Head of recently renamed American Investment Council brings his management philosophy from Capitol Hill to corner office

Sommers

Mike Sommers wasted no time before making changes when he became CEO of the Private Equity Growth Capital Council in February.

The former chief of staff to House Speaker John Boehner has never led a business group before, but that didn't stop him from implementing what he saw as needed reforms. PEGCC changed its name to the American Investment Council in May, a new label Sommers believes captures the broader impact of the industry the group represents.

The organization also revised and expanded its mission statement as part of a larger effort to reach segments of the industry it had not attracted in the past.

"We wanted to change the name so it just wasn't telling people what we were, but to be more aspirational in tone, because what private equity firms do in this country is they invest in American businesses and they grow American businesses," Sommers told CEO Update.

Sommers, 41, joined AIC after the departure of former CEO Steve Judge, who left the group in August 2015. Judge also had his start as a congressional staffer before jumping to the association sector as a lobbyist, then later leading the council. Sommers, who has worked in the public sector for his entire career, went straight to CEO.

However, Sommers spent the past few years managing the staff for one the most powerful political leaders in Washington, D.C., making a name for himself on Capitol Hill as a young conservative with admirers on both sides of the aisle. House Democratic Whip Steny Hoyer was one of the people who praised Sommers when he took his new job as head of AIC.

Now Sommers will be the main spokesman for an industry that has been vilified by critics as one that destroys jobs in the name of profits. Private equity hasn't taken quite the beating recently as it did in the 2012 presidential election, when former Republican candidate Mitt Romney's leadership at private equity firm Bain Capital was used as a political bludgeon against him. But with some current candidates firing up their supporters by promising to rein in Wall Street, Sommers will have his work cut out for him.

"I think the continued populist tone targeting Wall Street, and private equity in particular, is of great concern," he said. "One of the things not just this trade association needs to do, but other trade associations in the financial services space, is look at how we educate the public about the benefits that banks and financial institutions bring to the American people."

A political life

Sommers is an Illinois native who earned a bachelor's degree in political science and government from Miami University of Ohio. In college he landed a job as a field representative for then-Rep. Boehner, who represented the district that included the university.

After college, Boehner's office offered Sommers a job as a legislative correspondent in D.C. It was the beginning of a nearly two-decade working relationship with the former speaker, with Sommers gradually moving up the ranks until he became Boehner's chief of staff.

"I think for most people who come to Washington, they come here for a reason," Sommers said when asked about why he chose public service as a career. "They want to make a difference and have an impact on their country. For me, it felt like I was doing that, and the best job I could do with that was to continue to serve on Capitol Hill."

Boehner announced in September 2015 that he intended to resign from Congress. Around that same time, Sommers was contacted by executive recruitment firm Spencer Stuart about the job at the council. The CEO said he was offered other job opportunities, but was looking for a position where he could continue to shape public policy.

Sommers pitched his ideas about a name change and new mission statement to the council's search committee while being interviewed for the job. The CEO believed in hitting the road running.

"I came from a culture at the Hill where we wanted to get things done as quickly as possible and make an impact," Sommers said. "I think I brought that philosophy here."

One of the first actions Sommers took on becoming CEO was to convene a staff retreat to brainstorm the association's goals for the year. He said he stole the idea from Boehner, who held similar annual excursions for his staff. What Sommers so far hasn't done is institute any staff turnover. (The $7 million association reported 16 staff in its most recent tax filing.)

"I came in here and found we have a really strong team," he said. "I've been very pleased with the team I inherited."

Sommers wants AIC to grow. The association now is composed of 36 firms representing nearly half of all private equity investment in the U.S. But there are some 4,000 midmarket firms it has not reached, and the new CEO wants to bring them into the fold.

"We need to be the most effective advocate we can for private equity in the U.S., and to do that, we can't just represent the big private equity firms. We need midmarket firms," he said.

Sommers came on board during a presidential election year. In the last presidential election cycle, AIC played defense as the private equity industry came under fire. The industry may not be under the same level of scrutiny this time around, but the CEO still plans to take its message to the campaigns whenever possible. More importantly, it is going to continue pushing its advocacy message in Congress.

"I think that, in many ways, that provides us with insurance so no matter how the presidential election goes, we can ensure our legislative priorities continue," he said.