Do Searchers Ever Partner With Pe Firms (As A Single Source)? - Search Fund Community

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:

self funded

operating

industry news

north america

corona

accounting and legal

getting started

asia

deal sourcing

getting funded

traditional

tip for the week

networking

deal making

africa

women in search

case studies

australia

bestof

latin america

interview

europe

acquisitions

single sponsor

02/15/2021 Redacted Redacted

searcher Indiana University, Bloomington/Indianapolis - Kelley School of Business

DO SEARCHERS EVER PARTNER WITH PE FIRMS (AS A SINGLE SOURCE)?

Do searchers ever partner with a single private equity firm as their source of capital rather than partnering with a larger number of funding sources? Working in banking, I see the approach of entrepreneurs, sometimes called operating partners, working with private equity firms and taking economics on the deal when they acquire a company, then operating it for a few years. If this model is different fundamentally, could someone please help me understand why? If taking funding from 1-3 private equity firms f0r a single deal isn't common (or then disqualifies the vehicle from being a "search fund"), why is this? Would the terms be too stiff for the entrepreneur to have good economics? Would it difficult to achieve the partnership?

share:

0 likes 48 views 1 comment

searcher Harvard University - Harvard Business School Stanford University - 02/16/2021

The Operating Partner title is used in many ways. For larger PE funds, think of those folks as the in-house value creation team for the PE fund, comprising of many former operators and ton of ex-consultants, tasked with delivering specific value creation initiatives at portcos. Their return usually comes in the form of carry in the deal, similar to a member of the deal team. From what I've heard this is usually at a smaller percentage (i.e. an VP on the deal side will earn a carry greater than a VP on the operating side). For smaller PE shops, family offices, holding companies the Operating Partner/Entrepreneur in Residence program looks essentially like a in-house search fund, and from what I've heard may have similar economic strucure. A few that come to mind are Hunter Trust, Halstatt Legacy, NextGen Growth Partners

like reply | 0 likes

sign in to join the discussion

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

Women in Search: What's Holding You Back?

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

Live Chat with Mukesh Patel, Director of Innovation

2021-03-10T21:00:00+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