PRIVATE EQUITY SEARCH FUNDS – THE GOOD AND THE BAD
I received an email today from a business owner that has a letter of intent to sell a majority interest to a private equity group, but he is having second thoughts about how professional the PEG really is. After looking into it, he is probably involved with a small search fund. Here’s the scoop on them.
We probably have one of the best if not the best middle market private equity database because of our deal flow and marketing efforts. There are currently around 2,800 PE firms in our database, but this PEG was not listed. I went to their website (new) and they did show one transaction, but the business owner said that they actually didn’t directly execute that transaction. The PEG is made up of two guys looking for smaller deals (about $1mm).