Search Fund Secondaries

by an investor from IE Business School

2 years ago

Hi everyone - I got a couple of questions regarding search fund secondaries:
- Can LPs usually sell their stake in the search fund prior to the company's exit?
- Is there a professional secondary buyer market for search funds?
- What fees do they usually charge?

Best,
Adrian

1 like
176 views
6 comments

investor from Universidade Católica Portuguesa - Catolica Lisbon School of Business and Economics

People have made most points, including ROFO’’s, tag along, etc the one point I would add, is that if one investor really wants to exit and the others agree, as long as the company is in good enough shape, the company itself can buy back the shares at an agreed price. So that can also provide an exit to investors.
Ultimately the mechanisms are there, it really comes down to price and peoples perception of it.

1 year ago | like reply | 2 likes

investor from IE Business School

Thanks a lot for all your replies - very helpful!

2 years ago | like reply | 0 likes

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