ARE INVESTORS IN THE PE/VC WORLD A RIGHT FIT FOR A SEARCHER?
I mentioned to some friends that I am looking for referrals to potential investors for my self-funded search. As a result, a few of them offered to intro me to investors who don't typically invest in search funds, such as tech VCs, and Private Equity firms.
My thinking was that these guys are not normally looking at search fund types of investments, but since they are people with capital, there is no harm talking to them, and you might get the odd eccentric VC who is also interested in the search fund model.
My question: Has anybody got suggestions on whether your investor base should be coming exclusively from the search fund world? Any thoughts about building an investor consortium in a deliberate manner? I suspect it might not be good long term to accept any cash that comes your way. Look forward to your opinions!
there are few who are principals at PE vehicles and investing into search funds regularly, but to be honest, from my network many of PE partners just want to be 100% focus on their PE funds and be all-in. Also one of the guy I know from mega fund (e.g. Blackstone, KKR, TPG,..) told me about restriction in his contract regardless he is at very the top of the structure. Needless to say, once they are smaller and you're planning to compete with them for deals, they are not super happy about that and therefore not ready to join the cap table. I hope it helps.