I'm in the early research stage and reading the PPM template attached to the Stanford search funds primer.  I was somewhat surprised to read this:

"Upon completion of a transaction, any funds remaining in the search fund will be returned to investors on a pro-rata basis.  Cash returned to investors will not be converted to securities in the acquired company (i.e., only capital consumed in the search process will be converted and stepped up)."

I have a feeling I might be getting ahead of myself here, as I haven't finished reading the document, but does that mean that some of the investment cash could go straight back to the investor without any interest for the investor's trouble?  Or is it usually not an issue because the investment is disbursed regularly in small amounts?  Or maybe not an issue because most search funders burn through their cash anyway?  What am I missing?