My partner Justin Burris and I are excited to announce the formation and launch of Majority Search, a new firm with a novel approach to EtA. We're looking to back a select number of high-performing, high-potential operators who want to buy, lead, and grow a small business. Because this community is familiar with both traditional and self-funded search models, I'll just share a few differentiators:

- We have a long-term committed capital base and use a single LP structure for more streamlined decision making and a better posture with sellers and intermediaries

- Searchers will be fully-funded and operate remotely, but receive full support from us throughout their search for and ownership of a company

- To fund an acquisition, we will avoid bank debt (small seller note is okay) and use only equity. This makes for a more compelling buyer profile, offers the ability to close quickly, and most importantly, reduces risk and preserves optionality through the critical transition period

- We are targeting companies with $1-2 million in earnings, sizable enough to be more than a job and above what most SBA-backed deals will fund and smaller than where most professional buyers and traditional search funds operate. Valuations in this size range have not risen as dramatically as larger companies with similar characteristics. For growing businesses, this creates a type of 'time arbitrage' -- buy early, grow at historical rates or greater, and then have a business of a similar size and profile as the most attractive LMM companies

- Our equity award structure is 100% performance-based and allows searchers to earn up to 60% of the business, based on free cash flow growth over the first 5 years of ownership. This is more than double what a traditional search fund structure offers (though with no closing or time-based vesting component) and in the ballpark of what many of the larger self-funded search economics look like, but without the need for a PG on a loan and, as a result, more cash flow available to fund growth

If you know of any exceptional leaders or operators who are considering EtA and think our model might be a fit, please encourage them to visit our website to learn more. And, for those looking to apply, there's a link on the website to begin the process.

I've been involved in search fund investing for 15 years and am excited about the growth in options and approaches now available for people considering EtA. We won't be the right choice for everyone, but we do hope to be a compelling option for some. I hope you'll give us a look!