the Search fund model
Search Funds are Our Preferred Channel to Invest in SMEs
Search funds provide a unique opportunity for talented executives to acquire a company for them to run. They are also a perfect way to scale Private Equity investing in smaller deals and in complete alignment with the managers. Search funds have a track record of almost 40 years providing an average Internal Rate of Return above 30% with low variance and low correlation with economic cycles
The search fund model
Buy-out and Growth investments with a collaborative approach
A search fund is an investment vehicle through which investors financially support an entrepreneur’s efforts to locate, acquire, manage, and grow a privately held company
European SMEs
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- 21.000 SMEs in Europe
- Exceptional track record
- Outdated management
- No succession plan
Sell with success, securing their legacy
Young Professionals
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- Well-educated and experienced professionals with solid backgrounds
- Next challenge: becoming a businessman
High-potential operators aligned with carried-interest
Investors
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- Diverse backgrounds & expertise looking for attractive investments
- Mentors and guidance
Buy companies at 20-30% discount securing a committed manager
European SMEs
- 21.000 SMEs in Europe
- Exceptional track record
- Outdated management
- No succession plan
Sell with success, securing their legacy
Young Professionals
- Well-educated and experienced professionals
- Solid backgrounds
- Next challenge: becoming a businessman.
High-potential operators aligned with carried-interest
Investors
- Diverse backgrounds & expertise
- Looking for attractive investments
- Mentors and guidance
Buy companies at 20-30% discount securing a committed manager
PHASES OF THE FUND SEARCH MODEL
TRACK RECORD
Almost 40 years yielding over 35% IRR
Search Fund acquisitions started in the US back in 1984 and have a history of 38 years track record.
- 66% of searches are successful in the US, 74% in Europe and RoW.
- 73% of search fund acquisitions generate capital gains, while most of the loss-making deals typically result in a partial loss only.
- Average investor returns in a Search Fund acquisition are 7.9x their initial investment over an average period of 7 years, a 36.8% annual return on investment.
SUPPORTED BY TOP BUSINESS SCHOOLS
Model supported by reputable organizations
Renowned universities globally promote this career for young and talented individuals.
The model is supported by leading institutions such as Stanford University and IESE Business School, which conduct comprehensive research and closely monitor its development
