Across all known Search Funds since the inception of the model in the 1980s, ~63% of funds have gone on to acquire a company. However, since 2014, the acquisition rate has decreased, hovering around ~57% over the past 10 years.

Today I'm joined by three of the most experienced and respected investors in the Search Fund ecosystem to discuss A) Why the acquisition rate among search funds has fallen over the past 10 years; and B) Whether the rate of acquisition is likely to fall further in the years to come.

Joining me today are Jim Edmunds (Search Fund Partners), Badge Stone (WSC), and Kent Weaver (Granite Point Partners).

In today's episode, we test 8 individual hypotheses, submitted to us via a survey of 1,000+ searchers & CEOs. Those hypotheses include:

- Encroachment: Is PE moving further down market?
- Capacity: Do investors now have too many searchers in their portfolios?
- Competition: Are there too many search funds in the market?
- Dilution of Talent/Commitment: Are there too many part-time searchers?
- Valuations: Are sellers no longer willing to transact at palatable multiples?
- Cost of Capital: Are searchers disadvantaged because their cost of capital is higher than that of other buyers?
- Searcher Fatigue: Are sellers and intermediaries becoming disillusioned with the value proposition of search funds?
- Email: Have the recent deliverability challenges become too much to overcome?

I found this to be a fascinating discussion, and I hope the same will prove true for you. Link to the episode is below:

Is the Search Fund Acquisition Rate Falling? With Jim Edmunds, Badge Stone & Kent Weaver