris Dallas’s vision for the year ahead!
Session 4: ESG: The New Wave of Investing.
Day Two began with a continuation of the ESG investment discussion and was moderated by Stacey Mitchell (Akin Gump Strauss Hauer & Feld). Following a brief overview of what ESG investing is, panelists Kim Stepancic (New York Life), Radhika Shroff (Nuveen) and Martin Muato (SoLa Impact) shared their respective institutions’ theories of change and ESG investment processes, providing specific examples of how data is used both to assess where to invest and how to drive change. The panel touched on topics such as affordable housing, homelessness, climate change, access to education and capital, and financial inclusion in emerging markets. Top-of mind issues such as how to ensure a responsible exit and regulatory considerations such as board diversity and human rights disclosure obligations were explored. The session concluded with a brief discussion of the impact of COVID-19 on ESG investments and considerations moving forward, with the speakers predicting that companies who have not yet implemented ESG policies will face increased pressure to do so from stakeholders in the years to come.
Session 5: Beyond Scratching the Diversity Surface.
The fifth session of the conference treated attendees to a fascinating dialogue between Marin Lorenson (The Hartford) and Tammy G. Mata (Valley National Bank) moderated by Myra Michail (John Hancock). The panelists provided a brief history of diversity and equity initiatives in America, describing how such initiatives have evolved from compliance-focused laws primarily dealt with by human resource departments to being recognized as significant levers for profitability that everyone is responsible and accountable for. The discussion then moved to how DEI looks for different types of institutions, providing practical examples for implementing DEI policies. While the live polling results showed that most attendees feel that their organizations are living up to their 2020 diversity commitments, there is still work to be done, and the speakers provided a great list of resources which is available on the ACIC website. The session was followed by a virtual networking break hosted by two non-profit organizations, Human Rights First and Wills for Heroes.
Session 6: Going Digital.
The final session of the conference contained a dynamic discussion on the topic of digital currencies moderated by Natalie Lederman (Sullivan & Worcester). Speakers Joy Batra (Syndicate Protocol), Daniel N. Budofsky (Pillsbury Winthrop Shaw Pittman) and Steve Kurz (Galaxy Digital) examined the history of digital currencies and discussed regulatory challenges, exciting new technologies and their views on the future for digital investments. The panel concluded that while there are great opportunities to be had, increased education and understanding of digital investing will be key to moving forward in a productive way.
The conference concluded with an announcement of the prize winners for the most interaction on the virtual platform during the conference. Congratulations to Chanwon Woon (Akin Gump Strauss Hauer & Feld), Kate Lindsay (Met Life), and Tammy Lam (Greenberg Traurig)!
Please stay tuned for information on the much anticipated in-person Spring 2022 Investment Forum in Chicago on April 7&8, 2022, the planning for which is well underway. We hope to see you there!
