LatAm Search Funds Study

January 05, 2026

by an investor from Tufts University in London, UK

We loved the insights and encouragement from the Spectra-Cerralvo Search Funds study from Latin America. Take a look via this link: https://www.linkedin.com/posts/newtonequity_latin-america-search-fund-study-november-activity-7407798140663255041-A6f1?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAM3e0IBneGc3DQ0Uwpo5d38NJjXrVlu1dc

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Reply by a professional-legal
from Universidade Mackenzie in São Paulo, SP, Brasil

Thanks for sharing here Vani. From a LatAm perspective, It’s one of the most comprehensive and data-driven views of the region I’ve seen recently. I shared in my LinkedIn a few takeaways that are particularly relevant for Brazil: • Brazil is now the most active Search Fund market in LatAm, overtaking Mexico in recent cohorts. This reflects both ecosystem maturity and a growing pipeline of viable lower-middle-market companies. • Deal structures are adapting to local realities in LatAm. Earn-outs (≈8% of deal value) and moderate leverage (≈37%) are increasingly used to bridge valuation gaps and manage credit constraints. • Searcher profiles are changing. More operators, ex-founders and non-MBA professionals are entering the market — a trend that fits well with Brazil’s operationally complex SME landscape. Solo Searchers are now 78% of the cohort! From a legal and structuring perspective, Brazil continues to demand careful attention to governance, seller alignment, debt terms and tax — but the opportunity set is clearly there. Highly recommended reading for investors, searchers and advisors active (or looking to be active) in Brazil and Latin America.

Reply by an investor
from Stanford University in Mexico City, CDMX, Mexico

Thank you ^redacted‌. Although our capital comes from LatAm, we are currently investing only in the US. Thank you for sharing, we will take a look at this study for future reference.

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