Self-funded search economics

by a searcher from Northwestern University - Kellogg School of Management

3 years ago

What does the cap table look like for self- funded or single sponsor searchers. I’ve read 20-30% common equity for traditional search fund management packages, In self-funded model does the searcher also get preferred equity in order to recover the search costs, “step up equity”? Curious what structures investors typically see.

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22 comments

searcher from Ivey Business School at Western University

Pref structures with 20-30% equity and 10-12% interest seem more common these days

5 months ago | like reply | 0 likes

searcher from University of Texas at Austin

The structures are really all over the map

2 years ago | like reply | 1 like

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