Loggia, 44, will have responsibility for day-to-day operations, while Krakoff, 68, will focus on acquisitions.
Industry observers said the move indicated that the privately held company, which is majority owned by DLJ Merchant Banking Partners III, a fund managed by Credit Suisse First Boston Private Equity, was preparing itself for a potential initial public offering. They also said it showed Advanstar remained on the acquisition trail.
One industry observer, who spoke on condition of anonymity, said the move pre-empts questions about Advanstarâs succession strategy. âIt puts in place a younger face for the markets,â this observer said. In an interview, Krakoff said, âWeâre setting up the long-term succession plan. Clearly, if you were a public investor, youâd want to know how this company views the future and not for a year or six months.â
Krakoff also said Advanstar, despite its recent $135 million acquisition of Medical Economics and other properties from Thomson, remains committed to growth. Sources confirmed, for instance, that shortly after its acquisition of Medical Economics, Advanstar was also a bidder in the recent auction for Cliggott Publishing and SCP Communications, properties that CMP Media eventually acquired.