Just as manufacturing was once the driving force behind the United States economy, the services sector lies at the heart today. With services representing two-thirds of the GDP it only makes sense that there are massive opportunities for profitability within the sector, making it an appealing area for investors. However, as with any other industry, the services sector has its winners and losers. The sheer scale of it means that it can house companies both profitable and operating at a loss, and market caps can be anywhere from miniscule to blue chip. Additionally, as technological capabilities have risen so too has the services sector seen rapid evolution, meaning that a company in demand today may be obsolete tomorrow. It requires due diligence and shrewd attention to trends to identify when and where one should make investments in the services sector.
In order to see investment success within the services sector, they must be made with intention, creating a strategy that aids in narrowing the pool to those that have the greatest chance for realized gains. For Hauser Private Equity, a Cincinnati-based hybrid private equity fund manager, they have found success by focusing on the lower-middle to middle markets and making co-investments with other funds who have a strong history of using strategic investment models to add operating leadership to the companies in their portfolio. Additionally, their seasoned managers are able to use their varied expertise to target upwardly trending businesses, undertaking due diligence and execution to bring each co-investment to a successful conclusion. As a result, Hauser Private Equity has invested over $300 million in capital in privately-owned businesses across a diverse set of verticals including that of the services sector..