Human resources management is one of the most substantial and promising areas in outsourcing today. One of our favorite models is the professional employer organization, or PEO. The value proposition PEOs provide enables clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation, allowing them to focus on core business functions. PEOs deliver these services by establishing and maintaining an employer relationship with the client employees and by contractually assuming certain employer rights, responsibilities, and risk. We believe that significant investment opportunities exist in this consolidating market given the fast growth and low overall market penetration.