Financing options for self funded searchers planning to hold permanently

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April 30, 2026

by a searcher from California Polytechnic State University - San Luis Obispo in Orange County, CA, USA

I'm a self-funded searcher planning to acquire and hold permanently, then continue growing through additional acquisitions over time. The challenge I keep running into when thinking about bringing in outside investors is that most LP structures assume a sale event to deliver IRR. If I'm not selling, traditional equity terms don't really fit, assuming an IRR between 30%-40%. A few things I'm trying to figure out in regards to financing options: - Do most permanent-hold searchers stay away from outside investors entirely and stick with SBA + seller notes + other forms of debt? - Are there investors out there who prefer consistent cash flow over a terminal sale? If so, what do their terms look like? Appreciate any perspective from those who have financed a permanent hold deal.
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Reply by a searcher
from University of California, Los Angeles in Los Angeles, CA, USA
Look for family offices / UHNW individuals. If you are looking at long-term hold model, a MOIC based incentive structure makes more sense than an IRR based one.
commentor profile
Reply by a searcher
from Villanova University in San Diego, CA, USA
Let’s chat. I know many people that would be interested in long-term hold and consistent cash flow.
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