Search Fund Trend Continues

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January 30, 2018

by an admin from Stanford University - Graduate School of Business in Honolulu, HI, USA

Search fund formations continued their upward trend in###-###-#### Over the last 5 years, the average annual growth rate is a tad over 40% and over the past 10 years at 25%.  For search fund acquisitions, the average annual growth rate has kept pace with formations over the last 10 years, coming in at 27%.   For some reason, acquisitions dipped in 2016, but rebounded in 2017 toward 2015 levels.  This dip causes a drops in the 5 year average growth rate, which resides at 16%.  

The charts are based on crowdsourced data on Searchfunder as of January 17, 2018.   If we're missing a new fund or acquisition, you can earn access credits for adding it to the map. 

The data covers all fund types (traditional, self-funded and single sponsor) listed on Searchfunder.  There may be some lag between the time when a fund is formed or makes an acquisition and the date when it is posted to the community.  For example, an acquisition made in Q4 might not be reported until Q1 or later.  Thus, we look forward to seeing what the data looks like at this time next year. 







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Reply by a searcher
from Harvard University in Longmont, CO, USA
We need to develop a time lag function to connect search funds formed to acquisitions...i.e. is the success rate of acquiring a company changing with the 40% growth rate?
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Reply by a searcher
from Southern Methodist University in Denver, CO, USA
Thanks Karen really appreciate the report and all your hard work
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