In our last Half Yearly Report (published roughly eleven months ago), we predicted that the number of search fund formations in 2019 would likely be the same or higher than formations from the previous year. Our updated data demonstrates that our prediction was correct, as there were 237 search funds formed in 2019, which is the most ever formed in a calendar year. This continued a trend of mostly steady year over year growth for the last twenty years[redacted], however, as in so many other ways, has been a different story. Search fund formation numbers in the first half of 2020 are the lowest they have been since[redacted]In light of the current economic environment, this should not come as a surprise. In April, a Reuters article stated that there had been a 21.4% drop in business applications compared to the same time in 2019. (U.S. Business Formation Tanks as Coronavirus Shuts Economy) While the Coronavirus pandemic has had tragic effects that go well beyond the business world, we can reasonably hypothesize that the number of search fund formations in the first half of 2020 has decreased due to the pandemic. We expect the number of search funds formed in the second half of 2020 to be higher than the number formed in the first half, but it seems unlikely that the total number of search funds started in 2020 will reach the same number as[redacted]Hopefully, Coronavirus spread will diminish, public health and global economies will begin to recover, and search fund formations will rebound in 2021.

We're making a general call out to the search fund community to help us with crowdsourcing data on search funds, especially for 2019 and the first half[redacted]Please check your search fund's information for accuracy and update it as needed. If you're aware of someone else's new search fund or an acquisition that's not listed, please direct message me through Searchfunder.

* Search fund formations data collected as of[redacted]