Experience with the "search fund" model for multiple minority acquisitions?

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January 19, 2019

by a searcher from Norwegian School of Economics and Business Administration in Lisbon, Portugal

I am wondering if anyone has tested the search fund model (fee structure and fund raising) for doing multiple minority acquisitions. I am considering to set up a hybrid vehicle, applying some of the search fund terms, but focusing on early stage investments/seed investments. Experiences or thoughts would be highly appreciated.

Best regards,

Adrian

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Reply by a searcher
from Norwegian School of Economics and Business Administration in Lisbon, Portugal
Yes, the investment focus would be similar to seed / early stage fund. Basically trying to see if the «search fund» origination model and incentive structure could work for multiple seed investments. If so, what tweaks and adjustments should be considered?
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Reply by a searcher
from University of Worcester in United Kingdom
I've used this model in the past. In theory it seems like a great idea, however, unless you are really focused and you can offer something that makes it a no brainer (in addition to taking money off the table for the owner) it can be more trouble than it's worth.
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