Hi All! I'm new here and have been considering raising a UK based search fund since finishing business school last year. With the current Covid-19 induced market decline, I'm considering this a good time to start looking for resilient businesses in a low multiple environment - is this a fair assumption and does it reflect search fund investor sentiment? And if so, could the SF model under current circumstance be adapted to include distressed yet surviving prospects and not just those experiencing continued growth? With all the Death, Destitution and Divorce sadly happening, there should be an expected increase in motivated sellers and good discounts to pick up by the time recovery starts. Or is it better to wait for this contraction phase to end before raising a new fund?
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I've personally been more inclined towards the traditional model and my takeaway is that it's still possible to do a traditional search if pushed hard as evidenced by the June raise. I therefore plan to formally start reaching out to investors with a PPM by next month and can then hopefully update this thread with my direct experince.