Search fund model (UPDATED)

searcher profile

March 01, 2021

by a searcher from University of Pennsylvania - The Wharton School in Toronto, ON, Canada

Good day. Hope this message finds you all well.
I had a few questions to the search fund model, hope you could answer it.
1. (TRADITIONAL RAISE) In regards to incorporation of a search fund before an investment, is Memorandum and Articles of Association required?

  1. What are the main points to keep in mind to build relationship for PE/VC investor in a traditional raise?
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commentor profile
Reply by a searcher
from Harvard University in Mexico City, CDMX, Mexico
In my view it is not necessary to have the search fund incorporated before you have the commitment from your investors. Depending on your region it may take from a few days to a few months to incorporate the search fund vehicle, so take that into consideration. On our case, what really took time was getting the proper bank accounts ready for transfer, that took much longer than anticipated.
commentor profile
Reply by a searcher
from Harvard University in Mexico City, CDMX, Mexico
For a traditional raise I would recommend you have a presentation with: your bio and experience, 1-2 target industries, why those industries, search capital being raised, use of proceeds slide. The key point is why you want to buy a company in such industry and why you will be succesfull.
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