Full Fund vs. Search Fund

searcher profile

February 10, 2022

by a searcher from University of Calgary - Haskayne School of Business in Calgary, AB, Canada

From an investors perspective, is there a preference for diversification under a multi-asset strategy (fund) or focused investment under a singular asset (search fund) and what sways an investor in one direction or another?

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commentor profile
Reply by a searcher
from New York University in Larchmont, NY, USA
There is no right answer. It would really depend on how the investor perceives you as the steward of their capital. For example outside investors who have had success with a searchfund operator may be more willing to invest in multi-asset vehicle, or assist with add-on acquisitions. Other investors might like investing in a more diversified fund, though I think this class of investors are more interested in a private equity model.
commentor profile
Reply by a professional
in Dallas, TX, USA
That all depends on the investors. If they like you and trust you in growing the business they will invest. If one investor doesn't like you plan or fund structure there will be ten others that would happily invest in your business. You just have to find them.
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