PPM for a traditional search fund?

searcher profile

October 07, 2023

by a searcher from Université Badji Mokhtar in Montreal, QC, Canada

Hi folks,

Has anyone here raised a traditional search fund or is in the process of doing so? I'd appreciate some help with the PPM.

Thanks,
Mohamed

2
70
866
Replies
70
commentor profile
Reply by a searcher
from Stanford University in Paris, France
As an investor in search funds I can tell you that the only two sections of interest in a PPM are 1) the background of the searcher (hopefully with indications of preparedness for the unglamorous rollercoaster nature of running a small company) and 2) the industry section (with some target industries where the searcher hopefully has an edge). The rest, particularly the references to the Stanford study, is just copy & paste - useful for the uninitiated, but otherwise of no value.
commentor profile
Reply by a searcher
from IESE Business School in Madrid, Spain
Thanks for the tag Luke, much has been said already by fellow searchfunders, see below some learnings pulling together mine.

1) Background. Focus on why this is the right time for you to get into this way of life. As many, I spent a great deal of time understanding not only the business model but the daily life of a searcher by talking to many people (searchers, investors, suppliers, brokers, interns...) and getting to the rationale of why I want to do this now. Once you get there write a compelling story connecting the dots of your background.

2) PPM structure: keep it simple, don't overcomplicate things, as many have already said use the Stamford template and if needed add more relevant information in the appendix. I see as an advantage rather than a weakness having an accepted PPM template by investors.

3) Investment thesis: keep it simple, clear and coherent to your story, background and approach. The point is not to build a PhD thesis, it's to share with investors the way you plan to address the market. Feel comfortable, confident and open to discuss it.

Lastly, I wouldn't spend time getting to lots of PPMs from former/current searchers, while theres some value getting an understanding of recent trends of searchers that have raised funds in a given market, to me the most important thing is the relevance, coherence and consistency of the document and to me this is a consequence of the process that a searcher goes through when producing it. This may take longer or shorter depending on each searcher.
commentor profile
+68 more replies.
Join the discussion