Advice On Search Fund Structure In Australia

people:

searchers

investors

intermediaries

lenders

lawyers

accountants

consultants

insurance

tasks:

getting started

see job postings

share your PPM

see my deals

read interviews

browse posts:

traditional

tip for the week

single sponsor

latin america

networking

interview

bestof

case studies

industry news

australia

north america

self funded

africa

asia

getting started

corona

operating

accounting and legal

deal making

getting funded

deal sourcing

europe

women in search

acquisitions

02/10/2021 Redacted Redacted

searcher INSEAD Charles Sturt University

ADVICE ON SEARCH FUND STRUCTURE IN AUSTRALIA

Hi everyone, I am just about to commence my raise for my Search Fund in Aus. All search fund guides recommend incorporating as a Delaware LLC. 

Before I assume that is only suitable for the US, I wanted to see if anyone knows if it is suitable to raise an Aus fund as an LLC or would I just go ahead and use a Pty Ltd?

1 like 67 views 11 comments

admin Massachusetts Institute of Technology - MIT Sloan School of Management Taylor University Stanford University - Graduate School of Business - 02/11/2021

Tagging a few Searchfunders in Australia that might be able help you answer this question: ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌ , ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, (To our friends in Australia, THANK YOU for helping to make Searchfunder a collaborative community. Be sure to take full advantage of your brand new UNLIMITED access to IBISWorld Australia (Searchers only) and BVR Deal Stats (everyone) now available under the INDUSTRIES & VALUATIONS tab at the top of this screen. With Best Wishes, ^[redacted]‌).‌‌‌

like reply | 0 likes

searcher The University of Adelaide - Business School University of South Australia Carnegie Mellon University - 02/11/2021

If your search is focused on Australian targets and investors a Pty Ltd is fine.

like reply | 0 likes

investor University of Western Australia University of Pennsylvania - The Wharton School Loughborough University Stanford University - Graduate School of Business - 02/11/2021

Ryan a limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

in Australia use PTY LTD.

Tim

like reply | 0 likes

searcher INSEAD Charles Sturt University - 02/11/2021

Thanks Tim, that is very helpful

like reply | 0 likes

searcher La Trobe University - 02/11/2021

Definitely recommend connecting with ^[redacted]‌ and ^[redacted]‌ for guidance on Aus based search structures.

like reply | 1 like

investor Curtin University - Curtin Business School - 02/11/2021

Thanks ^[redacted]‌.
^[redacted]‌, I have PM'd you my details.

like reply | 0 likes

searcher - 02/11/2021

If business is operating in Au then P/L is normal.

like reply | 0 likes

searcher INSEAD Charles Sturt University - 02/11/2021

Thanks everyone.

like reply | 0 likes

searcher University of Canberra - 02/11/2021

Ryan, there are a few legal/tax legislation issues you need to be mindful of when setting up the Search Fund structure in Australia. ^[redacted]‌ at HWL Ebsworth is Australia's leading legal partner on Search Funds, having done the heavy lifting around structuring so that the searcher, investors and indeed off-shore investors don't get stuck in a limiting structure. He has helped the Searchers here who have raised a fund to put in the correct structure, so please reach out to him.

like reply | 1 like

searcher University of Canberra - 02/11/2021

Thanks ^[redacted]‌. ^[redacted]‌, looks like Lui has already reached out to connect with us. Look forward to meeting with you at some stage.

like reply | 0 likes

searcher INSEAD Charles Sturt University - 02/11/2021

Thanks ^[redacted] ^[redacted]‌[redacted]‌

like reply | 0 likes

sign in to join the discussion

ETA Panel at the 48th Naylor Fitzhugh Conference

2021-02-27T15:20:00+00:00

ETA Panel at the 48th Naylor Fitzhugh Conference

2021-02-27T15:20:00+00:00

ETA Panel at the 48th Naylor Fitzhugh Conference

2021-02-27T15:20:00+00:00

Searchfunder Session: Funding, Funding, Funding

2021-03-02T20:00:00+00:00

Self-Funded Searchers MeetUp

2021-03-03T17:00:00+00:00

Legal Aspects of ETA Workshop

2021-03-03T18:00:00+00:00

Search Funds from Funding to Exit

2021-03-03T19:00:00+00:00

Searchfunder MeetUp: DACH Searcher MeetUp

2021-03-04T17:00:00+00:00

Should you use LBO analysis to guide investment decision-making?

2021-03-04T19:00:00+00:00

Searchfunder MeetUp: Women in Search

2021-03-04T21:00:00+00:00

Searchfunder MeetUp: UK Searcher Bi-Weekly Brainstorm

2021-03-05T16:00:00+00:00

In celebration of Women’s Day on Monday 3/8, take the opportunity to celebrate your accomplishments by participating in a wellness workshop

2021-03-08T14:00:00+00:00

In celebration of Women’s Day on Monday 3/8, take the opportunity to celebrate your accomplishments by participating in a wellness workshop

2021-03-08T14:00:00+00:00

Cooking the Books: Importance of Quality of Earnings Reports

2021-03-08T19:00:00+00:00

Canadian Search Fund Investor Forum

2021-03-09T14:00:00+00:00

SAAS Searcher MeetUp: Special Guest Tony Cappaert

2021-03-09T19:00:00+00:00

LAMedTechWeek

2021-03-10T16:00:00+00:00

USA Visas for Entrepreneurs

2021-03-10T17:00:00+00:00

Searchfunder Session: Understanding Comparables with DealStats

2021-03-11T17:00:00+00:00

IBISWorld for Searchers

2021-03-11T20:00:00+00:00

Searchfunder Seller Stream

2021-03-15T18:00:00+00:00

Growing Your Business When You Think You Hate Sales

2021-03-16T18:00:00+00:00

Searchfunder MeetUp: Self-Funded Searchers

2021-03-17T16:00:00+00:00

Searchfunder Ops Session: Marketing at Low Tide

2021-03-17T18:00:00+00:00

Searchfunder MeetUp: DACH Searcher MeetUp

2021-03-18T16:00:00+00:00

Learn the Ins-and-Outs of Search Funds with top ETA investor Endurance Search Partners

2021-03-18T17:00:00+00:00

Searchfunder MeetUp: UK Searcher Bi-Weekly Brainstorm

2021-03-19T15:00:00+00:00

Searcher Success Story: Max Holvik

2021-03-23T19:00:00+00:00

Searchfunder MeetUp: Military Veterans MeetUp

2021-03-24T18:00:00+00:00

Tutorial: Live Modeling an Example Self-Funded Deal & Key Factors Involved

2021-03-25T16:00:00+00:00

Searchfunder MeetUp: LatAm Searchers MeetUp

2021-03-25T17:30:00+00:00

SaaS Deals & Transaction Multiples

2021-03-31T05:00:00+00:00