Good or bad news? Searchfunds heading into more 'mainstream' news media.

searcher profile

December 06, 2018

by a searcher from Harvard University - Harvard Business School in 1790 Hughes Landing Blvd, The Woodlands, TX 77381, USA

https://www.fastcompany.com/###-###-#### /how-ceos-in-waiting-buy-the-companies-they-want-to-run

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Reply by a searcher
from Harvard University in Denver, CO, USA
I think people have been buying and selling small businesses forever and now more of us are calling ourselves "search funds" than before. I'd bet the total number of small private market deals is not actually going up that much, though I think it used to be much more opportunistic deals put together by entrepreneurs similar to unfunded model rather than prolonged funded searches now on the rise. The popularizing of the raised search fund will likely depress returns some eventually but with the number of baby boomers set to retire I think peak number of successful searches and number of good deals out there is still in the future not the past.
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Reply by a searcher
from Universitat de Barcelona in Barcelona, España
I think it will be good in first stage for investors, who will find more searchers to invest in so, presumably, they should be able to find more talent. On a second stage after some searchers struggling for investors and deals, more investors should enter the ecosystem making it easier for searchers to find investors. At this point an excess of liquidity could drive valuations up, making returns lower for investors. Overcrowded markets aren’t good for anyone since they become beta markets instead of alpha generators.
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