Inside personal fairness there are definitely sectors that drum up extra consideration than others. Actual property has lengthy been thought of a sound funding, and has turn out to be much more standard in recent times as historic information has proven the market’s comparatively low volatility. On the opposite aspect of the spectrum, the concept of discovering a unicorn has attracted many traders towards the a lot riskier enterprise capital and rising applied sciences. Nevertheless, sound traders would do nicely to keep in mind that though their prevalence has definitely made these industries a preferred subject of dialog, they’re certainly not the one viable possibility for important returns. Non-public fairness investments supply entry to development in additional scaled companies.
Over the previous decade, advancing applied sciences and social consciousness have been inflicting unprecedented and thrilling shifts in each sector of the economic system, not simply the tertiary. With over three a long time of expertise in personal fairness investments, acquisitions and mergers, Mark Hauser has developed a eager capability to acknowledge developments and do his due diligence. As co-managing companion of Hauser Non-public Fairness, a hybrid personal fairness fund that has invested over $300 million in capital in privately-owned companies throughout a various set of industries, Hauser has efficiently spearheaded a number of offers inside the industrial sector, turning into a number one entity each for the corporate and inside the personal fairness {industry} as an entire.
From information integrity software program to healthcare administration providers, Hauser Non-public Fairness has seen the worth in companies that exist within the in-between of uncooked supplies and client items, and the way such corporations have the flexibility to result in realized positive aspects for traders. Under, we discover among the personal fairness investments made by Hauser Non-public Fairness in recent times inside the industrial sector.
Healthcare
In 2016, Hauser Non-public Fairness accomplished an funding in Stat Well being Administration, LLC, an pressing care supplier with places all through Lengthy Island, NY. In response to Mark Hauser, the rising prices of healthcare and development of the getting old affected person demographic within the area made the corporate well-positioned for development inside the market, and in researching the corporate he discovered that it had a really favorable status and was according to Hauser Non-public Fairness’s mission to put money into steady, high quality corporations. Their funding supported Stat Well being’s recapitalization, alongside Spanos Barber Jesse & Co. and co-founder Dr. Paolo Coppola, and two years later the corporate was bought to CityMD––the main pressing care supplier within the New York metro space––after its fast development noticed the corporate obtain a compelling acquisition supply even earlier than anticipated.
Whereas developments within the medical aspect of healthcare are definitely essential, new applied sciences have additionally opened the door to companies which can be capable of put it to use towards higher affected person care. Hauser Non-public Fairness partnered with the Denver-based personal fairness agency Revelstoke Capital Companions to make a development funding in DataLink Fund Options, a number one supplier of built-in inhabitants well being administration functions. By means of these functions together with its core product CareBook, DataLink helps healthcare payors and suppliers by resolving gaps in affected person care whereas additionally bettering high quality efficiency metrics. Because the final mile connection between healthcare suppliers, payors and sufferers, DataLink’s functions allow sufferers to be extra actively concerned in their very own care.
When in search of co-investors Mark Hauser searches for these with robust operational strengths, and Revelstoke’s strategic experience and expertise within the healthcare sector made them an excellent companion for the deal. By means of the personal fairness investments, DataLink was capable of speed up development whereas nonetheless sustaining the excessive stage of service for his or her shoppers, in addition to the sufferers they serve.
Industrial Sector Alternatives
The commercial sector is stuffed with alternatives in virtually each {industry}, as seen via Hauser Non-public Fairness’s co-investment with Gryphon Buyers in Washing Programs. A world chief in progressive cleansing options and hygiene administration, Washing Programs is a number one supplier of specialty chemical compounds and technical providers to the North American and European textile rental market. The corporate was recognized for its progressive chemical compounds and high-touch customer support, however was additionally making waves for its environmental stewardship, turning into the primary for-profit enterprise to obtain the Platinum Award from the Ohio Environmental Safety Company in 2017.
In a time when social consciousness has seen individuals asking companies what they’re doing to cut back their environmental impression, a sustainable firm is one which can be poising itself for longevity. With Hauser Non-public Fairness board member John Hayden serving on the board of administrators for Washing Programs and Gryphon Buyers offering a powerful collaboration, each corporations have been capable of place the enterprise for continued development and success, and in 2018 the funding was realized with the sale of the portfolio firm.
Natural and Inorganic Development
Over the previous yr, Mark Hauser has taken the lead on a number of further investments inside the industrial sector, typically partnering with different robust gamers in personal fairness investments to take action. They’ve executed a lot of co-investments with Shore Capital Companions, together with a partnership with Modern Packaging Firm, a customized packaging options supplier working out of Vancouver, Washington. Hauser Non-public Fairness’s frequent collaboration with Shore Capital Companions is partly due to their robust observe document for driving explosive development for the businesses they work with, and their intent with Modern Packaging Firm is to put money into its enterprise growth, gross sales, advertising and marketing and operational infrastructure so as to take action.
In tandem with these efforts towards natural development, they may even discover alternatives for inorganic development via acquisitions. Modern Packaging Firm fills a singular position inside the industrial sector, offering packaging options for small and medium prospects who’ve medium to excessive complexity packaging wants, and thru the investments of Hauser Non-public Fairness and Shore Capital Companions they may be capable of shortly scale to turn out to be a number one United States packaging options supplier.
Digital Transformation
One other frequent companion for Hauser Non-public Fairness is the Santa Monica-based Clearlake Capital Group, L.P., with whom they co-invested within the information integrity software program firm Exactly. Because the world strikes and operates onto the digital sphere information safety is turning into an more and more prevalent dialogue for each sort of enterprise, and consequently the information integrity software program house has seen continued development. Exactly’s market-leading information integrity software program portfolio is thought for its capability to offer most accuracy, permitting companies to be extra assured of their choices as they make their digital transformations.
Clearlake Capital Group’s position within the funding can be supporting the worldwide chief’s efforts to innovate merchandise, speed up development and bolder M&A. Certainly, lower than two weeks after being backed by Hauser Non-public Fairness and Clearlake Capital Group, it was introduced that Exactly had entered into an settlement to amass the information integrity and governance software program supplier Infogix. Because the cloud continues to empower customers with information and analytics, Hauser and Clearlake could have a hand within the success of Exactly’s work inside the {industry}.
Manufacturing
Within the third of a string of co- investments within the industrial sector to happen inside the previous yr, Hauser Non-public Fairness partnered with Argand Companions to amass the pc peripheral-device producer Cherry GmbH. The corporate each designs and manufactures premium key switches for mechanical keyboards, branded gaming peripherals, pc enter gadgets reminiscent of mice and headsets along with merchandise for safety, point-of-sale and e-Well being functions. Whereas Cherry does promote client items as nicely, its development potential inside the previous yr has grown considerably within the industrial sector because of the ongoing digitization of healthcare. Argands Companions has targeted on supporting the corporate’s efforts to increase its e-Well being choices globally via strategic acquisitions since its funding in late 2020.
After first buying the software program firm Theobroma, Cherry then acquired Lively Key GmbH, a number one producer of hygienic, washable keyboards and mice for medical and industrial-end markets. The coronavirus pandemic has introduced with it a renewed deal with hygiene in public areas, and Lively Key’s keyboards which can be totally sealed for straightforward sanitization in addition to immune to mud and moisture. These acquisitions together with strategic advising offered by Argand Companions have aided the corporate in increasing additional into the economic sector.
As chief of Hauser Non-public Fairness, Mark Hauser has performed an instrumental position in growing the agency’s portfolio inside the industrial sector. By specializing in corporations with strong reputations and excessive development potentials, Hauser Non-public Fairness has been capable of make offers which can be mutually useful, leading to scaling for the companies and realized positive aspects for traders.
About Hauser Non-public Fairness
Hauser Non-public Fairness is a hybrid personal fairness fund supervisor primarily based in Cincinnati. Primarily based in Cincinnati OH and working workplaces in each Los Angeles, CA and Chicago, IL, the agency focuses on direct co-investments within the lower-middle to center markets. Leveraging the multi-industry experience of its restricted companions to outline targets, develop corporations and improve returns, Hauser Non-public Fairness makes partnerships by way of management buyout funds, in addition to managers of development fairness and particular conditions funds. Hauser Non-public Fairness was based by co-managing companion Mark Hauser.
