A Proposal on Equity Pooling for Search Fund Entrepreneurs

by a searcher from Carnegie Mellon University - Tepper School of Business

11 months ago

Has everyone seen Peter Bransden's paper on Equity Pooling to reduce risk for Searchers?  
https://yale.app.box.com/s/p3iyxcnu18la3jgcfnxorcn4bzf6bcmh

Wondering what people think. Is anyone interested in creating a pool?

1 like
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2 comments

searcher from Carnegie Mellon University - Tepper School of Business

Agreed. The searchers who "fail" first will move on to other things, but the successful searchers will not have an exit for several years down the road. From an pure investment return standpoint it could make sense. From an opportunity costs the timing of the payments is not aligned. I wonder if there is a structure to work around it.

11 months ago | like reply | 0 likes

searcher from University of California, Berkeley - Haas School of Business

Thanks for sharing this. I love the concept of diversification across the efforts of multiple searchers, but as the paper states, the mechanics of making this happen seem incredibly daunting, especially considering the variable and lengthy time horizons involved.

11 months ago | like reply | 0 likes

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