3 lessons from Aeqor Partners’ search in Italy

We spoke with Derin Sonmez, who co-founded of Aeqor Partners with Federico Usai, about their experience running a search fund in Italy. Both come from technical fields, Derin in automotive, Federico in aerospace, and their journey offers useful lessons for other searchers. 1. On the specifics of the Italian market Italy is full of family-owned companies, many led by aging founders without clear succession plans. This creates fertile ground for search funds, but local dynamics matter. Derin and Federico began with a small test, contacting 100 companies. When 10 responded and 4 invited them onsite, they saw enough potential to raise a fund. Scaling up, they have now contacted over 5,000 firms, with roughly 10% showing interest and 3–4% engaging seriously. One thing to mention is that regional differences also shape deal flow. Northern Italy has advanced industrial clusters in Milan, Veneto, and Bologna, but competition is heavy. Central regions such as Tuscany, Umbria, and Rome are less crowded, offering more attractive terms. The south, on the other hand, brings higher risks and weaker infrastructure. 2. Some investors may be skeptical about technical founders (but not us) Raising their search fund took Aeqor six months. That was slower than the global average but faster than some other Italian searchers, who can take up to a year. Derin shared that their background posed a challenge when fundraising. Some institutional investors in Italy favor candidates from consulting or private equity, assuming they are better at evaluating companies. At Moonbase Capital, we saw it differently. We invested in Aeqor because we believed their technical expertise gave them a unique edge, especially in industries many searchers avoid. 3. Being technical opens the door to less-pursued opportunities At first, Aeqor looked broadly, avoiding only a few sectors such as agriculture, real estate, and financial services. Over time, they refined their focus. Today, they pursue two main types of opportunities: -> Technical businesses where they can add value - software, industrial automation, precision components, and computer assembly. -> Simple businesses in fragmented industries where a buy-and-build strategy makes sense. Derin noted that technical credibility has been a real asset. Owners of engineering-heavy companies feel more comfortable with them. At the same time, they avoid firms that are too complex or dependent on the founder. “If we can’t learn the activity in 1.5 years without the owner, we exclude it.”