WHAT IS THE PROPER CLASSIFICATION OF A SEARCH FUND INVESTMENT? PE OR VC
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.