Properly considered, Search funds mirror aspects of venture capital and private equity.
As an asset class, investing in small businesses is not a new phenomenon. SFs are just one way to go about the practice of acquiring a small business.
Returns, by contrast, seem to mirror venture capital more than they mirror true private equity. This seems to be virtually certain at this point. It appears that a smaller share of the total set of investments will account for the lion's share of the gains.
Therefore should SFs truly be considered PE investments or VC investments?
A poll among the community would be interesting on this topic.
What is the proper classification of a search fund investment? PE or VC
by a searcher from University of Dallas
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Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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