Has anyone recently invested or raised for a traditional 2 searcher fund?

searcher profile

October 10, 2023

by a searcher from IE Business School in France

Hello everyone,

We are 2 French searcher finalising our PPM and we are wondering what isthe current market rate for the search in the 2 searchers fund is (I have in mind ~440k€ for one searcher).

Thanks a lot !!

5
73
498
Replies
73
commentor profile
Reply by a searcher
from IESE Business School in Fortaleza - CE, Brasil
Hello Luke Thank you for reaching out. I appreciate the opportunity to contribute to the Searchfunder community and confirm my interest in traditional search funds. Currently, with my partner Newton, I am actively raising search capital for Spuri Capital, a Brazilian Search Fund. You can follow our progress on the Spuri Capital website: www.spuricapital.com. Regarding search fund budgets, it's essential to consider various factors such as location, salary expectations, local service providers' costs, office expenses, travel, and other related expenditures. The budget is also influenced by the experience and expertise that searchers bring to the table. Based on my analysis, a typical budget for two searchers in a traditional fund ranges from USD 600k to USD 800k. Please contact me if you need further details.
commentor profile
Reply by a searcher
from Northwestern University in Chicago, IL, USA
Investors will demand a return that compensates them for the risk assumed. The return expected will be higher than the risk free rate (what one would earn on a cd, etc) however likely lower than the sba loan (in the US, realize might not be available in France). The reason the return will be lower is that they will be receiving equity and participate in any upside. Some will go to family /friends who may subsidize and loan at lower than market rates due to the relationship. Hope that helps and good luck!
commentor profile
+71 more replies.
Join the discussion