Has anyone ever heard of a successful search fund / traditional PE sponsor structure? or hybrid structure?

searcher profile

November 07, 2019

by a searcher from Duke University - The Fuqua School of Business in Scottsdale, AZ, USA

Has anyone ever heard of a successful search fund / traditional PE sponsor structure? For instance, if you have two partners, one would be focused on operating a portfolio company full-time, whereas the other partner searches for additional acquisition opportunities, etc.?

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commentor profile
Reply by a searcher
from Ivey Business School at Western University in Toronto, ON, Canada
Awesome topic. Have heard of past successful searchers doing this.

If 1) the asset doesn't require two new executives to reach its objectives and 2) you have a great search machine running, it's probably better resource allocation to put have one person run the asset and one person continue to run the search.

We are looking for assets that would benefit from two driven executives, but if something else came up (i.e. a little small or stable+low growth+good multiple), I think we could consider the portfolio strategy.
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Reply by an member
from Rice University in Houston, TX, USA
Hi Jonathan, I hope this helps: I know some PE firms that bring in classes of entrepreneurs and put them through a PE boot camp or accelerator teaching them tools of the trade like valuations and tools to use for deal sourcing and then help them launch their own searches with business and finance support. Take a look at Search Fund Accelerator - https://www.searchfundaccelerator.com/
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