DPE Deal Sourcing Update 3.7.18

Headlines We Are Watching;

• In recent weeks Protectionism and Tariffs have entered the national conversation. History provides an important perspective.
  http://www.aei.org/publication/the-destructive-path-of-protectionism/
• We have been impressed with the number of new currencies, exchanges and block chain solutions being created to provide transaction efficiency and security. We are assessing impact and opportunities.
  http://fortune.com/2018/03/01/bitcoin-uber-cryptocurrency-eco-garrett-camp/
• Demographic trends evidenced by millennials and immigrants are changing the U.S. workforce. Younger and more diverse with the economy at a 50 year employment high.
  http://www.pewresearch.org/fact-tank/2017/04/27/10-demographic-trends-shaping-the-u-s-and-the-world-in-2017/
  https://www.wsj.com/articles/u-s-jobless-claims-hit-lowest-level-since-1969-1519911286?shareToken=st105992aa57dd4282b38dfc4bef85feb2&reflink=article_email_share

Trends We Are Watching:

We are continuing to source new deals in three sectors:

• Healthcare: Hospitals will look much different in the future and the Wall Street Journal clearly indicates the importance of services being moved out of the acute inpatient setting to outpatient, consumer focused venues. We believe this migration creates opportunities in ambulatory surgery, specialty compounding, behavioral treatment and patient portion financing.
  https://www.wsj.com/articles/what-the-hospitals-of-the-future-look-like-1519614660?emailToken=cf389e17d940ee1e5223d4e662729238Mv%2FFqOqRNE39ODRZBgP0f4MW7g%2B%2F0S%2F2uP7afQpPt%2FdOP%2FIaVyPp7%2B3y6SEbvAl17po0lr6lsVd7ox0AgzuBPYosbL4wNLc2h0kj67%2F5gTU%3D
• Discrete Manufacturing: Lean manufacturing techniques and additive processes evidenced in robotics, point of use assembly, reshoring presents opportunities in the specialty materials, high tolerance engineering and engineered solutions into the end product. Trends being considered include digital, cloud-based solutions given the rapid expansion of U.S. manufacturing.
  https://erpblog.iqms.com/top-10-manufacturing-trends-2018/
  
  https://www.bloomberg.com/news/articles/2018-03-01/manufacturing-in-u-s-expands-at-fastest-pace-since-may-2004
• Business Services: Services which support other business functions present opportunities for business consolidation with high recurring revenue with managerial expertise and technical capability to build value. 5G broadband is on the horizon and likely adds greater capability, coverage and speed to support the Internet of Things.
  https://www.wsj.com/articles/wireless-companies-to-start-small-with-5g-rollouts-1519480800?shareToken=st99015d0787364f4e8b94891ccdceec0d&reflink=article_email_share#comments_sector

How You Can Help:

Driehaus Private Equity is a Private Investment Firm supporting companies seeking to grow organically or through acquisitions. Your ideas and suggestions provide us with a unique advantage by identifying opportunities and introducing us to fellow entrepreneurs. Please contact:

Eli Boufis
Executive Principal
eboufis@driehauspe.com