IVCA Illinois Legislative Report David Stricklin , IVCA Legislative Liaison , Stricklin & Associates

A bill to expressly target Private Equity in residential housing was sent to the Senate Executive Committee on Monday and was heard in committee Tuesday. SB 331 with amendment 1 places a fee on entities purchasing more than 10 residential homes, with the proceeds directed to a fund to help create affordable housing. The bill passed out of Senate Executive Committee and is now poised to be heard in the Senate floor. IVCA is working with the Illinois Realtors among others to oppose the bill which while well-intentioned is not going to result in an increased supply of affordable housing. View the status of the bill a t ILGA.gov

The next IVCA Education Session will take place on May 28, 2026 (details below). The program, “Fundraising Market Conditions & Best Practices,” will be moderated by Jim Dugan (OCA Ventures) and feature Alex Fisher (Madison Dearborn Partners), Chris Maduri (Eaton Partners), and Rishi Chhabria (The Vistria Group). Moderator Jim Dugan, Founding Managing Partner of OCA Ventures, shares a preview of the discussion in this Q&A. To complement that perspective, we’ve curated several timely insights from the financial press and industry podcasts. From the Financial Press KPMG – Venture Pulse Q1 2026 U.S. venture investment surged to a record $267.2 billion in Q1 2026, driven in part by the $122 billion OpenAI raise. Even excluding that outlier, quarterly funding would still have reached a new high. Read more: https://kpmg.com/us/en/articles/2026/venture-pulse-q1-2026.html Computerworld – AI Venture Funding to Shoot Up This Year According to S&P Global, generative AI funding exceeded $140 billion in Q1 2026, already surpassing full-year 2025 levels. While deal volume declined amid inflation and geopolitical uncertainty, average deal size increased significantly. Read more: https://www.computerworld.com/article/4164421/ai-venture-funding-to-shoot-up-this-year-as-bubble-looms.html Forbes – As Geopolitics Tightens Capital, Venture Funding Becomes Pickier Rising geopolitical tensions are driving a repricing of risk, increasing the cost of capital and making venture funding more selective. This shift is reshaping which companies attract funding—and which do not. Read more: https://www.forbes.com/sites/dileeprao/2026/03/04/as-geopolitics-tightens-capital-venture-funding-becomes-pickier/ Morgan Stanley – Geopolitics Is the Market Force – What Comes Next? As globalization gives way to a more fragmented, multipolar landscape, investors must navigate the intersection of geopolitics, energy, and trade policy. Capital allocation is increasingly shaped by supply chain realignment and risk mitigation strategies. Read more: https://www.morganstanley.com/insights/articles/geopolitical-risk-impact-investors-institute-2026 From Industry Podcasts Inside Venture Capital – Venture’s Haves and Have-Nots This discussion explores the growing bifurcation within venture capital, evolving risk dynamics, and how geography impacts investment performance. Research Leader Dan Gray shares insights from a recent survey on early-stage VC trends. Listen (45 min): https://youtu.be/YBd65oN5RL4?si=4pWusqsYrZv_gjXc VC Lab – Meet the Managers: Sourcing Top Deals VC managers from StarChain Ventures, Science Fair Fund, and Geek Ventures discuss sourcing high-conviction startups, building founder relationships, and developing repeatable investment processes that drive results and LP confidence. Listen (57 min): https://youtu.be/oYNSK-oeYkM?si=iMhKX7fVkqixZo4s Capital Allocators – Why Culture Matters This episode highlights how WCM Investment Management operationalizes culture—from hiring for character and emphasizing trust to aligning incentives through shared equity and long-term succession planning. Listen (55 min): https://youtu.be/x8-rJctvxrk?si=ziC8nR1W0GieDM2d The IVCA Education Session, “Fundraising Market Conditions & Best Practices,” will take place on May 28 at 1:00 PM at the Conference Center at UBS Tower (One North Wacker Drive, Chicago). Click here to register and view full details.

IVCA Illinois Legislative Report David Stricklin , IVCA Legislative Liaison , Stricklin & Associates

Illinois Venture Capital Association

Another valuable IVCA Education Session is coming up on May 28th, 2026. The topic will be “Fundraising Market Conditions & Best Practices,” moderated by Jim Dugan of OCA Ventures, with the panel being Chris Maduri of Eaton Partners, Rishi Chhabria of The Vistria Group and Jim TenBroek of Growth Catalyst Partners. Jim Dugan is the Founding Managing Partner of OCA Ventures, focusing on investments in Fintech, InsurTech, EduTech, marketplaces and data analytics across many verticals. Mr. Dugan currently serves the boards of various portfolio companies, including Ocient, Alembic, MPP, The MOM Project, Prisidio, ArcherEDU, SpotHero, SnapSheet, Impossible Objects, Roq.ad, and Falcon Insurance Group. Mr. Dugan has over 30 years of corporate finance, capital markets, and Venture Capital investment experience. In addition, Jim Dugan serves on various non-profit Boards such as USOPF, NU Wave, 1871, Illinois Institute of Technology, and HCHS HardShip Endowment Fund, among others. Mr. Dugan is a longtime member of the IVCA through OCA Ventures, and was the 2013 recipient of the IVCA Fellows Award, as well as the 2024 recipient of The Stanley C. Golder Award. As a preview to the IVCA Education Session “Fundraising Market Conditions & Best Practices,” the IVCA interviewed moderator Jim Dugan. IVCA: You are sitting on a panel with a lot of experience and expertise. What points of view can audience participants expect from this panel? Jim Dugan: The theme of the panel, ‘Fundraising Alts’ during highly volatile markets, feels very appropriate and timely given the current market conditions. Some characteristics to consider … All time high market indices, yet bimodal distribution of Magnificent Seven, everything AI and Defense Tech versus rest of market following three years of low DPI from Venture Capital and Private Equity. Yet the large unfunded capital commitments to those funds are such that LPs may be lean on resources to feel comfortable making larger new fund commitments, especially with non-bank debt funds / private credit markets under assault for underlying credit worthiness, in addition to ongoing war and geopolitical threats. All together, it’s a precarious time which presents both risk and opportunity, thus we feel an ideal topic for IVCA members. IVCA: What is generally happening in the world economies and within the environments of the firms themselves, in your perspective, that has generated more cautious investing from LPs and GPs? Dugan: Note what I mentioned above, and in addition that fund managers also are grappling with the natural growth and succession of firms which tend to happen more or less at the end of each major economic cycle … so GPs who embrace next generation professionals and invest in their tutelage should be positioned well for next cycle. IVCA: As the whole of the economic engine is facing the implications of Artificial Intelligence, how theoretically could that affect general fundraising? Dugan: AI is impacting every major facet and functional area of investing, including identifying new qualified investors who may not have surfaced through prior traditional relationship building. Examples of the functional impact of AI includes processing information flow, adhering to compliance and managing LPA docs, in addition of course to the AI investing strategies themselves. We are excited to discuss during the panel the examples of AI implementation related to fundraising and deal sourcing. IVCA: Finally, in your long association with the Illinois Venture Capital Association, how have these Education events generated both camaraderie and new thought? Dugan: Among the many tremendous benefits to IVCA membership are these panels, and the opportunity to share with your community, brainstorm, and contemplate your own strategy and tactics. On some days we collaborate and on other days we compete, yet we all swim in the same ocean of opportunity. The occasion to network is an important component for our alts investment industry’s continued growth and evolution. The IVCA Education Session “Fundraising Market Conditions & Best Practices” will take place on May 28th starting at 1pm at The Conference Center at UBS Tower, One North Wacker Drive in Chicago. For details and to register, click here .

In today’s deal environment, most private equity investors are well-versed in identifying financial, tax, and legal risks—but unclaimed property often remains a blind spot. Unclaimed property generally refers to intangible assets – such as unclaimed checks, customer credits, or unredeemed gift cards – that a company holds on behalf of others and is required by state law to report and remit after a defined period of inactivity. Because unclaimed property represents a significant and recurring source of state revenue – and is often governed by strict record-keeping and reporting rules – states have made enforcement a priority. As a result, unclaimed property routinely attracts aggressive audits and inquiries, and overlooked exposures tied to ordinary balance‑sheet items can emerge late in a transaction, materially affecting purchase price, indemnities, and post‑close obligations for both buyers and sellers. This article highlights why unclaimed property poses frequent and often underestimated transaction risk. It summarizes the legal framework and enforcement environment driving state scrutiny, explains how unclaimed property liabilities arise and transfer in M&A transactions, and outlines practical diligence and mitigation strategies for buyers and sellers to manage exposure and avoid deal‑stage surprises. Read the full article HERE !

IVCA is offering one exclusive sponsorship opportunity for its May 28 member‑only education session, Fundraising Market Conditions & Best Practices. This opportunity is well‑suited for firms that work closely with GPs navigating fundraising strategy and LP relationships. The sponsorship includes welcoming remarks, recognition across IVCA communications, and visibility with a senior‑level GP audience. Interested firms should contact Christie Pruyn for additional details.

Throughout 2026, new member participants in the Illinois Venture Capital Association (IVCA) will keep it expanding. These new members also will give the current membership new opportunities for networking … in addition to optimizing support and partnerships … which leads to guidance and new ideas for Venture Capital, Private Equity and the support industries. The latest new member is the global law firm Sheppard (recently rebranded from Sheppard Mullin), “a full-service law firm with more than 1,200 lawyers dedicated to helping clients at every stage of the business cycle,” including Private Equity. The following is a Q&A profile with Sheppard , which explores the firm’s background and their expectations for interacting with the IVCA. New Member: Sheppard Representatives: Eileen Hirsch, Business Development and Marketing Manager IVCA: What is a brief history of and background of Sheppard ? Sheppard: Sheppard is a full-service, Am Law 50 law firm with an international platform and a long-standing focus on serving innovative companies, investors, and financial sponsors. Over decades, the firm has built multidisciplinary strength across corporate, tax, employment, executive compensation, IP, real estate, finance, and complex litigation; capabilities that matter across the full lifecycle of Private Equity and venture-backed businesses. We advise clients from formation and early growth through financings, acquisitions, strategic partnerships, and exits, and we support fund sponsors across structuring, governance, portfolio operations, and regulatory matters. Our approach is practical and business-minded … we aim to be responsive, solutions-oriented partners who help clients execute transactions efficiently while managing risk. IVCA: Why did the firm decide to join the Illinois Venture Capital Association? Sheppard: We joined IVCA because it is the leading voice and convening organization for Illinois’ Venture Capital and Private Equity community. The Midwest continues to produce high-quality companies and durable investment opportunities, and we see IVCA as an important forum for connecting sponsors, founders, and service providers who are building those businesses. Membership reflects our commitment to the region and to being an active participant, not just a legal resource, in the ecosystem. IVCA: As a large and multiple disciplined firm, what advantages does that give your Private Equity (PE) practice? Sheppard: Private Equity work is rarely confined to one discipline. Diligence findings often implicate tax, employment, benefits, IP, real estate, privacy/cyber, and regulatory issues, and those issues can affect both pricing and structure. Our multidisciplinary firm can address those work streams in parallel and help keep the deal process efficient and consistent. The advantage is also post-close, as portfolio companies frequently face operational and compliance questions where responsive, coordinated legal support can protect value. Our objective is to be practical and integrated, helping clients move quickly without losing sight of the issues that tend to matter later. IVCA: What distinguishes the Chicago office as a representative for the midwestern ethos of commerce and PE in the Windy City and beyond? Sheppard: Chicago is a sophisticated deal market that tends to value pragmatism, discipline, and long-term commercial relationships. Our Chicago team reflects that approach. We focus on clear advice, efficient execution, and a grounded understanding of how sponsors and management teams operate. We also appreciate the regional footprint. Many Midwest businesses are operationally complex and built for durability, which influences diligence, integration planning, and growth strategy. At the same time, we can draw on our international, firm-wide resources when transactions or portfolio issues require additional depth, including regulatory or cross-market considerations. IVCA: What are the key issues currently in PE law that the firm keeps up to date in the ever changing landscape of governmental and regulatory hurdles? Sheppard: We’re focused on the issues that create real friction for sponsor … heightened regulatory scrutiny, which includes SEC expectations; antitrust and competition considerations, especially in add-on and roll-up strategies; tax developments that affect structure and returns; and the employment/benefits and classification issues that can materially impact portfolio companies. We’re also spending more time on privacy/cyber risk allocation and incident readiness, because those can turn into fast-moving value events. IVCA: In the complex and multi-investor contract based world of PE law, what factors in litigation do you think are most preventable and why Sheppard: Many disputes arise less from ‘bad facts’ than from ambiguity, misalignment, or incomplete process. The most preventable drivers typically include unclear governance and decision rights … especially around consents, vetoes, and board control); imprecise economic terms like waterfalls, earn outs, indemnities and adjustment mechanics; inadequate disclosure and diligence documentation; inconsistent communications that later become ‘the record’; and weak post-close integration around compliance, financial controls, or employment matters. These are preventable because they can be addressed with disciplined drafting, careful diligence scoping, clear closing deliverables, and early alignment between sponsors and management teams on expectations and escalation pathways. Investing a bit more upfront in clarity and process often saves significant time and cost later. IVCA: What does Sheppard hope to achieve in their interaction with the VC/PE community within the IVCA? Sheppard: We hope to be an engaged, long-term contributor to the IVCA community. That means building relationships with sponsors, founders, and service providers; sharing practical insights on market terms, regulatory developments, and risk management; and supporting IVCA programming that strengthens the Midwest’s innovation and investment ecosystem. We also want to learn by staying close to what investors and portfolio companies are seeing which helps us provide more effective, commercial advice. For the website of Sheppard, click here . The Upcoming IVCA Education Session … Fundraising Market Conditions & Best Practices … will take place at he Conference Center at the UBS Tower, One North Wacker Drive in Chicago, on May 28th, 2026, starting at 1:00pm. For details and to register, click here .