^redacted‌ Thank you for the perspective. For clarity, my question was less so related to the implications of leverage (which I am thoroughly familiar), and more so directed at understanding the degree to which investors might view a self-funded search investment -where the search phase is fully funded by the searcher - as lower risk and warranting a lower step-up (exredactedthan one where the investor funds the search. I understand that at the end of the day, every deal is unique, there are many other factors beyond leverage that will be considered when evaluating risk/reward prospects of an opportunity, and it will all boil down to what a searcher and investor are willing to agree on.

Very high level.

Self funded searcher. Will end up with 60-80% of the common equity

Traditional search fund has the potential to end up with 25-30% depending on hurdles and whether 1 or 2 searchers.